2026 Capital Gains Tax Calculator
Calculate your federal capital gains tax with current 2026 IRS brackets. Properly stacks long-term gains on top of ordinary income, includes the 3.8% Net Investment Income Tax for high earners, and shows what holding longer would have saved you.
Last updated: April 2026 · Source: IRS Revenue Procedure 2025-32
Your taxable income from wages, etc. Determines which LTCG bracket your gain falls into.
2026 long-term capital gains brackets
Long-term capital gains (assets held more than one year) get preferential federal tax treatment: 0%, 15%, or 20% — significantly lower than ordinary income rates. The bracket you fall into depends on your total taxable income (ordinary + capital gain), not just the gain itself.
| Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 | Up to $66,200 |
| 15% | $49,450 - $545,500 | $98,900 - $613,700 | $66,200 - $579,600 |
| 20% | $545,500+ | $613,700+ | $579,600+ |
Short-term gains (assets held one year or less) are taxed at ordinary income rates of 10% to 37%, depending on your tax bracket. The difference between short-term and long-term can be enormous: a high earner pays 37% on short-term gains vs 20% on long-term — a 17 percentage point gap. Holding for one extra day past the one-year mark can save thousands.
The Net Investment Income Tax explained
The Net Investment Income Tax (NIIT) is an additional 3.8% federal tax on investment income for high-income filers. It applies if your modified adjusted gross income (MAGI) exceeds $200,000 (single) or $250,000 (married filing jointly). The 3.8% applies to the lesser of your net investment income or the amount your MAGI exceeds the threshold.
Critical detail: these thresholds have NOT been adjusted for inflation since the NIIT was created in 2013. While ordinary tax brackets move up each year with inflation, the NIIT thresholds stay frozen. Every year, more taxpayers cross the line into NIIT territory simply because their nominal income rises. What was a "high earner" provision in 2013 increasingly hits upper-middle-class filers in 2026.
Worked example. A single filer has $180,000 in ordinary income and a $50,000 long-term capital gain. Total income: $230,000. MAGI exceeds the $200,000 threshold by $30,000. The NIIT applies to the lesser of the $50,000 gain or the $30,000 excess — so $30,000 × 3.8% = $1,140 NIIT, on top of the regular 15% LTCG tax of $7,500. Total federal tax on the gain: $8,640 (effective rate 17.3%, not the headline 15%).
Three real capital gains scenarios
1. The early retiree using the 0% bracket
Tom retired at 60 and lives off $40,000/year from a part-time consulting gig (after deductions). He owns $300,000 in appreciated stocks with a $100,000 cost basis, and wants to start drawing from them. Because his ordinary taxable income is well under the $49,450 single 0% LTCG threshold, he can realize about $9,450 in long-term gains each year completely tax-free at the federal level. Over time, he can systematically rebalance his portfolio with zero federal capital gains tax. State taxes still apply.
2. The day trader paying ordinary rates
Jamie bought 100 shares of Tesla in March, sold them in November of the same year for a $25,000 profit. Held for less than a year = short-term gain = ordinary income. As a single filer earning $95,000 from her day job, the $25,000 gain stacks on top, putting her in the 22% and 24% brackets. Tax owed: about $5,500 (a blend of 22% and 24%). Had she held the shares one extra month past the 1-year mark, her tax would have dropped to 15% × $25,000 = $3,750 — saving roughly $1,750 just from waiting.
3. The high earner hit by NIIT
Lisa is single, earns $190,000 in ordinary income, and sells stock for a $60,000 long-term gain. Her LTCG tax is straightforward — $60,000 × 15% = $9,000. But her total income ($250,000) exceeds the $200,000 NIIT threshold by $50,000. The NIIT applies to the lesser of investment income ($60,000) or the excess ($50,000): $50,000 × 3.8% = $1,900. Total federal tax on the gain: $10,900. Effective rate: 18.2%, not the headline 15%. Most online calculators ignore NIIT — this one does not.
Common capital gains mistakes
1. Selling at day 364 instead of day 366
The one-year holding period is a hard line. Selling one day too early can convert a 15% rate into a 22%+ rate. Always check your purchase date before selling. The IRS uses the trade date, not the settlement date.
2. Forgetting about NIIT
Most online capital gains calculators ignore the 3.8% NIIT. For high earners, that adds $3,800 per $100,000 in gains — a substantial bite that should be in the planning math.
3. Triggering wash sales while harvesting losses
Buying back the same security within 30 days disallows the loss. Use a similar but not identical fund (VOO ↔ SPY) or wait 31 days.
4. Missing the 0% LTCG bracket opportunity
If your taxable income is under $49,450 single or $98,900 MFJ, your long-term gains face 0% federal tax. This is real — and most people in lower brackets do not realize it exists.
5. Forgetting state taxes
This calculator covers federal only. Most states tax capital gains as ordinary income. California adds up to 13.3% on top. Massachusetts has its own 4% surtax above $1.1M. Always check your state.
Frequently asked questions
What is the difference between short-term and long-term capital gains?
Short-term capital gains are profits from selling assets you held for one year or less. They are taxed at your ordinary income tax rate (10% to 37% in 2026 depending on your bracket). Long-term capital gains are profits from selling assets you held for more than one year. They get preferential treatment at 0%, 15%, or 20% — significantly lower than ordinary rates for most filers. The IRS draws a single bright line at one year. Selling on day 365 vs day 366 can mean the difference between a 22% rate and a 15% rate on a single asset.
What are the 2026 long-term capital gains brackets?
