Most people think they know their capital gains rate. Most people are wrong.
The confusion makes sense: your rate depends on your filing status, your ordinary income, and how long you held the asset. The brackets are completely separate from your income tax brackets. This article is the reference page. Every bracket, every filing status, both the 2025 and 2026 tax years, plus the extra taxes most guides leave out.
The quick version: Long-term capital gains rates are 0%, 15%, or 20% based on taxable income. Short-term gains are taxed as ordinary income (10% to 37%). High earners also face a 3.8% NIIT surtax on investment income.
Why Capital Gains Rates and Income Tax Rates Aren't the Same Thing
A common misconception: "I'm in the 22% tax bracket, so my capital gains rate is 22%." Wrong, unless you're selling short-term.
Long-term capital gains have their own bracket system, separate from ordinary income tax brackets. After the Tax Cuts and Jobs Act of 2017 (now made permanent by the One Big Beautiful Bill Act), these brackets are indexed to inflation but don't align with income tax brackets.
Your ordinary income fills the standard brackets first. Then your long-term gains stack on top and are taxed at the capital gains rate that corresponds to your total income level. The mechanics matter, and we showed this with examples in our pillar guide to capital gains tax. Here, we're focused on getting every number right.
2025 Long-Term Capital Gains Tax Rates (Filing in 2026)
Single Filers
| Rate | Taxable Income |
|---|
| 0% | $0–$48,350 |
| 15% | $48,351–$533,400 |
| 20% | Over $533,400 |
Married Filing Jointly
| Rate | Taxable Income |
|---|
| 0% | $0–$96,700 |
| 15% | $96,701–$600,050 |
| 20% | Over $600,050 |
Head of Household
| Rate | Taxable Income |
|---|
| 0% | $0–$64,750 |
| 15% | $64,751–$566,700 |
| 20% | Over $566,700 |
Married Filing Separately
| Rate | Taxable Income |
|---|
| 0% | $0–$48,350 |
| 15% | $48,351–$300,000 |
| 20% | Over $300,000 |
Source: IRS Revenue Procedure 2024-40.
2026 Long-Term Capital Gains Tax Rates (Filing in 2027)
Single Filers
| Rate | Taxable Income |
|---|
| 0% | $0–$49,450 |
| 15% | $49,451–$545,500 |
| 20% | Over $545,500 |
Married Filing Jointly
| Rate | Taxable Income |
|---|
| 0% | $0–$98,900 |
| 15% | $98,901–$613,700 |
| 20% | Over $613,700 |
Head of Household
| Rate | Taxable Income |
|---|
| 0% | $0–$66,200 |
| 15% | $66,201–$579,600 |
| 20% | Over $579,600 |
Married Filing Separately
| Rate | Taxable Income |
|---|
| 0% | $0–$49,450 |
| 15% | $49,451–$306,850 |
| 20% | Over $306,850 |
Source: IRS Revenue Procedure 2025-32.
The thresholds increased roughly 2.8% from 2025 to 2026, tracking inflation.
Short-Term Capital Gains Rates
Short-term gains (assets held one year or less) don't get their own brackets. They're taxed at ordinary income rates. For 2025 single filers, that's 10% on the first $11,925, climbing to 37% on income above $626,350.
The full short-term breakdown, with all 2026 brackets, is in our guide to what selling early costs you.
The 3.8% Net Investment Income Tax
The NIIT adds 3.8% on investment income when modified adjusted gross income exceeds:
| Filing Status | NIIT Threshold |
|---|
| Single | $200,000 |
| Married Filing Jointly | $250,000 |
| Married Filing Separately | $125,000 |
These thresholds are not adjusted for inflation. They've been frozen since the NIIT was created in 2013. A dollar amount that once captured only the wealthy now catches plenty of dual-income households in places like Denver, Austin, or Raleigh. The slow creep is by design (or at least by congressional inertia).
The NIIT applies to the lesser of your net investment income or the amount your MAGI exceeds the threshold. It effectively raises the top long-term capital gains rate from 20% to 23.8%.
