What is the tax rate for trusts?

The tax rate for trusts in Washington varies depending on the type of trust and the amount of income it earns. Generally, income earned by trusts is taxed at the same rate as income earned by individuals. This means that income up to $0-$25,000 is taxed at 0%, income over $25,000 is taxed at 10%, income over $50,000 is taxed at 15%, income over $75,000 is taxed at 20%, and income over $25,000 is taxed at 25%. For certain trusts, the tax rate may be higher or lower than the rates for individuals. For example, trust income from certain types of investments such as bond interest, dividend income, and capital gains may be subject to additional tax. Additionally, trusts that are set up for charitable purposes may be taxed at reduced rates or even be exempt from taxation. In Washington, there are various tax credits available for trusts. For example, certain trusts may be eligible for the Elderly and Disabled Tax Credit, which provides a tax credit of up to $2,500 for individuals with a gross income of $60,000 or less. Additionally, trusts may qualify for the Washington State Tax Exemption, which allows them to pay taxes on their income at reduced rates. Because the tax rate for trusts in Washington can vary depending on the type of trust and the amount of income it earns, it is important to consult with a tax professional to make sure that the trust is paying the appropriate rate.

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What is the tax rate for trusts?

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