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The IRS has unveiled higher capital gains tax brackets for 2026.
In itsannouncementon Thursday, the agency boosted thetaxable income limitsfor 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, includingfederal income tax brackets, theestate and gift tax exemptionand eligibility for theearned 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 gainsrate you payis 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 $49,450or less and married couples filing jointly are eligible with $98,900 or less.
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