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2026 Tax Brackets & How to Use the Capital Gains Calculator
View 2026 federal income and capital gains tax brackets, then use PFC’s free calculator to estimate tax on a sale, including the possible NIIT.
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The tax rate on an investment sale depends on more than the gain alone. Holding period, filing status, other income, and additional taxes can all change the estimate. This guide explains the 2026 U.S. federal brackets used by our free capital gains calculator and how to enter the information it needs.
Start with the holding period
For an ordinary investment sale, holding an asset for more than one year generally produces a long-term gain; one year or less is short term. Short-term gains generally use ordinary income rates. Most long-term gains use the preferential capital gains brackets below. Special asset categories can follow different rules.
Source: IRS Topic 409: capital gains and losses (holding periods and general treatment).
2026 long-term capital gains brackets
| Filing status | 0% band | 15% band | 20% band |
|---|---|---|---|
| Single | Up to $49,450 | Over $49,450 through $545,500 | Over $545,500 |
| Married filing jointly | Up to $98,900 | Over $98,900 through $613,700 | Over $613,700 |
| Married filing separately | Up to $49,450 | Over $49,450 through $306,850 | Over $306,850 |
| Head of household | Up to $66,200 | Over $66,200 through $579,600 | Over $579,600 |
2026 ordinary income tax brackets
| Marginal rate | Single | Married filing jointly | Married filing separately | Head of household |
|---|---|---|---|---|
| 10% | $12,400 | $24,800 | $12,400 | $17,700 |
| 12% | $50,400 | $100,800 | $50,400 | $67,450 |
| 22% | $105,700 | $211,400 | $105,700 | $105,700 |
| 24% | $201,775 | $403,550 | $201,775 | $201,750 |
| 32% | $256,225 | $512,450 | $256,225 | $256,200 |
| 35% | $640,600 | $768,700 | $384,350 | $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $384,350 | Over $640,600 |
Each ordinary rate applies above the previous row’s upper bound, through the listed upper bound. The first row starts at zero; the last row is open-ended. These are taxable-income thresholds, not gross salary. The joint brackets also apply to qualifying surviving spouses. Capital gains can span more than one band.
Source: IRS Revenue Procedure 2025-32, sections 4.01 and 4.03 (2026 tables).
How to enter a sale in the calculator
- Choose filing status and holding period. The same inputs can produce different results under different filing statuses.
- Enter gross proceeds, adjusted cost basis, and selling fees. The model subtracts basis and fees from proceeds to find the gain. Use adjusted basis rather than assuming the purchase price is always sufficient.
- Enter ordinary taxable income before this sale. This is after deductions, not your annual salary or the sale proceeds. The model assumes no other capital gains or qualified dividends.
- Enter unused deductions only if appropriate. If ordinary taxable income is zero, you can enter deductions not already used against other income. Do not deduct the same amount twice.
- Enter MAGI before the sale and other net investment income. These separate inputs support the NIIT estimate; the calculator does not derive them from salary.
- Review both tax components. The table and CSV break down regular federal tax. The result separately shows the additional NIIT and the combined estimate.
Example: one gain, two capital gains bands
Assume a single filer sells an ordinary investment held more than one year for $80,000, with a $30,000 adjusted basis and no selling fees. Ordinary taxable income before the sale is $30,000, MAGI before the sale is $50,000, and there are no unused deductions or other net investment income.
| Rate | Gain allocated to this band | Regular federal tax |
|---|---|---|
| 0% | $19,450.00 | $0.00 |
| 15% | $30,550.00 | $4,582.50 |
The modeled additional federal tax is $4,582.50, including $0.00 of additional NIIT. The result is not 15% of the entire sale price, and it is not 15% of the entire gain. Only the part allocated to the 15% band is taxed at that rate in this example.
When the 3.8% NIIT can matter
NIIT generally applies to the smaller of net investment income and MAGI above the filing-status threshold: $200,000 for single or head of household, $250,000 for joint or qualifying surviving spouse, and $125,000 for married filing separately. It is separate from ordinary capital gains tax.
Source: IRS: net investment income tax.
The calculator measures the change in modeled NIIT before and after this sale. That can include tax newly triggered on other investment income already entered. The ordinary-tax deduction input does not reduce the MAGI used in this calculation.
Know what this estimate leaves out
This tool models one ordinary investment sale, not a complete return. It excludes state and local taxes, AMT, credits, other capital gains and qualified dividends, capital-loss netting and carryovers, collectibles, home-sale exclusions, depreciation recapture, and other special treatment. A modeled loss does not generate an estimated refund.
Use the result to understand how a sale interacts with the entered income figures, then reconcile those inputs with your tax records. The tables are explicitly for 2026 and will need review for another tax year. Open the capital gains calculator to try a scenario without an account or fee.