Capital Gains Tax Rate Guide for Investment Taxation (2026)
Understand capital gains tax rates: short-term vs long-term, rate brackets, holding period impact, and tax rate calculation for investment gains.
Summary
Capital gains rates depend on holding period and income. This guide explains short-term vs long-term, rate brackets, and tax calculation.
Key Steps
- 1Distinguish holding period: short-term <1 year, long-term >1 year.
- 2Apply short-term rates: taxed as ordinary income, rates 10-37%.
- 3Calculate long-term rates: 0% up to $47K, 15% up to $518K, 20% above.
- 4Track collectibles rate: 28% for collectibles held >1 year.
- 5Plan timing: hold investments >1 year for preferential long-term rates.