Capital gains tax rates

Net capital gains are taxed at different rates depending on overall taxable income, although some or all net capital gain may be taxed at 0% . For taxable years beginning in 2025, the tax rate on most net capital gain is no higher than 15% for most individuals. A capital gains rate of 0% applies if your taxable income is less than or equal to:

$48,350 for single and married filing separately;

$96,700 for married filing jointly and qualifying surviving spouse; and

$64,750 for head of household.

A capital gains rate of 15% applies if your taxable income is:

more than $48,350 but less than or equal to $533,400 for single;

more than $48,350 but less than or equal to $300,000 for married filing separately;

more than $96,700 but less than or equal to $600,050 for married filing jointly and qualifying surviving spouse; and

more than $64,750 but less than or equal to $566,700 for head of household.

However, a capital gains rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.

There are a few other exceptions where capital gains may be taxed at rates greater than 20% :

The taxable part of a gain from selling section 1202 qualified small business stock is taxed at a maximum 28% rate.

Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate.

The portion of any unrecaptured section 1250 gain from selling section 1250 real property is taxed at a maximum 25% rate.

Note: Net short-term capital gains are subject to taxation as ordinary income at graduated tax rates.