2026 Calculator
Trust Tax Calculator
Calculate trust income tax on retained income
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This estimate is based on projected 2026 data and industry averages. Actual premiums vary by insurer, location, and individual factors. Consult a licensed insurance agent for accurate quotes.
*Based on estimated 2026 projections. Data may not reflect real-time legislative changes.
FAQ
How are trusts taxed differently than individuals?
Trusts face compressed tax brackets. The 37% rate kicks in at just $15,200 of retained income (vs $609,350 for individuals). This makes distributing income to beneficiaries often tax-efficient. Distributed income is taxed to beneficiaries at their lower individual rates.
What is the difference between grantor and non-grantor trusts?
Grantor trusts are disregarded for tax purposes - all income is taxed to the grantor (creator). Non-grantor trusts are separate tax entities filing Form 1041. Irrevocable trusts are typically non-grantor, while revocable living trusts are grantor trusts.
What is the 3.8% Net Investment Income Tax on trusts?
Trusts pay the 3.8% NIIT on the lesser of undistributed net investment income or the excess of AGI over $15,200. This applies to interest, dividends, capital gains, royalties. Combined with the 37% bracket, trusts can face over 40% tax on retained investment income.