2027 capital gains tax brackets: where 0%, 15% and 20% start
Short answer
For 2027 the 0% long-term capital gains rate applies up to $51,050 of taxable income for single filers and $102,100 for married couples filing jointly; the 20% rate starts above $563,200 and $633,600. The 3.8% net investment income tax still begins at $200,000 and $250,000, unchanged.
The three long-term capital gains rates, 0%, 15% and 20%, are fixed in law. What changes each year is the income line where each one starts. For 2027 those lines moved up about 3%, following IRS Revenue Procedure 2026-35.
2027 long-term capital gains thresholds
The rate depends on your total taxable income (wages plus gains, after deductions), not on the size of the gain alone.
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 0% | Up to $51,050 | Up to $102,100 | Up to $68,350 |
| 15% | $51,051 – $563,200 | $102,101 – $633,600 | $68,351 – $598,400 |
| 20% | Over $563,200 | Over $633,600 | Over $598,400 |
For comparison, the 2026 0% ceilings are $49,450 (single), $98,900 (joint) and $66,200 (head of household), and the 20% rate starts at $545,500, $613,700 and $579,600.
Which assets count
- Long-term means you held the asset for more than one year: stocks, funds, crypto, a second home, a business.
- Short-term gains (held a year or less) are taxed as ordinary income at the normal 2027 brackets, up to 37%.
- Collectibles (art, coins, precious metals) have their own maximum rate of 28%.
- Your main home: the first $250,000 of gain ($500,000 for a couple) is excluded if you lived there two of the last five years.
The extra 3.8% that doesn’t move
The net investment income tax adds 3.8% on investment income once modified adjusted gross income passes $200,000 (single) or $250,000 (married filing jointly). Those lines were set in 2013 and are not inflation-adjusted, so each year more people cross them. At the top, the real rate on gains is 20% + 3.8% = 23.8%.
Worked example: the 0% rate in practice
A married couple earns $80,000 in wages and sells fund shares held for five years with a $30,000 gain in 2027.
- Taxable income: $80,000 + $30,000 − $33,200 standard deduction = $76,800
- The 0% band for joint filers runs to $102,100, so the entire gain sits inside it.
- Federal tax on the gain: $0. The wages are taxed as normal.
If the same couple had $110,000 of wages, taxable income would be $106,800, and the slice of gain above $102,100 ($4,700) would be taxed at 15%: about $705.
Ways people use the thresholds
- Harvest gains in a low-income year. Retirees before Social Security starts, or anyone between jobs, can sell and rebuy to reset the cost basis at 0%.
- Split a big sale across two tax years (December and January) to use two 0% or 15% bands.
- Offset with losses. Losses cancel gains first, and up to $3,000 of extra loss can reduce ordinary income each year.
- Hold past one year if you’re close to it. The difference between short-term and long-term can be 10 or 20 percentage points.
Related: the 2027 standard deduction, which sets the starting point for taxable income.
Figures from IRS Revenue Procedure 2026-35 as tabulated by the Tax Foundation; 2026 figures from the same source. General information, not tax advice.
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