Capital Gains Tax Rates by Income Bracket 2026
Your capital gains tax rate in 2026 depends on how long you held the asset and where your taxable income lands. Long-term gains (assets held over one year) get taxed at 0%, 15%, or 20% based on your income bracket; short-term gains (held one year or less) get taxed as ordinary income at rates up to 37%.
- Most taxpayers landing in the middle brackets pay a 15% capital gains tax rate in 2026 on long-term gains.
- Single filers earning under $49,450 in 2026 owe 0% on long-term capital gains.
- Short-term gains skip the special rates entirely and get taxed at your ordinary income rate, up to 37%.
- High earners can also owe the 3.8% Net Investment Income Tax on top of the capital gains rate.
- Your filing status shifts every bracket threshold, so married filing jointly and single filers see different cutoffs.
Why this matters
Capital gains show up on brokerage statements, home sales, and crypto trades, but the tax code treats them nothing like your paycheck. Get the bracket wrong and you either overpay or underpay, and both come with consequences. ScholarTax works through these calculations with a registered preparer as part of its tax preparation service, so the number you see on your return matches what the IRS expects.
The brackets below reflect the IRS 2026 inflation-adjusted thresholds. Every taxpayer selling stock, a rental property, or a business interest in 2026 needs to know which row applies to their taxable income.
Long-term capital gains tax rates by income (2026)
The average long-term capital gains rate for a filer near the median household income sits at 15% in 2026. The full range runs from 0% for lower-income filers to 20% for the highest earners.
| Filing status | 0% rate | 15% rate | 20% rate |
|---|---|---|---|
| Single | $0 – $49,450 | $49,450 – $545,500 | Over $545,500 |
| Married filing jointly | $0 – $98,900 | $98,900 – $613,700 | Over $613,700 |
| Head of household | $0 – $66,200 | $66,200 – $579,600 | Over $579,600 |
| Married filing separately | $0 – $49,450 | $49,450 – $306,850 | Over $306,850 |
Married filing jointly households get the widest 0% window at $98,900, nearly double the single filer threshold. Married filing separately filers trail every other status, hitting the 20% rate at just $306,850, less than half the MFJ cutoff. That gap alone explains why some married couples come out ahead filing separately only in narrow situations, and behind in most others.
These figures come from the IRS's annual inflation adjustments for tax year 2026. One limitation: they show marginal thresholds only, not your effective rate, since gains stack on top of your ordinary income to determine which bracket they fall into.
Short-term capital gains tax rates by income (2026)
Short-term gains do not get a special rate. They fold into your ordinary income and get taxed at the same seven brackets that apply to wages: 10%, 12%, 22%, 24%, 32%, 35%, and 37% for 2026.
| Filing status | 10% | 12% | 22% | 24% | 32% | 35% | 37% |
|---|---|---|---|---|---|---|---|
| Single | $0–$12,400 | $12,400–$50,400 | $50,400–$105,700 | $105,700–$201,775 | $201,775–$256,225 | $256,225–$640,600 | Over $640,600 |
| Married filing jointly | $0–$24,800 | $24,800–$100,800 | $100,800–$211,400 | $211,400–$403,550 | $403,550–$512,450 | $512,450–$768,700 | Over $768,700 |
A single filer with $60,000 in wages and a $10,000 short-term stock gain pays 22% on that gain, not 15%. That is the single most common mistake ScholarTax preparers catch: taxpayers assume every stock sale gets the lower capital gains treatment, then get surprised when a short-term trade lands in a higher ordinary bracket.
The top ordinary bracket (37%) kicks in at $640,600 for single filers in 2026, more than double the $545,500 threshold where the top long-term capital gains rate starts. That 95,100-dollar gap is the clearest argument for holding an asset past the one-year mark before selling.
These brackets are based on the IRS's published 2026 inflation adjustments to the seven ordinary income brackets. The one gap in this data: it doesn't account for state capital gains taxes, which stack on top of the federal rate and vary widely by state.
“Holding an asset past the one-year mark can move it from a 37% ordinary rate to a 20% capital gains rate, no other change required.”
The Net Investment Income Tax adds a layer
High earners don't stop at the 15% or 20% capital gains rate. The Net Investment Income Tax (NIIT) adds a 3.8% surtax on investment income once modified adjusted gross income passes $200,000 for single filers or $250,000 for married filing jointly. These thresholds are fixed by statute and have not been inflation-adjusted since they took effect in 2013.
A single filer with $250,000 in modified adjusted gross income and a $40,000 long-term gain could owe 20% capital gains tax plus 3.8% NIIT on the portion of the gain above the $200,000 threshold. That combination pushes the effective rate on that slice of the gain close to 24%.
How to use these benchmarks
- Check your holding period first. Anything under 366 days gets taxed as ordinary income, which can mean paying more than double the rate you expected.
- Watch the bracket edges. A gain that pushes your income from $48,000 to $52,000 as a single filer moves part of that gain from the 0% bracket into the 15% bracket.
- Factor in NIIT separately. The 3.8% surtax applies on top of, not instead of, your capital gains rate once you cross the $200,000 or $250,000 MAGI threshold.
- Get the math checked before you file. A registered preparer can confirm which bracket your gain falls into and whether timing the sale into next year changes the outcome. See what tax preparation typically costs before you decide to file solo.
Get your capital gains checked before you file
A registered preparer confirms your bracket and files Form 8879 securely.
FAQ
What is the capital gains tax rate by income in 2026?
Long-term capital gains are taxed at 0%, 15%, or 20% depending on taxable income and filing status in 2026. Single filers pay 0% up to $49,450, 15% up to $545,500, and 20% above that.
Is short-term capital gains tax the same as long-term?
No. Short-term gains, from assets held one year or less, get taxed at ordinary income rates up to 37% in 2026. Long-term gains get the lower 0%, 15%, or 20% rates instead.
Do capital gains count as income for tax brackets?
Yes. Capital gains stack on top of your other taxable income to determine which capital gains bracket applies. A large gain can push you from the 0% bracket into the 15% bracket.
What income triggers the Net Investment Income Tax in 2026?
The NIIT applies once modified adjusted gross income passes $200,000 for single filers or $250,000 for married filing jointly in 2026. It adds a 3.8% surtax on top of your capital gains rate.
Do married couples get a better capital gains rate than single filers?
Married filing jointly households get wider brackets. Their 0% rate covers income up to $98,900 in 2026, nearly double the $49,450 threshold for single filers.
How does holding period affect my capital gains tax rate?
Holding an asset over one year qualifies it for the long-term rate of 0%, 15%, or 20%. Selling within a year means the gain gets taxed as ordinary income, which can reach 37% in 2026.
Can I lower my capital gains tax rate by timing a sale?
Yes, in some cases. Selling in a lower-income year, or waiting past the one-year holding mark, can move a gain into a lower bracket. A registered preparer can model both scenarios before you sell.
One last thing
The $95,100 gap between the top ordinary bracket threshold ($640,600) and the top long-term capital gains threshold ($545,500) for single filers in 2026 is the clearest reason to check your holding period before you sell. Missing that one-year mark by a few weeks can cost you the difference between a 20% rate and a 37% rate on the same dollar of gain.
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This content is for educational and informational purposes only and should not be considered tax, legal, or financial advice. Tax laws and IRS guidance can change, and your situation may require personalized review by a qualified tax professional.