Capital Gains Tax Calculator 2026: Federal 0%, 15% and 20% Rates
Long-term capital gains and qualified dividends are taxed at 0%, 15% or 20% depending on your taxable income, and net short-term gains are taxed as ordinary income. Enter your filing status, income, gains and dividends to estimate your 2026 federal tax with the IRS Qualified Dividends and Capital Gain Tax Worksheet, plus the 3.8% net investment income tax. The 2026 thresholds are in the table below and come from Rev. Proc. 2025-32.
Maintained by Archie Chang · Sources checked against IRS and statute text on November 1, 2026 · Methodology & sources
Capital gains tax calculator
Your 2026 numbers
Wages, pensions and other income that is not investment income. Leave out the gains, dividends and investment income entered below. The 2026 standard deduction is subtracted for you.
Interest, non-qualified dividends, rents, royalties and similar income, after the expenses that belong to it. It is taxed as ordinary income and counted as net investment income for the NIIT.
Enter the net amount for the year. A net loss is a negative number.
Leave blank to estimate it as wages and other income, other net investment income, the gains and the qualified dividends. Enter your modified adjusted gross income if it differs, for example because of deductions taken before adjusted gross income.
The starting numbers are an example, not a recommendation. Replace them with yours.
Your estimate
Estimated 2026 federal income tax plus net investment income tax
$6,134.50
An estimate for the 2026 tax year. It follows the IRS worksheet and leaves out the items listed below the calculator.
| Item | Amount | Tax |
|---|---|---|
| Standard deduction | $16,100.00 | |
| Taxable income (worksheet line 1) | $60,000.00 | |
| Taxed at ordinary rates, short-term gains included (line 22) | $40,000.00 | $4,552.00 |
| Long-term gain and qualified dividends at 0% (line 9) | $9,450.00 | $0.00 |
| At 15% (lines 17 and 18) | $10,550.00 | $1,582.50 |
| At 20% (lines 20 and 21) | $0.00 | $0.00 |
| Federal income tax (line 25) | $6,134.50 | |
| Tax on the same income without the gains and dividends | $4,552.00 | |
| Tax added by the gains and dividends | $1,582.50 | |
| Of that, from the short-term gain | $0.00 | |
| Net investment income tax: 3.8% of $0.00 (MAGI $76,100.00, threshold $200,000.00, net investment income $20,000.00) | $0.00 | $0.00 |
Net investment income is the net gain $20,000.00 plus qualified dividends $0.00 plus other net investment income $0.00, which is $20,000.00.
Effective rate on the gains and dividends: 7.91% (the tax they add, $1,582.50, divided by the net gain and dividends you entered, not counting the NIIT)
2026 capital gains rates and thresholds
For 2026 the IRS sets the top of the 0% range and the top of the 15% range in Revenue Procedure 2025-32:
“For taxable years beginning in 2026, the maximum zero rate amounts and maximum 15 percent rate amounts under § 1(j)(5)(B), as adjusted for inflation, are as follows:”
| Filing status (the IRS table row) | 0% up to (Maximum Zero Rate Amount) | 15% up to (Maximum 15% Rate Amount) | 20% above |
|---|---|---|---|
| All Other Individuals | $49,450 | $545,500 | $545,500 |
| Married Individuals Filing Joint Returns and Surviving Spouse | $98,900 | $613,700 | $613,700 |
| Married Individuals Filing Separate Returns | $49,450 | $306,850 | $306,850 |
| Heads of Household | $66,200 | $579,600 | $579,600 |
The table’s “All Other Individuals” row is the one for single filers. The IRS describes how the rates work in its Topic 409:
“Net capital gains are taxed at different rates depending on overall taxable income, although some or all net capital gain may be taxed at 0%.”
“However, a capital gains rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.”
“There are a few other exceptions where capital gains may be taxed at rates greater than 20%:”
“The taxable part of a gain from selling section 1202 qualified small business stock is taxed at a maximum 28% rate.”
“Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate. The portion of any unrecaptured section 1250 gain from selling section 1250 real property is taxed at a maximum 25% rate.”
“Note: Net short-term capital gains are subject to taxation as ordinary income at graduated tax rates.”
The rates apply to taxable income, so your gain sits on top of your ordinary taxable income, which is why one gain can be taxed partly at 0% and partly at 15%. See the 2026 federal tax brackets for the ordinary rates and the standard deduction subtracted first (this calculator uses $16,100 for single and married filing separately, $32,200 for married filing jointly and $24,150 for head of household, from section 4.14 of the same revenue procedure).
The IRS Topic 409 page still listed the amounts for taxable years beginning in 2025 when we checked on November 1, 2026, so the amounts in the table above come from the revenue procedure, not from that page.
