Capital Gains Tax Rates 2026: Every Bracket & How to Pay Less
Long-Term Capital Gains Rates at a Glance
Married under $98,900
Married $98,901–$613,700
Married over $613,700
2026 Long-Term Capital Gains Tax Brackets — All Filing Statuses
| Rate | Single | Married Filing Jointly | Head of Household | Married Filing Separately |
|---|---|---|---|---|
| 0% | ≤ $49,450 | ≤ $98,900 | ≤ $66,200 | ≤ $49,450 |
| 15% | $49,451–$545,500 | $98,901–$613,700 | $66,201–$579,600 | $49,451–$306,850 |
| 20% | > $545,500 | > $613,700 | > $579,600 | > $306,850 |
The rate that applies is based on your total taxable income — wages, business income, plus the capital gain itself. If your salary puts you near a bracket threshold, a large capital gain can push part of it into the next bracket. The gain is "stacked on top" of your ordinary income. Use the calculator below to find your exact blended rate.
2026 Short-Term Capital Gains Tax Rates (Ordinary Income Brackets)
Assets held for 1 year or less are taxed as ordinary income — the same rates as your salary or wages. There are no preferential rates for short-term gains.
| Bracket | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | ≤ $12,400 | ≤ $24,800 | ≤ $17,700 |
| 12% | $12,401–$50,400 | $24,801–$100,800 | $17,701–$67,450 |
| 22% | $50,401–$105,700 | $100,801–$211,400 | $67,451–$105,700 |
| 24% | $105,701–$201,775 | $211,401–$403,550 | $105,701–$201,775 |
| 32% | $201,776–$256,225 | $403,551–$512,450 | $201,776–$256,200 |
| 35% | $256,226–$640,600 | $512,451–$768,700 | $256,201–$640,600 |
| 37% | > $640,600 | > $768,700 | > $640,600 |
How Much Did the Thresholds Change From 2025?
| Bracket / Filing Status | 2025 Threshold | 2026 Threshold | Change |
|---|---|---|---|
| 0% — Single | $48,350 | $49,450 | +$1,100 |
| 0% — Married Jointly | $96,700 | $98,900 | +$2,200 |
| 15% top — Single | $533,400 | $545,500 | +$12,100 |
| 15% top — Married Jointly | $600,050 | $613,700 | +$13,650 |
| 20% — Single | > $533,400 | > $545,500 | Threshold up |
The Real Cost — Short-Term vs Long-Term on the Same $50,000 Gain
Filer is single with $80,000 in wages (22% ordinary income bracket, 15% LTCG bracket).
| Scenario | Holding Period | Rate | Tax on $50K Gain | After-Tax Proceeds |
|---|---|---|---|---|
| Sells at 11 months | Short-term | 22% | $11,000 | $139,000 |
| Waits 2 more months | Long-term | 15% | $7,500 | $142,500 |
| Same filer — low income year | Long-term | 0% | $0 | $150,000 |
Waiting just 2 more months saves $3,500 in this example. Timing the sale in a low-income year (sabbatical, early retirement, job transition) can save the entire $7,500.
Calculate Your Exact Capital Gains Tax
Stocks · Real estate · Crypto · Short-term vs long-term — all 2026 brackets included. Enter any sale and see your exact federal tax.
Open Capital Gains Calculator →The Net Investment Income Tax (NIIT) — Extra 3.8% for High Earners
On top of the standard capital gains rates, the IRS charges an additional 3.8% Net Investment Income Tax if your Modified AGI exceeds:
- $200,000 for single filers
- $250,000 for married filing jointly
- $125,000 for married filing separately
These thresholds are NOT adjusted for inflation — they have been fixed since 2013. An increasing number of middle-class households are getting caught by the NIIT as incomes rise. The practical effect: many high earners pay 23.8% on long-term gains (20% + 3.8%) — not just 20%.
The federal rates above are only part of the picture. California taxes capital gains as ordinary income — a top state rate of 13.3%. Combined with 20% federal + 3.8% NIIT, a California high earner pays 37.1% on long-term capital gains. New York, New Jersey, Minnesota, and Oregon also have high state capital gains taxes. Always factor in your state rate when planning asset sales.
Capital Gains on Specific Asset Types
Stocks and ETFs
Standard short-term and long-term rules apply. Qualified dividends are also taxed at long-term capital gains rates — a major advantage over ordinary dividends.
Real Estate
The primary residence exclusion is one of the most valuable tax breaks available: exclude up to $250,000 of gains ($500,000 married) if you've lived in the home for 2 of the last 5 years. Gains above the exclusion are taxed at long-term rates. Investment properties don't qualify — and depreciation taken on rentals is "recaptured" at a flat 25% rate on sale.
Collectibles
Art, antiques, coins, and precious metals (physical) are taxed at a maximum 28% long-term rate — not the standard 20%. This applies regardless of income.
Cryptocurrency
The IRS treats crypto as property. Every sale, trade, or use of crypto to buy goods is a taxable event. Same short-term vs long-term rules apply, but with far more complexity — trading BTC for ETH triggers capital gains on the BTC at the moment of the swap.
| Asset Type | Short-Term Rate | Long-Term Rate | Special Rules |
|---|---|---|---|
| Stocks / ETFs | Ordinary income (up to 37%) | 0% / 15% / 20% | Wash-sale rule applies |
| Real estate (primary home) | Ordinary income | 0% / 15% / 20% | $250K/$500K exclusion |
| Real estate (investment) | Ordinary income | 0%/15%/20% + 25% recapture | 1031 exchange defers tax |
| Collectibles | Ordinary income | Max 28% | No 0% bracket |
| Cryptocurrency | Ordinary income (up to 37%) | 0% / 15% / 20% | Every trade is taxable |
| Small business stock (§1202) | Ordinary income | Up to 100% exclusion | Qualified small business stock |
6 Legal Ways to Reduce Your Capital Gains Tax in 2026
- Hold for more than 1 year — The simplest, most impactful strategy. Drops your rate from up to 37% to a maximum of 20%.
- Tax-loss harvesting — Sell positions at a loss to offset gains. Losses offset gains dollar-for-dollar; up to $3,000 of net losses can offset ordinary income annually. Watch the 30-day wash-sale rule.
- Invest inside tax-advantaged accounts — All gains inside a Roth IRA are permanently tax-free. 401k and Traditional IRA gains grow tax-deferred. Use these for your highest-growth, most-traded positions.
- Time sales in low-income years — If you take a sabbatical, retire early, or have an unusually low-income year, realize gains then. A single filer under $49,450 taxable income pays 0% — strategically "harvesting" gains in that year is entirely legal.
- Donate appreciated stock directly to charity — Donating stock that has appreciated avoids capital gains tax entirely. You get a full fair-market-value deduction. This is strictly better than selling and donating cash.
- 1031 Exchange for real estate — Swap one investment property for another of equal or greater value. All capital gains taxes are deferred — indefinitely, potentially stepped up at death.
If your total taxable income (including the gain) stays under $49,450 (single) or $98,900 (married), long-term gains are taxed at 0% federally. Early retirees, those between jobs, or people in low-income years can strategically realize gains in this window — called "tax-gain harvesting." You're resetting your cost basis to a higher value, which reduces future gains when you eventually sell. Repeat annually as long as you're in the 0% bracket.