Rev. Proc. 2025-32 — Administrative, Procedural, and Miscellaneous

Not over $12,400 10% of the taxable income Over $12,400 but not over $50,400 $1,240 plus 12% of the excess over $12,400 Over $50,400 but not over $105,700 $5,800 plus 22% of the excess over $50,400 12

TABLE 5 - Section 1(j)(2)(E) – Estates and Trusts

.02 U nearned Income of Minor Children Subject to the "Kiddie Tax". For taxable years beginning in 2026, the amount in § 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned income reported on the child's return that is subject to the "kiddie tax," is $1,350. This $1,350 amount is the same as the amount provided in § 63(c)(5)(A), as adjusted for inflation. The same $1,350 amount is used for purposes of § 1(g)(7) to determine whether a parent may elect to include a child's gross income in the parent's gross income and to calculate the "kiddie tax." For example, one of the requirements for the parental election is that a child's gross income is more than the amount referred to in § 1(g)(4)(A)(ii)(I) but less than 10 times that amount; thus, a child's gross income for 2026 must be more than $1,350 but less than $13,500. Over $105,700 but not over $201,775 $17,966 plus 24% of the excess over $105,700 Over $201,775 but not over $256,225 $41,024 plus 32% of the excess over $201,775 Over $256,225 but not over $384,350 $58,448 plus 35% of the excess over $256,225 Over $384,350 $103,291.75 plus 37% of the excess over $384,350 If Taxable Income Is: The Tax Is: Not over $3,300 10% of the taxable income Over $3,300 but not over $11,700 $330 plus 24% of the excess over $3,300 Over $11,700 but not over $16,000 $2,346 plus 35% of the excess over $11,700 Over $16,000

$3,851 plus 37% of the excess over $16,000 13

.03 Maximum Capital Gains Rate (§ 1(h), § 1(j)(5)). For taxable years beginning in 2026, the maximum zero rate amounts and maximum 15 percent rate amounts under § 1(j)(5)(B), as adjusted for inflation, are as follows: Filing Status Maximum Zero Rate Amount Maximum15% Rate Amount Married Individuals Filing Joint Returns and Surviving Spouse $98,900 $613,700 Married Individuals Filing Separate Returns $49,450 $306,850 Heads of Household $66,200 $579,600 All Other Individuals $49,450 $545,500 Estates and Trusts $3,300 $16,250

.04 Adoption Credit. (1) Adoption Credit for Children with Special needs. For taxable years beginning in 2026, under § 23(a)(3), the credit allowed for an adoption of a child with special needs is $17,670. (2) A doption Credit Limitation. For taxable years beginning in 2026, under § 23(b)(1), the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $17,670. The available adoption credit begins to phase out under § 23(b)(2)(A) for taxpayers with modified adjusted gross income in excess of $265,080 and is completely phased out for taxpayers with modified adjusted gross income of $305,080 or more. See section 4.18 of this revenue procedure for the adjusted items relating to adoption assistance programs.