Capital gains tax: rates, rules and worked examples
Capital gains tax for 2026: 0%, 15% or 20% on assets held over a year, ordinary rates on short-term gains, plus losses, home sales and worked examples.
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Capital gains tax: rates, rules and worked examples
Capital gains tax is the federal tax on profit from selling an asset such as stock, a fund, crypto or real estate.
Long-term holding period: More than one year.
2026 long-term rates: 0%, 15% or 20%.
2026 0% rate ceiling: $49,450 single; $98,900 joint; $66,200 head of household.
Each example uses 2026 figures and assumes the gain is the only investment income.
The 0%, 15% and 20% rates are not the whole story for larger gains or special assets.
Capital losses offset capital gains first, dollar for dollar. If losses exceed gains, you can deduct up to $3,000 of the net loss against other income such as wages ($1,500 if married filing separately).
