Frequently Asked Questions
What is the Net Investment Income Tax?
It is a 3.8 percent surtax on the lesser of your net investment income or the amount your modified AGI exceeds the threshold for your filing status: 250,000 dollars married filing jointly, 200,000 dollars single or head of household, 125,000 dollars married filing separately.
What income counts as net investment income?
Interest, dividends, capital gains, rental and royalty income, and annuities, less related expenses. Wages, self-employment income, and most retirement distributions do not count.
Is the NIIT in addition to capital gains tax?
Yes. The NIIT is a separate 3.8 percent surtax that stacks on top of your regular income tax or capital gains tax. For example, a high-income taxpayer subject to the 20 percent long-term capital gains rate and the NIIT pays an effective 23.8 percent rate on qualifying investment income, plus any applicable state tax.
Can I rely on this figure?
No. It is a general estimate and is not tax, financial, or legal advice. Confirm with IRS Form 8960 instructions or a tax professional.
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This calculator provides general tax information for educational purposes and is not tax advice. Tax laws change and vary by jurisdiction and individual circumstances. Consult a qualified tax professional or CPA for advice on your specific situation.