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Long-Term Capital Gains Tax (2026)
Assets held more than one year get the preferential 0%, 15%, or 20% federal rates. Here are the exact 2026 income thresholds for every filing status, the holding rule, how the gain stacks on your ordinary income, and where the 3.8% NIIT kicks in.
Reviewed & updated · 2026 tax-year figures · Federal rates under IRC §1(h)
Long-term capital gains — profit on an asset you held more than one year — are taxed at 0%, 15%, or 20% for 2026 under IRC §1(h). The rate depends on where the gain stacks on top of your other taxable income, not on a separate bracket. A single filer pays 0% up to about $49,450 of taxable income, 15% up to about $545,500, and 20% above that (2026 est.). Higher earners add a 3.8% Net Investment Income Tax under IRC §1411.
What is the long-term capital gains tax rate in 2026?
For 2026 the federal long-term capital gains rate is 0%, 15%, or 20%, set by statute in 26 U.S.C. §1(h). These are separate, lower rates than the ordinary-income brackets that apply to wages. Which one you pay is not chosen by the type of asset — a stock, a rental property, a bitcoin lot, a bar of gold — but by where the gain lands once it is stacked on top of your other taxable income. A single gain can even cross two rate bands. See the full 2026 rate tables for the ordinary-income brackets alongside these.
| Rate | Single | Married filing jointly | Head of household | Married filing separately |
|---|---|---|---|---|
| 0% | $0 – $49,450 | $0 – $98,900 | $0 – $66,200 | $0 – $49,450 |
| 15% | $49,451 – $545,500 | $98,901 – $613,700 | $66,201 – $579,600 | $49,451 – $306,850 |
| 20% | $545,501 and up | $613,701 and up | $579,601 and up | $306,851 and up |
Thresholds are the taxable-income breakpoints in IRC §1(h), adjusted for inflation. The dollar figures shown are projected 2026 amounts (est.), owner-verifiable against the final IRS release. Verify against IRS Topic No. 409.
What counts as a long-term capital gain?
A gain is long-term only if you held the asset for more than one year before selling. Under 26 U.S.C. §1222 the holding period begins the day after you acquire the asset and runs through the day you dispose of it. The practical test:
- Held one year or less → short-term. Taxed as ordinary income (10%–37%). See the short-term guide.
- Held more than one year → long-term. Taxed at 0/15/20%. Buy on March 15, 2025 and you must sell on March 16, 2026 or later to qualify — one day past the anniversary.
How does the gain stack on top of your ordinary income?
This is the part most explanations skip. Long-term rates are not applied to the gain in isolation — the gain sits on top of your ordinary taxable income. You first fill the 0/15/20% bands with your ordinary income (after the standard deduction), then the long-term gain stacks above it, and each slice of gain is taxed at the rate of the band it lands in. A single gain can straddle two bands.
Worked example — a gain that straddles 0% and 15%
Single filer. Taxable ordinary income (after the standard deduction) of $30,000, plus a $40,000 long-term gain on stock held two years.
| Ordinary taxable income fills the bands first | $30,000 |
| 0% band ceiling (single, 2026 est.) | $49,450 |
| Room left in 0% band ($49,450 − $30,000) | $19,450 |
| Slice of gain taxed at 0% | $19,450 × 0% |
| Remaining gain ($40,000 − $19,450) at 15% | $20,550 × 15% |
| Federal long-term tax on the $40,000 gain | $3,083 |
Effective rate on the gain: about 7.7%, even though the top band it touched was 15%. The first $19,450 rode free in the 0% band. Change the ordinary income and the split shifts — that is the stacking effect in one number.
The mechanic follows the Schedule D / Qualified Dividends and Capital Gain Tax Worksheet in IRS Publication 550. Our methodology page documents the exact band-slicing the calculator performs against IRC §1(h) edge cases.
What is the 3.8% Net Investment Income Tax?
