United States Capital Gains Tax
Detailed capital gains tax rates and rules for United States in 2026.
Short-term capital gains on assets held one year or less are taxed as ordinary income at rates up to 37%. Long-term capital gains on assets held for more than one year are taxed at preferential rates of 0%, 15%, or 20% depending on taxable income. Single filers pay 0% on long-term gains up to $47,025, 15% up to $518,900, and 20% above that threshold. The 3.8% Net Investment Income Tax may apply on top of these rates for high-income taxpayers, bringing the effective maximum long-term rate to 23.8%.
Short-Term Rate
37%
Long-Term Rate
20%
Exemptions
- Up to $250,000 gain on primary residence ($500,000 for married couples) excluded under Section 121
- Gains within tax-advantaged accounts (401(k), IRA, Roth IRA) are tax-deferred or tax-free
- Qualified Small Business Stock (Section 1202) may exclude up to 100% of gains
- Like-kind exchanges (Section 1031) allow deferral on real property exchanges
- Step-up in basis at death eliminates unrealized capital gains for inherited assets
How United States Capital Gains compares
United States’s capital gains tax rate of 20% is the 43rd highest of 203 countries TaxAtlas tracks, above the global average of 13.8% and North America’s regional average of 8.9%.
