Capital Gains Tax Calculator 2026, Federal Long-Term & Short-Term Rates
Capital gains are taxed differently depending on how long you held the asset. Short-term gains (assets held one year or less) are taxed at your ordinary income tax rates.Long-term gains (assets held more than one year) benefit from preferential rates of 0%, 15%, or 20%, based on your taxable income and filing status. Use this calculator to estimate your federal capital gains tax for 2026.
2026 Long-Term Capital Gains Tax Brackets
The following table shows the federal long-term capital gains brackets for single filers. These thresholds apply to your total taxable income (ordinary income plus capital gains, minus the standard deduction of $16,100):
| Rate | Single | Married Filing Jointly |
|---|---|---|
| 0% | $0 – $49,450 | $0 – $98,900 |
| 15% | $49,450 – $545,500 | $98,900 – $613,700 |
| 20% | Over $545,500 | Over $613,700 |
Short-Term vs. Long-Term Capital Gains
The holding period begins the day after you acquire the asset and ends on the day you sell it:
- Short-term (held ≤ 1 year): Taxed as ordinary income at your marginal tax rate (10%–37%). The gain is stacked on top of your other income and fills ordinary income tax brackets.
- Long-term (held > 1 year): Taxed at preferential rates of 0%, 15%, or 20%. Your ordinary taxable income determines where in the capital gains brackets your gain begins.
How Ordinary Income Affects Your Capital Gains Rate
Long-term capital gains are stacked on top of your ordinary taxable income to determine which capital gains bracket applies. Here's how it works:
- Calculate your taxable ordinary income (wages, salary, etc. minus the standard deduction of $16,100 for single filers).
- Your capital gain starts filling the capital gains brackets from where your ordinary income leaves off.
- The portion of your gain within each bracket is taxed at that bracket's rate.
This means a taxpayer with low ordinary income may pay 0% on part of their gain, while someone with high ordinary income may have their entire gain taxed at 15% or 20%.
Net Investment Income Tax (NIIT), 3.8%
In addition to regular capital gains tax, high-income taxpayers may owe the 3.8% Net Investment Income Tax (NIIT) under IRC §1411. The NIIT applies to the lesser of:
- Your net investment income (capital gains, interest, dividends, rental income, etc.), or
- The amount by which your MAGI exceeds $200,000 (single) or $250,000 (MFJ).
This calculator does not yet include NIIT in its estimates. If your income exceeds these thresholds, your actual capital gains tax may be higher by up to 3.8 percentage points.
Worked Examples
Example 1: $50,000 Long-Term Gain, $75,000 Ordinary Income, Single
Standard deduction: $16,100
Taxable ordinary income: $58,900
Long-term capital gain: $50,000
Gain stacks from $58,900 to $108,900
0% bracket covers up to $49,450, portion in 0%: $0
15% bracket covers the remainder
Federal marginal rate: 15.00%
Federal tax: $7,500.00
Example 2: $100,000 Short-Term Gain, $80,000 Ordinary Income, Single
Short-term capital gain: $100,000
Short-term gains are taxed as ordinary income
Combined income: $180,000
The gain fills ordinary income tax brackets above $80,000
Federal marginal rate: 24.00%
Federal tax on gain: $23,164.00
Example 3: $200,000 Long-Term Gain, $500,000 Ordinary Income, Single (Hits 20% Bracket)
Standard deduction: $16,100
Taxable ordinary income: $483,900
Long-term capital gain: $200,000
Gain stacks from $483,900 to $683,900
The 20% bracket begins at $545,500, gain crosses into it
Federal marginal rate: 20.00%
Federal tax: $36,920.00
Note: NIIT of 3.8% likely applies here but is not included.