Capital Gains Tax Brackets for 2026

Long-term capital gains get their own rates: 0%, 15%, and 20%. For 2026 a single filer pays nothing on gains up to $49,450 of taxable income, and a married couple pays nothing up to $98,900. Here are the full thresholds and the traps around them.

The 2026 long-term capital gains brackets

These apply to assets held more than one year. The thresholds are measured against taxable income, meaning after your standard deduction comes off.

Short-term gains, from assets held one year or less, get none of this. They are taxed as ordinary income at your regular rate, up to 37%. See the 2026 tax brackets.

Taxable income, not gross income

This is the mistake almost everyone makes. The brackets apply after the standard deduction. A single filer with the $16,100 standard deduction can have about $65,500 of gross income and still sit at the top of the 0% bracket. A married couple with the $32,200 deduction can gross about $131,100.

A worked example. A retired couple filing jointly has $60,000 of ordinary income and sells stock for a $30,000 long-term gain. Taxable ordinary income is $60,000 minus $32,200, which is $27,800. The 0% bracket for a couple runs to $98,900, leaving $71,100 of room. The entire $30,000 gain fits inside it. Federal tax on the gain: zero.

The 3.8% surtax on top (NIIT)

Above certain income levels, the Net Investment Income Tax adds 3.8% on top of the capital gains rate. It starts at $200,000 of MAGI for single filers and $250,000 for married couples, and those thresholds never adjust for inflation. Stacked together, a 15% gain effectively costs 18.8% and a 20% gain costs 23.8%.

The side effects nobody prices in

A big gain does more than generate its own tax. It raises your MAGI, and MAGI controls several other 2026 benefits.

It can shrink your senior deduction, which phases out above $75,000 single and $150,000 married. It can shrink the tips and overtime deductions above $150,000 and $300,000. And if you are near Medicare age, this year's gain sets your premiums two years from now: the IRMAA surcharge starts at $109,000 single and $218,000 joint, and one dollar over costs about $1,148 a year.

The planning move is the same in every case: when you control the timing of a sale, spread gains across years instead of stacking them into one.

Special rates for special assets

Collectibles like art, coins, and precious metals are taxed at up to 28% even when held long term. The depreciation portion of a rental property sale, called unrecaptured section 1250 gain, is taxed at up to 25%. And the one-year line is strict: sell on day 365 and it is short-term, day 366 and it is long-term.

Frequently asked questions

What are the capital gains tax brackets for 2026?

Long-term gains are taxed at 0% up to $49,450 of taxable income single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 married, and 20% above that. Short-term gains are taxed as ordinary income.

How much can I make and pay 0% on capital gains in 2026?

Up to $49,450 of taxable income single or $98,900 married filing jointly, including the gain itself. With the standard deduction that means roughly $65,500 gross single or $131,100 gross married. Retirees and low income years are the classic windows for tax-free gain harvesting.

Do capital gains push my other income into a higher bracket?

No. Ordinary income fills the brackets first, and gains stack on top at their own rates. But a gain can push itself from 0% into 15%, raise your MAGI enough to trigger the 3.8% NIIT, shrink your senior deduction, and raise your Medicare premiums two years later.

Did the capital gains rates change under the new tax law?

No. The One Big Beautiful Bill left the 0%, 15%, and 20% structure alone. The 2026 thresholds only moved up with the normal inflation adjustment, about 2% higher than 2025.