We verify every calculator and guide against primary IRS sources — Revenue Procedures, IRS publications, and the tax code — and cite them so you can check the numbers yourself.
The one-paragraph answer #
Long-term capital gains stay at 0%, 15%, or 20% federal for 2025 and 2026. Only the income breakpoints move — up roughly 2% for 2026 under Rev. Proc. 2025-32. If your modified AGI clears $200,000 (single) or $250,000 (MFJ), tack on an extra 3.8% Net Investment Income Tax. Short-term gains (held one year or less) are still taxed as ordinary income up to 37%.
2025 vs 2026 breakpoints, side by side #
The table below is generated directly from the values we store in taxData2025.ts andtaxData2026.ts, so it will always match what the Capital Gains Calculator uses.
| Filing status | 2025 0% ceiling | 2025 15% ceiling | 2026 0% ceiling | 2026 15% ceiling |
|---|---|---|---|---|
| Single | $48,350 | $533,400 | $49,450 | $545,500 |
| Married Filing Jointly | $96,700 | $600,050 | $98,900 | $613,700 |
| Married Filing Separately | $48,350 | $300,000 | $49,450 | $306,850 |
| Head of Household | $64,750 | $566,700 | $66,200 | $579,600 |
| Qualifying Surviving Spouse | $96,700 | $600,050 | $98,900 | $613,700 |
Above the 15% ceiling, the 20% top rate applies. Amounts reflect taxable income, not gross income.
How the 0% zone actually works #
The 0% rate isn't limited to low earners — it's a stacking rule. Ordinary income fills the low brackets first; long-term gains stack on top. If total taxable income (ordinary + gain) stays under the 0% ceiling, the gain is untaxed federally. Cross the ceiling and only the portion above it is taxed at 15%.
Example (2026, MFJ): $70,000 of ordinary income + $20,000 of long-term gain = $90,000 taxable. The full $20,000 sits under the $98,900 0% ceiling, so the gain is federally tax-free. Move the gain to $40,000 and only the piece above the ceiling gets the 15% rate.
The 3.8% NIIT surtax (fixed by statute, not indexed) #
The Net Investment Income Tax adds 3.8% on the lesser of your net investment income or the amount MAGI exceeds the IRC §1411 threshold. These thresholds are fixed by law and never adjust for inflation:
- Single / Head of Household: $200,000 MAGI
- Married Filing Jointly / QSS: $250,000 MAGI
- Married Filing Separately: $125,000 MAGI
Stacked with the 20% top rate, high earners face an effective 23.8% federal rate on long-term gains — before any state tax.
Two worked examples #
Example A — Middle-income single (2026) #
Taxable income: $85,000 ordinary + $10,000 long-term gain. The 15% bracket applies to the gain because income exceeds the $49,450 0% ceiling. Federal tax on the gain: $10,000 × 15% = $1,500. No NIIT (MAGI < $200,000).
Example B — High-earner MFJ (2026) #
Taxable income: $700,000 ordinary + $150,000 long-term gain. Ordinary income already exceeds the $613,700 15% ceiling, so the entire gain is taxed at 20%. MAGI also exceeds $250,000, so NIIT adds 3.8%. Federal tax on the gain: $150,000 × (20% + 3.8%) = $35,700.
Strategies that survive under both brackets #
- Hold past one year. Ordinary rates hit 37%; long-term rates cap at 20% (plus NIIT).
- Harvest losses in December. See our Tax-Loss Harvesting Guide — losses offset gains dollar-for-dollar with $3,000/yr of ordinary offset.
- Fill the 0% bucket in low-income years. Post-retirement, pre-Social-Security is often the perfect window.
- Watch MAGI, not just taxable income. NIIT keys off MAGI — Roth conversions and IRA distributions can push you over the fixed threshold.
Where these numbers come from #
2025 breakpoints: Rev. Proc. 2024-40 (IRB 2024-44). 2026 breakpoints: Rev. Proc. 2025-32 and press release IR-2025-103. NIIT: IRC §1411, unchanged since 2013. Ordinary-rate treatment of short-term gains: IRC §1222 and Publication 550.
Sources & References #
Estimate your numbers in 60 seconds #
Free, accurate, and updated for the 2026 tax year.
Open the Capital Gains CalculatorFrequently Asked Questions #
Did long-term capital gains rates change for 2026? #
No — the three-tier structure (0%, 15%, 20%) is unchanged. Only the income breakpoints that separate the tiers moved up for inflation under Rev. Proc. 2025-32.
What is the 0% long-term capital gains zone? #
If your taxable income (including the gain) stays under the 0% breakpoint for your filing status, the qualifying long-term portion is taxed at 0% federal. In 2026 that ceiling is $49,450 single and $98,900 married filing jointly.
How does the NIIT interact with capital gains? #
The 3.8% Net Investment Income Tax applies on top of your capital gains rate when MAGI exceeds $200,000 single / $250,000 MFJ. These thresholds are statutorily fixed by IRC §1411 and never index — a top-bracket investor pays 20% + 3.8% = 23.8% federal.
Are short-term gains taxed differently? #
Yes. Assets held one year or less are short-term and taxed at ordinary income rates up to 37%. The preferential 0/15/20% schedule only applies to assets held more than one year.
Do collectibles or QSBS use these brackets? #
No. Collectibles gains cap at 28% and Section 1202 QSBS can exclude 50–100% of gain. The 0/15/20% schedule covers ordinary stocks, bonds, mutual funds, and most real estate.
Sources & References #
Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.