When you sell an investment for more than you paid, the profit is a capital gain. How it's taxed depends on how long you held it and on your other income.
Here are the 2026 federal rates, how gains stack on top of income, and three examples.
2026 long-term capital gains rates
| Filing status | 0% up to | 15% up to | 20% above |
|---|---|---|---|
| Single | $49,450 | $545,500 | $545,500 |
| Married filing jointly | $98,900 | $613,700 | $613,700 |
| Head of household | $66,200 | $579,600 | $579,600 |
| Married filing separately | $49,450 | $306,850 | $306,850 |
Gains are stacked on top of your other taxable income, so wages fill the 0% band first. That's why retirees and people between jobs can often realize gains at 0%.
Worked examples
Example: $90,000 salary, $25,000 long-term gain, single
Wages already use up the 0% band, so the whole gain is at 15%: $3,750. In California, state tax adds $2,325.
Example: The same gain, held under a year
Taxed as wages in the 22% bracket: $5,500, $1,750 more than waiting.
Example: Married couple, $60,000 other income, $50,000 gain
After the $32,200 standard deduction, taxable income including the gain is $77,800, inside the $98,900 band: no federal tax.
To see state tax on all your income, use the state income tax calculator.
How to use this calculator
- Enter long-term gains (held over a year) and short-term gains.
- Enter your wages and other income before deductions.
- Choose your filing status and state.
FAQs
What are the 2026 capital gains brackets?
Single: 0% up to $49,450 of taxable income, 15% up to $545,500, 20% above. Married filing jointly: $98,900 and $613,700. Head of household: $66,200 and $579,600.
Can I pay 0% on capital gains?
Yes, if your taxable income including the gain stays under the 0% limit. A married couple with $60,000 of other income can realize $50,000 of long-term gains with no federal tax.
How long do I need to hold for long-term rates?
More than one year from the day after you buy.
Do states tax capital gains?
Most tax them as ordinary income. States without an income tax don't, and Washington has its own tax on large capital gains.
Sources
- Kiplinger: IRS updates capital gains thresholds for 2026
- IRS: tax inflation adjustments for tax year 2026 (Rev. Proc. 2025-32)
Results are estimates and aren't tax, legal or financial advice. For your own return, check with a CPA or enrolled agent. Spotted a mistake? Tell us.