Long-Term Capital Gains Tax Calculator
Calculate your 2026 federal long-term capital gains tax using the 0%, 15%, and 20% brackets by filing status. The calculator also applies the 3.8% Net Investment Income Tax when your income exceeds NIIT thresholds.
What Are Long-Term Capital Gains?
A long-term capital gain is the profit from selling an asset held more than one year. Unlike wages and short-term gains (taxed at ordinary rates up to 37%), long-term capital gains get preferential federal rates of 0%, 15%, or 20% depending on your total taxable income and filing status. The rate is determined by where the gain "stacks" on top of your ordinary income, not the gain alone.
2026 LTCG Brackets by Filing Status
Single: 0% on taxable income up to $48,350 — 15% from $48,350 to $533,400 — 20% above $533,400. Married filing jointly: 0% up to $96,700 — 15% up to $600,050 — 20% above. Head of household: 0% up to $64,750 — 15% up to $566,700 — 20% above. Married filing separately: 0% up to $48,350 — 15% up to $300,000 — 20% above. These are 2026 IRS-projected numbers and apply to the federal rate only.
The 3.8% Net Investment Income Tax
On top of federal LTCG rates, the 3.8% NIIT applies to investment income (including capital gains, dividends, rental income, and interest) when your modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly). NIIT is not a bracket — it is 3.8% on every dollar of investment income above the threshold. So a high earner in the 20% LTCG bracket effectively pays 23.8%.
LTCG Tax Strategies
Hold appreciated assets over one year to qualify for LTCG rates (short-term gains are taxed as ordinary income). Harvest losses in down years to offset gains dollar-for-dollar, carrying unused losses forward. Time large gains for low-income years (sabbatical, early retirement, business losses) to land in the 0% bracket. Donate appreciated stock to charity for a deduction plus zero capital gains. Step up basis on inherited assets — heirs generally pay LTCG only on appreciation after the death date.
Frequently Asked Questions
What qualifies as a long-term capital gain?
A gain from selling an asset held MORE than one year (365 days plus one). Held one year or less = short-term, taxed at ordinary income rates. The holding period starts the day AFTER you acquire the asset and includes the day you sell.
What are the 2026 LTCG rates?
0%, 15%, or 20% federal, depending on taxable income. Single: 0% under $48,350, 15% up to $533,400, 20% above. MFJ: 0% under $96,700, 15% up to $600,050, 20% above. Plus 3.8% NIIT for high earners.
How does the 0% LTCG bracket work?
If your total taxable income (including the gain) stays below $48,350 (single) or $96,700 (MFJ), the gain falls in the 0% bracket and you owe zero federal tax. This is the basis of "tax gain harvesting" in low-income years.
Do states tax capital gains differently?
Most states tax capital gains as ordinary income with no preferential rate. States with no income tax (TX, FL, WA, TN, NV, SD, WY, AK, NH) charge nothing. California and New York have the highest combined federal+state LTCG burden (33%+).
What is the 3.8% NIIT?
The Net Investment Income Tax adds 3.8% on investment income (including LTCG) when your MAGI exceeds $200,000 (single) or $250,000 (MFJ). Combined with the 20% LTCG rate, the top federal rate on gains reaches 23.8%.
Can I offset gains with losses?
Yes. Capital losses offset capital gains dollar-for-dollar. Excess losses can reduce up to $3,000 of ordinary income per year, with unused losses carried forward indefinitely. Tax-loss harvesting in down years is a core portfolio strategy.