8605 / What are the current long-term capital gains tax rates?

Editor’s Note: The 2017 tax reform law retained the current tax rates that apply to long-term capital gains and qualified dividend income. However, the income thresholds that determine to whom those rates will apply have changed along with the changes to the individual income tax rates (see below).

The long-term capital gains rates for 2025 are:

(1)  0 percent for taxpayers in the 10 and 15 percent tax brackets in 2017. In 2025 (projected), with respect to adjusted net capital gain, the 0 percent rate applies to joint filers who earn less than $96,700 (half the amount for married taxpayers filing separately), heads of households who earn less than $64,750, single filers who earn less than $48,350, and trusts and estates with less than $3,250 in income; (2) 15 percent for taxpayers in the 25 percent, 28 percent, 33 percent and 35 percent tax brackets in 2017. In 2025, the 15 percent rate will ap-pliesy to joint filers who earn more than $96,700 but less than $600,050 (half the amount for married taxpayers filing separately), heads of households who earn more than $64,750 but less than $566,700, single filers who earn more than $48,350 but less than $533,400, and trusts and estates with more than $3,250 but less than $15,900 in income; and (3) 20 percent for taxpayers in the 39.6 percent tax bracket in 2017. In 2025, the 20 percent rate will appliesy to joint filers who earn more than $600,050 (half that amount for married taxpayers filing separate-ly), heads of households who earn more than $566,700, single filers who earn more than $533,400, and trusts and estates with more than $15,900 in income.

(1) 0 percent for taxpayers in the 10 and 15 percent tax brackets in 2017. In 2026, with respect to adjusted net capital gain, the 0 percent rate will apply to joint filers who earn less than $98,900 (half the amount for married taxpayers filing separately), heads of households who earn less than $66,200, single filers who earn less than $49,450, and trusts and estates with less than $3,300 in income; (2) 15 percent for taxpayers in the 25 percent, 28 percent, 33 percent and 35 percent tax brackets in 2017. In 2024, the 15 percent rate will apply to joint filers who earn more than $98,900 but less than $613,700 (half the amount for married taxpayers filing separately), heads of house-holds who earn more than $66,200 but less than $579,600, single filers who earn more than $49,450 but less than $545,500, and trusts and estates with more than $3,300 but less than $16,250 in income; and (3) 20 percent for taxpayers in the 39.6 percent tax bracket in 2017. In 2024, the 20 percent rate will apply to joint filers who earn more than $613,700 (half that amount for married taxpayers filing separately), heads of households who earn more than $579,600, single filers who earn more than $545,500, and trusts and estates with more than $16,250 in income.

See Q 8631 for an outline of the netting process used in determining capital gains and losses when multiple asset classes are involved.