Kiddie Tax Calculator

Calculate kiddie tax on child unearned income above $2,500 at parent rate.

$

Total Kiddie Tax

$687.00

At Parent Rate

$552.00

Kiddie Tax Breakdown

Taxed at Child Rate (10%)$135.00
Taxed at Parent Rate (24%)$552.00
Total Tax$687.00

Use the Kiddie Tax Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Our Kiddie Tax Calculator helps you determine the tax liability on your child's unearned income that exceeds the 2026 threshold of $2,500. This is crucial because the 'kiddie tax' can significantly impact your family's overall tax burden, taxing your child's income at your higher marginal tax rate instead of their own lower rate. Understanding this calculation is essential for effective tax planning and avoiding unexpected tax bills.

The kiddie tax is calculated by first identifying the child's net unearned income (NUI), which is their total unearned income minus $1,300 (standard deduction for dependents) and an additional $1,200. This NUI is then taxed at the parent's marginal tax rate, effectively treating it as if the parent earned that income. Any remaining unearned income below the $2,500 threshold, along with all earned income, is taxed at the child's own tax rate.

Remember that this calculator focuses solely on the kiddie tax portion; your child may still owe tax on their other income. Common mistakes include forgetting to account for all unearned income sources or misidentifying the 'parent' for tax purposes, especially in cases of divorce or separation. Always consult a tax professional for complex situations or when significant amounts are involved.

Example: Calculating Kiddie Tax for a Child with Investment Income

  1. 1 Input your child's total unearned income (e.g., interest, dividends, capital gains) for 2026. Let's say your child has $10,000 in unearned income from stock dividends.
  2. 2 The calculator first determines the net unearned income subject to the parent's rate: $10,000 (total unearned income) - $1,300 (standard deduction) - $1,200 (additional amount) = $7,500. This $7,500 will be taxed at your (the parent's) marginal tax rate.
  3. 3 Assuming your marginal tax rate for 2026 is 24%, the kiddie tax on this portion would be $7,500 * 0.24 = $1,800. This is the additional tax liability due to the kiddie tax rules.
  4. 4 This $1,800 is the 'kiddie tax' portion. Your child would also be taxed on the first $2,500 of their unearned income at their own rate, along with any earned income they may have. The total tax due for the child would be the sum of these components.

Source: IRS — Forms, Instructions & Publications · Last updated: April 2026

Frequently Asked Questions

What is the kiddie tax and who does it apply to?
The kiddie tax applies to children under 19 (or full-time students under 24) who have unearned income above $2,500 in 2026. The excess is taxed at the parent's marginal rate instead of the child's lower rate.
What counts as unearned income for kiddie tax?
Unearned income includes interest, dividends, capital gains, rents, royalties, and trust distributions. Earned income from a job or self-employment is not subject to kiddie tax.
Can I include my child's income on my own return?
Yes, if your child's income is only from interest and dividends totaling less than $12,500, you can elect to report it on your return using Form 8814 instead of filing a separate return for the child.