When we checked on November 1, 2026, the IRS had not released the 2027 inflation-adjusted tables. The IRS published the 2026 thresholds in section 4.03 of Rev. Proc. 2025-32, its inflation-adjustment revenue procedure for tax year 2026. This page publishes no thresholds for 2027. The 2027 tax brackets page tracks the release.
Short-term or long-term: how the IRS decides
The holding period decides which kind of gain you have. The IRS says:
“Generally, if you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term. For exceptions to this rule, such as property acquired by gift, property acquired from a decedent, or patent property, refer to Publication 544, Sales and Other Dispositions of Assets; for commodity futures, see Publication 550, Investment Income and Expenses; or for applicable partnership interests, see Publication 541, Partnerships. To determine how long you held the asset, you generally count from the day after the day you acquired the asset up to and including the day you disposed of the asset.”
“If you have a net capital gain, a lower tax rate may apply to the gain than the tax rate that applies to your ordinary income.”
The calculator takes the short-term and long-term amounts you enter. It does not decide which one an asset belongs to, so check the exceptions in the IRS text above if the asset was a gift, an inheritance or something unusual.
Net investment income tax on capital gains
The statute imposes the tax this way:
“Except as provided in subsection (e)— (1) Application to individuals In the case of an individual, there is hereby imposed (in addition to any other tax imposed by this subtitle) for each taxable year a tax equal to 3.8 percent of the lesser of— (A) net investment income for such taxable year, or (B) the excess (if any) of— (i) the modified adjusted gross income for such taxable year, over (ii) the threshold amount.”
The threshold amounts are $200,000 for single or head of household, $250,000 for married filing jointly and $125,000 for married filing separately. The calculator takes the net gain, the qualified dividends and the other net investment income you enter as net investment income, and estimates modified adjusted gross income as your wages and other income plus those amounts unless you enter your own. What counts as investment income, the exclusions and Form 8960 are on the net investment income tax page.
The IRS worksheet this calculator follows
The tax on long-term gains and qualified dividends is figured on the Qualified Dividends and Capital Gain Tax Worksheet in the Instructions for Form 1040, line 16. The table lists its 25 lines, in the IRS’s words, with the amounts for example 1 below (a single filer with a $20,000 long-term gain). When we checked on November 1, 2026, the newest edition was the 2025 Instructions for Form 1040; the 2026 edition was not out. Its lines 6 and 13 show 2025 amounts, so those two lines say instead to use the 2026 amounts above.
| Line | What the worksheet says | Example 1 |
|---|---|---|
| 1 | Enter the amount from Form 1040 or 1040-SR, line 15. However, if you are filing Form 2555 (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet | $60,000.00 |
| 2 | Enter the amount from Form 1040 or 1040-SR, line 3a | $0.00 |
| 3 | Enter the smaller of line 15 or line 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0-. | $20,000.00 |
| 4 | Add lines 2 and 3 | $20,000.00 |
| 5 | Subtract line 4 from line 1. If zero or less, enter -0- | $40,000.00 |
| 6 | Enter the 2026 maximum zero rate amount for your filing status (Rev. Proc. 2025-32, section 4.03) (2026 amounts; adapted) | $49,450.00 |
| 7 | Enter the smaller of line 1 or line 6 | $49,450.00 |
| 8 | Enter the smaller of line 5 or line 7 | $40,000.00 |
| 9 | Subtract line 8 from line 7. This amount is taxed at 0% | $9,450.00 |
| 10 | Enter the smaller of line 1 or line 4 | $20,000.00 |
| 11 | Enter the amount from line 9 | $9,450.00 |
| 12 | Subtract line 11 from line 10 | $10,550.00 |
| 13 | Enter the 2026 maximum 15 percent rate amount for your filing status (Rev. Proc. 2025-32, section 4.03) (2026 amounts; adapted) | $545,500.00 |
| 14 | Enter the smaller of line 1 or line 13 | $60,000.00 |
| 15 | Add lines 5 and 9 | $49,450.00 |
| 16 | Subtract line 15 from line 14. If zero or less, enter -0- | $10,550.00 |
| 17 | Enter the smaller of line 12 or line 16 | $10,550.00 |
| 18 | Multiply line 17 by 15% (0.15) | $1,582.50 |
| 19 | Add lines 9 and 17 | $20,000.00 |
| 20 | Subtract line 19 from line 10 | $0.00 |
| 21 | Multiply line 20 by 20% (0.20) | $0.00 |
| 22 | Figure the tax on the amount on line 5. If the amount on line 5 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 5 is $100,000 or more, use the Tax Computation Worksheet | $4,552.00 |
| 23 | Add lines 18, 21, and 22 | $6,134.50 |
| 24 | Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet | $7,912.00 |
| 25 | Tax on all taxable income. Enter the smaller of line 23 or line 24. | $6,134.50 |
Line 3 of the IRS worksheet has a second branch for filers who are not filing Schedule D (use Form 1040 line 7a); it is not shown above, and the calculator always follows the Schedule D branch.
