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Capital Gains Tax Rates for 2026: Brackets, NIIT, and Netting Rules

In 2026, long-term gains are taxed at 0% up to $49,450 single ($98,900 joint), 15% up to $545,500 ($613,700), and 20% above, plus possible NIIT.

Capital Gains Tax Rates for 2026: Brackets, NIIT, and Netting Rules

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What are the capital gains tax rates for 2026?

  • Long-term gains, on assets held more than a year, are taxed at 0%, 15%, or 20% depending on taxable income.
  • In 2026 the 0% rate applies up to $49,450 single or $98,900 joint; 15% up to $545,500 or $613,700; 20% above that.
  • Short-term gains are taxed as ordinary income, at rates up to 37% in 2026.
  • The 3.8% net investment income tax can apply on top, above $200,000 of MAGI single or $250,000 joint.
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Full Guide

What are the capital gains tax rates for 2026?

  • Long-term gains, on assets held more than a year, are taxed at 0%, 15%, or 20% depending on taxable income.
  • In 2026 the 0% rate applies up to $49,450 single or $98,900 joint; 15% up to $545,500 or $613,700; 20% above that.
  • Short-term gains are taxed as ordinary income, at rates up to 37% in 2026.
  • The 3.8% net investment income tax can apply on top, above $200,000 of MAGI single or $250,000 joint.

Which gains are taxed at different rates?

  • Collectibles gains, including art, coins, and precious metals, are taxed at up to 28%.
  • Unrecaptured Section 1250 gain from depreciation on real estate is taxed at up to 25%.
  • Qualified small business stock may exclude part or all of the gain under Section 1202.
  • Qualified dividends use the same 0%, 15%, and 20% brackets as long-term gains.

How is a capital gain calculated?

  • Gain equals the amount realized minus adjusted basis, generally the purchase price plus costs and reinvested dividends.
  • Inherited assets generally take a basis equal to value at death, while gifted assets keep the donor's basis.
  • The holding period starts the day after you acquire the asset, and more than one year makes a gain long-term.
  • For RSU and ESPP shares, basis includes income already taxed as wages, which Form 1099-B may omit.

How do capital losses offset gains?

  • Short-term and long-term results are netted within each group first, then against each other.
  • A net loss offsets up to $3,000 of ordinary income a year, or $1,500 if married filing separately.
  • Unused losses carry forward indefinitely.
  • The wash-sale rule disallows a loss when substantially identical securities are bought within 30 days before or after the sale.

How do state taxes apply?

  • California taxes capital gains as ordinary income, with a top rate of 13.3% including the 1% surcharge on income over $1 million.
  • Most states with an income tax treat gains as ordinary income.
  • Washington has no wage income tax but taxes certain long-term capital gains.
  • Moving before a sale doesn't always shift the tax; residency and sourcing rules decide.

What tools can manage capital gains?

  • Donating appreciated shares held over a year to charity generally avoids the gain and deducts fair market value.
  • Spreading sales across tax years can manage brackets and the NIIT threshold.
  • Installment sales can spread gain recognition for eligible property.
  • Harvesting losses, or realizing gains in a 0% year, can shape taxable income.

Key takeaways

  • 2026 long-term rates are 0%, 15%, and 20%, with thresholds indexed each year.
  • NIIT adds 3.8% above fixed MAGI thresholds, and California adds up to 13.3%.
  • Losses net against gains, offset $3,000 of ordinary income, and carry forward.
  • Confirm basis and timing with your CPA before large sales.
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