Quick Answer
What are the 2026 capital gains tax rates? Here is the short version:
- Long-term gains (held over 1 year): Taxed at 0%, 15%, or 20% based on income
- Short-term gains (held 1 year or less): Taxed as ordinary income at 10%-37%
- Net Investment Income Tax: Additional 3.8% on income above $200,000 (single) or $250,000 (married)
- Home sale exclusion: $250,000 (single) / $500,000 (married) tax-free on primary residence
Bottom line: A single filer with taxable income under $48,350 pays 0% federal tax on long-term capital gains. Use our calculator to find your exact rate.
Key Takeaways
- Long-term capital gains are taxed at 0%, 15%, or 20% -- significantly lower than ordinary income rates of 10%-37%
- The 0% bracket covers taxable income up to $48,350 (single) or $96,700 (married filing jointly) for 2026
- Short-term gains are taxed as ordinary income -- holding assets over one year can save you thousands
- The 3.8% NIIT pushes the effective top rate to 23.8% for high earners above $200,000/$250,000
- The $250,000/$500,000 home sale exclusion remains unchanged for primary residence sales in 2026
2026 Long-Term Capital Gains Tax Brackets
Long-term capital gains apply to assets held for more than one year before selling. These rates are significantly lower than ordinary income tax rates, making the holding period one of the most important factors in your tax bill.
The IRS adjusts these thresholds annually for inflation. The 2026 brackets below reflect those inflation adjustments under the framework extended by H.R.1 (One Big Beautiful Bill), which made the Tax Cuts and Jobs Act (TCJA) individual rate structure permanent. Note: These brackets are based on IRS inflation-adjusted projections and may be subject to revision when the IRS publishes final 2026 figures.
H.R.1 Legislative Update
The One Big Beautiful Bill Act extended the TCJA capital gains rate structure (0%, 15%, 20%) permanently, with continued annual inflation indexing. The fundamental capital gains rate framework is unchanged from prior years, but the bracket thresholds are adjusted upward for 2026 inflation.
Single Filers
| Tax Rate | Taxable Income |
|---|---|
| 0% | Up to $48,350 |
| 15% | $48,351 to $533,400 |
| 20% | Over $533,400 |
Married Filing Jointly
| Tax Rate | Taxable Income |
|---|---|
| 0% | Up to $96,700 |
| 15% | $96,701 to $600,050 |
| 20% | Over $600,050 |
Head of Household
| Tax Rate | Taxable Income |
|---|---|
| 0% | Up to $64,750 |
| 15% | $64,751 to $566,700 |
| 20% | Over $566,700 |
Married Filing Separately
| Tax Rate | Taxable Income |
|---|---|
| 0% | Up to $48,350 |
| 15% | $48,351 to $300,000 |
| 20% | Over $300,000 |
What counts as taxable income?
These thresholds are based on your total taxable income, which includes your ordinary income plus your capital gains. Your ordinary income fills up the brackets first, and then your capital gains stack on top. This means your capital gains could span multiple rate brackets.
2026 Short-Term Capital Gains Tax Rates
Short-term capital gains apply to assets held for one year or less. Unlike long-term gains, short-term gains receive no preferential treatment -- they are taxed at the same rates as your wages, salary, and other ordinary income.
| Tax Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | Up to $11,925 | Up to $23,850 | Up to $17,000 |
| 12% | $11,926 - $48,475 | $23,851 - $96,950 | $17,001 - $64,850 |
| 22% | $48,476 - $103,350 | $96,951 - $206,700 | $64,851 - $103,350 |
| 24% | $103,351 - $197,300 | $206,701 - $394,600 | $103,351 - $197,300 |
| 32% | $197,301 - $250,525 | $394,601 - $501,050 | $197,301 - $250,500 |
| 35% | $250,526 - $626,350 | $501,051 - $751,600 | $250,501 - $626,350 |
| 37% | Over $626,350 | Over $751,600 | Over $626,350 |
For the full breakdown of all ordinary income tax brackets, see our 2026 Federal Tax Brackets guide.
Key Difference: No 0% Bracket for Short-Term Gains
Unlike long-term gains, short-term gains are taxed starting at 10%. There is no 0% rate for short-term capital gains. Even taxpayers in the lowest income brackets pay at least 10% on short-term gains.
