What is Net Investment Income Tax (NIIT) and Who Pays It? What is net investment income tax (NIIT)? The net investment income tax is a 3 8% tax you must pay if your modified adjusted gross income (MAGI) exceeds a certain threshold
Net Investment Income Tax | Schwab As an investor, you may owe an additional 3 8% tax called net investment income tax (NIIT) But you’ll only owe it if you have investment income and your modified adjusted gross income (MAGI) goes over the IRS threshold
Net Investment Income Tax (NIIT): What It Is and What’s Taxable The NIIT is a health care tax that applies to taxpayers who have AGI of a specific amount set by the IRS and correlated to their filing status The tax is 3 8% of the lesser of NII or the amount by which the taxpayer’s AGI exceeds the threshold set for their filing status
NIIT - Wikipedia NIIT was established in 1981 by Rajendra S Pawar and Vijay K Thadani, graduates from IIT [5] Delhi, with one million rupees NIIT conceived a franchising model in IT education for the very first time, setting up nine centers by 1987
A Guide to the Net Investment Income Tax (NIIT) (2026) According to the IRS, if you believe that you will pay the NIIT for the current tax year, you must account for it ahead of time This involves either adjusting your income tax withholding or setting up quarterly estimated payments