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Direct answer: Long-term gains on assets held more than a year are taxed at 0%, 15% or 20% in 2026, based on taxable income: 0% up to $49,450 single or $98,900 joint, 15% up to $545,500 or $613,700, 20% above. Short-term gains are taxed like wages, and a 3.8% surtax can apply above $200,000 or $250,000.
By the numbers: 2026 0% rate limits: $49,450 single and married filing separately, $66,200 head of household, $98,900 married filing jointly; 15% rate limits: $545,500, $306,850, $579,600 and $613,700. Source: IRS Rev. Proc. 2025-32, sec. 4.03
“Generally, if you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term.” — IRS Topic no. 409, Capital gains and losses
Updated 2026-10-17
For assets held more than a year: 0% if your taxable income is up to $49,450 (single) or $98,900 (married filing jointly), 15% up to $545,500 or $613,700, and 20% above that (IRS Rev. Proc. 2025-32). Gains on assets held a year or less are taxed at your ordinary income tax rates.
More than one year. The IRS counts from the day after you bought it through the day you sold it; one year or less is short-term and taxed like wages (IRS Topic 409).
Yes, on the part of a long-term gain that fits under the 0% limit: in 2026, taxable income up to $49,450 single, $66,200 head of household, or $98,900 married filing jointly. Taxable income includes the gain itself, after your deduction.
Up to $3,000 a year ($1,500 if married filing separately) more than your gains, against other income. The rest carries forward to later years. Losses on personal items like your home or car aren't deductible (IRS Topic 409).
Often not all of it. If you owned and lived in the home at least 2 of the last 5 years, you can generally exclude up to $250,000 of gain, or $500,000 married filing jointly. Gain above that is a capital gain (IRS Topic 701).
When your modified AGI is over $200,000 (single or head of household), $250,000 (married filing jointly) or $125,000 (married filing separately). It's 3.8% of the smaller of your net investment income or the amount over the threshold; these thresholds aren't adjusted for inflation.
Yes, when you hold it as an investment: selling or trading it follows the same short-term and long-term rules. Brokers report sales on Form 1099-DA starting with 2025 transactions and add cost basis for certain 2026 transactions (IRS digital assets page).
As of Oct. 17, 2026
The holding period decides the rate. Sell after more than one year and the gain is long-term: 0%, 15% or 20% depending on your taxable income. Sell sooner and it's short-term, taxed at your regular income tax rate (10% to 37%). The calculator below shows the federal tax on your gain with your own numbers.
The math:
Sources: IRS Topic 409 · Rev. Proc. 2025-32 · IRS: NIIT
A best fit for the situation described, not financial advice or a buy/sell recommendation. Partner links never change a pick.
Federal tax with and without the sale, using the 2026 IRS brackets and capital gain rates. Nothing you type leaves your phone.
| Filing status | 0% rate | 15% rate | 20% rate | 2025: 0% up to | NIIT 3.8% over (MAGI) |
|---|---|---|---|---|---|
| Single | up to $49,450 | $49,451 to $545,500 | over $545,500 | $48,350 | $200,000 |
| Married filing jointly | up to $98,900 | $98,901 to $613,700 | over $613,700 | $96,700 | $250,000 |
| Head of household | up to $66,200 | $66,201 to $579,600 | over $579,600 | $64,750 | $200,000 |
| Married filing separately | up to $49,450 | $49,451 to $306,850 | over $306,850 | $48,350 | $125,000 |
| Qualifying surviving spouse | up to $98,900 | $98,901 to $613,700 | over $613,700 | $96,700 | $250,000 |
Thresholds are taxable income (after deductions), including the gain. 2026: Rev. Proc. 2025-32. 2025 column: IRS Topic 409. NIIT: IRS: NIIT (statutory, not adjusted for inflation). Qualified dividends are taxed at these same capital gain rates (IRS Topic 404).
IRS Topic 701 / Pub. 523: exclude up to $250,000 of gain ($500,000 married filing jointly) if you owned and lived in it at least 2 of the last 5 years.
On top of the capital gains rate, a 3.8% tax applies to the smaller of your net investment income (interest, dividends, capital gains, rents) or the amount your modified AGI is over $200,000 (single or head of household), $250,000 (married filing jointly or qualifying surviving spouse) or $125,000 (married filing separately). These amounts are set in the law and aren't adjusted for inflation. Wages and Social Security aren't investment income. It's figured on Form 8960 (IRS: NIIT).
Not tax advice. These are federal facts from the IRS with dates, and an estimate of federal tax only. State tax, AMT, credits and special rules can change your result; a tax professional or the IRS instructions decide your return. We don't tell you what to buy or sell.
For assets held more than a year: 0% if your taxable income is up to $49,450 (single) or $98,900 (married filing jointly), 15% up to $545,500 or $613,700, and 20% above that (IRS Rev. Proc. 2025-32). Gains on assets held a year or less are taxed at your ordinary income tax rates.
More than one year. The IRS counts from the day after you bought it through the day you sold it; one year or less is short-term and taxed like wages (IRS Topic 409).
Yes, on the part of a long-term gain that fits under the 0% limit: in 2026, taxable income up to $49,450 single, $66,200 head of household, or $98,900 married filing jointly. Taxable income includes the gain itself, after your deduction.
Up to $3,000 a year ($1,500 if married filing separately) more than your gains, against other income. The rest carries forward to later years. Losses on personal items like your home or car aren't deductible (IRS Topic 409).
Often not all of it. If you owned and lived in the home at least 2 of the last 5 years, you can generally exclude up to $250,000 of gain, or $500,000 married filing jointly. Gain above that is a capital gain (IRS Topic 701).
When your modified AGI is over $200,000 (single or head of household), $250,000 (married filing jointly) or $125,000 (married filing separately). It's 3.8% of the smaller of your net investment income or the amount over the threshold; these thresholds aren't adjusted for inflation.
Yes, when you hold it as an investment: selling or trading it follows the same short-term and long-term rules. Brokers report sales on Form 1099-DA starting with 2025 transactions and add cost basis for certain 2026 transactions (IRS digital assets page).
Not tax advice. Figures are republished from the IRS with dates; confirm with IRS.gov or a tax professional before acting.