Long-term capital gains tax brackets: how your income sets the rate

By Refund Answers

Most net long-term capital gains are subject to federal rates of 0%, 15% or 20%. Your rate depends on your filing status and total taxable income—including the gain, not just your salary or the size of the sale. A single gain can span more than one rate. IRS capital-gains guidance

Use the brackets for the year the gain is taxable, not the year you submit the return. For a calendar-year taxpayer selling stock on an established securities market, the trade date determines the year to report the gain, even if settlement occurs the following year. IRS Publication 550

2026 long-term capital gains brackets

These are the regular federal brackets for most net long-term capital gains of individuals. The dollar amounts describe total taxable-income bands; the next section explains how to place your gain within them.

Filing status	0% band	15% band	20% band
Single	Up to $49,450	Over $49,450 through $545,500	Over $545,500
Married filing jointly or qualifying surviving spouse	Up to $98,900	Over $98,900 through $613,700	Over $613,700
Married filing separately	Up to $49,450	Over $49,450 through $306,850	Over $306,850
Head of household	Up to $66,200	Over $66,200 through $579,600	Over $579,600

Source: IRS Revenue Procedure 2025-32, section 4.03.

If you are filing or correcting a 2025 return

Use these 2025 limits instead. The 15% band starts above the 0% ceiling and ends at the 15% ceiling; the portion above that second ceiling falls in the 20% band.

Filing status	0% ceiling	15% ceiling
Single	$48,350	$533,400
Married filing jointly or qualifying surviving spouse	$96,700	$600,050
Married filing separately	$48,350	$300,000
Head of household	$64,750	$566,700

Source: IRS Topic 409, 2025 capital-gains rates.

How ordinary income affects your capital-gains rate

Think of eligible long-term gains as sitting on top of your ordinary taxable income. Ordinary income fills the lower income bands first, leaving less room for gains at 0% or 15%. The IRS tax worksheet separates ordinary taxable income from eligible gains and qualified dividends before applying the preferential rates. IRS Qualified Dividends and Capital Gain Tax Worksheet

Three distinctions matter:

• Taxable income is not gross pay. Work from income after applicable adjustments and deductions. Do not compare your salary alone with the table.
• The gain counts toward the limit. Having ordinary taxable income below the 0% ceiling does not make an unlimited amount of gains tax-free.
• Crossing a ceiling is not a cliff. Only the portion reaching the next band gets the higher capital-gains rate; the earlier portion keeps its lower rate.

Qualified dividends share these preferential-rate bands with eligible long-term gains. They do not receive a separate 0% allowance. IRS tax worksheet

Example: part at 0%, part at 15%

Assume a single filer in 2026 has:

• $40,000 of ordinary taxable income after applicable deductions;
• $20,000 of net long-term gains eligible for the usual rates;
• no qualified dividends or special-rate gains.

Total taxable income is $60,000. Using the 2026 thresholds above, the ordinary income uses the first $40,000 of the income bands, leaving $9,450 below the $49,450 zero-rate ceiling.

Portion of gain	Rate	Regular federal tax on that portion
First $9,450	0%	$0
Remaining $10,550	15%	$1,582.50

The regular federal tax on the gain in this example is $1,582.50, not 15% of the entire $20,000. This example isolates the gain calculation; it is not the filer’s total tax bill.

Check that your gain belongs in these brackets

Account type: Do not apply these tables to sales of investments held inside an IRA, 401(k) or other qualified retirement plan. Those accounts and their distributions have separate tax rules. IRS Publication 550

Holding period: A gain is generally long-term if you held the asset for more than one year. One year or less is generally short-term, and net short-term gains are taxed at ordinary income rates. Inherited property and some other assets have exceptions. IRS holding-period rules

Gain, not proceeds: The taxable gain generally starts with the amount realized from the sale minus adjusted basis. A $30,000 sale does not necessarily produce a $30,000 gain. Capital losses and loss carryovers can reduce the net gain before the rate calculation. IRS gain and loss rules

Special assets: These tables are not sufficient for every long-term gain. Collectibles and the taxable portion of certain qualified small-business-stock gains can have a maximum 28% rate; unrecaptured section 1250 real-property gain can have a maximum 25% rate. Use the appropriate worksheet or seek tax help rather than applying the standard table alone. IRS exceptions

Before relying on the result

• Check the additional investment tax. The 3.8% net investment income tax is separate. It applies to the lesser of net investment income or the amount by which modified adjusted gross income exceeds $200,000 for single or head-of-household filers, $250,000 for joint filers or qualifying surviving spouses, or $125,000 for married filing separately. These are modified AGI thresholds, not the taxable-income limits above. IRS NIIT rules
• Use the correct return worksheet. Follow the tax-year instructions for the Qualified Dividends and Capital Gain Tax Worksheet or, when required, the Schedule D Tax Worksheet. A 0% rate does not by itself eliminate reporting requirements. IRS Schedule D instructions
• Review payments after a taxable sale. Capital gains may require estimated tax payments. Do not assume wage withholding will cover the added liability. IRS estimated-payment guidance

These tables cover regular federal capital-gains rates, not state tax or a complete return calculation. If basis records are missing, special asset rules apply, or you are planning a large sale, have a qualified tax professional review the calculation before relying on an estimate.