Accounting Articles > Estates and Trusts:

What are the income tax rates?

Income taxes rates on trusts are high.

Currently, at the Federal level alone, a trust begins paying income tax around $2,300 in income (15%), and goes into the highest tax bracket just over $11,150 (35%). You don't even pay income taxes on the first $10,000 on most personal income tax returns. From a tax planning perspective, you generally want to get the income out of the trust, prior to the year end.

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