How a capital gain is taxed in 2026 comes down to one question first: did you hold the asset more than a year? Long-term gains get the preferential 0% / 15% / 20% rates. Short-term gains are taxed as ordinary income. Here's the full picture for 2026.
Long-term rates depend on your taxable income (the gain itself counts toward it). The breakpoints for 2026:
| Rate | Single (taxable income) | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 0% | $0 – $49,450 | $0 – $98,900 | $0 – $66,200 |
| 15% | $49,451 – $545,500 | $98,901 – $613,700 | $66,201 – $579,600 |
| 20% | Over $545,500 | Over $613,700 | Over $579,600 |
Married filing separately uses roughly half the joint figures (0% up to $49,450; 20% above $306,850).
Enter your gain, holding period, and income to see the rate and tax — with the NIIT overlay.
The holding period is measured from the day after you acquired the asset to the day you sold it. One year or less is short-term, taxed at your ordinary rate using the regular 2026 tax brackets (up to 37%). More than one year is long-term, taxed at the 0/15/20% rates above. Holding for that extra day across the one-year line can change the rate dramatically — often the single biggest lever on an investment's after-tax return.
On top of the rates above, higher earners owe an extra 3.8% Net Investment Income Tax on net investment income (including capital gains) once modified AGI passes $200,000 (single) or $250,000 (married filing jointly). These thresholds have never been indexed, so each year more taxpayers cross them. A top-bracket long-term gain can therefore face an effective 23.8% federal rate.
Two categories break the 0/15/20% pattern:
Gain on a primary residence is excludable up to $250,000 (single) or $500,000 (married filing jointly) if you owned and used the home as your main residence for at least two of the five years before the sale. Gain above the exclusion is a long-term capital gain at the rates above.
Long-term gains are 0%, 15%, or 20% by taxable income; the 15% rate starts above $49,450 (single) / $98,900 (joint) and 20% above $545,500 / $613,700. Short-term gains are taxed as ordinary income.
Taxable income at or below $49,450 (single), $98,900 (joint), or $66,200 (HoH) for 2026 — the gain counts toward that income.
One year or less = short-term, taxed at ordinary rates. More than a year = long-term, taxed at 0/15/20%.
An extra 3.8% applies to investment income, including gains, once MAGI tops $200,000 (single) / $250,000 (joint).
For tax professionals: rate brackets reflect IRS Revenue Procedure 2025-32; NIIT, §121, collectibles, and §1250 figures are statutory. Provided for reference — confirm holding periods and basis against source documents.