Quick Reference

Capital Gains Tax Rates

2025/2026 capital gains tax brackets, long-term vs short-term rates, NIIT thresholds, and special situations

Last Updated: Feb 2026

Key Numbers

Long-Term

0% / 15% / 20%

Short-Term

10–37% (Ordinary)

NIIT Surcharge

+3.8% over $200K

Collectibles

28% Max

Capital gains tax applies when you sell an asset for a profit. Common assets include stocks, bonds, mutual funds, ETFs, cryptocurrency, real estate, and collectibles. The rate depends on your holding period and taxable income. Long-term gains (assets held more than one year) receive preferential rates of 0%, 15%, or 20%; short-term gains (held one year or less) are taxed as ordinary income at your marginal rate (10%–37%). Qualified dividends are taxed at the same long-term capital gains rates.

2026 Long-Term Capital Gains Brackets

Based on taxable income (after standard or itemized deductions). Source: IRS Revenue Procedure 2025-32.

Rate	Single	Married Filing Jointly	MFS	Head of Household
0%	Up to $49,450	Up to $98,900	Up to $49,450	Up to $66,100
15%	$49,451 – $546,150	$98,901 – $613,700	$49,451 – $306,850	$66,101 – $579,850
20%	Over $546,150	Over $613,700	Over $306,850	Over $579,850

Long-Term Gains

Assets held more than one year. Taxed at preferential 0%, 15%, or 20% rates based on taxable income.

Short-Term Gains

Assets held one year or less. Taxed as ordinary income at your marginal rate (10%–37%), the same rates as wages.

Qualified dividends share the same rates. Dividends from domestic corporations and qualified foreign corporations held for the required period are taxed at the 0%/15%/20% long-term capital gains rates — not as ordinary income. Unqualified (ordinary) dividends are taxed at your marginal rate.

Capital Gains Tax by Investment Type

Asset	Long-Term Rate	Notes
Stocks & ETFs	0% / 15% / 20%	Standard LTCG rates. Must hold more than one year from trade date.
Mutual Funds	0% / 15% / 20%	Distributions of fund-level gains passed to shareholders; you may owe tax even without selling.
Cryptocurrency	0% / 15% / 20%	IRS treats crypto as property. Every sale, swap, or spend is a taxable event.
Real Estate	0% / 15% / 20%	Plus up to 25% recapture on depreciation taken (§1250). Primary residence exclusion may apply.
Collectibles	Max 28%	Art, antiques, coins, stamps, gems, precious metals. Never qualifies for the standard 20% cap.
Business (QSBS)	0% – 28%	Qualified small business stock held 5+ years may exclude up to 100% of gain (§1202).

NIIT surcharge: High earners may owe an additional 3.8% Net Investment Income Tax, bringing the top long-term rate to 23.8% and the top short-term rate to 40.8%. NIIT applies when MAGI exceeds $200,000 (single), $250,000 (MFJ), or $125,000 (MFS). See the NIIT section below for full thresholds and effective-rate table.

Special Rates & NIIT

Certain asset types face different maximum rates, and the 3.8% NIIT can push effective rates higher for earners above the MAGI thresholds.

Special Capital Gains Rate Categories

Asset Type	Max Rate	Details
Home Sale Exclusion	0%	Up to $250K/$500K gain on primary residence (2-of-5 year ownership & use test)
QSBS (§1202)	0% – 28%	Qualified small business stock held 5+ years; up to 100% exclusion for stock acquired after 9/27/2010
§1250 Recapture	25%	Unrecaptured depreciation on real property (gain above depreciation taxed at standard LTCG rates)
Collectibles	28%	Art, antiques, coins, stamps, precious metals, gems, wine

NIIT can add 3.8% on top of any of these rates for taxpayers whose MAGI exceeds $200,000 (single) or $250,000 (MFJ). See the Net Investment Income Tax section below for full thresholds and effective-rate calculations.

Net Investment Income Tax (NIIT)

The Net Investment Income Tax (NIIT) is a 3.8% surtax imposed on top of your regular capital gains rate. It applies when your Modified Adjusted Gross Income (MAGI) exceeds the thresholds below. Unlike the capital gains brackets, NIIT thresholds are not adjusted for inflation — they have been fixed at these levels since 2013, so more taxpayers cross them each year.

