Long-Term Capital Gains Bracket Calculator 2026
Long-term capital gains (assets held over 1 year) are taxed federally at 0%, 15%, or 20% based on taxable income — much lower than ordinary rates. 2026 thresholds: 0% up to $48,350 single / $96,700 MFJ, 15% bracket through $533,400 single / $600,050 MFJ, 20% above. Net Investment Income Tax (NIIT) adds 3.8% above $200K single / $250K MFJ MAGI.
2026 LTCG Bracket Thresholds
Single: 0% up to $48,350, 15% to $533,400, 20% above. MFJ: 0% to $96,700, 15% to $600,050, 20% above. HoH: 0% to $64,750, 15% to $566,700, 20% above. Brackets indexed for inflation each year. Crossing a threshold by $1 raises rate only on the dollar above — no cliff.
0% Bracket Is Huge for Retirees
Married retirees with taxable income below $96,700 (after standard deduction $29,200) pay 0% federal LTCG. This is the single most overlooked tax planning opportunity. Tactics: harvest gains aggressively in years before Social Security begins, before RMDs trigger (age 75 under SECURE 2.0), and after retiring but before pension/Social Security ramps. Reset basis to current FMV at zero federal cost.
NIIT Cliff Strategy
Net Investment Income Tax adds 3.8% to LTCG when MAGI exceeds $200K single / $250K MFJ. Strategies to stay below: (1) Roth conversions in earlier years to reduce future RMD-driven AGI. (2) Bunch deductions (charitable, medical) to lower MAGI in big-gain years. (3) Qualified opportunity zone deferral on large gains. (4) Spread gains across multiple years via installment sale.
Source: IRC §1(h), §1411 (NIIT), 2026 IRS inflation adjustments (Rev. Proc. 2024-40). Last updated: May 2026.