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Tax

What is the kiddie tax?

Quick Answer

The kiddie tax taxes a child's unearned investment income above $2,700 (2025) at the parents' marginal rate, not the child's. It applies to dependents under age 18, or under 24 if a full-time student providing less than half their own support.

Kiddie tax structure — first $1,350 tax-free, next $1,350 at child rate, rest at parent rate.
Warren Team
Updated April 26, 2026
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The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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