Condo Q&A

Taxes on HOA Investment Income

Written by CondoAssociation.com | Tue, Feb 17, 2026 @ 09:53 PM

This question wassubmittedbyEllie C. of Maine

Why is the tax rate on investment income higher than the normal corporate rate? 35 percent compared to 21 percent corporate rate? Since interest rates are higher now, that takes a huge chunk out of the earnings for our reserves. Is there any way around this tax?