Investing and Taxes

What is the “net investment income tax”?

The net investment income tax applies a rate of 3.8% to specific net investment income of individuals, estates, and trusts with annual incomes above certain threshold amounts, ranging from $125,000 to $200,000, depending on your filing status. If you are an individual who is exempt from Medicare taxes, you still may be subject to the net investment income tax if you have net investment income and also have modified adjusted gross income above the applicable thresholds.


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