2025 Federal Capital Gains Brackets: What Changed and What Didn't

Brackets remain indexed for inflation

The long-term capital gains brackets continue to track inflation. For 2025 the 0% bracket tops out at $47,025 for single filers and $94,050 for married couples filing jointly. The 15% bracket now reaches $518,900 for single filers and $583,750 for joint filers. Anything above those amounts falls into the 20% bracket.

Remember that the holding period must exceed one year to qualify. If you are only days away from crossing the one-year mark, consider using the scenario planner to see how much tax you could save by waiting.

Watch the Net Investment Income Tax

The 3.8% Net Investment Income Tax (NIIT) still applies once modified adjusted gross income exceeds $200,000 for single filers or $250,000 for joint filers. The tax piggybacks on whichever is less: your net investment income or the portion of MAGI above the threshold.

Running your sale through the calculator with taxable income set just above and below the NIIT threshold shows whether harvesting additional losses or deferring other income keeps you under the surtax.

Plan your estimated payments

If you expect to realise a large gain early in the year, update your estimated tax payments rather than waiting for a surprise bill next April. The IRS’ safe-harbour rules generally require you to pay the lesser of 90% of the current year’s liability or 110% of last year’s tax. Use the calculator’s output as a starting point, then coordinate with your tax professional to fine-tune payments.

Key takeaways

• Long-term brackets increased roughly 2.5% over 2024, but the 20% threshold is only $10,900 higher for joint filers.
• NIIT thresholds did not change. Crossing them adds 3.8% to your capital gains.
• The scenario planner helps answer “sell in December or January?” questions with real numbers.

Keep this article bookmarked—we will update it again when the IRS releases the official 2026 adjustments.