2026 and 2025 Capital Gains Tax Rates
Assets you hold more than a year get the lower long-term capital gains rates of 0%, 15% or 20%. For 2026 a single filer pays 0% up to $49,450 of taxable income, 15% up to $545,500, and 20% above that. Sell within a year and the gain is "short-term," taxed as ordinary income.
Below are the 2026 and 2025 long-term thresholds, how short-term gains are taxed, the extra 3.8% net investment income tax, the home-sale exclusion and the special collectibles rate.
Long-term capital gains rates
These apply to assets held more than one year. The rate depends on your total taxable income, on thresholds separate from the ordinary brackets.
| Rate | 2026 Single | 2026 MFJ | 2025 Single | 2025 MFJ |
|---|---|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 | Up to $48,350 | Up to $96,700 |
| 15% | $49,450 – $545,500 | $98,900 – $613,700 | $48,350 – $533,400 | $96,700 – $600,050 |
| 20% | Over $545,500 | Over $613,700 | Over $533,400 | Over $600,050 |
Short-term vs long-term
Hold an asset one year or less and the gain is short-term, taxed at your ordinary income rate (10%–37%). Hold it more than a year and it qualifies for the lower long-term rates above — often the single biggest lever on an investment tax bill. Your gain is the sale price minus your cost basis (what you paid, plus improvements and reinvested dividends).
Head-of-household filers get the 0% rate up to $66,200 in 2026. Compare the after-tax outcome of taxable vs tax-deferred accounts with the taxable vs tax-deferred calculator.
The 3.8% net investment income tax
High earners owe an extra 3.8% NIIT on investment income (including capital gains) once modified AGI tops $200,000 (single) or $250,000 (married filing jointly). It applies to the smaller of your net investment income or the amount over the threshold — which, unlike most tax figures, has not been indexed since 2013, so it reaches more people each year.
Home sales and collectibles
Your home: you can exclude up to $250,000 of gain ($500,000 married filing jointly) on a primary residence you owned and lived in for two of the last five years. Collectibles (art, coins, precious metals) are taxed at a higher maximum rate of 28%, not 20%.
Capital losses, wash sales and inherited assets
Losses offset gains dollar-for-dollar. If your losses exceed your gains, you can deduct up to $3,000 against ordinary income each year ($1,500 married filing separately) and carry the rest forward indefinitely.
Two rules matter: the wash-sale rule disallows a loss if you buy the same or a substantially identical security within 30 days before or after the sale. And inherited assets get a step-up in basis — their cost basis resets to the market value on the date of death, so heirs who sell soon after often owe little or no capital gains tax.
What are the 2026 capital gains tax rates?
Long-term gains (assets held over a year) are taxed at 0%, 15% or 20%. For 2026 single filers, 0% applies up to $49,450 of taxable income, 15% up to $545,500, and 20% above that. Short-term gains are taxed as ordinary income.
What is the difference between short-term and long-term capital gains?
Short-term gains are on assets held one year or less and are taxed at your ordinary income rate of up to 37%. Long-term gains are on assets held more than a year and get the lower 0/15/20% rates.
What is the net investment income tax?
It is an extra 3.8% tax on investment income, including capital gains, that applies once modified AGI exceeds $200,000 for single filers or $250,000 for married filing jointly. The thresholds are not adjusted for inflation.
How much capital gains tax do I pay when I sell my house?
Often none. You can exclude up to $250,000 of gain ($500,000 if married filing jointly) on a primary home you owned and lived in for two of the past five years. Gain above the exclusion is taxed at long-term rates.
How do I calculate my capital gain?
Subtract your cost basis — what you paid, plus commissions, improvements and reinvested dividends — from the sale proceeds. If you held the asset more than a year, the gain is taxed at the lower long-term rate for your income.
How much capital loss can I deduct?
If your losses exceed your gains, you can deduct up to $3,000 against ordinary income each year ($1,500 married filing separately). Any remaining loss carries forward to future years with no expiration.
What is the wash-sale rule?
You cannot claim a loss if you buy the same or a substantially identical security within 30 days before or after selling at a loss. The disallowed loss is added to the cost basis of the replacement shares.