2026 Capital Gains Tax: Rates, Brackets, and How It Works
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.
2026 long-term capital gains brackets
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).
Estimate the tax on a sale
Enter your gain, holding period, and income to see the rate and tax — with the NIIT overlay.
Short-term vs long-term
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.
The 3.8% Net Investment Income Tax
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.
Special rates: collectibles and real estate
Two categories break the 0/15/20% pattern:
- Collectibles (art, coins, precious metals, certain crypto-adjacent assets) — long-term gains are taxed at a maximum of 28%.
- Depreciated real estate — the portion of gain attributable to prior depreciation (unrecaptured §1250 gain) is taxed at up to 25%.
Selling your home: the §121 exclusion
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.
Planning levers
- The 0% bracket: in a low-income year, you can realize long-term gains tax-free up to the top of the 0% band — a "gain harvesting" move that resets basis at no cost.
- Loss harvesting: capital losses offset capital gains dollar-for-dollar, and up to $3,000 of net loss offsets ordinary income each year, with the rest carried forward.
- Wash sales: you can't deduct a loss if you buy the same or a substantially identical security within 30 days before or after the sale.
Frequently Asked Questions
What are the 2026 capital gains tax rates?
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.
What income qualifies for the 0% rate?
Taxable income at or below $49,450 (single), $98,900 (joint), or $66,200 (HoH) for 2026 — the gain counts toward that income.
Short-term vs long-term?
One year or less = short-term, taxed at ordinary rates. More than a year = long-term, taxed at 0/15/20%.
Do I owe the Net Investment Income Tax?
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.