Home2027Capital Gains Tax Rates

2027 Capital Gains Tax Rates.

Projected long-term capital gains brackets and NIIT thresholds for 2027 based on inflation adjustment from 2026.
⚠️ Projected estimates only. The capital gains tax rates (0%, 15%, 20%) are set by statute and will not change. However, the income thresholds for each bracket are adjusted for inflation annually. These projections apply a ~3% adjustment to confirmed 2026 figures.
Quick Answer (Projected): In 2027, long-term capital gains will continue to be taxed at 0%, 15%, or 20% depending on taxable income — the rates are fixed by statute and don't change. An additional 3.8% NIIT applies above $200K (single) or $250K (MFJ), pushing the top effective rate to 23.8%. Only the inflation-adjusted income thresholds shift for 2027.
0%Bracket floor
15%Most gains
20%Top LTCG rate
23.8%Top rate + NIIT

2027 Long-Term Capital Gains Brackets (Projected)

RateSingle (2027 Proj.)MFJ (2027 Proj.)HoH (2027 Proj.)
0%Up to ~$50,950Up to ~$101,850Up to ~$68,200
15%~$50,951 – ~$561,850~$101,851 – ~$632,100~$68,201 – ~$597,000
20%Over ~$561,850Over ~$632,100Over ~$597,000

Net Investment Income Tax (NIIT) — Unchanged

The NIIT thresholds are set by statute and are not inflation-adjusted. They remain the same for 2027:

Filing StatusMAGI ThresholdAdditional Rate
Single$200,0003.8%
Married Filing Jointly$250,0003.8%
Married Filing Separately$125,0003.8%
Head of Household$200,0003.8%

Special Capital Gains Rates

Asset TypeMax RateDetails
Collectibles28%Art, antiques, coins, precious metals, stamps, wine, and other collectibles
Depreciation Recapture25%Gain attributable to depreciation deductions on real property (Section 1250)
Qualified Small Business Stock0% – 28%Section 1202 QSBS may exclude 50%, 75%, or 100% of gain depending on acquisition date

Collectibles: Long-term gains on collectibles are capped at a maximum rate of 28%, higher than the standard 20% top rate. If your ordinary income tax rate is below 28%, you pay that lower rate instead — this cap is a ceiling, not a flat rate.

Depreciation recapture: When you sell rental or business property, the portion of gain attributable to prior depreciation deductions ("unrecaptured Section 1250 gain") is taxed at a maximum rate of 25%. Neither cap moves with inflation, so both carry into 2027 unchanged.

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See Confirmed 2026 Limits: For official IRS-published figures, see our 2026 Capital Gains Tax Rates page.

How 2027 Capital Gains Will Be Taxed

Short-term vs long-term holding-period mechanics: Capital gains receive preferential 0/15/20% tax treatment only if the underlying asset was held more than one year. Assets sold one year or less after purchase are short-term gains and are taxed at ordinary income rates (10-37% in 2027 projected brackets). The holding period begins the day after acquisition and ends on the day of sale.

Net Investment Income Tax stacks on top of the LTCG rate: Single filers with MAGI above $200,000 and joint filers above $250,000 pay the 3.8% NIIT on the lesser of net investment income or MAGI above the threshold. NIIT applies in addition to the LTCG rate, so a high-income filer in the 20% bracket pays an effective 23.8% federal rate on long-term gains (20% + 3.8%) before state tax. The NIIT thresholds are statutory, not inflation-indexed, so the same dollar thresholds have applied since 2013.

Qualified dividends and state-level treatment: Qualified dividends (from US corporations and qualifying foreign corporations held the required period) are taxed at the same 0/15/20% LTCG rates as long-term gains. Ordinary (non-qualified) dividends are taxed at ordinary income rates. State capital-gains treatment varies widely: California taxes all gains as ordinary income; Texas, Florida, and seven other no-income-tax states impose no state cap-gains tax; most progressive-tax states tax gains at their full ordinary-income rate.

Strategies to Minimize Capital Gains Taxes

Tax-loss harvesting: Sell losing investments to offset capital gains dollar-for-dollar. Up to $3,000 in net losses can be deducted against ordinary income per year, with excess losses carried forward — this $3,000 cap is fixed by statute and does not adjust for inflation.

