Federal capital gains tax explainers
US federal capital gains tax depends on how long you held the asset. Long-term gains (over a year) are taxed at 0%, 15% or 20% by taxable income, plus the 3.8% NIIT for higher earners. Short-term gains are taxed as ordinary income (up to 37%). Special 28% (collectibles) and 25% (unrecaptured Section 1250) rates apply to a few asset types. These guides walk through each. General information, not tax advice.
Source: IRS Topic No. 409, Capital Gains and Losses. Data as of June 2026.
The 0%, 15% and 20% taxable-income breakpoints for every filing status.
Short-term vs long-term capital gainsWhy the one-year holding line can change your federal rate from 37% to 15%.
The 3.8% Net Investment Income Tax (NIIT)Who owes the extra 3.8%, the MAGI thresholds, and how it stacks on the 20% rate.
Capital gains on a home sale (Section 121)The $250,000 / $500,000 exclusion when you sell your main home.
Collectibles 28% & unrecaptured Section 1250 25%The two special long-term rates above the usual 0/15/20%.
How to figure your long-term capital gains bracketA step-by-step method to find whether your gain is taxed at 0, 15 or 20%.
State capital gains tax is separate - see capital gains tax by state or use the calculator to combine federal, NIIT and state tax.
Last updated: 2026-06-21