Definition · Tax
Net Investment Income Tax
A 3.8% federal tax on investment income above $200,000 of modified adjusted gross income ($250,000 for joint filers).
Nashional Investments · Updated October 2026
Educational definition only, not investment, tax or legal advice.
In practice
Tax strategy is usually about timing and structure: when income is recognized, where it is deducted and how gains are taxed. The term Net Investment Income Tax names one of the tools or rules we look at with your CPA when building a plan. The right answer depends on your income, your assets and your goals, so we model the options before you act.
Questions
Common questions.
What does the term Net Investment Income Tax mean?
A 3.8% federal tax on investment income above $200,000 of modified adjusted gross income ($250,000 for joint filers).
Why does Net Investment Income Tax matter for investors?
Tax strategy is usually about timing and structure: when income is recognized, where it is deducted and how gains are taxed. The term Net Investment Income Tax names one of the tools or rules we look at with your CPA when building a plan.
Related terms
Where it applies
See how this fits into a real plan on our Tax strategies page.
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