2026 long-term capital gains brackets
Long-term gains — on stock held more than one year — are taxed at 0%, 15% or 20% based on your total taxable income for 2026. These thresholds are the taxable-income levels at which each rate begins.
| Rate | Single | Married filing jointly |
|---|---|---|
| 0% | $0 – $49,450 | $0 – $98,900 |
| 15% | $49,450 – $545,500 | $98,900 – $613,700 |
| 20% | over $545,500 | over $613,700 |
Head-of-household and married-filing-separately thresholds fall between these; see the IRS inflation-adjustment notice for the exact figures. Thresholds are taxable income, and long-term gains stack on top of your other income when deciding which band applies.
Short-term capital gains (held ≤ 1 year)
Short-term gains get no discount — they are taxed at your ordinary income rate. The 2026 ordinary rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%, applied to your taxable income by bracket. This is why crossing the one-year holding line matters so much: the same profit can jump from a 32% short-term rate to a 15% long-term rate.
The 3.8% Net Investment Income Tax (NIIT)
High earners owe an extra 3.8% NIIT on investment income (including capital gains) once modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly). These thresholds are fixed by statute and are not adjusted for inflation, so more taxpayers reach them over time. Effectively this makes the top long-term rate 23.8%.
How states tax capital gains
Most states tax capital gains as ordinary income with no long-term discount, so your state rate stacks on top of the federal rate. A handful of states have no broad personal income tax — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Wyoming, plus New Hampshire — so residents there owe no state tax on stock gains. Note that Washington levies a separate excise tax (around 7%) on large long-term gains above a high threshold, even though it has no general income tax. Always check your own state's current rules.
Quick reference: which rate applies
Held one year or less → short-term, your ordinary rate (10–37%). Held more than a year → long-term, 0/15/20% by income, plus 3.8% NIIT if you are over the threshold, plus any state tax. Losses offset gains first, then up to $3,000 of ordinary income per year.
Frequently asked questions
What is the capital gains tax rate for 2026?
Long-term gains (held over a year) are taxed at 0%, 15% or 20% depending on taxable income: for single filers 0% up to $49,450, 15% up to $545,500, and 20% above that; for married filing jointly 0% up to $98,900, 15% up to $613,700, and 20% above. Short-term gains are taxed at ordinary rates of 10–37%.
What is the 0% capital gains bracket for 2026?
For 2026 you pay 0% on long-term capital gains if your taxable income is up to $49,450 (single) or $98,900 (married filing jointly). Gains that fit under the threshold are federally tax-free.
Are short-term capital gains taxed higher?
Yes. Short-term gains (held one year or less) are taxed at your ordinary income rate, up to 37%, with no preferential rate — often far higher than the long-term 0/15/20% rates.
What is the 3.8% surtax on capital gains?
The Net Investment Income Tax adds 3.8% to investment income, including capital gains, once modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly), making the top effective long-term rate 23.8%.
Related
Sources & methodology
Long-term brackets from IRS inflation-adjusted figures for tax year 2026. NIIT thresholds are statutory (IRC §1411). References: IRS Rev. Proc. 2025 inflation adjustments, IRS Topic No. 409, Publication 550. Last updated 2026-07.