What is the capital gains tax rate for 2026?
Long-term gains are taxed at 0%, 15%, or 20%, based on your taxable income including the gain. Short-term gains on assets held one year or less are taxed at your regular income tax rates. For 2026, a single filer pays 0% on long-term gains up to $49,450 of taxable income, and 20% only above $545,500.
| Filing status | 0% up to | 15% up to | 20% above | 3.8% NIIT above |
|---|---|---|---|---|
| Single | $49,450 | $545,500 | $545,500 | $200,000 |
| Married filing jointly | $98,900 | $613,700 | $613,700 | $250,000 |
| Head of household | $66,200 | $579,600 | $579,600 | $200,000 |
| Married filing separately | $49,450 | $306,850 | $306,850 | $125,000 |
A qualifying surviving spouse uses the married filing jointly bands. Collectibles and qualified small business stock can reach 28%, and gain from depreciation on real estate can reach 25%. This tool covers the 25% case but not the 28% one. The net investment income tax, or NIIT, adds 3.8% above the modified AGI thresholds in the table, which aren't indexed for inflation.
How is capital gains tax calculated?
First find your gain. Then place it on top of your other taxable income and see which bands it fills.
Gain = sale price − selling costs − (what you paid + improvements − depreciation)Say you're single with $46,100 of other income. After the $16,100 standard deduction, $30,000 is ordinary taxable income. A $40,000 long-term gain sits on top. The first $19,450 fills the rest of the 0% band, and the remaining $20,550 is taxed at 15%, for $3,083 of tax. The gain doesn't push your wages into a higher rate, but your wages do push the gain up the bands.
| Other income | Single | Married filing jointly | Head of household | Married filing separately |
|---|---|---|---|---|
| $30,000 | $2,168 | $0 | $0 | $2,168 |
| $60,000 | $6,668 | $0 | $2,948 | $6,668 |
| $100,000 | $7,500 | $2,835 | $7,500 | $8,450 |
| $200,000 | $9,400 | $7,500 | $9,400 | $9,400 |
| $400,000 | $9,400 | $9,400 | $9,400 | $11,900 |
| $700,000 | $11,900 | $11,900 | $11,900 | $11,900 |
Adding qualified improvements to your basis lowers the gain. A new roof counts, but ordinary repairs generally don't. Inherited assets usually take a basis equal to fair market value on the date of death, as IRS Publication 551 explains, which can shrink a gain a great deal. That's why "what you paid" may be the wrong number for an inherited house or stock.
Long-term capital gains: how long do you have to hold?
More than one year. Count from the day after you got the asset, through the day you sold it. Sell on or before the one-year mark and the gain is short-term. In the opening example, waiting past a year saves $2,100. The saving depends on your income, as this table shows.
| Other income | Held 1 year or less | Held more than 1 year | Saved by waiting |
|---|---|---|---|
| $30,000 | $3,600 | $0 | $3,600 |
| $60,000 | $5,950 | $3,668 | $2,283 |
| $100,000 | $6,764 | $4,500 | $2,264 |
| $200,000 | $9,310 | $5,640 | $3,670 |
| $400,000 | $11,640 | $5,640 | $6,000 |
| $700,000 | $12,240 | $7,140 | $5,100 |
Do you pay capital gains tax on the sale of a house?
Often not on your main home. You can exclude up to $250,000 of gain, or $500,000 for a married couple filing jointly, if you pass these tests from IRS Publication 523:
- Ownership: you owned the home at least 24 months of the last 5 years. On a joint return, one spouse is enough.
- Residence: you lived in it at least 24 months of the last 5 years. For the full joint limit, both spouses must pass.
