Capital Gains Tax Thresholds for 2026

2026 long-term capital gains brackets

These thresholds apply to taxable income, not gross sales proceeds and not capital gains alone. Ordinary taxable income fills the lower part of the income stack first. A long-term gain can therefore cross more than one capital-gain bracket: part may receive the 0% rate and the rest the 15% rate. Short-term gains are generally taxed under ordinary income-tax rates instead.

How gains stack on other income

Suppose a single filer has $40,000 of ordinary taxable income and a $20,000 net long-term capital gain in 2026. The first $9,450 of the gain fills the remaining space through the $49,450 zero-rate ceiling. The balance generally enters the 15% capital-gain range. Deductions, losses, and other income can move the dividing point.

Netting happens before the preferential-rate calculation. Capital losses first offset capital gains under the Schedule D ordering rules. If total capital losses exceed gains, an individual can generally deduct up to $3,000 of net loss against other income, or $1,500 when married filing separately, and carry the remaining loss forward.

The 3.8% Net Investment Income Tax is separate

The NIIT can apply in addition to regular capital-gains tax when modified adjusted gross income exceeds $200,000 for single or head-of-household filers, $250,000 for married couples filing jointly, or $125,000 for married individuals filing separately. It generally applies to the lesser of net investment income or the excess of MAGI over the threshold.

Not every long-term gain uses the standard 0%, 15%, and 20% maximum rates. Collectibles can be taxed at up to 28%, and part of a gain attributable to prior depreciation on certain real property can be taxed at up to 25%. State income tax can also apply, so a federal-only estimate is not the complete after-tax result.