For 2026, single filers pay 0% on long-term gains if their total taxable income is below $49,450, 15% from $49,450 to $545,500, and 20% above $545,500. For married filing jointly: 0% below $98,900, 15% from $98,900 to $613,700, and 20% above $613,700. Head of household has thresholds in between. These brackets are based on your total taxable income (ordinary income plus the capital gain), not just the gain itself. Stack the gain on top of your other income to determine the rate.
What is the Net Investment Income Tax (NIIT)?
The NIIT is an additional 3.8% tax on investment income (capital gains, dividends, interest, rental income, royalties) for high-income filers. It applies if your modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly). Critically, these thresholds have not been adjusted for inflation since the tax was created in 2013. The 3.8% applies to the lesser of your net investment income or the amount your MAGI exceeds the threshold. Combined with the 20% top long-term rate, the effective maximum federal capital gains rate is 23.8%.
How is the long-term capital gains rate actually calculated?
You stack the long-term capital gain on top of your ordinary taxable income. The portions of the gain that fall within each bracket are taxed at that bracket's rate. Example: a single filer with $40,000 ordinary taxable income who realizes a $20,000 long-term gain. The first $9,450 of the gain ($49,450 - $40,000) falls in the 0% LTCG bracket. The remaining $10,550 falls in the 15% bracket. Total LTCG tax: $1,582. The 0% bracket is real and creates planning opportunities for retirees and people in transition years.
Can I really pay 0% on long-term capital gains?
Yes. If your total taxable income (including the gain) stays under $49,450 single or $98,900 MFJ in 2026, your long-term capital gains face a 0% federal rate. This creates valuable planning opportunities for early retirees, gap years between jobs, and people with low base income. A retired couple with $60,000 in ordinary income could realize $38,900 in long-term capital gains entirely tax-free. State taxes still apply in most states, but the federal piece can be zero.
What is the home sale capital gains exclusion?
When you sell your primary residence, you can exclude up to $250,000 of the gain ($500,000 for married filing jointly) from federal capital gains tax. To qualify, you must have owned and lived in the home as your primary residence for at least 2 of the last 5 years. The exclusion can be used repeatedly, but only once every 2 years. Gains above the exclusion are taxed at long-term capital gains rates. This is one of the most generous tax benefits in the code and applies to most home sellers.
How do capital losses work?
Capital losses first offset capital gains of the same type (short-term losses against short-term gains, long-term against long-term). Excess losses then offset the other type. If you still have net losses, you can deduct up to $3,000 against ordinary income each year ($1,500 if married filing separately). Any remaining loss carries forward indefinitely to future years. Tax-loss harvesting — deliberately realizing losses to offset gains — is a common end-of-year strategy. Watch out for the 30-day wash sale rule.
What is the wash sale rule?
The wash sale rule prevents you from claiming a capital loss if you buy back the "substantially identical" security within 30 days before or after the sale. The disallowed loss gets added to the cost basis of the replacement shares, deferring (not eliminating) the tax benefit. The rule applies to stocks, bonds, options, and now extends to crypto in some interpretations. To preserve tax-loss harvesting benefits, switch to a similar but not identical security (e.g., sell VOO, buy SPY) or wait 31 days before repurchasing.
How are capital gains on collectibles taxed?
Long-term gains on collectibles are taxed at a maximum federal rate of 28% — higher than the standard 20% top rate for stocks and most other assets. Collectibles include gold, silver, other precious metals, art, antiques, rare coins, stamps, fine wine, and similar items. Short-term collectible gains are taxed at ordinary rates like other short-term gains. The 3.8% NIIT can also apply to collectible gains for high earners, bringing the effective max to 31.8%. Qualified small business stock can also be subject to special rules.
Do I owe capital gains tax on cryptocurrency?
Yes. The IRS treats cryptocurrency as property, so every sale, trade, or use to buy goods/services creates a taxable event. Held over a year: long-term capital gains rates apply. Held one year or less: short-term ordinary income rates. The IRS introduced Form 1099-DA in 2025 for crypto broker reporting (required from January 1, 2025), so brokers now report crypto transactions to the IRS similar to stocks. Bitcoin-to-altcoin trades are also taxable events, even if you never converted to dollars.
When are capital gains taxes due?
Capital gains taxes are due as part of your annual federal income tax filing, with payments owed by April 15 of the following year. However, if you have substantial gains during the year, you may need to make estimated quarterly tax payments to avoid underpayment penalties. The safe harbor is paying at least 90% of current year tax or 100% of prior year tax (110% if AGI > $150K) through withholding and estimated payments. Quarterly estimates are due April 15, June 15, September 15, and January 15.
Can I avoid capital gains tax legally?
Several legitimate strategies exist: (1) Hold assets in tax-advantaged accounts (401(k), IRA, Roth IRA) where capital gains do not apply. (2) Use the $250K/$500K home sale exclusion. (3) Tax-loss harvest to offset gains. (4) Donate appreciated securities to charity (deduct fair market value, avoid the gain). (5) Use a 1031 exchange for real estate to defer gains. (6) Hold until death — heirs receive a stepped-up basis, eliminating decades of accumulated gains. (7) Time realizations into low-income years to use the 0% bracket.
Data sources: IRS Revenue Procedure 2025-32 for 2026 capital gains brackets and ordinary income rates; IRC Section 1(h) for capital gains rate structure; IRC Section 1411 for Net Investment Income Tax; IRS Topic 409 for capital gains and losses guidance.
Last updated: April 2026. Capital gains brackets are inflation-adjusted annually. NIIT thresholds have not been adjusted since 2013 and remain at $200K single / $250K MFJ.
Disclaimer: This calculator provides federal capital gains tax estimates only and is not tax advice. State capital gains taxes are not included. The depreciated real estate (25%) and collectibles (28%) rates are not handled by this calculator. Consult a qualified tax professional for advice specific to your situation.