Capital gains tax rates for 2026 and 2027
Long-term capital gains are taxed at 0%, 15% or 20%, depending on your taxable income. In 2027 the 0% rate applies to taxable income up to $51,050 for a single filer and $102,100 for a married couple filing jointly, up from $49,450 and $98,900 in 2026.
0% rate: taxable income up to
| Filing status | 2025 | 2026 | 2027 |
|---|---|---|---|
| Single | $48,350 | $49,450 | $51,050 |
| Married filing jointly | $96,700 | $98,900 | $102,100 |
| Head of household | $64,750 | $66,200 | $68,350 |
| Married filing separately | $48,350 | $49,450 | $51,050 |
15% rate: taxable income up to
| Filing status | 2025 | 2026 | 2027 |
|---|---|---|---|
| Single | $533,400 | $545,500 | $563,200 |
| Married filing jointly | $600,050 | $613,700 | $633,600 |
| Head of household | $566,700 | $579,600 | $598,400 |
| Married filing separately | $300,000 | $306,850 | $316,800 |
How the rates work
The IRS explains that net capital gains are taxed at different rates depending on overall taxable income, and that some or all of a net capital gain may be taxed at 0%. The 0% rate applies if your taxable income is at or below the first threshold for your filing status, 15% above that up to the second threshold, and 20% to the extent your taxable income is above the 15% threshold.
Long-term versus short-term
The lower rates are for long-term gains. Generally, if you hold an asset for more than one year before selling it, the gain is long-term; one year or less, it is short-term. You count from the day after you acquired the asset through the day you sold it. Net short-term gains are taxed as ordinary income at the regular tax bracket rates.
Exceptions with higher rates
- Collectibles such as coins or art: a maximum 28% rate.
- Qualified small business stock (section 1202): the taxable part is taxed at a maximum 28%.
- Unrecaptured section 1250 gain from selling real property: a maximum 25% rate.
Losses
If your capital losses are more than your gains, you can deduct the lesser of $3,000 ($1,500 if married filing separately) or your total net loss, and carry the rest forward to later years. Losses on personal-use property, such as your home or car, are not deductible.
What this means in retirement
Because the 0% band is measured against taxable income, which is income after the standard deduction, a retiree with modest income can have gains taxed at 0%. For 2027 the standard deduction for a single filer 65 or older is $18,700 before the separate senior deduction. Remember that gains still count in the income that decides how much of your Social Security is taxable and whether you pay the higher Medicare premiums in the IRMAA brackets.
Other taxes on investment income
The IRS notes that people with significant investment income may also owe the net investment income tax, covered in its Topic no. 559, and that a taxable gain can mean you need to make estimated tax payments.
Check our work
Every figure on this page was read from these official documents. Follow the links and compare.
- Topic no. 409, Capital gains and lossesInternal Revenue Service. Read on November 12, 2026.
- Revenue Procedure 2026-35 (tax year 2027 inflation adjustments)Internal Revenue Service. Read on November 12, 2026.
- Revenue Procedure 2025-32 (tax year 2026 inflation adjustments)Internal Revenue Service. Read on November 12, 2026.