2026 long-term capital gains rates
Gains on assets held for more than a year are taxed at 0%, 15% or 20%, depending on your total taxable income including the gain. The gain is stacked on top of your other income, so the brackets fill from your wages upward.
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 0% | up to $49,450 | up to $98,900 | up to $66,200 |
| 15% | to $545,500 | to $613,700 | to $579,600 |
| 20% | above $545,500 | above $613,700 | above $579,600 |
Thresholds are taxable income, after the standard deduction of $16,100 for single filers and $32,200 for married couples. Short-term gains, on assets held a year or less, are taxed as ordinary income at your regular rate, from 10% to 37%. A few kinds of gain have their own rates: up to 28% on collectibles such as art, coins and precious metals, and up to 25% on depreciation recaptured when you sell rental property.
The 3.8% net investment income tax
On top of the capital gains rate, a 3.8% tax applies to investment income when your modified adjusted gross income is above $200,000 single, $250,000 married filing jointly or $125,000 married filing separately. It is charged on the smaller of your investment income or the amount you are over the threshold. These thresholds are not indexed for inflation, so more people reach them every year. The top federal rate on long-term gains is therefore 23.8%.
A worked example
A single filer earning $70,000 sells shares bought for $20,000 for $50,000. Their taxable income before the sale is $53,900, already above the 0% band, so the whole $30,000 gain is taxed at 15%: $4,500. Had they sold within a year, the gain would be ordinary income in the 22% bracket: $6,600. Waiting past the one-year mark saves $2,100.
The 0% rate is worth planning for. A single filer with $40,000 of wages has $23,900 of taxable income, so up to $25,550 of long-term gains fits under the $49,450 line and is taxed at nothing. Retirees and people between jobs can often sell gains tax-free in a low-income year.
Selling your home
If you owned and lived in your main home for at least two of the five years before the sale, up to $250,000 of the gain is tax-free, or $500,000 for a married couple filing jointly. Your cost includes what you paid, buying costs and the cost of improvements such as a new roof or an addition, which lowers the taxable gain. You can use the exclusion once every two years.
Losses and harvesting
Capital losses offset capital gains first. If losses are larger than gains, up to $3,000 a year ($1,500 married filing separately) can be deducted against other income, and the rest carries forward to future years with no time limit. Selling losing positions before year end to offset gains is called tax-loss harvesting. Watch the wash-sale rule: a loss is disallowed if you buy the same or a substantially identical security within 30 days before or after the sale.