Understanding Capital Gains Tax Brackets for the 2026 Tax Year

As you plan ahead for the 2026 tax season, it’s important to understand how capital gains will be taxed—especially if you’re investing, selling property, or managing long‑term assets. The IRS has updated the income thresholds that determine how much you’ll owe on long‑term capital gains, and these numbers can have a meaningful impact on your financial strategy.

0% Capital Gains Tax Bracket

For many taxpayers, 2026 may bring good news:If your total taxable income falls within the following ranges, you’ll owe no federal capital gains tax:

• Individuals: $49,450 or less

• Married couples filing jointly: $98,900 or less

This 0% bracket can be especially helpful for retirees, part‑time workers, or anyone having a lower‑income year.

15% Capital Gains Tax Bracket

Once your income exceeds the limits above, the next tier applies. Most taxpayers will fall into this bracket:

• Individuals: $49,451 to $545,500

• Married couples filing jointly: $98,901 to $613,700

If your taxable income is within this range, your long‑term capital gains will generally be taxed at 15%.

Why These Thresholds Matter

Capital gains tax planning isn’t just for high‑income investors—anyone who holds stocks, real estate, mutual funds, or other appreciating assets can benefit. Knowing where your income falls can help you make strategic decisions about when to buy, sell, or hold investments.