Tax Facts

754 / What changes to the tax rates applicable to trusts and estates were imposed by the 2017 tax reform legislation?

The 2017 tax reform legislation changed the income tax rates that will apply to trusts and estates. These rates were especially important for 2018 and 2019 because taxpayers could elect to apply these rates to the unearned income of minors (see Q 679 and Q 8602). The SECURE Act eliminated this option for tax years beginning after 2019.

The applicable tax rates and income thresholds for 2025 are outlined in the chart below:


























Tax Rate Trusts and Estate Income
10% $0 to $3,150
$315 plus 24% of the excess over $3,150 $3,150-$11,450
$2,307 plus 35% of the excess over $11,450 $11,450-$15,650
$3,777 plus 37% of the excess over $15,650 Over $15,650


The applicable tax rates and income thresholds for 2024 are outlined below:

























Tax Rate Trusts and Estate Income
10% $0 to $3,100
$310 plus 24% of the excess over $3,100 $3,100-$11,150
$2,242 plus 35% of the excess over $11,150 $11,150-$15,200
$3659.50 plus 37% of the excess over $15,200 Over $15,200

These applicable tax rates and income thresholds1 are set to expire for tax years beginning after December 31, 2025.





1.  Rev. Proc. 2024-40, Rev. Proc. 2023-34.


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