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NIIT Calculator

NIIT (3.8%) applies to net investment income for single filers over $200K MAGI or joint filers over $250K. Common hit: rental profit, cap gains at sale, dividends, interest. This calculator sizes the liability. NIIT thresholds haven't been inflation-indexed since enactment in 2013. Effective tax creep has pulled more taxpayers into NIIT each year. Strategies to reduce: increase tax-advantaged retirement contributions to drop MAGI below threshold, time capital gain realizations across tax years, use real estate professional status to recharacterize rental income as non-passive, or employ tax-loss harvesting to offset investment income.

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NIIT owed

$2,660

Taxable base (lesser of excess or inv income)

$70,000

Total investment income

$77,000

MAGI excess over threshold

$70,000

Your threshold

$250,000

How the math works

Joint $320K MAGI: excess $70K. Total inv income: $77K. Taxable base = lesser = $70K × 3.8% = $2,660 NIIT.

Pay quarterly via estimated tax to avoid penalty. Strategies to reduce: REPS qualification for rentals, 1031 exchanges to defer caps, Roth conversions to reduce future investment income exposure.

How to Use

  1. Enter MAGI and filing status.
  2. Enter investment income components.
  3. See NIIT owed.

Frequently Asked Questions

Who pays NIIT?

Single/HoH: MAGI over $200K. Joint: $250K. MFS: $125K. Thresholds NOT indexed for inflation. Trusts/estates also liable over $14,450.

Can I avoid it?

Real estate professional status (REPS) — if you qualify, rental income is 'non-passive' and might avoid NIIT. Also: 1031 exchange defers the tax on gains. Retirement account income is exempt.

What counts as investment income?

Rental net, cap gains, dividends, interest, royalties, annuity income. NOT: wages, self-employment income, active business income.

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