Capital Gains Tax, 2026
Your gain isn't taxed at one rate, it stacks: 0% up to the line, 15% next, 20% after, with a 3.8% surcharge on top. Same gain, same year, can be 0% tax or 23.8%.
The 0% bracket is income-based, not gain-based: fill it with gains you'd otherwise pay 15% on, then stop. That's the single cheapest tax move most households never make.
How the math works
- 2026 LTCG brackets (taxable income): 0% up to $49,450 single, $98,900 married jointly, $66,200 head of household, $49,450 separate. 15% up to $545,500 single, $613,700 married, $579,600 HoH, $306,850 separate. 20% above those.
- Stacking: your other taxable income fills the brackets first. The gain sits on top, the part that lands below the 0% line is tax-free, the next slice is 15%, the rest 20%.
- NIIT: 3.8% on the lesser of net investment income and MAGI above $200,000 single / $250,000 married.
- Short-term gains are taxed as ordinary income, at your bracket, no 0% gift.
- Losses first: capital losses net against gains (up to $3,000 of a net loss against other income), so the tool applies them before rates.
- Excludes: Section 1250 real-estate gain (25% cap), collectibles (28%), QSBS exclusion, state income tax, and the primary-residence exclusion ($250k/$500k).
What is the 2026 long-term capital gains tax rate?
0%, 15%, or 20% based on taxable income: 0% up to $49,450 single ($98,900 married), 15% up to $545,500 single ($613,700 married), 20% above. Add the 3.8% NIIT above $200,000/$250,000 MAGI.
Can I pay 0% capital gains tax in 2026?
Yes, if taxable income (gain included) stays under the 0% line, $49,450 single. Families routinely harvest $30,000–$50,000 of gains in a low-income year at 0%, then stop before the 15% line.
What is the 3.8% NIIT and who pays it?
The net investment income tax: 3.8% on investments (gains, dividends, interest, rents) for MAGI above $200,000 single or $250,000 married filing jointly. It stacks on top of the 20% bracket, so the top federal rate on gains is 23.8%.