The Net Investment Income Tax for a married taxpayer, filing jointly with modified adjusted gross income over $250,000 is what percentage for certain net investment income?

• 3.8%
• 4.0%
• 4.2%
• 4.4%
• 4.6%

Answer: 3.8%

The Net Investment Income Tax is imposed by section 1411 of the Internal Revenue Code (IRC). The NIIT applies at a rate of 3.8% to certain net investment income of individuals, estates and trusts that have income above the statutory threshold amounts.  In general, investment income includes, but is not limited to: interest, dividends, capital gains, rental and royalty income, non-qualified annuities, income from businesses involved in trading of financial instruments or commodities, and businesses that are passive activities to the taxpayer. For more information see the IRS article titled Affordable Care Act Tax Provisions.