Above the 0/15/20% rate, higher earners owe an additional 3.8% surtax on investment income — the Net Investment Income Tax under 26 U.S.C. §1411. It applies when your modified adjusted gross income exceeds a fixed threshold, and it is charged on the lesser of your net investment income or the amount by which MAGI exceeds the threshold.
| Filing status | MAGI threshold | Surtax |
|---|---|---|
| Single / Head of household | $200,000 | 3.8% |
| Married filing jointly | $250,000 | 3.8% |
| Married filing separately | $125,000 | 3.8% |
These thresholds are set in the statute and are not adjusted for inflation, so they are the same each year. A single filer with a 20%-band long-term gain plus NIIT faces an effective 23.8% top federal rate on that gain.
How is long-term different from short-term capital gains tax?
The only qualification difference is the holding period — but the tax gap is large. Short-term gains get no preferential rate; they are folded into ordinary income and taxed at 10%–37% per IRS Topic No. 409.
| Long-term | Short-term | |
|---|---|---|
| Holding period | More than 1 year | 1 year or less |
| Rate | 0% / 15% / 20% | Ordinary 10%–37% |
| Governing law | IRC §1(h) | IRC §1 / §1222 |
| 3.8% NIIT can apply? | Yes (§1411) | Yes (§1411) |
| Top effective federal rate | 23.8% | 40.8% |
Full detail on the ordinary-rate side is in the short-term capital gains guide. To see the exact difference on your own numbers, run both through the calculator.
Where these numbers come from
Every rate and rule on this page traces to primary law or an IRS publication. Dollar thresholds marked est. are projected 2026 inflation-adjusted figures, owner-verifiable against the final IRS release; the statutory rates (0/15/20%, 3.8%) and the more-than-one-year rule are fixed in the Code and do not change with inflation.
Primary sources (linked, not just named)
Long-term capital gains tax, answered
What is the long-term capital gains tax rate for 2026?
Long-term gains — assets held more than one year — are taxed at 0%, 15%, or 20% under IRC §1(h). A single filer pays 0% while taxable income stays at or below ~$49,450, 15% up to ~$545,500, and 20% above that. Married-filing-jointly breakpoints are ~$98,900 and ~$613,700 (2026 est.). Higher earners add a 3.8% NIIT (§1411).
What counts as a long-term capital gain?
A gain is long-term if you held the asset for more than one year before selling. Under IRC §1222 the clock starts the day after you acquire the asset and includes the sale day. Exactly one year or less is short-term. One day past the one-year mark qualifies for the lower long-term rates.
At what income is the 0% long-term rate available in 2026?
You pay 0% while total taxable income — ordinary income plus the gain, after the standard deduction — stays at or below the 0% ceiling. That ceiling is about $49,450 single, $98,900 married filing jointly, and $66,200 head of household in 2026 (est.). Only the slice of gain that stacks above the ceiling is taxed at 15%.
How does a long-term gain stack on top of ordinary income?
Ordinary taxable income fills the 0/15/20% bands first; the long-term gain stacks above it and each slice is taxed at the band it lands in. A single gain can straddle two bands — part at 0% and part at 15%, for example. This is why the same gain can carry very different effective rates depending on your other income.
What is the 3.8% Net Investment Income Tax on long-term gains?
The NIIT adds 3.8% on top of the 0/15/20% rate for higher earners under IRC §1411. It applies once modified AGI exceeds $200,000 (single/HoH), $250,000 (MFJ), or $125,000 (MFS), charged on the lesser of net investment income or the excess over the threshold. Combined with the 20% band, the top federal rate reaches 23.8%.
How is long-term different from short-term capital gains tax?
Long-term gains (held >1 year) get the 0/15/20% preferential rates; short-term gains (held ≤1 year) are taxed as ordinary income at 10%–37%. The only qualifying difference is holding period, but the top federal rate gap is 23.8% versus 40.8% once NIIT is included. See the short-term guide.