Glossary
Long-term capital gains
Definition
Long-term capital gains are profits on assets held more than one year, taxed at preferential federal rates: 0%, 15% or 20% depending on income2026 · IRS. Short-term gains are taxed as ordinary income. The net investment income tax may apply on top.
How long-term capital gains works
Rate brackets depend on taxable income and filing status.
Harvesting gains in low-income years at the 0% rate is a common planning move.
Calculators that use long-term capital gains
Questions about long-term capital gains
How long is long-term?
More than one year.
What rates apply?
0%, 15% or 20% depending on income2026 · IRS.
Does the NIIT apply?
Above income thresholds.
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Related terms: Net investment income tax · Net unrealized appreciation
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