- The IRS has announced the long-term capital gains brackets for 2026, which apply to investments owned for more than one year.
- For 2026, single filers can earn up to $49,450 in taxable income — or $98,900 for married couples filing jointly — and still pay 0% for long-term capital gains.
- You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income.
- The IRS announcements come a day after the agency said it would furlough nearly half its workforce due to the ongoing government shutdown.
The IRS has unveiled higher capital gains tax brackets for 2026.
In its announcement Thursday, the agency boosted the taxable income limits for the long-term capital gains brackets, which apply to assets owned for more than one year.
It also increased figures for dozens of other provisions, including federal income tax brackets, the estate and gift tax exemption, and eligibility for the earned income tax credit, among others.
The IRS announcements come a day after the agency said it would furlough nearly half its workforce due to the ongoing government shutdown.
The capital gains rate you pay is based on which bracket you fall into based on taxable income.
You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income. For 2026, the standard deduction will rise to $16,100 for single filers and $32,200 for married couples filing jointly.
Starting in 2026, single filers will qualify for the 0% long-term capital gains rate with taxable income of $49,450 or less and married couples filing jointly are eligible with $98,900 or less.
