Kiddie Tax Calculator
Calculate kiddie tax on child unearned income above $2,500 at parent rate.
By Konstantin Iakovlev · Updated April 2026 · Source: IRS — Forms, Instructions & Publications
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
When a child's investment income climbs past the 2026 threshold of $2,500, the so-called kiddie tax kicks in and taxes the excess at the parent's marginal rate rather than the child's lower one. For families with custodial accounts or sizable gifts, that shift can change the tax owed considerably, which is why it deserves attention well before filing season.
The math starts with the child's net unearned income (NUI): take total unearned income, subtract the $1,300 standard deduction for dependents, then subtract an additional $1,200. Whatever NUI remains is taxed at the parent's marginal rate, as though the parent had earned it directly. Unearned income below the $2,500 threshold, plus all of the child's earned income, stays at the child's own rate.
These figures cover only the kiddie tax slice of the bill; a child can still owe ordinary tax on the rest of their income. Two errors recur in practice: leaving out an unearned income source, and naming the wrong parent for tax purposes when parents are divorced or separated. Complex situations, or large dollar amounts, are worth running past a tax professional.
Example: Calculating Kiddie Tax for a Child with Investment Income
- 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 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 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 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?
What counts as unearned income for kiddie tax?
Can I include my child's income on my own return?
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