Kiddie Tax Threshold 2026

Current year

The 2026 Kiddie Tax Threshold is $1,350.

Unearned income threshold$1,350

Effective 2026-01-01Source: Rev. Proc. 2025-32 (IRS)Verified 2026-09-01

Compared with 2025

Every figure on this page is unchanged from 2025.

Item20252026Change
Unearned income threshold$1,350$1,350+$0 (+0.0%)

Who it applies to

The amount is applied on the return of a child whose unearned income falls under the § 1(g) kiddie tax for a taxable year beginning in 2026. It works as a reduction against net unearned income rather than as an exemption from the rule, so the child remains inside the kiddie tax regime and the figure only sets how much unearned income escapes it. The same figure also matters to a parent, because the revenue procedure uses it to frame the gross income range in which a parent may elect to report the child's income on the parent's own return. Rev. Proc. 2025-32 sets the amount and does not restate which children § 1(g) reaches.

What changed this year, and why

The kiddie tax amount did not move. For taxable years beginning in 2026, Rev. Proc. 2025-32 sets at $1,350 the amount in § 1(g) used to reduce the net unearned income reported on a child's return that is subject to the kiddie tax, the same $1,350 that Rev. Proc. 2024-40 stated for taxable years beginning in 2025. The revenue procedure again notes that this figure is the same as the amount provided in § 63 for a dependent's standard deduction, as adjusted for inflation, and that the same $1,350 is used under § 1(g) to determine whether a parent may elect to include a child's gross income in the parent's gross income. The One, Big, Beautiful Bill Act changes that Rev. Proc. 2025-32 exists to reflect do not include § 1(g).

Common questions

What is the kiddie tax unearned income amount for 2026?
For taxable years beginning in 2026 the amount in § 1(g) used to reduce the net unearned income reported on the child's return that is subject to the kiddie tax is $1,350. Rev. Proc. 2025-32 states it as an inflation-adjusted item. It is a reduction applied to unearned income, not a cut-off that removes a child from § 1(g) altogether.
Did the kiddie tax threshold change for 2026?
No. Rev. Proc. 2025-32 states $1,350 for taxable years beginning in 2026, the same figure Rev. Proc. 2024-40 stated for taxable years beginning in 2025. The amount is an inflation-adjusted item determined by reference to § 1(f), and an indexed figure can be republished unchanged from one year to the next. The legislation Rev. Proc. 2025-32 was issued to reflect did not amend § 1(g) either.
What does the $1,350 kiddie tax amount actually do?
It reduces the net unearned income reported on the child's return that is subject to the kiddie tax. Rev. Proc. 2025-32 describes the figure that way rather than as an exemption or a filing trigger. The reduction is applied to unearned income specifically; the revenue procedure states no equivalent figure for the child's earned income under § 1(g).
Can a parent report a child's income on their own return in 2026?
Rev. Proc. 2025-32 states that the same $1,350 is used for purposes of § 1(g) to determine whether a parent may elect to include a child's gross income in the parent's gross income and to calculate the kiddie tax. The figure therefore does double duty: it sizes the reduction on the child's own return and it sets the bottom of the income band in which the parental election can be considered.
What income range lets a parent make the kiddie tax election for 2026?
The revenue procedure gives one requirement as an example: the child's gross income must be more than the amount referred to in § 1(g), which is $1,350 for 2026, but less than a multiple of that amount which § 1(g) itself specifies. Rev. Proc. 2025-32 sets out only that requirement; the remaining conditions on the election live in the Code section rather than in the revenue procedure.
Is the kiddie tax amount the same as the dependent standard deduction?
Rev. Proc. 2025-32 says the $1,350 kiddie tax amount is the same as the amount provided in § 63, as adjusted for inflation. In the standard deduction item, the deduction for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of that same figure or the sum of the individual's earned income and a further amount the procedure states. The two provisions are indexed together.
Does the kiddie tax affect the alternative minimum tax in 2026?
Yes, and Rev. Proc. 2025-32 handles it as a separate item. For a child to whom the § 1(g) kiddie tax applies, the exemption amount under § 55 and § 59(j) for alternative minimum tax purposes may not exceed the sum of the child's earned income for the taxable year plus a fixed amount stated in that item. That AMT figure is a different number from the $1,350 unearned income reduction and moves on its own schedule.
Which tax year does the $1,350 kiddie tax amount apply to?
Rev. Proc. 2025-32 states it for taxable years beginning in 2026, and the effective date section applies the 2026 adjusted items to taxable years beginning in 2026. Unearned income of minor children is not one of the items routed to the procedure's calendar year rule instead. The figure therefore attaches to the child's taxable year, not to the date on which the unearned income was received.

Every amount on this page is a published figure rather than yours. The Kiddie tax threshold headroom takes the number you enter and works it out against them, showing which published figure it used.

The five conditions, and the three age tests

A child is subject to the Kiddie Tax and must file Form 8615 only if all five of the following conditions are met: (1) the child had more than $2,700 of unearned income; (2) the child is required to file a tax return; (3) the child satisfies one of three age tests; (4) at least one parent was alive at the end of the year; and (5) the child does not file a joint return. The three age tests in condition 3 are: (a) the child was under age 18 at the end of 2025; (b) the child was age 18 and did not have earned income exceeding half of his or her support; or (c) the child was a full-time student at least age 19 and under age 24 and did not have earned income exceeding half of his or her support. The term "child" includes a legally adopted child and a stepchild. These rules apply whether or not the child is a dependent, but they do not apply if neither parent was living at the end of the year.