NIIT applies to the lesser of: (a) net investment income, or (b) the amount MAGI exceeds the threshold. Investment income subject to NIIT includes capital gains, qualified dividends, interest, rents, royalties, and passive business income.

NIIT MAGI Thresholds (2026)

Filing Status	MAGI Threshold	Note
Single	$200,000	Not inflation-adjusted
Married Filing Jointly	$250,000	Not inflation-adjusted
Married Filing Separately	$125,000	Not inflation-adjusted
Head of Household	$200,000	Not inflation-adjusted

Maximum Effective Federal Rates (Including NIIT)

Gain Type	Base Rate	+ NIIT	Max Effective
Long-Term (standard)	20%	3.8%	23.8%
§1250 Recapture	25%	3.8%	28.8%
Collectibles	28%	3.8%	31.8%
Short-Term	37%	3.8%	40.8%

State taxes can push rates significantly higher. Most states tax capital gains as ordinary income. Combined federal + state top rates can exceed 50% in high-tax states — California (13.3%), New York + NYC (≈11.9%), Hawaii (11%). The federal NIIT does not offset or replace state-level taxes.

Short-Term vs. Long-Term

Short-term gains are taxed as ordinary income (10%–37%), the same rates as wages. The table below shows the tax cost of a $10,000 gain at various income levels — holding longer than one year can save hundreds to thousands in taxes.

Tax Cost: $10,000 Gain by Holding Period

Taxable Income (Single)	Short-Term Tax	Long-Term Tax	Savings
$40,000	$1,200 (12%)	$0 (0%)	$1,200
$100,000	$2,200 (22%)	$1,500 (15%)	$700
$200,000	$3,200 (32%)	$1,500 (15%)	$1,700
$600,000	$3,500 (35%)	$2,000 (20%)	$1,500

2025 → 2026 Bracket Changes

Threshold	2025	2026	Change
0% ceiling (Single)	$48,350	$49,450	+$1,100
0% ceiling (MFJ)	$96,700	$98,900	+$2,200
20% threshold (Single)	$533,400	$546,150	+$12,750
20% threshold (MFJ)	$600,050	$613,700	+$13,650

Short-term rates match ordinary income brackets. For the full 2026 ordinary income bracket table, see the Federal Tax Brackets reference.

Offsets & Strategies

Capital losses can offset gains dollar-for-dollar and reduce ordinary income by up to $3,000 per year. Several planning strategies can minimize your capital gains tax liability.

Capital Loss Rules

Rule	How It Works
Loss Offset Order	Short-term losses first offset short-term gains; long-term losses offset long-term gains. Excess losses cross over to the other category.
$3,000 Deduction	Net losses exceeding gains can offset up to $3,000/year of ordinary income ($1,500 if MFS).
Carry Forward	Unused capital losses carry forward indefinitely to future tax years.
Wash Sale Rule	Cannot claim a loss if you buy “substantially identical” securities within 30 days before or after the sale. Disallowed loss is added to the new position’s cost basis.

Tax-Planning Strategies

Strategy	How It Helps	Timing
Tax-Loss Harvesting	Sell losing positions to offset gains; replace with similar (not identical) holdings	Year-end or after sharp market drops
Tax-Gain Harvesting	In low-income years, sell appreciated assets at 0% to reset cost basis	Gap years, early retirement, low-income years
Asset Location	Hold high-turnover/income assets in tax-advantaged accounts (401(k), IRA)	Portfolio construction
Charitable Giving	Donate appreciated assets directly to avoid realizing gains; deduct fair market value	When holding appreciated assets with large unrealized gains
Gifting to Family	Transfer appreciated assets to family members in lower brackets who can sell at 0% or 15%	Annual gift exclusion: $19,000/person (2026)

State taxes add to your bill. Most states tax capital gains as ordinary income. Combined federal + state top rates can exceed 50% in high-tax states (e.g., California 13.3%, New York + NYC 11.9%, Hawaii 11%).

Sources

This content is for educational and informational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for guidance tailored to your situation.