Long-term capital gains and qualified dividends are taxed at 0%, 15% or 20% in 2026, depending on your total taxable income. A single filer pays 0% on gains that fall within the first $49,450 of taxable income ($98,900 for married couples filing jointly), 15% up to $545,500 ($613,700 joint) and 20% above that. Short-term gains (assets held one year or less) are taxed as ordinary income.
Key facts
- Gains are “stacked” on top of your other taxable income: your salary fills the brackets first, then the gains.
- Higher earners may owe an extra 3.8% net investment income tax once modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly).
- Short-term gains use the regular 2026 income tax brackets (10% to 37%).
- Collectibles (up to 28%) and unrecaptured section 1250 gain on real estate (up to 25%) have their own maximum rates.
2026 long-term capital gains tax brackets
| Filing status | 0% rate | 15% rate | 20% rate |
|---|---|---|---|
| Single | Up to $49,450 | $49,451 to $545,500 | Over $545,500 |
| Married filing jointly | Up to $98,900 | $98,901 to $613,700 | Over $613,700 |
| Married filing separately | Up to $49,450 | $49,451 to $306,850 | Over $306,850 |
| Head of household | Up to $66,200 | $66,201 to $579,600 | Over $579,600 |
Example: how gains are stacked on top of a salary
A single filer earns a $60,000 salary and sells stock held for three years at a $20,000 profit. Taxable income is $80,000 − $16,100 standard deduction = $63,900, of which $43,900 is ordinary income. The gain sits on top: $5,550 of it fits under the $49,450 0% limit and the remaining $14,450 is taxed at 15%.
Tax on the gain: $2,168 (an average of 10.8%). Income tax on the salary portion is $5,020. Had the stock been held for a year or less, the same gain would have been taxed as ordinary income: $3,750 of tax, $1,583 more.
Net investment income tax (3.8%)
On top of capital gains rates, a 3.8% tax applies to the smaller of your net investment income or the amount by which your modified AGI exceeds these thresholds. They are set by law and are not adjusted for inflation.
| Filing status | NIIT threshold (modified AGI) |
|---|---|
| Single | $200,000 |
| Married filing jointly | $250,000 |
| Married filing separately | $125,000 |
| Head of household | $200,000 |
Frequently asked questions
What is the capital gains tax rate for 2026?
For assets held more than a year, the 2026 rates are 0%, 15% and 20%. Single filers reach the 15% rate at $49,451 of taxable income and the 20% rate at $545,501; for married couples filing jointly the thresholds are $98,901 and $613,701.
How much can I make and pay 0% capital gains tax?
Your gains are tax-free to the extent your total taxable income, gains included, stays at or under $49,450 (single), $98,900 (married filing jointly) or $66,200 (head of household). Because taxable income is measured after the standard deduction, a married couple could have about $131,100 of total income before any of their long-term gains are taxed.
Are qualified dividends taxed like capital gains?
Yes. Qualified dividends use the same 0%, 15% and 20% brackets as long-term capital gains. Ordinary (non-qualified) dividends are taxed at regular income tax rates.
Is there a capital gains exclusion when you sell your home?
Yes. If you owned and lived in the home as your main residence for at least two of the five years before the sale, you can exclude up to $250,000 of gain ($500,000 for married couples filing jointly). Only gain above that is taxed at capital gains rates.
Calculators that use these figures
- Income Tax Calculator: 2026 federal and state income tax, effective rate and refund estimate.
- Investment Calculator: Future value of an investment, or what you need to reach a goal.