Long-Term vs. Short-Term: Why Holding Period Matters
The difference between long-term and short-term rates can be substantial. Holding an investment for just one extra day -- crossing the one-year threshold -- could save you thousands of dollars in taxes.
Example: $50,000 Gain on $100,000 Income
Consider a single filer with $100,000 in salary who realizes a $50,000 capital gain. Here is how the tax differs based on holding period:
| Detail | Short-Term (11 Months) | Long-Term (13 Months) |
|---|---|---|
| Capital gain | $50,000 | $50,000 |
| Tax rate applied | 24% (ordinary income) | 15% (long-term rate) |
| Federal tax on gain | $12,000 | $7,500 |
| Tax savings from holding | -- | $4,500 |
That is a $4,500 savings simply by waiting a few extra months to sell. For strategies on reducing your capital gains tax further, see our Capital Gains Tax Strategies 2026 guide.
The 3.8% Net Investment Income Tax (NIIT)
High earners face an additional 3.8% surtax on net investment income. This tax, established by the Affordable Care Act, applies on top of the standard capital gains rates.
NIIT Thresholds (2026)
| Filing Status | MAGI Threshold |
|---|---|
| Single | $200,000 |
| Married Filing Jointly | $250,000 |
| Married Filing Separately | $125,000 |
| Head of Household | $200,000 |
The NIIT is charged on the lesser of your net investment income or the amount by which your modified adjusted gross income (MAGI) exceeds the threshold. Net investment income includes capital gains, interest, dividends, rental income, and royalties.
Effective Top Capital Gains Rates With NIIT
When you combine the 20% top long-term rate with the 3.8% NIIT, the effective maximum federal rate on long-term capital gains is 23.8%. For short-term gains, the maximum effective rate is 40.8% (37% + 3.8%). These NIIT thresholds are not adjusted for inflation, so more taxpayers become subject to this tax each year.
Capital Gains Tax on Real Estate in 2026
The $250,000 / $500,000 Home Sale Exclusion
Under Section 121 of the Internal Revenue Code, you can exclude up to $250,000 in capital gains from the sale of your primary residence ($500,000 for married couples filing jointly). To qualify, you must meet both of these tests:
- Ownership test: You owned the home for at least 2 of the 5 years before the sale
- Use test: You lived in the home as your primary residence for at least 2 of the 5 years before the sale
The 2 years do not need to be consecutive. If you meet only a partial requirement due to a job change, health issue, or unforeseen circumstance, you may qualify for a partial exclusion.
Example: Home Sale Tax Calculation
| Item | Amount |
|---|---|
| Sale price | $850,000 |
| Original purchase price | $400,000 |
| Improvements over 15 years | $75,000 |
| Adjusted cost basis | $475,000 |
| Total gain | $375,000 |
| Section 121 exclusion (MFJ) | -$375,000 |
| Taxable gain | $0 |
In this example, the entire gain falls within the $500,000 married exclusion, resulting in zero federal capital gains tax.
Capital Gains on Investment Property
Investment and rental properties do not qualify for the Section 121 exclusion. When you sell investment property, you owe capital gains tax on the full gain. Additionally:
- Depreciation recapture: Previously claimed depreciation is taxed at a maximum rate of 25%, which is higher than the standard long-term rate
- 1031 Exchange: You can defer capital gains tax by reinvesting proceeds into a like-kind property within specific timeframes (45 days to identify, 180 days to close)
For more on using exchanges and other strategies to reduce your real estate tax burden, see our capital gains tax strategies guide.
Capital Gains Tax on Specific Assets
Stocks and ETFs
Stocks and exchange-traded funds follow the standard long-term and short-term capital gains rules outlined above. When you sell shares, your tax depends on:
- Holding period: Shares held more than one year qualify for long-term rates
- Cost basis method: You can use FIFO (first in, first out), specific identification, or average cost (for mutual funds) to determine your gain
- Dividend reinvestment: Each reinvested dividend purchase creates a new tax lot with its own holding period and cost basis
You can estimate your after-tax returns with our Investment Calculator or measure performance with the ROI Calculator.
