Capital Gains Tax Rates for 2026

Yes, if your total taxable income (ordinary income plus long-term gains, after your deduction) is at or below $49,450 as a single filer, $98,900 married filing jointly, or $66,200 head of household. This isn't a special exemption — it's the bottom rung of the 0%/15%/20% long-term capital gains schedule under IRC §1(h). Retirees and low-income years are the most common windows to realize gains tax-free.

Taxable income — gross income minus your standard or itemized deduction. This is the #1 misconception. For 2026 the standard deduction is $16,100 single and $32,200 married filing jointly, so a single filer can earn roughly $65,550 in gross income (wages plus gains) and still land at the top of the 0% bracket, because the deduction is subtracted before the LTCG brackets are applied.

An asset must be held for MORE than one year — not exactly one year — to qualify for the preferential 0%/15%/20% long-term rates. The clock starts the day after you acquire the asset and includes the day you sell. Sell on day 365 and the gain is still short-term, taxed at ordinary rates; sell on day 366 or later and it's long-term.

Yes. The Net Investment Income Tax is a separate surtax under IRC §1411 that applies once modified adjusted gross income exceeds $200,000 (single/HoH) or $250,000 (MFJ/QW). It stacks on top of, not instead of, the LTCG rate — so a gain taxed at 15% effectively costs 18.8% and a gain taxed at 20% effectively costs 23.8% once NIIT applies. The MAGI thresholds are fixed by statute and are NOT adjusted for inflation, unlike the LTCG brackets themselves.

No — two asset classes carry different caps. Gains on collectibles (art, coins, precious metals, and similar) are capped at a 28% rate under IRC §1(h)(4), higher than the standard 20% top LTCG rate. And the portion of gain on depreciated real estate attributable to prior depreciation deductions ("unrecaptured §1250 gain") is capped at 25%. Both sit outside the ordinary 0%/15%/20% schedule on this page — see the capital gains tax calculator for the full breakdown.

No — it works the other way around. Your ordinary income (wages, interest, short-term gains) fills up the tax brackets first. Long-term capital gains then stack ON TOP of that ordinary income and are taxed at the LTCG rate matching where they land, but they never change the rate applied to your ordinary income itself. A large capital gain can, however, push the LTCG itself from the 0% bracket into the 15% or 20% bracket, and can raise your MAGI enough to trigger the 3.8% NIIT.

The 2026 breakpoints moved up from 2025 under annual inflation indexing (IRS Rev. Proc. 2025-32 §3.03): the single-filer 0% ceiling rose from $48,350 to $49,450, and the 15% ceiling rose from $533,400 to $545,500. The 0%/15%/20% rate structure itself is unchanged — only the dollar thresholds moved. The 3.8% NIIT thresholds did NOT move, since they're fixed by statute rather than indexed.

Most states tax capital gains as ordinary income at their regular state income tax rates — there's no separate state-level 0%/15%/20% schedule in most places. Nine states have no state income tax at all, so no state capital gains tax applies there. Washington is a notable exception with a dedicated 7% long-term capital gains tax above a $250k+ threshold. Compare your state on the state income tax calculator and state tax brackets pages.