2026 capital gains tax brackets and rules
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The IRS announced higher capital gains tax brackets for 2026.
in it announcement The agency on Thursday increased taxable income limits for long-term capital gains brackets, which apply to assets owned for more than a year.
It also increased the numbers on dozens of other provisions, including federal income tax brackets, estate and gift tax exemptions, and eligibility for the earned income tax credit.
The IRS announcements come a day after the agency said it would furlough nearly half of its workforce due to the ongoing government shutdown.
The capital gains rate you pay depends on which taxable income bracket you fall into.
You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income. Standard deduction will increase for 2026 $16,100 for single filers and $32,200 for married couples filing jointly.
Starting in 2026, singles with taxable income of $49,450 or less will qualify for the 0% long-term capital gains rate, and married couples filing jointly with $98,900 or less will qualify.