Form 8615 must be filed for any child who meets all of the following conditions. 1. The child had more than $2,700 of unearned income. 2. The child is required to file a tax return. 3. The child either: a. Was under age 18 at the end of 2025, b. Was age 18 at the end of 2025 and didn’t have earned income that was more than half of the child's support, or c. Was a full-time student at least age 19 and under age 24 at the end of 2025 and didn’t have earned income that was more than half of the child's support. (Earned income is defined later. Support is defined below.) 4. At least one of the child's parents was alive at the end of 2025. 5. The child doesn’t file a joint return for 2025.

2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)

What counts as unearned income

Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed (earned income). It includes taxable interest, dividends, capital gains (including capital gain distributions), rents, royalties, pension and annuity income, taxable scholarship and fellowship grants not reported on Form W-2, unemployment compensation, alimony, the taxable part of social security and pension payments, and income (other than earned income) received as the beneficiary of a trust. In other words, any income the child receives from investments, government benefits, or trusts counts as unearned income, while income from working for wages or salary is excluded. For 2026, the Kiddie Tax applies when a child's unearned income exceeds $1,350. The distinction between earned and unearned income determines whether the special tax rate applies to a child's investment returns, retirement distributions, or trust income.

Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed (earned income). It includes taxable interest, dividends, capital gains (including capital gain distributions), rents, royalties, pension and annuity income, taxable scholarship and fellowship grants not reported on Form W-2, unemployment compensation, alimony, the taxable part of social security and pension payments, and income (other than earned income) received as the beneficiary of a trust.

2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)

The support test that decides whether an older child is caught

For the kiddie tax to apply in 2026, an older child must meet a support test. If the child was age 18 at the end of the year, or was a full-time student at least age 19 and under age 24, the tax only applies if the child did not have earned income that was more than half of the child's support. This means that if an older teenager or young adult earns enough from working to pay for more than half of their own living expenses, they are generally not subject to the kiddie tax rules. Support includes amounts spent to provide the child with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. A scholarship received by a full-time student is not counted as support. If the child's earned income exceeds half of their total support, the special rules for taxing a child's unearned income at the parent's rate do not apply.

Was age 18 at the end of 2025 and didn’t have earned income that was more than half of the child's support

2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)

Reporting the child's income on the parent's return instead

Under the Kiddie Tax rules, a child who meets all of the conditions for filing Form 8615 may avoid that filing if the parent makes an election. A parent may elect to report the child's interest, ordinary dividends, and capital gain distributions directly on the parent's own return. If the parent makes this election, the child does not have to file a tax return or Form 8615 at all. However, the federal income tax on the child's income, including qualified dividends and capital gain distributions, may be higher if this election is made. For complete details on the requirements and consequences of this election, the parent should consult Form 8814, Parents' Election To Report Child's Interest and Dividends.

The parent may be able to elect to report the child’s interest, ordinary dividends, and capital gain distributions on the parent’s return. If the parent makes this election, the child won’t have to file a return or Form 8615. However, the federal income tax on the child’s income, including qualified dividends and capital gain distributions, may be higher if this election is made. For more details, see Form 8814, Parents’ Election To Report Child's Interest and Dividends.

2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)

Why the child's own bracket is not the end of it

The Kiddie Tax exists to prevent families from shifting investment income to children in lower tax brackets. For children under age 18 and certain older children who meet the Who Must File conditions, unearned income over $2,700 is taxed at the parent's rate if the parent's rate is higher than the child's. If the child's unearned income is more than $2,700, use Form 8615 to figure the child's tax. This means the child's own tax bracket is not necessarily the final answer - instead, the IRS looks at what rate the parent would pay on that same income and applies the higher of the two rates. For 2026, the unearned income threshold is $1,350. The purpose is to ensure that investment income earned by a child is taxed at least as heavily as it would be if the parent had earned it directly, rather than allowing the income to be taxed at a child's typically lower rate.

For children under age 18 and certain older children described below in Who Must File, unearned income over $2,700 is taxed at the parent's rate if the parent's rate is higher than the child's. If the child's unearned income is more than $2,700, use Form 8615 to figure the child's tax.

2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)
How each figure was verified

Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.

Rev. Proc. 2025-32 (IRS)

Unearned income threshold
For taxable years beginning in 2026, the amount in § 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned income reported on the child's return that is subject to the "kiddie tax," is $1,350.
  • Fetched 2026-08-27T13:42:13.037Z
  • Verified 2026-09-01
  • Stored text sha256 208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66

By year

Every published year

11 years on record, 2026 back to 2016. Each year links to its own page, its own document and its own verification date.

YearUnearned income threshold
2026$1,350
2025$1,350
2024$1,300
2023$1,250
2022$1,150
2021$1,100
2020$1,100
2019$1,100
2018$1,050
2017$1,050
2016$1,050

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