Hold for over one year: Ensure investments are held longer than 12 months to qualify for the lower long-term capital gains rates instead of ordinary income rates.

Harvest gains in the 0% bracket: If your projected 2027 taxable income falls within the 0% bracket (up to ~$50,950 single / ~$101,850 MFJ), strategically realize gains tax-free. This is especially useful for retirees with lower income.

Use tax-advantaged accounts: Hold investments in 401(k)s, IRAs, or Roth IRAs where gains grow tax-deferred or tax-free, avoiding capital gains taxes altogether.

Donate appreciated assets: Donating long-term appreciated securities to charity avoids capital gains tax entirely and may provide a charitable deduction for the full fair market value.

Qualified Opportunity Zones: Investing capital gains into a Qualified Opportunity Fund can defer and potentially reduce capital gains taxes.

Source: IRS Rev. Proc. 2025-32 § 4.03, "Maximum Capital Gains Rate" (IRC § 1(h), § 1(j)(5)). NIIT thresholds are statutory and not indexed. These 2027 figures are projections computed from those confirmed 2026 amounts; the IRS, SSA and CMS publish official 2027 numbers in October–November 2026.

Frequently Asked Questions

What will the 2027 long-term capital gains tax rates be?

The long-term capital gains rates themselves — 0%, 15%, and 20% — are set by statute and won't change in 2027. Only the income thresholds shift with inflation. Based on a projected ~3% adjustment from confirmed 2026 figures, the 2027 0% bracket is expected to run through about $50,950 for single filers, with 15% applying up to roughly $561,850 and 20% above that.

What is the Net Investment Income Tax (NIIT) for 2027?

The NIIT remains an additional 3.8% surtax on net investment income for filers with MAGI above $200,000 (single) or $250,000 (married filing jointly). These thresholds are fixed by statute and have never been inflation-adjusted, so they carry over unchanged into 2027. Combined with the 20% top LTCG rate, the maximum effective federal rate on long-term gains is 23.8%.

How will short-term capital gains be taxed in 2027?

Short-term gains — assets held one year or less — are taxed as ordinary income at the projected 2027 marginal rates, which are expected to range from 10% to 37% depending on total taxable income and filing status.

What is the capital gains tax rate on collectibles in 2027?

Collectibles such as art, antiques, coins, and precious metals are capped at a maximum 28% long-term rate, higher than the standard 20% top rate. This cap is set by statute and is unaffected by annual inflation adjustments, so it carries into 2027 unchanged.

Reviewed methodology

How this page is reviewed

High YMYL · Last verified 2026-07-31

See methodology, assumptions & sources
Risk tierHigh YMYL
AuthorCalculover Editorial Team Finance and legal education
Editorial ownerCalculover Tax & Payroll Desk Tax and wage methodology owner
ReviewerCalculover Editorial Review High-risk source and limitation review
Last reviewed2026-07-31
Last verified2026-07-31
Data effective date2026-01-01

Methodology

2027 Capital Gains Tax Rates (Projected) applies the tax-rate, threshold, and taxable-base logic documented in the calculator formula section, then separates user-entered assumptions from statutory or source-linked rate inputs.

Assumptions

  • 2027 Capital Gains Tax Rates (Projected) relies on the values the user enters and does not independently verify income, balances, legal status, policy terms, or market quotes.
  • Taxable income, deductions, credits, filing status, jurisdiction, and timing are simplified to the fields available in the calculator.
  • Federal, state, local, and international tax rules can change after the listed last-verified date.

Limitations

  • 2027 Capital Gains Tax Rates (Projected) does not prepare a tax return, determine final liability, apply every credit or deduction, or account for all state, local, foreign, penalty, or surtax rules.
  • Confirm current forms, thresholds, and filing obligations with the IRS, the relevant tax authority, or a qualified tax professional before filing or paying tax.

Sources

Professional guidance: 2027 Capital Gains Tax Rates (Projected) is for tax education and planning only and is not tax, legal, accounting, or filing advice. Verify current rules with the relevant tax authority or a qualified tax professional.

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