How capital gains are taxed in 2026
Short-term gains (assets held one year or less) are added to your ordinary income and taxed at your regular bracket β 10% to 37%. Long-term gains and qualified dividends get lower rates of 0%, 15% or 20%, based on your total taxable income.
| 2026 long-term rate | Single | Married jointly | Head of household |
|---|---|---|---|
| 0% | up to $49,450 | up to $98,900 | up to $66,200 |
| 15% | $49,451β$545,500 | $98,901β$613,700 | $66,201β$579,600 |
| 20% | over $545,500 | over $613,700 | over $579,600 |
Ordinary income is stacked first
Your wages fill the brackets first, and gains sit on top. That is why a gain can be partly taxed at 0% and partly at 15%. This calculator follows the IRS Qualified Dividends and Capital Gain Tax Worksheet.
Net investment income tax (NIIT)
An extra 3.8% applies to the smaller of your investment income or the amount your modified AGI exceeds $200,000 (single/head of household), $250,000 (married jointly) or $125,000 (married separately). These thresholds are not indexed for inflation.
Capital losses
Short- and long-term results are netted against each other. If you have a net loss, up to $3,000 ($1,500 if married filing separately) reduces your ordinary income, and the rest carries forward to future years.
FAQ
What is the capital gains tax rate for 2026?
Long-term gains are taxed at 0%, 15% or 20% depending on taxable income. For a single filer, 0% applies up to $49,450 and 20% starts above $545,500. Short-term gains are taxed as ordinary income at 10β37%.
How long do I need to hold a stock for long-term rates?
More than one year. Shares held one year or less produce short-term gains, taxed at your ordinary income rate.
Do I pay capital gains tax if I earn under $49,450?
For a single filer, long-term gains that fit within $49,450 of total taxable income (after the $16,100 standard deduction) are taxed at 0% federally. State tax may still apply.