Short-Term vs. Long-Term Capital Gains (2026)
Updated June 12, 2026 · PayCalc Editorial
How much tax you pay on an investment gain depends mostly on one thing: how long you held it. Here is the 2026 difference between short- and long-term capital gains.
Short-term gains (held one year or less)
Short-term gains are taxed as ordinary income — the same 10%–37% brackets as your salary. There is no tax break for selling quickly.
Long-term gains (held more than one year)
Long-term gains get preferential rates of 0%, 15% or 20%, based on your total taxable income. For a single filer in 2026, long-term gains are taxed at 0% while taxable income stays under about $49,350, 15% up to roughly $546,250, and 20% above that.
Estimate either type with the capital gains tax calculator.
The simplest way to pay less
Hold investments for more than a year before selling. The jump from ordinary rates to the long-term rates can cut your bill sharply — for example a 22% short-term rate versus 15% long-term on the same gain.
One more tax to know
High earners may also owe the 3.8% Net Investment Income Tax on investment income above $200,000 (single) or $250,000 (married filing jointly).