Investment tax
How capital gains are taxed in 2026
The tax on an investment profit depends entirely on how long you held the asset. Sell after one year or less and the gain is short-term — taxed at your ordinary income rate, up to 37%. Hold for more than a year and it becomes a long-term gain, taxed at a preferential 0%, 15% or 20%.
2026 long-term capital gains brackets
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 0% | $0 – $49,450 | $0 – $98,900 | $0 – $66,200 |
| 15% | $49,451 – $545,500 | $98,901 – $613,700 | $66,201 – $579,600 |
| 20% | over $545,500 | over $613,700 | over $579,600 |
Thresholds are taxable income (after your standard or itemized deduction) and are stacked: your gain sits on top of your ordinary income. Source: IRS Revenue Procedure 2025-32.
The 0% bracket is real — and underused
If your taxable income is low enough, long-term gains can be taxed at 0%. A married couple with $80,000 of taxable income could realize up to about $18,900 of long-term gains entirely tax-free, because their income plus gain stays under the $98,900 top of the 0% band. This is the foundation of "tax-gain harvesting" in low-income years.
The 3.8% Net Investment Income Tax
On top of the capital-gains rate, high earners owe the Net Investment Income Tax (NIIT): 3.8% on the smaller of your net investment income or the amount your modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly). These thresholds are not inflation-adjusted, so more taxpayers cross them each year. The calculator above adds NIIT automatically when your income clears the line.
Short-term gains get no break at all — they are taxed exactly like wages. To see your ordinary marginal rate, use the marginal tax rate calculator, and check your blended rate with the effective tax rate calculator.
Questions
Capital Gains Tax Calculator 2026 FAQ
What is the capital gains tax rate for 2026?
Long-term gains (assets held more than a year) are taxed at 0%, 15% or 20% based on taxable income. For 2026 the 15% rate starts at $49,450 of taxable income for single filers and $98,900 for married filing jointly; the 20% rate starts at $545,500 and $613,700. Short-term gains are taxed at ordinary income rates up to 37%.
How is the 0% capital gains bracket calculated?
Your long-term gain stacks on top of your other taxable income. Any portion of the gain that, combined with that income, stays below $49,450 (single) or $98,900 (married) for 2026 is taxed at 0%. The portion that pushes you above the threshold is taxed at 15%, and amounts above the top band at 20%.
What is the 3.8% Net Investment Income Tax?
The NIIT is an extra 3.8% tax on investment income — including capital gains, dividends and interest — for taxpayers whose modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly). It applies to the lesser of your net investment income or the amount over the threshold, and is added on top of the regular capital gains rate.
Do I pay capital gains tax if I reinvest?
Yes. Reinvesting the proceeds — for example buying more shares — does not defer the tax. A taxable sale triggers a capital gain in the year you sell, regardless of what you do with the money. Gains inside tax-advantaged accounts like a 401(k) or IRA are the exception; they are not taxed when sold inside the account.
- Sources: IRS Rev. Proc. 2025-32 (2026 capital gains brackets) · IRS Topic No. 409 (Capital Gains and Losses) · IRS Questions and Answers on the Net Investment Income Tax.
- 🔄 Last updated June 27, 2026 · Tax year 2026
← Back to the full salary calculator · Related: Marginal tax rate · Effective tax rate · RSU tax · Standard deduction