Special Rates for Special Assets
Not all gains follow the 0/15/20 structure:
| Asset Category | Maximum Long-Term Rate |
|---|
| Most stocks, bonds, ETFs | 20% |
| Collectibles (art, coins, stamps, precious metals, wine) | 28% |
| Unrecaptured Section 1250 gain (real estate depreciation) | 25% |
| Qualified small business stock (excluded portion) | Varies; non-excluded at 28% max |
The collectibles rate catches people off guard. SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), for instance, are classified as collectibles and taxed at 28%, not 20%. Same for rare coins, even sitting in an investment account.
Worked Example: Two Taxpayers, Same Gain, Different Brackets
Profile A: Jenna, 34, single filer (2025)
- Salary: $72,000
- Standard deduction: $15,000
- Taxable ordinary income: $57,000
- Long-term capital gain (sold Vanguard VTI after 2 years): $15,000
Jenna's ordinary income ($57,000) already exceeds the 0% threshold ($48,350). Her entire $15,000 gain falls in the 15% bracket.
Federal tax on gain: $15,000 × 15% = $2,250
No NIIT (her MAGI of $87,000 is below $200,000).
Profile B: David and Lisa, married filing jointly (2025)
- Combined salary: $350,000
- Standard deduction: $30,000
- Taxable ordinary income: $320,000
- Long-term capital gain: $50,000
Their ordinary income ($320,000) is within the 15% capital gains bracket ($96,701 to $600,050). The gains stack on top for total taxable income of $370,000. Still in the 15% bracket.
Capital gains tax: $50,000 × 15% = $7,500
NIIT check: MAGI = $400,000. Exceeds $250,000 threshold by $150,000. NIIT applies to the lesser of net investment income ($50,000) or the excess ($150,000).
NIIT: $50,000 × 3.8% = $1,900
Total tax on the gain: $7,500 + $1,900 = $9,400 (effective rate: 18.8%)
Same $50,000 gain. Jenna pays an effective 15%. David and Lisa pay 18.8%. The NIIT adds nearly 4 percentage points for higher earners, and they never see it coming until they file.
What Changed (and What Didn't) Under the OBBBA
The One Big Beautiful Bill Act made the 2017 rate structure permanent. Before the legislation passed, there was real uncertainty about whether rates would revert to pre-2017 levels starting in 2026. They won't.
What stayed the same:
- The three long-term rates (0%, 15%, 20%)
- The seven ordinary income brackets
- The 3.8% NIIT thresholds (still not indexed to inflation)
What changed:
- Brackets are now permanently adjusted for inflation, eliminating annual "will they or won't they" speculation
- The standard deduction increases ($15,750 for singles, $31,500 for joint filers in 2025) help more people stay in lower capital gains brackets
Your Next Move
- Know your bracket before you sell. Use our tax bracket calculator to estimate where your gains will land.
- Calculate the NIIT. If your household income exceeds $200k/$250k, factor in the extra 3.8%.
- Check for collectibles. Gold ETFs like GLD, art, coins, and certain commodity funds face the 28% rate, not 20%.
- Compare years. If you're between 2025 and 2026 on timing a sale, the slightly higher 2026 thresholds may save you money. Run both scenarios.
- Don't forget your state. Federal rates are only part of the bill. Our state capital gains tax guide covers the rest.
References
- Internal Revenue Service. (2025). Revenue Procedure 2025-32. IRS.gov. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- Internal Revenue Service. (2024). Revenue Procedure 2024-40. IRS.gov. https://www.irs.gov/pub/irs-drop/rp-24-40.pdf
- Internal Revenue Service. (2026). Topic No. 559, Net Investment Income Tax. IRS.gov. https://www.irs.gov/taxtopics/tc559
- Internal Revenue Service. (2026). Topic No. 409 Capital Gains and Losses. IRS.gov. https://www.irs.gov/taxtopics/tc409
