US capital gains tax in 2026: federal + state
Federal long-term brackets, the 3.8% NIIT, and how all 51 jurisdictions tax gains.
In 2026, long-term capital gains (assets held more than a year) are taxed by the US federal government at 0%, 15% or 20% depending on your taxable income and filing status. A single filer pays 0% up to $49,450, 15% up to $545,500, and 20% above that; married-filing-jointly thresholds are roughly double. High earners add the 3.8% Net Investment Income Tax, for a federal top of 23.8%. Short-term gains are taxed as ordinary income (up to 37%). Most states tax gains on top. This is general information, not tax advice.
Source: IRS Revenue Procedure 2025-32. Data as of June 2026.
Federal long-term capital gains brackets (2026)
These are the taxable-income breakpoints where the 0%, 15% and 20% long-term rates apply, from the IRS 2026 inflation adjustments. Married-filing-separately uses the single 0% ceiling and a $306,850 20% breakpoint.
| Long-term rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 | Up to $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 |
Source: IRS Revenue Procedure 2025-32. Data as of June 2026.
Brackets are set by taxable income, not just the gain. See the full federal bracket page (with married-filing-separately) and how the 3.8% NIIT works.
Try the calculator
Estimate the federal, NIIT and state tax on a gain in seconds with the capital gains tax calculator - pick your filing status, income, gain, holding period and state.
Capital gains tax by state
Most states tax capital gains as ordinary income; a handful give a special rate or partial exclusion, and 8 levy no tax at all. The "combined top long-term rate" below is an illustration: federal 20% + 3.8% NIIT + the state's effective top long-term rate. Browse all 51 state pages.
Highest combined capital gains rates
| State | State treatment | Combined top long-term rate |
|---|---|---|
| California | Taxed as ordinary income | 37.1% |
| New York | Taxed as ordinary income | 34.7% |
| New Jersey | Taxed as ordinary income | 34.55% |
| District of Columbia | Taxed as ordinary income | 34.55% |
| Oregon | Taxed as ordinary income | 33.7% |
Lowest combined rates among states that do tax gains
| State | State treatment | Combined top long-term rate |
|---|---|---|
| North Dakota | 40% exclusion | 25.3% |
| Arizona | 25% exclusion | 25.675% |
| Arkansas | 50% exclusion | 25.75% |
| Idaho | 60% exclusion | 25.92% |
| Ohio | Taxed as ordinary income | 26.55% |
See the full highest and lowest rankings, or the no-tax states.
Browse
Federal + NIIT + state tax on a gain.
All 51 statesEach state's capital-gains treatment.
Federal explainersBrackets, NIIT, home sale, collectibles.
RankingsHighest, lowest, no-tax states.
GuidesStep-by-step how-tos.
BlogExplainers and 2026 updates.
Frequently asked questions
How much is capital gains tax in 2026?
For long-term gains (assets held over a year), the US federal rate is 0%, 15% or 20% depending on your taxable income and filing status. A single filer pays 0% up to $49,450 of taxable income, 15% up to $545,500, and 20% above that. High earners add the 3.8% Net Investment Income Tax. Short-term gains (held a year or less) are taxed as ordinary income at rates up to 37%. Most states tax capital gains too - see your state page.
What is the highest combined capital gains tax rate?
The top federal long-term rate (20% + 3.8% NIIT = 23.8%) plus the highest state rate produces a combined top of roughly 37.1% in California. This is the top-bracket illustration, not what a typical investor pays.
Which states have no capital gains tax?
8 jurisdictions levy no state tax on capital gains: the seven states with no income tax (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Wyoming) plus New Hampshire, which finished phasing out its interest-and-dividends tax in 2025. Washington has no general income tax but does levy a 7% tax on large long-term gains.
Is short-term capital gains tax higher than long-term?
Usually, yes. Short-term gains (assets held one year or less) are taxed as ordinary income, with a top federal rate of 37%. Long-term gains get the preferential 0/15/20% rates. Holding an asset just past the one-year mark can cut the federal rate substantially.
Sources & accuracy
Federal brackets from IRS Revenue Procedure 2025-32 and IRS Topic 409; state rates from Tax Foundation, 2026 state income tax rates and state revenue departments. Data as of June 2026 for the 2026 tax year. Figures are estimates and general information, not tax advice - verify with the IRS, your state tax authority, or a tax professional. See our methodology and disclaimer.
Last updated: 2026-06-21