Capital Gains Tax 2026 — Rates, Calculators & Investment Tax Strategies

By WealthVieu · Updated

Capital Gains Tax Rates in 2026

When you sell an investment for more than you paid for it, the profit is a capital gain — and it is taxable. The rate you pay depends on two factors: how long you held the asset and your total taxable income for the year.

Long-term capital gains (assets held over one year) are taxed at 0%, 15%, or 20%. Short-term capital gains (held one year or less) are taxed as ordinary income at your regular bracket rate (10%–37%).

The single most powerful strategy for investors is simple: hold investments for more than one year before selling. Moving from the 22% short-term rate to the 15% long-term rate saves $700 on every $10,000 of gains.

2026 Long-Term Capital Gains Tax Rates

Filing Status 0% Rate 15% Rate 20% Rate
Single Up to $48,350 $48,350–$533,400 Over $533,400
Married Filing Jointly Up to $96,700 $96,700–$600,050 Over $600,050
Head of Household Up to $64,750 $64,750–$566,700 Over $566,700
Married Filing Separately Up to $48,350 $48,350–$300,000 Over $300,000

Source: IRS, 2026 inflation-adjusted thresholds

Note: High-income investors may also owe the Net Investment Income Tax (NIIT) — an additional 3.8% on investment income above $200,000 (single) or $250,000 (married).

Short-Term vs. Long-Term: The Tax Difference

Holding Period Tax Treatment Rates
1 year or less Ordinary income 10%–37%
More than 1 year Long-term capital gains 0%, 15%, or 20%

Worked example: You sell 100 shares of stock for a $10,000 profit. You are a single filer in the 22% federal bracket ($75,000 income).

  • If held less than one year: you owe $2,200 in federal tax
  • If held more than one year: you owe $1,500 (15% long-term rate)
  • Savings from holding longer: $700

How Capital Gains Are Calculated

  1. Identify your cost basis — what you paid for the asset including commissions
  2. Subtract cost basis from sale proceeds — this is your gain (or loss)
  3. Determine holding period — over or under one year
  4. Apply the appropriate rate — long-term or short-term

If you have multiple transactions, net short-term gains/losses together and net long-term gains/losses together. Short-term losses first offset short-term gains, then can offset long-term gains. Long-term losses offset long-term gains, then short-term gains.

Tax-Loss Harvesting

Tax-loss harvesting is a strategy to reduce your tax bill by deliberately selling investments at a loss:

  • A capital loss offsets capital gains dollar-for-dollar
  • If losses exceed gains, you can deduct up to $3,000 against ordinary income per year
  • Remaining losses carry forward indefinitely to future tax years
  • The wash-sale rule: you cannot repurchase a substantially identical security within 30 days before or after the sale or the loss is disallowed

On a portfolio with $50,000 in gains, harvesting $20,000 in losses reduces your taxable gain to $30,000 — saving $3,000 at a 15% long-term rate.

Real Estate Capital Gains

When you sell a primary residence, the IRS provides a generous exclusion:

  • Single filers: Exclude up to $250,000 of gain
  • Married filing jointly: Exclude up to $500,000 of gain

Requirements: 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 once every 2 years.

Gains above the exclusion, or gains on investment properties, are taxed at long-term capital gains rates if held over one year. Investment properties may also be subject to depreciation recapture at 25%.

Crypto and Digital Asset Taxes

The IRS treats cryptocurrency as property. Every time you:

  • Sell crypto for dollars
  • Trade one crypto for another
  • Use crypto to buy goods or services

…you have a taxable event. The gain or loss is the difference between what you received and your cost basis (what you originally paid).

Short-term crypto gains are taxed as ordinary income. Long-term gains (held over one year) qualify for preferential 0%/15%/20% rates.

Capital Gains Tax Guides and Calculators

Understanding Capital Gains

Investment Tax Strategies

Equity Compensation

Crypto

WealthVieu
Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

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