Tax calculator
Net Investment Income Tax Calculator
How much investment income may be exposed to the 3.8% Net Investment Income Tax?
What this tool helps you answer
How much investment income may be exposed to the 3.8% Net Investment Income Tax?
The Net Investment Income Tax uses two limits at once: net investment income and modified adjusted gross income above a fixed filing-status threshold. This calculator identifies the smaller amount and applies the 3.8% rate while keeping the investment-income inputs and the income threshold visible for review.
Transparent method
How the estimate works
See how the estimate is calculated
Add the entered taxable interest, dividends, capital gains, rents, royalties, and passive-business income, then subtract properly allocable investment deductions.
Compare modified adjusted gross income with the statutory threshold for single or head of household, joint, or married-filing-separately status.
Apply the 3.8% rate to the lesser of net investment income or modified adjusted gross income above that threshold.
What to check before acting on the result
How to read it
- Reconcile modified adjusted gross income with the Form 8960 definition.
- Separate passive investment items from wages and nonpassive operating income.
- Review large gains, business participation, and rental activity before relying on the estimate.
Not included
- Every Form 8960 adjustment, foreign-income rule, or investment-expense allocation
- A material-participation or real-estate-professional determination
- State investment-income taxes or regular federal income tax
- Estimated-tax penalties, credits, basis, suspended losses, or tax-return preparation
Common questions
Frequently asked questions
What is the NIIT rate?
The federal Net Investment Income Tax rate is 3.8% on the lesser of net investment income or modified adjusted gross income above the applicable threshold.
What are the NIIT income thresholds?
The statutory thresholds are generally $200,000 for single or head of household, $250,000 for married filing jointly or a qualifying surviving spouse, and $125,000 for married filing separately.
Do wages count as net investment income?
Wages generally are not net investment income, but they can increase modified adjusted gross income and therefore affect the threshold side of the calculation.
Are retirement-plan distributions subject to NIIT?
Most qualified-plan and IRA distributions are not net investment income, although they can raise modified adjusted gross income used in the threshold test.
Sources
Rules and references behind this calculator
Want the fine print? See sources, methods, and limits.