Tax numbersTax years 2026 and 2025IRS Rev. Proc. 2025-32
Kiddie tax 2026 and 2025
In 2026, a child's investment income above $2,700 is taxed at the parent's rate (the kiddie tax), the same threshold as 2025. The first $1,350 is tax-free and the next $1,350 is taxed at the child's rate.
2025FinalFor returns filed in 2026. Rev. Proc. 2024-40 § 2.02.
2026Current yearFor returns filed in 2027. Rev. Proc. 2025-32 § 4.02.
2027Not yet publishedNot published as of 9 October 2026. The 2027 kiddie tax amounts will be in the IRS revenue procedure that follows Rev. Proc. 2025-32. Until then, plan with the 2026 figures on this page.
| 2026 | 2025 | |
|---|---|---|
| Unearned income that is tax-free (covered by the child's standard deduction) | $1,350 | $1,350 |
| Next slice, taxed at the child's own rate | $1,350 | $1,350 |
| Unearned income above this is taxed at the parent's rate | $2,700 | $2,700 |
| Parent can report the child's income instead if the child's gross income is | $1,350 to $13,500 | $1,350 to $13,500 |
| AMT exemption cap for the child: earned income plus | $9,750 | $9,550 |
Kiddie tax calculator
Tax year
Child's standard deduction $1,350; taxable income $3,650, of which $1,350 is taxed at the child's own rate.
Questions and answers
- What is the kiddie tax threshold for 2026?
- $2,700 of unearned income; above that it is taxed at the parent's rate.
- Who is subject to the kiddie tax?
- Children under 18, 18-year-olds whose earned income is not more than half their support, and full-time students 19 to 23 under the same test (IRS Topic 553).
- Can parents report the child's income on their own return?
- Yes, if the child's gross income is only interest and dividends and is between $1,350 and $13,500 (Form 8814).
Related
- Standard deduction$16,100 single
- Gift tax exclusion$19,000
- Tax brackets37% from $640,600
- Capital gains brackets0% to $49,450 single
- 401(k) limits$24,500
- Your federal tax receiptwhere your tax goes
- State income tax calculators50 states and DC
- All tax numbers2025 and 2026
Sources
- IRS, Rev. Proc. 2025-32: 2026 inflation adjustments (as amended by Public Law 119-21, the One, Big, Beautiful Bill Act).
- IRS, Rev. Proc. 2024-40: 2025 inflation adjustments.
- IRS, Topic no. 553, Tax on a child's investment and other unearned income (kiddie tax).
- Every figure on this page was checked against the documents above by an automated test on 9 October 2026. Status of 2027 figures checked on 9 October 2026 (IRS newsroom and SSA). Page built 2026-10-09.