2026 Tax Computation Worksheet Using Maximum Capital Gains Rates

Last reviewed: 2025-12-26

Use the Form 1041-ES: 2026 Tax Computation Worksheet Using Maximum Capital Gains Rates Tax Form Calculator Form 1041-ES: 2026 Tax Computation Worksheet Using Maximum Capital Gains Rates as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 1041es16 state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Use this worksheet to calculate the 2026 federal estimated tax for an estate or trust when preferential capital gains or qualified dividend rates apply. This applies only when the estate or trust expects a net capital gain or qualified dividends and taxable income is greater than zero.

The computation mirrors the IRS “Tax Computation Worksheet Using Maximum Capital Gains Rates” included with Form 1041-ES. Amounts allocable to beneficiaries must be excluded, as beneficiary-level taxation is handled separately through income distribution deductions and Schedule K-1 reporting.

How to use this worksheet: Begin with total taxable income, then separate capital gains and qualified dividends into their applicable rate categories. The worksheet walks through each threshold sequentially to ensure income is taxed at the correct marginal and preferential rates.

Important: If total taxable income does not exceed the first capital gain threshold, several later sections of the worksheet are skipped automatically. Follow each instruction note carefully, as many steps are conditional.

2026 Tax Computation Worksheet Using Maximum Capital Gains Rates

Use this computation if the estate or trust expects a net capital gain or qualified dividends and line 6 of the 2026 Estimated Tax Worksheet is more than zero.

Caution: Do not include any amounts allocable to beneficiaries on lines 2, 3, or 4.

1. Enter taxable income (from line 6 of the 2026 Estimated Tax Worksheet)

2. Qualified dividends and net capital gain expected for 2026

3. 28% rate gain

4. Unrecaptured section 1250 gain

5. Smaller of (3+4) or line 2

6. Line 2 minus line 5

7. Line 1 minus line 6

8. Smaller of line 1 or $2550

9. Smaller of line 7 or line 8

10. Line 1 minus line 2

11. Larger of line 9 or line 10

12. Tax on line 11 (2026 rate schedule)

Continuation

If lines 8 and 9 are the same, skip lines 13–15.

13. Amount from line 8

14. Amount from line 7

15. Line 13 minus line 14

16. Smaller of line 1 or line 6

17. Amount from line 15

18. Line 16 minus line 17

19. Smaller of line 1 or $12400

20. Lines 11 + 15

21. Line 19 minus line 20

22. Smaller of line 18 or line 21

23. Line 22 × 15%

24. Amount from line 16

25. Lines 15 + 22

26. Line 24 minus line 25

27. Line 26 × 20%

28. Smaller of line 2 or line 4

29. Lines 2 + 11

30. Amount from line 1

31. Line 29 minus line 30

32. Line 28 minus line 31

33. Line 32 × 25%

34. Amount from line 1

35. Add lines 11, 15, 22, 26, and 32

36. Line 34 minus line 35

37. Line 36 × 28%

38. Add lines 12, 23, 27, 33, and 37

39. Tax on line 1 (rate schedule)

40. Smaller of line 38 or 39

Exemption Worksheet for Qualified Disability Trusts Only

Keep for your records.

If the trust’s modified AGI is less than or equal to $259400, enter $4050 on line 4 of the 2026 Estimated Tax Worksheet. Otherwise, complete this worksheet.

1. Maximum exemption

2. Trust’s modified AGI

3. Threshold amount

4. Line 2 minus line 3

If line 4 is more than $122500, stop here. The trust’s exemption is zero.

5. Divide line 4 by $2550 (round up)

6. Line 5 × 2%

7. Line 1 × line 6

8. Exemption (line 1 − line 7)

2026 Estimated Tax Worksheet

Keep for your records.

1. Adjusted total income expected

2. Income distribution deduction

3. Estate tax deduction

4. Exemption

5. Add lines 2–4

6. Taxable income

7. Tax (see instructions)

8. Alternative minimum tax

9. Add lines 7 and 8

10. Credits

11. Line 9 − line 10

12. Other taxes

13. 2026 estimated tax

14a. Enter % of line 13 (% for farmers and fishermen)

14b. Enter the tax shown on the 2015 Form 1041 (% if AGI was more than $0, and less than of gross income for 2026 or 2027 was from farming or fishing)

14c. Required annual payment. Enter the smaller of line 14a or 14b

15. Income tax withheld and estimated to be withheld during 2026 and other refundable credits

16. Subtract line 15 from line 14c

Note: If line 13 minus line 15 is less than $0, the estate or trust isn't required to make estimated tax payments.

17. Installment amount. If the first required payment is due April 18, 2027, enter of line 16 (minus any overpayment applied). You may round off cents to the nearest whole dollar

2026 Tax Rate Schedule

Estates and trusts, if line 6 of the 2026 Estimated Tax Worksheet above is:

Over $0 but not over $3,300 — the tax is 10% of the amount over $0

Over $3,300 but not over $11,700 — the tax is $330.00 plus 24% of the amount over $3,300

Over $11,700 but not over $16,000 — the tax is $2,346.00 plus 35% of the amount over $11,700

Over $16,000 — the tax is $3,851.00 plus 37% of the amount over $16,000

Record of Estimated Tax Payments

Payment 1 — Date

Check / money order

Amount

Overpayment credit

Total paid

Payment 2 — Date

Check / money order

Amount

Overpayment credit

Total paid

Payment 3 — Date

Check / money order

Amount

Overpayment credit

Total paid

Payment 4 — Date

Check / money order

Amount

Overpayment credit

Total paid

Total amounts

What this result represents: The final tax shown is the lesser of the tax computed using preferential capital gain rates and the tax calculated using the standard trust tax rate schedule. This comparison ensures the estate or trust does not pay more tax than required.

If the estate or trust does not expect capital gains or qualified dividends, or if taxable income is zero or less, this worksheet should not be used. In those cases, tax is calculated directly from the standard rate schedule.

Last reviewed: 2025-12-26: If you believe this form requires an update, please contact us.

Understanding Estimated Tax Obligations for Estates and Trusts

Estates and trusts are generally required to make estimated tax payments if they expect to owe tax after credits and withholding. The required annual payment is determined by comparing a percentage of the current year’s expected tax with the prior year’s tax liability.

Withholding and refundable credits reduce the required payment, and if the remaining balance falls below the IRS minimum threshold, estimated payments are not required. When payments are required, they are typically made in four equal installments.

This worksheet supports compliance by documenting how capital gains, dividends, deductions, credits, and withholding interact. Retain a copy with your records, as it substantiates the estimated payments reported and supports consistency across fiduciary filings.

Frequently Asked Questions

Can I estimate the General Business Credit?

Start with Form 3800 and then reflect the credit here.

How much would a 401(k) contribution change my net?

Model it with the 401(k) Calculator then rerun this page with your pre-tax amount.

Considering an IRS Offer in Compromise?

Read through Form 656-B to understand eligibility and steps.

What does FICA include?

FICA includes Social Security and Medicare payroll taxes withheld from employee wages.

Is there a quick pay-frequency comparison?

Yes—switch frequency on this page; for employer filings see 941 vs 944.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.