Updates on Capital Gains Tax Thresholds for 2026

1. The big picture: rates remain, thresholds move

Here’s what stays the same and what changes:

The long-term federal capital-gains tax rates for most assets held more than one year remain at 0%, 15%, and 20%.
What changes: the income-thresholds at which those rates apply are adjusted upward for inflation for tax year 2026 (the return you’ll file in early 2027).
Short-term capital gains (assets held one year or less) continue to be taxed as ordinary income (i.e., taxed at your marginal rate).
As you know, state capital gains tax (if applicable) and other surtaxes (e.g., the 3.8% Net Investment Income Tax, depreciation recapture, collectibles rate) may still apply. Make sure you layer those in with your real-estate lens.

2. The 2026 thresholds you need to know

For tax year 2026 (filed in 2027) the updated long-term capital gains thresholds are:

Rate	Filing Status	Taxable Income Range for Gains
0%	Single	Up to $49,450
	Married Filing Separately	Up to $49,450
	Head of Household	Up to $66,200
	Married Filing Jointly	Up to $98,900
15%	Single	$49,451 to $545,500
	Married Filing Separately	$49,451 to $306,850
	Head of Household	$66,201 to $579,600
	Married Filing Jointly	$98,901 to $613,700
20%	Single	Over $545,500
	Married Filing Separately	Over $306,850
	Head of Household	Over $579,600
	Married Filing Jointly	Over $613,700

That gives your investor clients a little more breathing room before their long-term gains hit the 15% bracket (and before they hit the 20% top bracket).

3. Why this matters for real-estate investor clients

Since you specialise in real-estate investors, Nicole, here are some tailored take-aways:

Timing of sale matters — If an investor is sitting on a large gain from a property sale, the fact that the 0% threshold has risen means that if their taxable income (including that gain) remains below ~$49,450 (single) or ~$98,900 (joint) for 2026, they might realise the gain and pay 0% federal capital gains tax. That’s a valuable lever.
Coordinate with other income — Because the thresholds are based on taxable income (including wages, property income, etc.), it’s worth modeling the client’s full income picture (property profits, depreciation recapture, passive activity income, etc) to see if they can “fit” into a lower bracket with strategic planning.
Bonus for 1031 / real-estate deals — If the client is offsetting with 1031 exchanges or other deferral strategies, the higher threshold gives a wider margin of error.
Mind the state tax — Even if they hit 0% federally, state capital gains or state income tax might still apply. In high-tax states (or cross-border investments) this remains relevant.
Plan now for 2026 and beyond — Because thresholds adjust annually, and because other tax law changes may be on the horizon, it’s wise to build a plan now: e.g., could you delay a sale into 2026 to benefit from the bump in threshold? Or accelerate income into 2025 if you’re already over the 0% threshold in 2026.
Watch for exceptions — Assets subject to special rules: depreciation recapture on real estate may be taxed at up to 25%; collectibles may be taxed at 28%; short-term gains get taxed at ordinary income rates. These special buckets aren’t changed by the 0/15/20 framework.

4. Looking ahead: what to watch

As always, tax legislation can change. While the 0/15/20 long-term capital gains rates are stable for now, proposals continue to surface. For example, some commentators expect higher-income rates or changes tied to “sunset” provisions.
For high-net-worth real-estate investors, the interplay of capital gains with the 3.8% NIIT, state taxes, and even estate/gift tax planning matters too.
Inflation adjustments will continue each year, so today’s thresholds become next year’s baseline.

5. Final word

In plain English: if you have gains coming down the pipe, the increased long-term capital gains thresholds for 2026 are good news, they buy a bit more room before jumping into the higher tax rates. But “good news” doesn’t equal “no planning needed.” Work with a tax advisor, you will want to proactively integrate those thresholds into their sales timing, income forecasting, and holding-period strategies.

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