IRS Sets 2027 Capital-Gains Tax Brackets: Who Pays 0%, 15% and 20%

Individual investors will pay a 0% capital-gains rate on taxable income up to $51,050 in 2027, under new IRS tables released Thursday. The rates themselves haven't changed — 0%, 15% and 20% — but the income thresholds that trigger each band have shifted with inflation.

For individuals, the 15% rate applies from $51,050 up to $563,200, and the 20% rate kicks in above $563,200. Married couples filing jointly get a 0% rate up to $102,100 and a 15% rate up to $633,600, with the top 20% rate above that. Heads of household fall in between: 0% up to $68,350 and 15% up to $598,400. All figures are maximum taxable income for each band.

The IRS rolled out the 2027 capital-gains tables alongside its updated income-tax brackets and standard deduction. Capital gains keep their preferential treatment: profits on qualifying assets are taxed at 0%, 15% or 20%, while wages face rates from 10% to 37%.

What counts as a long-term gain?

The holding period matters. An asset must be held at least one year before a sale to qualify. Buy and sell within a year, and the profit gets taxed as ordinary income.

Long-term treatment covers stock returns, qualified dividends, profits from bond sales and gains on cryptocurrency sales. It does not cover everything a saver earns in a higher-rate environment.

Interest on banking products — high-yield savings accounts, bank CDs — counts as ordinary income, not capital gains. Interest-income rules on bonds vary by bond type and by where the taxpayer lives.

Can losses soften the bill?

Yes. Capital losses offset the tax bill from capital gains. When losses exceed gains, investors can claim a capital-loss deduction of up to $3,000, and any excess carries over to future years.

The timing of the IRS release was awkward: the inflation adjustments landed on a day of sharp trading losses on Wall Street. The offset rules make that sting less at tax time.

But the $3,000 cap has a catch. It isn't indexed to inflation and hasn't increased in decades.

What about the 3.8% net investment-income tax?

That one isn't changing — and that's deliberate. The 3.8% net investment-income tax applies to proceeds including interest, dividends, long- and short-term capital gains, rental and royalty income. It has been in place since 2013, and its thresholds do not move with inflation.

As the source puts it: "That's not a bug. It's a feature of the tax."

Individuals owe the tax once qualifying proceeds push income above $200,000. For married couples, the threshold is $250,000. Because those numbers stay fixed, the tax gradually reaches more households over time — a shift amplified by the past decade's growth in stock-market participation.

The receipts show the creep. Just over 8 million income-tax returns paid the tax in 2023, totaling more than $39 billion, according to the Bipartisan Policy Center. A decade earlier, when the tax started, more than 3 million returns paid $16.5 billion, according to a Congressional Research Service report.

For 2027 planning, the practical takeaway is straightforward: the headline capital-gains bands are inflation-adjusted, while the 3.8% surtax thresholds and the $3,000 loss-deduction limit stay frozen — so more investors should expect to clear them.