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2026 Capital Gains Tax: Rates, Brackets & How It Works

Updated June 30, 2026 · sources
TL;DR

Capital gains tax 2026 has two tracks. Long-term gains (held more than one year) are taxed at 0%, 15%, or 20% on a separate schedule. Short-term gains (held one year or less) are taxed as ordinary income, 10% to 37%. Estimate yours with the US capital gains calculator.

Capital gains tax 2026 is the federal tax on profit from selling an asset. The rate depends on how long you held it. Hold more than one year and you get long-term rates of 0%, 15%, or 20%. Hold one year or less and the gain is taxed as ordinary income.

What is the 2026 capital gains tax?

A capital gain is the profit when you sell an asset for more than you paid. The holding period sets the rate.

  • Long-term: held more than one year. Taxed at 0%, 15%, or 20% on a separate schedule from your wages.
  • Short-term: held one year or less. Taxed at your ordinary 2026 income brackets (10% to 37%).

The one-year line is the single most important number for your rate. Holding even a day longer can move a gain from the 37% top ordinary rate to the 20% top long-term rate.

What are the 2026 long-term capital gains brackets?

Long-term gains use their own taxable-income thresholds, not the ordinary brackets. For 2026 the cutoffs are below.

2026 long-term capital gains rate thresholds by taxable income
RateSingleMarried filing jointlyHead of household
0%Up to $49,450Up to $98,900Up to $66,200
15%$49,450 to $545,500$98,900 to $613,700$66,200 to $579,600
20%Above $545,500Above $613,700Above $579,600

The bands stack on your other taxable income. A single filer at the edge of the 0% band gets the next dollar of long-term gain taxed at 15%.

2026 long-term capital gains: single-filer band ceilings
0% rate up to
$49,450
15% rate up to
$545,500
20% rate above
$545,500+

How are short-term gains taxed in 2026?

Short-term gains get no break. They are added to your ordinary income and taxed at the 2026 brackets, which run from 10% to 37%. There is no separate short-term schedule.

Here is the 2026 ordinary single-filer schedule that applies to a short-term gain.

2026 ordinary income brackets (single filer) applied to short-term gains
RateTaxable income (single)
10%Up to $12,400
12%$12,400 to $50,400
22%$50,400 to $105,700
24%$105,700 to $201,775
32%$201,775 to $256,225
35%$256,225 to $640,600
37%Above $640,600

The chart below shows the single-filer long-term schedule as three stacked tiers. The 0% band is small next to the wide 15% band that covers most filers.

2026 long-term capital gains tiers (single filer) 2026 long-term capital gains tiers (single) 0% up to $49,450 15% $49,450 to $545,500 20% above $545,500 Bar length reflects each single-filer taxable-income band. Source: IRS.

When does the 3.8% NIIT apply?

Higher earners can owe an extra layer. The Net Investment Income Tax (NIIT) adds 3.8% on net investment income when your modified adjusted gross income (MAGI) clears a fixed line.

  • Single: NIIT can apply above $200,000 MAGI.
  • Married filing jointly: NIIT can apply above $250,000 MAGI.

These NIIT thresholds are set by statute and are not adjusted for inflation. Over time, more taxpayers cross them. A top-bracket long-term gain can therefore face 20% plus 3.8%.

For the ordinary-income side of your return, see our 2026 tax brackets guide.

How do you calculate your 2026 capital gains tax?

Work it out in five steps.

  1. Find your gain: sale price minus your cost basis.
  2. Check the holding period: more than one year is long-term, one year or less is short-term.
  3. For long-term gains, stack the gain on your taxable income and apply the 0% / 15% / 20% thresholds.
  4. For short-term gains, apply your ordinary 2026 bracket (10% to 37%).
  5. Add 3.8% NIIT if your MAGI is above $200,000 (single) or $250,000 (MFJ).

Run the numbers with the US capital gains calculator or check your full bill with the US income tax calculator. To trim taxable income first, review our top 2026 tax deductions.

Calculators referenced

Frequently asked questions

Quick answers people search for.

What is the capital gains tax rate for 2026?

Long-term gains (assets held more than one year) are taxed at 0%, 15%, or 20% on a separate threshold schedule. Short-term gains (held one year or less) are taxed as ordinary income at the 2026 brackets, 10% to 37%.

How much can I make in 2026 and pay 0% on long-term gains?

The 0% long-term rate applies on taxable income up to $49,450 (single), $98,900 (married filing jointly), or $66,200 (head of household). The gain stacks on your other income, so it must fit below that ceiling.

What is the difference between short-term and long-term capital gains?

Short-term means you held the asset one year or less; it is taxed at your ordinary rate (10% to 37%). Long-term means you held more than one year; it is taxed at the lower 0% / 15% / 20% rates.

When does the 20% long-term capital gains rate start in 2026?

The 20% rate applies on taxable income above $545,500 (single), $613,700 (married filing jointly), or $579,600 (head of household).

Do I owe the 3.8% Net Investment Income Tax on capital gains?

You may, if your modified adjusted gross income is above $200,000 (single) or $250,000 (married filing jointly). The 3.8% NIIT is added on top of your capital gains rate, and these thresholds are not indexed for inflation.

How is capital gains tax calculated in 2026?

Subtract your cost basis from the sale price to get the gain, check the holding period, apply the long-term (0% / 15% / 20%) or short-term (ordinary 10% to 37%) rate, then add 3.8% NIIT if your MAGI clears the threshold.

Sources and methodology

All figures are official 2026 federal amounts from the IRS and the Tax Foundation. The long-term thresholds and ordinary brackets reflect IRS Rev. Proc. 2025-32.

This guide is general information, not tax advice. Thresholds apply to taxable income; the NIIT applies to MAGI. Confirm your filing status and state rules before filing.

Not financial advice. The figures here are estimates for general information and planning, not financial, tax, or legal advice. Verify against the cited primary source (the relevant tax authority) or a qualified professional before you act on them.

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