2026 long-term capital gains tax brackets

2026 preferential-income boundaries

These thresholds are from Revenue Procedure 2025-32 §4.03. Preferential income above the applicable 15% boundary reaches the 20% band. Other ordinary taxable income occupies space below the gain, and other net long-term gains and qualified dividends can also use the preferential bands.

A single-filer stacking example

With $40,000 of ordinary taxable income and a $20,000 ordinary long-term gain, no other preferential income and fixed deductions, $9,450 of the gain fits in the 0% band. The remaining $10,550 is in the 15% band, producing $1,582.50 in modeled federal preferential tax before other return effects. Applying 15% to the whole gain would miss the unused zero-rate space.

Short-term income can also move existing long-term gains

A short-term sale enters the ordinary-income calculation. If other qualified dividends or long-term gains are already present, the higher ordinary-income floor can push those existing amounts into a higher preferential band. The calculator compares both scenarios to include this interaction instead of multiplying the short-term gain by one marginal rate.

NIIT is a separate annual comparison

Federal net investment income tax is 3.8% of the smaller of net investment income or MAGI above the applicable threshold. The threshold is $200,000 for single or head-of-household filers, $250,000 joint and $125,000 separate. Use the IRS NIIT definition, rather than treating ordinary taxable income as MAGI.

Special-rate assets need separate worksheets

Collectibles, depreciation recapture and certain stock dispositions can use different rules. The ordinary-sale model leaves those categories unresolved. Federal rate bands also do not determine a state’s deductions, ordinary-income brackets or excise-tax base.

Open the sale calculator or choose a state-specific guide. The estimate holds other return items fixed and excludes credits, AMT and changing deductions.