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Net Investment Income Tax for Trusts and Estates (2026 $16,000)

What does this come to under the current IRS rules?

The 3.8% tax on the lesser of undistributed net investment income or AGI above $16,000 for 2026.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Net investment income tax
$1,482
3.8% for a trust or estate, 2026
AGI above $16,000
$39,000
Amount taxed at 3.8%
$39,000
Drawn to one scale
Net investment income tax$1,482
AGI above $16,000$39,000
Amount taxed at 3.8%$39,000
All results
MeasureResult
Net investment income tax$1,482
AGI above $16,000$39,000
Amount taxed at 3.8%$39,000
How this was worked out
Work shownrecomputed as you type
Tax = 3.8% x lesser of (undistributed net investment income) or (AGI - $16,000)
$16,000 is where the 37% bracket for estates and trusts begins in 2026

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Tax = 3.8% x lesser of (undistributed net investment income) or (AGI - $16,000)
  • $16,000 is where the 37% bracket for estates and trusts begins in 2026

How it works

Section 1411(a)(2) imposes 3.8% on an estate or trust on the lesser of undistributed net investment income or AGI above the dollar amount where the highest bracket in Section 1(e) begins. Rev. Proc. 2025-32 places that start at $16,000 for 2026.

The individual thresholds of $200,000, $250,000 joint and $125,000 married separate are statutory and not indexed. A trust reaches its threshold at a much lower income. Distributing net investment income to beneficiaries moves it to their returns, where their own thresholds apply.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Which trusts are exempt?

Grantor trusts, charitable trusts and trusts with all interests devoted to charity are outside the trust NIIT. Form 8960 instructions list the exceptions.

Is the $16,000 indexed?

Yes. It follows the bracket start, which Rev. Proc. 2025-32 indexes each year.

What counts as net investment income?

Interest, dividends, rents, royalties, passive income and net gain on investment property, less allocable deductions.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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