For high earners

Dodge the quiet 3.8% surtax on your investments.

Above a certain income, investment earnings get hit with an extra 3.8% tax. With a little planning around that line, you can often keep more.

Watch the quick version

See how it works through one simple example.

Is this you?

Your income is near or above the surtax threshold and you have investment income.
The thresholds are fixed and not adjusted for inflation, so more people cross them each year.

Here is the idea, in plain words

The surtax applies to the smaller of your investment income or the amount your income is over the line.

Lowering your income, or timing gains, can keep you under the threshold.

Harvesting losses can also pull your income back down.

What this could be worth

Worth avoiding an extra 3.8% on investment income, which adds up fast for high earners.
  • 1Estimate your income against the surtax threshold.
  • 2Time gains, retirement contributions, or loss harvesting to stay under it.
  • 3Recheck near year end before realizing more income.

Educational guidance, not tax advice. We confirm every figure and your eligibility before you act.

Ready?

See your surtax exposure

Connect your account and our radar shows how close you are to the line and what moves help.

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What to watch out for

The honest version.

  • The thresholds do not adjust for inflation.
  • One large gain can push you over for the whole year.
  • It applies on top of regular capital gains tax.

Common questions

What counts as investment income?

Interest, dividends, capital gains, rentals, and similar passive income.

What are the thresholds?

Set dollar amounts by filing status. We track your distance to them.

How do I avoid it?

Keep income under the line through timing, contributions, or loss harvesting.

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