How to figure your long-term capital gains bracket
To find your long-term capital gains rate: (1) work out your taxable income including the gain; (2) compare it to your filing status's breakpoints. A single filer in 2026 pays 0% while total taxable income stays under $49,450, 15% up to $545,500, and 20% above. The gain stacks on top of ordinary income, so part of one gain can fall in two bands. General information, not tax advice.
Source: IRS Revenue Procedure 2025-32. Data as of June 2026.
Step by step
- Find your ordinary taxable income (wages and other income minus your deduction), before the gain.
- Add the long-term gain on top to get total taxable income.
- Locate the breakpoints for your filing status (see the bracket table).
- Apply the rate band by band. The slice of the gain that fits below the 15% ceiling is taxed at 15%; any slice above it is taxed at 20%. If your total is under the 0% ceiling, that slice is 0%.
- Check the NIIT. If your modified AGI tops $200,000 (single) / $250,000 (joint), add 3.8% on the over-threshold portion.
Worked example
A single filer has $40,000 of ordinary taxable income and a $30,000 long-term gain. Total taxable income is $70,000. The 0% band for 2026 ends at $49,450, so the first $9,450 of the gain is taxed at 0% and the rest at 15%. No NIIT applies because income is far below the threshold. Use the calculator to run your own figures.
Frequently asked questions
How do I know if my capital gains are taxed at 0%, 15% or 20%?
Add your gain to your other taxable income. If the total is below your filing status's 0% ceiling ($49,450 single / $98,900 joint for 2026), the long-term gain is taxed at 0%. Between that and the 15% ceiling, it is 15%. Above the upper threshold, 20%. A large gain can straddle two bands.
Does my gain push my ordinary income into a higher bracket?
No - long-term capital gains are taxed in their own 0/15/20% schedule and do not raise the rate on your ordinary income. But the gain does count toward the taxable income that decides which capital-gains band the gain itself falls into, and it can affect other thresholds like the NIIT.
What income figure do I use - gross or taxable?
Taxable income: your income after the standard or itemized deduction. The 0/15/20% breakpoints are stated in taxable-income terms, so subtract your deduction first.
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Last updated: 2026-06-21