2021 Tax Rate for Estates and Trusts

Section 1(e) of the Internal Revenue Code imposes an income tax on estate and trusts. 2021 federal income tax rates for estates and trusts are included in Revenue Procedure 2020-45. They are as follows:

If taxable income is: The tax is:

• Not over $2,650  – 10% of taxable income
• Over $2,650, but not over $9,550 – $265 plus 24% of the excess income over $2,650
• Over $9,550, but not over $13,050 – $1,921 plus 35% of the excess income over $9,550
• Over $13,050 – $3,146 plus 37% of the excess income over $13,050

Tax returns for estates and trusts are filed on Form 1041. See Instructions for Form 1041.

About Form 1041 @ IRS.gov

See IR Notice 2020-245, accompanying Rev. Proc. 2020-45

Resources:

• Do I Need to File a Tax Return?
• How Do I File a Deceased Person’s Tax Return?