Federal Tax Brackets for Trusts and Estates

The Code provides a special tax rate schedule in IRC §1(e) for trusts. Like the tax rate schedules for individual taxpayers, the trust tax brackets are adjusted annually for inflation.


Tax Year:
Ordinary Income Tax Rates
If your taxable income is between... your tax bracket is:
and %
and %
and %
and %
Capital Gains Tax Rates
If your taxable income is between... your tax bracket is:
and %
and %
and %
Net Investment Income Tax
Trusts may also be subject to the net investment income tax (NIIT). Trusts are liable for the 3.8% NIIT on the lesser of:
(1) The trust’s undistributed net investment income (NII) for the year, or
(2) The excess (if any) of the trust’s AGI over the dollar amount of at which the highest tax bracket for trusts begins for the tax year.