Here are the capital gains tax rates 2026 filers will use: long-term gains are taxed at 0%, 15% or 20% depending on your taxable income and filing status, while short-term gains are taxed at your ordinary income rate of 10% to 37%. This guide gives you the official 2026 thresholds, worked examples, and practical ways to keep more of your investment profits.
Capital Gains Tax Rates 2026 at a Glance
The table below shows where each long-term rate starts and stops for 2026. These thresholds are based on your taxable income (income after the standard or itemized deduction), and they come from the IRS inflation adjustments for tax year 2026 (Rev. Proc. 2025-32).
| Filing status | 0% rate (taxable income up to) | 15% rate (up to) | 20% rate (above) |
|---|---|---|---|
| Single | $49,450 | $545,500 | $545,500 |
| Married filing jointly | $98,900 | $613,700 | $613,700 |
| Married filing separately | $49,450 | $306,850 | $306,850 |
| Head of household | $66,200 | $579,600 | $579,600 |
If you are not sure which column applies to you, start with your filing status and then look at your total taxable income for the year, not just the size of the gain.
Short-Term vs. Long-Term Capital Gains
The holding period decides which set of rates applies. Your holding period starts the day after you acquire the asset and ends on the day you sell it.
- Short-term: assets held one year or less. The gain is taxed as ordinary income at 10%, 12%, 22%, 24%, 32%, 35% or 37%.
- Long-term: assets held more than one year. The gain is taxed at 0%, 15% or 20%.
New to the basics? Our explainer on what a capital gain is walks through basis, proceeds and how gains are calculated. For short-term gains, these are the 2026 ordinary income brackets for the two most common filing statuses:
| Tax rate | Single (taxable income) | Married filing jointly (taxable income) |
|---|---|---|
| 10% | Up to $12,400 | Up to $24,800 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 |
| 37% | Over $640,600 | Over $768,700 |
Because the gap between a 37% short-term rate and a 20% long-term rate is so large, waiting past the one-year mark can be one of the simplest tax moves available to investors.
How the Capital Gains Tax Rates 2026 Stack on Top of Your Income
Long-term gains do not get their own separate bracket. They are stacked on top of your ordinary taxable income, and each slice is taxed at the rate for the range it falls into.
Example: A single filer has $44,000 of taxable income from wages and then sells stock for a $10,000 long-term gain. The 0% range for a single filer ends at $49,450, so the first $5,450 of the gain ($49,450 minus $44,000) is taxed at 0%. The remaining $4,550 is taxed at 15%, which is about $683 of tax. Without the stacking rule, it would be easy to assume the whole gain was tax-free or taxed at 15%.
This is why timing matters. A retiree, a student or anyone with a low-income year may be able to sell appreciated investments and pay little or nothing at the federal level.
Other Capital Gains Rates That Can Apply
Not every gain fits neatly into 0%, 15% or 20%. Watch for these exceptions:
- Collectibles such as art, coins and precious metals are taxed at a maximum long-term rate of 28%.
- Unrecaptured Section 1250 gain from depreciable real estate is taxed at a maximum of 25%.
- Net investment income tax (NIIT): an extra 3.8% applies to investment income when modified adjusted gross income exceeds $200,000 for single filers or $250,000 for married couples filing jointly. Read our guide to the net investment income tax for details.
How to Lower Your Capital Gains Tax
- Hold for more than a year. Moving a gain from short-term to long-term can cut the rate dramatically.
- Harvest losses. Losses offset gains dollar for dollar, and up to $3,000 of net losses can offset ordinary income each year. See how tax-loss harvesting works and the wash sale rules before you repurchase anything.
- Use the 0% bracket. If your taxable income is low in a given year, consider selling appreciated assets up to the top of the 0% range.
- Use the home sale exclusion. Many homeowners can exclude up to $250,000 of gain ($500,000 for married couples filing jointly) when selling a primary residence. Our home sale exclusion guide explains the ownership and use tests.
- Donate appreciated stock. Giving shares you have held more than a year directly to a charity can avoid the gain entirely, and you may be able to deduct the fair market value if you itemize.
- Defer or shelter gains. Retirement accounts, and for real estate certain exchanges, can postpone tax. We cover more options in how to defer capital gains.
How to Report Capital Gains
Your broker reports sales on Form 1099-B. You list each sale on Form 8949 and total them on Schedule D of your Form 1040. Use the cost basis (what you paid, plus commissions and reinvested dividends) to avoid overpaying. Our guide to Form 8949 shows how the form works, and the IRS explains the rules in Topic No. 409, Capital Gains and Losses.
Common Capital Gains Mistakes
- Comparing the gain to your income instead of your taxable income when checking the 0% threshold.
- Selling a few days before the one-year mark and turning a long-term gain into a short-term one.
- Forgetting reinvested dividends when calculating cost basis, which means paying tax twice on the same dollars.
- Overlooking the stepped-up basis for inherited assets, which can wipe out much of the gain.
- Ignoring the NIIT when income is high.
What About 2027?
The IRS normally publishes the next year’s inflation-adjusted thresholds in the fall. As of this writing, the official 2027 amounts have not been released, so use the capital gains tax rates 2026 above for transactions this year and check IRS.gov for the 2027 figures once they appear. The 0%, 15% and 20% structure itself is not scheduled to expire.
Frequently Asked Questions
What are the long-term capital gains tax rates for 2026?
They are 0%, 15% and 20%, depending on taxable income and filing status. For a single filer, 0% applies up to $49,450 of taxable income, 15% up to $545,500, and 20% above that.
At what income is capital gains tax 0% in 2026?
Taxable income up to $49,450 for single filers, $98,900 for married couples filing jointly, and $66,200 for heads of household. The gain counts as part of that taxable income.
How are short-term capital gains taxed?
Short-term gains, from assets held one year or less, are taxed as ordinary income at your regular bracket, from 10% to 37%.
Do capital gains increase my tax bracket?
Long-term gains are stacked on top of your ordinary income, so they can push part of the gain into the 15% or 20% range, but they do not change the rate on your wages. Short-term gains are added to ordinary income and can move you into a higher bracket.
Can I legally avoid capital gains tax?
You can reduce or sometimes eliminate it using the 0% bracket, loss harvesting, the home sale exclusion, charitable giving of appreciated assets and retirement accounts. Which strategies fit depends on your situation.
Final Thoughts
Knowing the capital gains tax rates 2026 and how gains stack on top of your income can save real money, especially if you can time sales into a low-income year or pass the one-year holding period. A short planning conversation before you sell is usually worth it.
Have questions about how this applies to your situation? Book a free consultation with Aric and get answers from a CPA.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.