2026 Capital Gains Tax Brackets

Long-term capital gains get their own federal tax brackets, and they are far friendlier than the ordinary income brackets: three main rates — 0%, 15%, and 20%. For 2026, a single filer pays 0% on long-term gains until taxable income exceeds $49,450, and a married couple filing jointly pays 0% up to $98,900. Above those levels the 15% rate takes over, and the 20% rate only kicks in past $545,500 (single) or $613,700 (married filing jointly). A few special categories run higher — gains on collectibles can be taxed at up to 28%, and unrecaptured depreciation on real estate (Section 1250 gain) at up to 25% — but for typical stock and fund sales, the three rates below are the ones that apply.

Data last updated July 9, 2026 · Source: IRS Revenue Procedures

2026 Long-Term Capital Gains Brackets

These are the federal rates that apply to profits on assets held more than one year. Find your filing status, then read down to see where each rate begins and ends.

How the 0% Bracket Really Works

The part most people miss: your long-term gains stack on top of your ordinary income. Ordinary income (wages, interest, traditional IRA withdrawals) fills the brackets first. Your gains then sit above it — and only the slice of gain that fits under the 0% cap is tax-free. Whatever spills over is taxed at 15%.

Here is a fully worked 2026 example for a single filer earning $60,000 in wages who sells investments for a $20,000 long-term gain:

So a $20,000 gain costs just $2,168 in federal capital gains tax — and if this filer had lower wages, even more of the gain would slide under the 0% cap.

Short-Term Gains Are Different

None of the rates above apply to assets you held for one year or less. Short-term gains are treated as ordinary income and taxed at your regular federal bracket rates, which run much higher — see the current federal income tax brackets for where they land. The boundary is strict: you need to hold an asset more than one year for the sale to qualify as long-term. Selling on the one-year anniversary itself is still short-term, so if you are close to the line, the calendar can be worth thousands.

The 3.8% Surtax (NIIT)

High earners pay one more layer: the Net Investment Income Tax, a 3.8% federal surtax on investment income — including capital gains — once modified adjusted gross income (MAGI) exceeds $200,000 for single and head-of-household filers or $250,000 for married couples filing jointly (the threshold for married filing separately is lower). The surtax applies to the lesser of your net investment income or the amount your MAGI exceeds the threshold — so barely crossing the line exposes only the excess, not all of your gains. Unlike the bracket thresholds above, these amounts are set by statute and are not adjusted for inflation. For a top-bracket seller, that stacks the NIIT on the 20% rate for a combined federal rate of 23.8% on long-term gains.

2025 Capital Gains Brackets

Filing a 2025 return, or comparing year over year? These were the 2025 long-term thresholds.

Harvesting the 0% Bracket

Because the 0% bracket resets every year, low-income years are valuable. Early retirees, people between jobs, and anyone living off cash for a season can deliberately sell appreciated assets, pay 0% federal tax on the gain up to the cap, and even buy the same investment right back at a higher cost basis — a move known as gain harvesting.

The catch is that low-bracket space has competing uses. Filling it with realized gains means it is not available for Roth conversions, which draw on the same low-income years. And because the gains still count as income, they can push you past other thresholds — so it pays to model the full income stack before you sell rather than eyeball it.

Frequently Asked Questions