Collectibles & unrecaptured Section 1250 special rates
Most long-term gains are taxed at 0/15/20%, but two asset types have higher special caps. Collectibles - art, antiques, coins, precious metals, gems and stamps - are taxed at a maximum of 28%. The portion of a real-estate gain due to past depreciation, called unrecaptured Section 1250 gain, is taxed at a maximum of 25%. The 3.8% NIIT can apply on top. General information, not tax advice.
Source: IRS Topic No. 409, Capital Gains and Losses. Data as of June 2026.
The special long-term rates
| Asset type | Max federal long-term rate | Notes |
|---|---|---|
| Most assets (stocks, funds, real estate gain) | 20% | 0/15/20% by income; the standard case |
| Collectibles (art, coins, metals, gems) | 28% | Includes physical gold/silver and some metal ETFs |
| Unrecaptured Section 1250 (depreciation) | 25% | Applies to prior depreciation on real property |
When these come up
The collectibles rate surprises gold and silver investors most: bullion and many precious-metal ETFs are treated as collectibles, so a long-term profit can be taxed up to 28% rather than 20%. The Section 1250 rate matters when selling a depreciated rental property - the depreciation you deducted over the years is recaptured at up to 25%, with the rest taxed at normal long-term rates. Your state may apply its own rate to all of it.
Frequently asked questions
What is the capital gains rate on collectibles?
Long-term gains on collectibles - art, antiques, coins, precious metals, gems, stamps and similar - are taxed at a maximum federal rate of 28%, higher than the usual 20% top rate on most long-term gains. Physical gold and silver, including some metal-backed ETFs, count as collectibles.
What is unrecaptured Section 1250 gain?
When you sell real estate you depreciated (such as a rental), the part of the gain attributable to past depreciation is "unrecaptured Section 1250 gain," taxed at a maximum federal rate of 25% rather than 0/15/20%. The remaining gain is taxed at normal long-term rates.
Do these special rates replace the 0/15/20% rates?
They are caps that apply instead of 20% for these specific assets, but you never pay more than the special rate. If your ordinary rate is below the cap, you pay the lower ordinary rate. The 3.8% NIIT can still apply on top for high earners.
What about qualified small business stock (QSBS)?
Up to 100% exclusion on qualified small-business stock (Section 1202) held over 5 years, subject to limits. It is a powerful exclusion for early-stage investors, with per-issuer and dollar limits; the rules are detailed, so confirm eligibility with a tax professional.
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Last updated: 2026-06-21