Lines 22 and 24 tell filers to use the Tax Table when the amount is under $100,000 and the Tax Computation Worksheet at $100,000 or more. This calculator applies the 2026 rate schedule from Rev. Proc. 2025-32 to the exact amount, so a figure on a filed return may differ slightly where the Tax Table applies. Line 1 of the worksheet starts from taxable income, which here is your wages and other income plus the other net investment income, gains and dividends you enter, less the standard deduction. Short-term gains are in line 1 and line 5, so line 22 taxes them at ordinary rates.
Worked examples
These use the calculator above with the 2026 amounts. Each result is hand-checked against the worksheet lines.
Example 1: a gain that straddles the 0% and 15% line
Single, wages and other income $56,100.00, long-term gain $20,000.00. After the $16,100.00 standard deduction, taxable income is $60,000.00. Of the gain, $9,450.00 is taxed at 0%, $10,550.00 at 15% and $0.00 at 20%. Federal income tax is $6,134.50. The same income without the gain would owe $4,552.00, so they add $1,582.50, an effective rate of 7.91%. Net investment income tax: MAGI of $76,100.00 against a threshold of $200,000.00, so $0.00.
Example 2: a gain that crosses into the 20% rate
Married filing jointly, wages and other income $632,200.00, long-term gain $100,000.00. After the $32,200.00 standard deduction, taxable income is $700,000.00. Of the gain, $0.00 is taxed at 0%, $13,700.00 at 15% and $86,300.00 at 20%. Federal income tax is $166,853.50. The same income without the gain would owe $147,538.50, so they add $19,315.00, an effective rate of 19.32%. Net investment income tax: MAGI of $732,200.00 against a threshold of $250,000.00, so $3,800.00.
Example 3: qualified dividends and a long-term gain
Head of household, wages and other income $104,150.00, qualified dividends $5,000.00, long-term gain $15,000.00. After the $24,150.00 standard deduction, taxable income is $100,000.00. Of the gain and dividends, $0.00 is taxed at 0%, $20,000.00 at 15% and $0.00 at 20%. Federal income tax is $13,501.00. The same income without the gain and dividends would owe $10,501.00, so they add $3,000.00, an effective rate of 15.00%. Net investment income tax: MAGI of $124,150.00 against a threshold of $200,000.00, so $0.00.
What this calculator leaves out
It estimates federal tax for the 2026 tax year on the amounts you enter, and it does not handle these items. Check the IRS instructions or ask a tax professional for any that apply to you.
- The 28% maximum rate for collectibles and for the taxable part of a gain on section 1202 qualified small business stock, and the 25% maximum rate for unrecaptured section 1250 gain, quoted from the IRS above.
- State and local taxes, the alternative minimum tax, itemized deductions, tax credits and foreign earned income.
- Loss carryovers. A net capital loss is deducted up to the IRS limit and nothing is carried forward.
- The additional standard deduction for age 65 or older or blind, and the senior deduction; the calculator subtracts only the basic standard deduction. Use the senior deduction calculator to see those.
- Estimated tax payments, withholding and the Schedule D Tax Worksheet cases.
For losses, IRS Topic 409 gives the limit on the deduction as the lesser of $3,000 ($1,500 if married filing separately) or your total net loss shown on line 16 of Schedule D, and says a net capital loss above the limit can be carried forward to later years. The calculator applies the $3,000 or $1,500 limit and does not carry anything forward.
Capital gains and Medicare premiums (IRMAA)
A large gain that is included in adjusted gross income raises adjusted gross income. The Social Security Administration defines the modified adjusted gross income it uses for the income-related monthly adjustment amount (IRMAA) this way:
“Your MAGI is your adjusted gross income as used on line 11 of IRS form 1040 plus your tax-exempt interest income as used on line 2a of IRS form 1040. We used your MAGI and your tax filing status to determine your income-related monthly adjustment amount.”
SSA also uses an earlier year's return. Its Form SSA-44, which you file to ask SSA to use a more recent year after a life-changing event, says:
“Note that this year must reflect a reduction in your income due to the life-changing event(s) you listed in Step 1.”
“Exception: If we used IRS information about your MAGI 3 years before the premium year, you may ask us to use information from 2 years before the premium year. For example, if we used your income tax return for 2023 to decide your 2026 IRMAA, you can ask us to use your 2024 information. • If you have any questions about what year you should use, you should call SSA.”