Cryptocurrency
The IRS treats cryptocurrency as property, not currency. This means every sale, trade, or exchange of crypto is a taxable event. Key rules for 2026:
- Same long-term and short-term capital gains rates apply as for stocks
- Crypto-to-crypto trades (such as swapping Bitcoin for Ethereum) are taxable events
- Mining and staking rewards are taxed as ordinary income when received
- Reporting uses Form 8949 and Schedule D, with cost basis tracking required for each transaction
Collectibles
Collectibles held for more than one year are taxed at a special maximum rate of 28%, which is higher than the standard 20% top long-term rate. Collectibles include:
- Art and antiques
- Gold, silver, and precious metals (including certain ETFs backed by physical metals)
- Coins and stamps
- Rare wines and other tangible personal property collected for investment
Short-term gains on collectibles are still taxed as ordinary income at rates up to 37%.
Qualified Small Business Stock (QSBS)
Under Section 1202 of the Internal Revenue Code, gains from qualified small business stock may be partially or fully excluded from federal tax:
- 100% exclusion for QSBS acquired after September 27, 2010 and held for at least 5 years
- The exclusion is limited to the greater of $10 million or 10 times the adjusted basis of the stock
- The stock must be in a domestic C-corporation with gross assets under $50 million at the time of issuance
- You must have acquired the stock at original issuance (not on the secondary market)
For stock acquired before September 28, 2010, the exclusion percentage may be 50% or 75% depending on the acquisition date. Any gain not excluded is taxed at a maximum rate of 28%.
Section 1250 Depreciation Recapture
When you sell rental or investment property that you have depreciated, the IRS requires you to "recapture" the depreciation deductions at a special rate:
- Unrecaptured Section 1250 gain is taxed at a maximum rate of 25%, which is higher than the standard 0/15/20% long-term rates
- This applies to the portion of gain attributable to depreciation previously claimed on the property
- Any remaining gain above the depreciation recapture amount is taxed at the standard long-term capital gains rates (0%, 15%, or 20%)
- Section 1250 recapture does not apply to your primary residence (which typically is not depreciated)
For example, if you sell a rental property with $100,000 in total gain and $40,000 in accumulated depreciation, the $40,000 of depreciation recapture is taxed at up to 25%, and the remaining $60,000 is taxed at your applicable long-term rate.
How to Reduce Capital Gains Tax in 2026
Understanding the brackets is the first step. Here are the most effective strategies to minimize what you owe:
- Hold for the long term: Waiting more than one year to sell drops your rate from up to 37% to a maximum of 20%
- Use the 0% bracket: If your taxable income is low enough, you may owe zero federal tax on long-term gains
- Tax-loss harvesting: Sell losing investments to offset gains dollar-for-dollar, with up to $3,000 in excess losses deductible against ordinary income
- Charitable giving: Donate appreciated assets directly to charity to avoid capital gains tax and receive a deduction
- Opportunity Zones: Invest gains in Qualified Opportunity Zone funds to defer and potentially reduce taxes
- Use tax-advantaged accounts: Hold high-turnover investments in IRAs or 401(k)s to shelter gains
For the full breakdown of each strategy with worked examples, read our complete Capital Gains Tax Strategies 2026 guide. You can also explore Roth conversion strategies to manage your overall tax picture, or review ROI benchmarks by investment type for after-tax return comparisons.
Strategy Spotlight: The 0% Bracket
If you are retired, between jobs, or otherwise have a low-income year, you may be able to sell appreciated investments and pay zero federal capital gains tax. A married couple can realize up to $96,700 in combined ordinary income and long-term gains in 2026 while staying in the 0% bracket. Use our Paycheck Calculator to estimate your taxable income first.
2026 Capital Gains Rates: All Filing Statuses at a Glance
This consolidated table shows the long-term capital gains thresholds for every filing status. Bookmark this page for quick reference during tax season.
| Rate | Single | Married (Joint) | Head of Household | Married (Separate) |
|---|---|---|---|---|
| 0% | $0 - $48,350 | $0 - $96,700 | $0 - $64,750 | $0 - $48,350 |
| 15% | $48,351 - $533,400 | $96,701 - $600,050 | $64,751 - $566,700 | $48,351 - $300,000 |
| 20% | Over $533,400 | Over $600,050 | Over $566,700 | Over $300,000 |
Remember: These thresholds are based on total taxable income, not just your capital gains. Your ordinary income fills the brackets first, and capital gains stack on top.
