(NewsNation) — Income thresholds for capital gains taxes are increasing next year, meaning some investors could pay less tax on their profits.
The IRS announced updated capital gains tax brackets for 2026 on Thursday as part of its annual inflation adjustments.
The higher taxable income limits outlined below apply to long-term capital gains — profits from assets held for more than one year.
There are still three tax rates — 0%, 15% and 20% — which are determined by income and filing status. Higher earners pay a larger share of tax on their long-term investment gains.
For tax year 2026, a single filer with a taxable income of $49,450 or less qualifies for the 0% long-term capital gains rate — up about 2.3% from $48,350 in 2025. Married couples filing jointly will be eligible for the 0%