How much you can make in 2026 and still pay 0% capital gains
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IRS announces capital gains tax brackets for 2026; There are higher winning limits for the 0% rate. Financial experts say this can present tax planning opportunities for many investors.
bigger limit “It’s pretty incredible, especially in years like this when the market is roaring,” said Tommy Lucas, a certified financial planner at Moisand Fitzgerald Tamayo in Orlando, Florida. His firm is ranked No. 69 on CNBC’s 2025 Financial Advisor 100 list.
Despite recent fluctuations S&P 500 As of Tuesday afternoon, it was still up about 14% annually. The index increased by more than 23 percent in 2024.
Whether you’re ready to make some gains or diversify your taxable portfolio, here’s what you need to know about the 0% capital gains rate for 2026.
How does the 0% capital gains bracket work?
The capital gains bracket applies to profitable assets owned for more than one year, known as long-term capital gains. By comparison, investments held for one year or less are short-term and regular income tax rates.
Your capital gains rate depends on your taxable income, which is significantly lower than your gross gain. Lucas said those limits are “more generous” for 2026, according to IRS regulation.
For 2026, single filers can earn up to $49,450 in taxable income (or $98,900 for married couples filing jointly) and still pay 0% on long-term capital gains. By comparison, the 2025 thresholds are $48,350 for singles and $96,700 for married couples.
You calculate your taxable income by subtracting the greater of the standard or itemized deductions. adjusted gross income.
The standard deduction for 2026 has also been adjusted for inflation. The tax deduction is $16,100 for singles and $32,200 for married couples filing jointly.
But experts say you should take stock, as profitable assets sold will increase your taxable income.
0% range provides ‘significant opportunity’
The 0% capital gains bracket presents a “significant opportunity” for tax planning, says Krishna president CFP Neil Krishnaswamy Wealth Planning in McKinney, Texas I told CNBC before.
For example, experts say many investors are willing to rebalance taxable brokerage accounts but are concerned about the tax consequences.
Lucas said that after years of strong stock market performance, “a lot of people are seeing gains in their accounts.” But the 0% bracket can be a chance to rebalance or diversify your brokerage account without triggering a tax bill.
Disclosure: CNBC does not receive any fee for placing financial advisory firms within our organization. Financial Advisor 100 list. Additionally, the inclusion of a firm or advisor in our ranking does not constitute an individual endorsement of any firm or advisor by CNBC.