Frequently Asked Questions
For 2026, long-term capital gains (assets held more than one year) are taxed at 0%, 15%, or 20% depending on your taxable income and filing status. Short-term capital gains (assets held one year or less) are taxed as ordinary income at rates from 10% to 37%. An additional 3.8% Net Investment Income Tax may apply if your MAGI exceeds $200,000 (single) or $250,000 (married filing jointly).
Generally not if your gain is under the Section 121 exclusion: $250,000 for single filers or $500,000 for married filing jointly. To qualify, you must have owned and used the home as your primary residence for at least 2 of the 5 years before the sale. Gains above the exclusion amount are taxed at capital gains rates.
Yes. Long-term capital gains receive preferential tax rates of 0%, 15%, or 20%, which are generally lower than ordinary income tax rates of 10% to 37%. However, short-term capital gains (assets held one year or less) are taxed at the same rates as your ordinary income. This is why holding investments for more than one year can result in significant tax savings.
For 2026, you pay 0% federal tax on long-term capital gains if your total taxable income (including the gains) falls below $48,350 for single filers, $96,700 for married filing jointly, $64,750 for head of household, or $48,350 for married filing separately. These thresholds are inflation-adjusted annually by the IRS.
Most states tax capital gains as ordinary income. Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Some states like California tax capital gains at rates up to 13.3%. State taxes are in addition to federal capital gains taxes, so your total tax rate may be significantly higher than the federal rate alone.
Report capital gains using Form 8949 (Sales and Other Dispositions of Capital Assets) and Schedule D (Capital Gains and Losses) of your federal tax return. Your broker will typically provide Form 1099-B showing your sale proceeds. You need to calculate your cost basis (what you paid for the asset) to determine the gain or loss.
The wash sale rule prevents you from claiming a tax deduction on a loss if you buy a substantially identical security within 30 days before or after the sale. If triggered, the disallowed loss gets added to the cost basis of the replacement shares. The rule applies to stocks, bonds, mutual funds, and options, but currently does not explicitly cover cryptocurrency under IRS guidance.
H.R.1 (One Big Beautiful Bill Act) made the TCJA capital gains rate structure permanent, maintaining the existing 0%, 15%, and 20% long-term rates with inflation-adjusted bracket thresholds. The fundamental capital gains rate framework is unchanged. The key impact is that these preferential rates, originally set to expire, are now permanent law with continued annual inflation indexing.
Cryptocurrency is treated as property by the IRS, not currency. Capital gains on crypto follow the same short-term and long-term rates as stocks: assets held more than one year qualify for the preferential 0%, 15%, or 20% long-term rates, while assets held one year or less are taxed as ordinary income at rates up to 37%. Every sale, trade, or exchange of crypto is a taxable event.
Capital gains taxes are generally due on April 15 of the year following the sale (April 15, 2027 for 2026 gains). However, if you have a large gain, you may need to make estimated quarterly tax payments to avoid underpayment penalties. Estimated payment deadlines for 2026 are April 15, June 15, September 15, and January 15, 2027.
Calculate Your 2026 Capital Gains Tax
Enter your purchase price, sale price, holding period, and filing status to see your exact tax liability. Compare short-term vs. long-term treatment and find opportunities to save.
Sources
- IRS Topic No. 409 -- Capital Gains and Losses (opens in new tab)
- IRS Publication 550 -- Investment Income and Expenses (opens in new tab)
- IRS Revenue Procedure -- 2026 Tax Inflation Adjustments (opens in new tab)
- IRS -- Net Investment Income Tax (NIIT) (opens in new tab)
- IRS Topic No. 701 -- Sale of Your Home (opens in new tab)
- Tax Foundation -- 2026 Federal Income Tax Brackets and Rates (opens in new tab)
Important Disclaimer
Disclaimer: This content is for educational and informational purposes only and does not constitute financial, tax, or legal advice. Individual circumstances vary, and you should consult with a qualified tax professional before making financial decisions. While we strive for accuracy, tax laws and regulations change frequently. Bracket thresholds shown are based on IRS inflation adjustments for tax year 2026 and may be subject to revision. Data current as of February 13, 2026.
Content reviewed by the Digital Calculator Team. Learn more about our accuracy standards.