In 2026, long-term capital gains (assets held more than one year) are taxed at 0%, 15% or 20%. For single filers, the 0% rate applies up to $49,450 of taxable income, 15% up to $545,500, and 20% above that. For joint filers the limits are $98,900 and $613,700. Short-term gains (one year or less) are taxed as ordinary income at 10% to 37%. High earners may also owe the 3.8% Net Investment Income Tax.
2026 Long-Term Capital Gains Tax Brackets
The thresholds refer to your total taxable income (after deductions, and including the gain), not the size of the gain.
| Filing status | 0% rate | 15% rate | 20% rate |
|---|---|---|---|
| Single | up to $49,450 | $49,451 – $545,500 | over $545,500 |
| Married filing jointly | up to $98,900 | $98,901 – $613,700 | over $613,700 |
| Head of household | up to $66,200 | $66,201 – $579,600 | over $579,600 |
| Married filing separately | up to $49,450 | $49,451 – $306,850 | over $306,850 |
For gains realized in 2025 (the return you filed in 2026), the single thresholds were $48,350 and $533,400; joint, $96,700 and $600,050. Qualified dividends use the same rates.
Short-Term Capital Gains Rates (2026)
Hold an asset for one year or less and the profit is simply added to your wages and taxed at your ordinary rate. There's no special short-term table. These are the 2026 ordinary brackets for single filers:
| Taxable income (single) | Rate | Taxable income (joint) |
|---|---|---|
| Up to $12,400 | 10% | Up to $24,800 |
| $12,401 – $50,400 | 12% | $24,801 – $100,800 |
| $50,401 – $105,700 | 22% | $100,801 – $211,400 |
| $105,701 – $201,775 | 24% | $211,401 – $403,550 |
| $201,776 – $256,225 | 32% | $403,551 – $512,450 |
| $256,226 – $640,600 | 35% | $512,451 – $768,700 |
| Over $640,600 | 37% | Over $768,700 |
The holding period starts the day after you buy and includes the day you sell. Shares bought on March 10, 2026 need to be sold on March 11, 2027 or later to be long-term.
How Gains "Stack" on Top of Your Other Income
This is the part most people get wrong. Your ordinary income (wages, interest, short-term gains) fills the brackets first. Long-term gains sit on top of it. Only the part of the gain that lands below the 0% threshold is tax-free; the rest is taxed at 15%. A gain never pushes your salary into a higher rate, but your salary decides which rate your gain gets.
Four Worked Examples (2026)
1. Salary $60,000 + $30,000 long-term gain (single)
| Step | Amount |
|---|---|
| Ordinary taxable income ($60,000 − $16,100) | $43,900 |
| Gain taxed at 0% (up to $49,450) | $5,550 → $0 |
| Gain taxed at 15% | $24,450 → $3,668 |
| Tax on the $30,000 gain | $3,668 (12.2%) |
| Same gain if short-term | $5,950 |
2. Retired couple: $40,000 pension + $50,000 long-term gain
Taxable income is $90,000 − $32,200 = $57,800, all below $98,900. The entire $50,000 gain is taxed at 0%. Their only federal tax is $780 on the pension. The extra senior deductions for those 65+ would lower it further.
3. High earner: $200,000 salary + $100,000 long-term gain (single)
The whole gain lands in the 15% band ($15,000). Because modified AGI of $300,000 exceeds the $200,000 NIIT threshold, the 3.8% NIIT applies to the $100,000 gain (+$3,800). Total tax on the gain: $18,800 (18.8%). As a short-term gain it would have cost $31,400 plus the same NIIT.
4. Short-term vs. long-term at a glance (single, 2026)
| Other income | Gain | Tax if long-term | Tax if short-term |
|---|---|---|---|
| $40,000 | $10,000 | $0 | $1,200 |
| $80,000 | $10,000 | $1,500 | $2,200 |
| $150,000 | $10,000 | $1,500 | $2,400 |
| $40,000 | $50,000 | $3,668 | $8,350 |
| $80,000 | $50,000 | $7,500 | $11,164 |
| $150,000 | $50,000 | $7,500 | $12,000 |
Federal tax attributable to the gain only, 2026 standard deduction, before NIIT and state tax.
The 3.8% Net Investment Income Tax
NIIT adds 3.8% on the smaller of your net investment income or the amount by which modified AGI exceeds $200,000 (single, head of household), $250,000 (married filing jointly) or $125,000 (married filing separately). These thresholds aren't indexed to inflation, so more taxpayers are caught every year. The effective top federal rate on long-term gains is therefore 23.8%.
Special Rates: Collectibles, Real Estate and Home Sales
- Collectibles (art, coins, precious metals, including physically backed gold ETFs): long-term gains taxed at up to 28%.
- Unrecaptured Section 1250 gain (depreciation previously claimed on rental property): up to 25%.
- Qualified small business stock (Section 1202): gains can be partly or fully excluded if held long enough.
- Selling your main home: up to $250,000 of gain ($500,000 for married couples) is excluded if you owned and lived in it for 2 of the last 5 years.
- Inherited assets get a "stepped-up" basis to the value at death, and are always treated as long-term.
Six Legal Ways to Pay Less Capital Gains Tax
- Wait for day 366. Crossing into long-term treatment can cut the rate from 22–37% to 15–20%.
- Harvest gains at 0%. In a low-income year (sabbatical, early retirement, before Social Security), sell and rebuy winners to reset your basis tax-free, up to the 0% ceiling.
- Harvest losses. Losses offset gains in full, then up to $3,000 of ordinary income a year, with the rest carried forward. Avoid buying the same security within 30 days before or after the sale (wash-sale rule).
- Give appreciated shares instead of cash to charity. You deduct the market value and never pay tax on the gain.
- Use tax-advantaged accounts: trades inside a 401(k) or IRA aren't taxed as capital gains at all.
- Spread large sales across tax years to keep more of the gain in the 0% or 15% band and below the NIIT threshold.
Related Tools & Guides
Frequently Asked Questions
Long-term gains are taxed at 0%, 15% or 20% depending on taxable income. For single filers: 0% up to $49,450, 15% up to $545,500, 20% above. Short-term gains are taxed at ordinary rates from 10% to 37%. Add 3.8% NIIT above $200,000 (single) or $250,000 (joint) of modified AGI.
It depends on your other income. A single filer with $80,000 of other income pays 15% on a $50,000 long-term gain: $7,500 federal. With $40,000 of other income, part of the gain falls in the 0% band and the tax is about $3,668. If it's short-term, the same gain costs $8,350–$12,000.
Yes. Short-term gains are added to your ordinary income and taxed at your regular bracket rates. There's no separate short-term rate schedule.
Long-term gains don't raise the tax rate on your wages. They stack on top of ordinary income and use their own 0/15/20% rates. However, a larger gain can move more of itself into the 15% or 20% band, trigger the 3.8% NIIT, and raise your AGI for things like IRMAA Medicare surcharges.
Yes, if your total taxable income, including the gain, stays at or below $49,450 (single) or $98,900 (married filing jointly) in 2026. Because the standard deduction comes off first, a single person with no other income can realize about $65,550 of long-term gains tax-free at the federal level.
More than one year: at least one year and one day from the day after purchase. Shares bought on March 10, 2026 qualify if sold on or after March 11, 2027.
Examples are federal estimates using 2026 brackets and the standard deduction; they exclude state tax, AMT and credits. Special rules apply to collectibles, depreciation recapture, QSBS and inherited property. Consult a CPA for your situation.