- Look-back: you did not exclude gain on another home in the 2 years before this sale.
| Gain | Single: taxable | Single: tax | Joint: taxable | Joint: tax |
|---|---|---|---|---|
| $200,000 | $0 | $0 | $0 | $0 |
| $300,000 | $50,000 | $7,500 | $0 | $0 |
| $500,000 | $250,000 | $43,200 | $0 | $0 |
| $700,000 | $450,000 | $80,800 | $200,000 | $27,235 |
| $1,000,000 | $750,000 | $151,620 | $500,000 | $83,635 |
If you miss a test but sold mainly because of work, health, or an unforeseeable event, you may get a reduced exclusion. Twelve months out of 24 gives a single filer a limit of $125,000. You can't deduct a loss on your main home, and any part of the gain from depreciation stays taxable. Gain tied to periods after 2008 when it wasn't your main home, such as time as a second home, can't be excluded, which this tool doesn't model.
How much is capital gains tax on a rental or second home?
No home sale exclusion applies, and NIIT often does. Depreciation adds another layer, because it lowers your basis and raises the gain. That part is called unrecaptured section 1250 gain, taxed at your regular rate up to 25%. A married couple with $120,000 of other income and a $240,000 gain, including $70,000 from depreciation, pays $39,600 of federal income tax, against $34,335 with no depreciation in the gain, plus $4,180 of NIIT.
A large gain can trigger NIIT even if your income is normally below the line. A single filer with $150,000 of income and a $200,000 long-term gain owes $5,700 of NIIT on it. Before selling a rental, a CPA or enrolled agent can check recapture, section 1031 exchanges, and the installment method. The rental property calculator can help with the numbers before you sell.
Can capital losses lower my tax? What harvesting a loss saves
Yes. Losses offset gains first. If losses are larger, up to $3,000 a year ($1,500 if married filing separately) can reduce other income, and the rest carries forward. For a single filer with $100,000 of income and a $30,000 long-term gain:
| Loss taken | Tax after loss | Tax saved | Carried forward |
|---|---|---|---|
| $5,000 | $3,750 | $750 | $0 |
| $15,000 | $2,250 | $2,250 | $0 |
| $30,000 | $0 | $4,500 | $0 |
| $50,000 | -$660 | $5,160 | $17,000 |
The trap: buying the same or a substantially identical security within 30 days before or after the sale is a wash sale, and the loss is disallowed for now. And a loss used against a gain already at 0% saves nothing. A single filer with $40,000 of income and a $20,000 gain owes $0, and a $5,000 loss leaves the tax at $0.
Gains can also affect things this tool doesn't count, such as Medicare premiums, health insurance credits, and state tax. Enter your state rate above, or use the state income tax calculator. States differ, so check your state revenue department. If you owe a lot, you may also need to make an estimated tax payment.
Common questions
Do I pay capital gains tax if I reinvest the money?
Generally yes. Selling triggers the gain, whatever you do with the cash. Exceptions exist, such as a section 1031 exchange of investment real estate, and trades inside a retirement account are not taxed this way.
Is the 0% capital gains rate real?
Yes, for long-term gains within the 0% band. For 2026, that band runs up to $49,450 of taxable income for a single filer and $98,900 on a joint return, including the gain itself. Your state may still tax it.
Do I pay net investment income tax on my home sale?
Not on the excluded part. Any taxable gain above the exclusion counts as investment income and can trigger the tax if your modified AGI passes your threshold.
Do you pay capital gains tax on inherited property?
Only on gain above your basis. That basis is generally the fair market value on the date of death, or on the alternate valuation date if one is used, so enter that as what you paid. If an estate tax return was filed, the value reported to you may set your basis. Publication 551 has the details.
What does capital gains tax look like in California or another state?
This tool doesn't store state rules. Enter the rate your state applies to this gain. It's applied flat to your net taxable gain, which is an estimate, since a large gain can reach several state brackets.
Sources
- Topic no. 409: Capital gains and losses · Internal Revenue Service
- Publication 523: Selling Your Home · Internal Revenue Service
- Questions and answers on the Net Investment Income Tax · Internal Revenue Service
- Instructions for Schedule D (Form 1040) · Internal Revenue Service
- Revenue Procedure 2025-32 · Internal Revenue Service
- Publication 551: Basis of Assets · Internal Revenue Service