2026 US Capital Gains Tax Rates — Complete Guide with Brackets
Published: March 26, 2026
Understanding capital gains tax is essential for any investor. Whether you're selling stocks, real estate, or other assets, the tax you owe depends on how long you held the asset and your total taxable income. This guide covers the 2026 capital gains tax brackets, the Net Investment Income Tax (NIIT), and proven strategies to minimize your tax bill.
1. Long-Term vs. Short-Term Capital Gains
The IRS distinguishes between two types of capital gains based on how long you held the asset before selling:
- Long-term capital gains: Assets held for more than 1 year. Taxed at preferential rates of 0%, 15%, or 20%.
- Short-term capital gains: Assets held for 1 year or less. Taxed as ordinary income at rates of 10% to 37%.
This distinction alone can mean thousands of dollars in tax savings. Whenever possible, holding assets for more than a year before selling is one of the simplest tax strategies.
2. 2026 Long-Term Capital Gains Tax Brackets
The 2026 long-term capital gains thresholds are adjusted annually for inflation. Here are the rates for each filing status:
Single Filers
| Taxable Income | Capital Gains Rate |
|---|---|
| Up to $49,450 | 0% |
| $49,451 – $545,500 | 15% |
| Over $545,500 | 20% |
Married Filing Jointly
| Taxable Income | Capital Gains Rate |
|---|---|
| Up to $98,900 | 0% |
| $98,901 – $613,700 | 15% |
| Over $613,700 | 20% |
Head of Household
| Taxable Income | Capital Gains Rate |
|---|---|
| Up to $66,250 | 0% |
| $66,251 – $579,600 | 15% |
| Over $579,600 | 20% |
💰 Calculate Your Capital Gains Tax
Enter your sale price, purchase price, and income to get an accurate estimate of your federal capital gains tax.
Capital Gains Calculator →3. Net Investment Income Tax (NIIT)
In addition to the standard capital gains rates, high-income taxpayers may owe the 3.8% Net Investment Income Tax (NIIT), also known as the Medicare surtax. This applies to investment income (capital gains, dividends, interest, rental income) when your modified adjusted gross income (MAGI) exceeds:
| Filing Status | NIIT Threshold |
|---|---|
| Single | $200,000 |
| Married Filing Jointly | $250,000 |
| Head of Household | $200,000 |
This means the effective maximum capital gains rate for high earners is 23.8% (20% + 3.8% NIIT). Note that NIIT thresholds are not indexed for inflation, so more taxpayers fall into this bracket each year.
4. Short-Term Capital Gains (Ordinary Income Rates)
Short-term capital gains are taxed at the same rates as your ordinary income. For 2026, the federal income tax brackets are:
| Rate | Single | Married Joint |
|---|---|---|
| 10% | Up to $11,925 | Up to $23,850 |
| 12% | $11,926 – $48,475 | $23,851 – $96,950 |
| 22% | $48,476 – $103,350 | $96,951 – $206,700 |
| 24% | $103,351 – $197,300 | $206,701 – $394,600 |
| 32% | $197,301 – $250,525 | $394,601 – $501,050 |
| 35% | $250,526 – $626,350 | $501,051 – $751,600 |
| 37% | Over $626,350 | Over $751,600 |
5. TCJA Extension and 2026 Standard Deduction
The One Big Beautiful Bill Act (OBBBA) made the Tax Cuts and Jobs Act (TCJA) rates permanent, preventing the scheduled reversion to pre-2018 rates. This means the current favorable capital gains brackets and income tax rates continue into 2026 and beyond.
The 2026 standard deduction amounts are:
- Single: $16,100
- Married Filing Jointly: $32,200
- Head of Household: $24,150
Remember that the standard deduction reduces your taxable income, which can push your capital gains into a lower bracket or even the 0% rate.
6. Strategies to Minimize Capital Gains Tax
- Hold assets for over 1 year: The single most effective strategy. Long-term rates (0–20%) are significantly lower than short-term rates (10–37%).
- Tax-loss harvesting: Sell losing investments to offset gains. You can deduct up to $3,000 in net capital losses against ordinary income per year, with the remainder carried forward.
- Use the 0% bracket: If your taxable income is below the 0% threshold ($49,450 single / $98,900 married), you pay no federal tax on long-term gains. Plan your income to stay under this limit.
- Maximize retirement accounts: Contributions to 401(k), IRA, and HSA reduce your taxable income and can lower your capital gains tax bracket.
- Qualified Opportunity Zones (QOZ): Investing capital gains in a QOZ fund can defer and potentially reduce capital gains tax.
- Gift or donate appreciated assets: Donating appreciated stock to charity lets you deduct the full market value without paying capital gains tax.
- Primary residence exclusion: Exclude up to $250,000 ($500,000 married) in gains from the sale of your primary residence if you've lived there for 2 of the last 5 years.
Calculate your exact capital gains tax liability
→ Capital Gains Tax CalculatorFrequently Asked Questions
What is the 2026 long-term capital gains rate?
The 2026 long-term capital gains rates are 0%, 15%, or 20% depending on your taxable income and filing status. Single filers pay 0% on taxable income up to $49,450, 15% up to $545,500, and 20% above that. An additional 3.8% NIIT may apply for high earners.
How are short-term capital gains taxed?
Short-term capital gains (assets held for 1 year or less) are taxed as ordinary income at your marginal tax rate, which ranges from 10% to 37% for 2026. This makes holding assets for over a year highly advantageous from a tax perspective.
What is the Net Investment Income Tax (NIIT)?
The NIIT is a 3.8% surtax on investment income (including capital gains) for individuals with modified adjusted gross income above $200,000 (single) or $250,000 (married filing jointly). These thresholds are not adjusted for inflation.