Kiddie Tax Calculator
Calculate the 2026 kiddie tax on a child's unearned income above $2,700, taxed at the parent's rate.
By Konstantin Iakovlev · Updated September 2026 · Source: IRS Rev. Proc. 2025-32 — 2026 inflation-adjusted amounts
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 $2,700, 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 $1,350 standard deduction for dependents, then subtract another $1,350 (Rev. Proc. 2025-32). Whatever NUI remains is taxed at the parent's marginal rate, as though the parent had earned it directly. Unearned income below the $2,700 threshold, plus all of the child's earned income, stays at the child's own rate. The calculator prices the NUI at a 24% parent rate and the $1,350 between the two deductions at the child's 10% 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 (interest, dividends, capital gains) for 2026. Say your child has $10,000 of unearned income from stock dividends.
- 2 Net unearned income taxed at the parent's rate: $10,000 − $1,350 (dependent standard deduction) − $1,350 (second 2026 amount) = $7,300. At the calculator's 24% parent rate that is $7,300 × 0.24 = $1,752.
- 3 Child's own rate: the first $1,350 is covered by the standard deduction, and the next $1,350 is taxed at 10%, or $135.
- 4 The calculator shows a total kiddie tax of $1,752 + $135 = $1,887, of which $1,752 is at the parent's rate. If your marginal rate is not 24%, apply your own rate to the $7,300 instead.
Source: IRS Rev. Proc. 2025-32 — 2026 inflation-adjusted amounts · Last updated: September 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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