2026 Capital Gains Tax Brackets: 0%, 15%, and 20% Income Thresholds

For 2026, long-term capital gains are taxed at 0%, 15%, or 20%, and which rate you pay depends on your total taxable income, not just the size of the gain. Long-term gains stack on top of your ordinary taxable income, and the rate is set by where that combined total lands against the breakpoints below. A single filer pays 0% up to $49,450 of taxable income, 15% up to $545,500, and 20% above that. Crossing a threshold only changes the rate on the dollars above it, never on your whole gain.

The 2026 long-term capital gains brackets

These are the 2026 figures from IRS Revenue Procedure 2025-32. The dollar amounts are total taxable income, which already includes the gain.

Single

Rate	Taxable income
0%	Up to $49,450
15%	$49,451 to $545,500
20%	Over $545,500

Married Filing Jointly

Rate	Taxable income
0%	Up to $98,900
15%	$98,901 to $613,700
20%	Over $613,700

Married Filing Separately

Rate	Taxable income
0%	Up to $49,450
15%	$49,451 to $306,850
20%	Over $306,850

Head of Household

Rate	Taxable income
0%	Up to $66,200
15%	$66,201 to $579,600
20%	Over $579,600

Long-term gains sit on top of your ordinary income

This is the part most bracket charts skip. The IRS does not look at your gain in isolation. It stacks your ordinary income first, then places the long-term gain on top of it. The gain fills whatever capital-gains brackets sit above your ordinary income floor.

So if your ordinary income already reaches $120,000, your long-term gain starts being measured from $120,000 upward. The first dollars of the gain are well past the 0% band, so they are taxed at 15% from the start.

Taxable income is not your salary

The breakpoints use taxable income, which is a smaller number than your gross pay. Taxable income is what is left after your standard or itemized deductions. For 2026 the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly. Someone with a $136,100 salary and the standard deduction has about $120,000 of taxable income.

Modified adjusted gross income, or MAGI, is a different number again, and it matters only for the 3.8% surtax covered in the NIIT guide. The calculator keeps taxable income and MAGI as two separate inputs for exactly this reason.

Why crossing a threshold does not tax everything at 20%

A threshold is a marginal line, not a cliff. When your income crosses into the 15% band, only the dollars above the 0% line pay 15%. When you cross into 20%, only the dollars above the 15% line pay 20%. The dollars below each line keep their lower rate. You never pay the top rate on your whole gain just because part of it crossed a threshold.

A worked example: $120,000 income plus a $150,000 gain

Here is a single filer with $120,000 of taxable income who sells for a $150,000 long-term gain. We ran it through the Capital Gains Calculator.

The $150,000 gain stacks from $120,000 up to $270,000 of total income.
That entire range sits inside the 15% band, which runs to $545,500 for a single filer. None of the gain reaches 20%.
Long-term tax: $22,500, which is 15% of $150,000.
The 3.8% NIIT then applies to the income above the $200,000 threshold, adding $2,660.
Total federal tax on the gain: $25,160.

Notice the two different rates you can quote. The marginal capital-gains rate is 15%. The effective rate, once you fold in the NIIT, is $25,160 divided by $150,000, or about 16.8%. Both are correct. They answer different questions.

Use the Capital Gains Calculator to find your own bracket split and effective rate in seconds.

Marginal versus effective capital-gains rate

Your marginal rate is the rate on your next dollar of gain. Your effective rate is the total tax divided by the total gain. They differ whenever your gain spans more than one band or picks up the NIIT. When someone says they are “in the 15% capital gains bracket,” they usually mean their marginal rate. Their effective rate on a large gain can be a point or two higher once the surtax kicks in.

Open the Capital Gains Calculator and try one of the built-in scenarios to watch the bracket stacking happen.

Sources

Last reviewed: June 21, 2026.

Frequently Asked Questions

What are the 2026 capital gains tax brackets?

For 2026, long-term gains are taxed at 0%, 15%, or 20%. A single filer pays 0% up to $49,450 of taxable income, 15% up to $545,500, and 20% above that. Married couples filing jointly use $98,900 and $613,700 as the breakpoints. These figures come from IRS Revenue Procedure 2025-32.

Does a big capital gain push all my income into the 20% bracket?

No. The brackets are marginal. Only the dollars above each threshold pay the higher rate, and the dollars below keep the lower rate. A gain that crosses into the 20% band is taxed at 20% only on the portion above the 15% breakpoint.

Is the capital gains threshold based on gross income or taxable income?

It is based on taxable income, which is your income after the standard or itemized deduction. That is a smaller number than your gross salary, which is why two people with the same paycheck can fall in different capital-gains brackets.