Collaborative Post | In 2026, a trust pays the top 37% federal income tax rate on income over $16,000. This figure is according to the IRS tax rate schedule for estates and trusts. In addition, trusts with undistributed net investment income face an even steeper rate with the 3.8% net investment income tax (NIIT). In comparison, an individual does not reach the 37% tax bracket until their income runs into the hundreds of thousands, and the NIIT threshold for individuals is far higher than for trusts.
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