The 2027 IRMAA brackets are based on 2025 income, so a gain realized in 2026 would not change 2027 premiums under the standard two-year lookback, unless you ask SSA on Form SSA-44, after a life-changing event, to use a more recent year.
The IRMAA brackets page lists the premium tiers. The 401(k) withdrawal tax calculator shows how another source of income can move you between tax brackets.
Frequently asked questions
What are the 2026 long-term capital gains tax rates?
The rates are 0%, 15% and 20%, set by your taxable income. For 2026, Rev. Proc. 2025-32 section 4.03 puts the top of the 0% range at $49,450 for single filers and married filing separately, $98,900 for married filing jointly and surviving spouses, and $66,200 for heads of household. The top of the 15% range is $545,500 for single, $613,700 for married filing jointly, $579,600 for head of household and $306,850 for married filing separately. The IRS says a rate of 20% applies to the extent that taxable income exceeds the thresholds set for the 15% rate.
How long do I have to hold an asset for the long-term rate?
Generally, if you hold the asset for more than one year before you dispose of it, your gain or loss is long-term, and if you hold it one year or less, it is short-term (IRS Topic 409). The IRS refers to Publication 544 for exceptions such as property acquired by gift, property acquired from a decedent, or patent property. Generally you count from the day after the day you acquired the asset up to and including the day you disposed of it.
How are short-term capital gains taxed?
The IRS says net short-term capital gains are subject to taxation as ordinary income at graduated tax rates. The calculator adds the short-term gain to your other income and taxes it through the 2026 brackets in Rev. Proc. 2025-32.
Are qualified dividends taxed like long-term gains?
The IRS Qualified Dividends and Capital Gain Tax Worksheet figures the tax on qualified dividends together with the net capital gain, using the same 0%, 15% and 20% steps, and this calculator follows that worksheet. Dividends that are not qualified are ordinary income: enter them in the Other net investment income box, which taxes them as ordinary income and also counts them for the net investment income tax.
When does the 3.8% net investment income tax apply to a capital gain?
The tax is 3.8% of the lesser of net investment income or the amount by which modified adjusted gross income is over the threshold: $200,000 for single or head of household, $250,000 for married filing jointly, and $125,000 for married filing separately (26 U.S.C. 1411). Capital gains are net investment income in general, and the IRS lists exceptions, such as gain on a principal residence that is excluded from gross income. The IRS also counts interest, dividends, rental and royalty income as investment income, so put those in the Other net investment income box and keep wages and pensions in the wages box. See the net investment income tax page for the IRS wording.
Can I deduct a capital loss?
If your capital losses exceed your capital gains, the IRS says the excess loss you can claim to lower your income is the lesser of $3,000 ($1,500 if married filing separately) or your total net loss shown on line 16 of Schedule D. The IRS says a larger net capital loss can be carried forward to later years. This calculator applies the $3,000 or $1,500 limit and does not track carryovers.
Which capital gains does this calculator leave out?
It does not apply the 28% maximum rate that the IRS lists for collectibles and for the taxable part of a gain on section 1202 qualified small business stock, or the 25% maximum rate for unrecaptured section 1250 gain. It also leaves out state taxes, the alternative minimum tax, itemized deductions, credits, loss carryovers and foreign earned income.
Can a large capital gain raise my Medicare premiums?
It can. The Social Security Administration says its income-related monthly adjustment amount is determined from modified adjusted gross income, which it defines as adjusted gross income plus tax-exempt interest income, and from tax filing status. A capital gain that is included in adjusted gross income is part of that figure. SSA also uses an earlier year, and its Form SSA-44 instructions give an example of a 2023 return used to decide 2026 IRMAA, so the year that counts is not the year of the premium. The IRMAA brackets page has the premium tiers.
Related tax tools
See the federal tax brackets, the 2026 standard deduction, the paycheck calculator, the 401(k) withdrawal tax calculator, the IRMAA brackets and the net investment income tax page. The IRS’s own pages: Topic 409, capital gains and losses and Rev. Proc. 2025-32.
Sources
Sources (checked November 1, 2026): IRS: Rev. Proc. 2025-32 (2026 inflation adjustments; sections 4.03 and 4.14) · IRS: Topic no. 409, Capital gains and losses · IRS: Instructions for Form 1040 (2025), Qualified Dividends and Capital Gain Tax Worksheet · IRS: Inflation-adjusted tax items by tax year · 26 U.S.C. 1411: imposition of tax (govinfo, United States Code, 2024 Edition) · 26 U.S.C. 1411: imposition of tax (govinfo, United States Code, 2024 Edition) (Cornell LII copy) · SSA: Form SSA-44 instructions (income-related monthly adjustment amount)