2025 Capital Gains Tax Rates — Long-Term and Short-Term
2025 IRS data — updated for current tax year
Long-Term Capital Gains Rates (2025)
Assets held over 12 months qualify for preferential long-term rates — 0%, 15%, or 20% based on taxable income. These rates apply to the capital gain itself, not total income.
| Rate | Single Filer Income | Married Filing Jointly Income |
|---|---|---|
| 0% | Up to $47,025 | Up to $94,050 |
| 15% | $47,025 – $518,900 | $94,050 – $583,750 |
| 20% | Over $518,900 | Over $583,750 |
Short-Term Capital Gains
Gains on assets held 12 months or less are taxed as ordinary income — the same rates as your W-2 wages, from 10% to 37%. A single filer with $100,000 in short-term gains (and no other income) pays about $17,400 in federal tax versus $7,500 for the same gain held long-term.
Net Investment Income Tax (NIIT)
High earners also face the 3.8% Net Investment Income Tax on top of capital gains rates. The NIIT applies to investment income for taxpayers with modified AGI above $200,000 (single) or $250,000 (married jointly). This can push the effective rate on capital gains to 23.8% for high earners.
Frequently Asked Questions
What counts as a long-term capital gain?
Any asset held for more than 12 months before selling qualifies for long-term treatment. This includes stocks, bonds, real estate, and cryptocurrency.
Are home sale gains subject to capital gains tax?
Usually not in full. The IRS allows single filers to exclude up to $250,000 in home sale gains ($500,000 for married couples) if the home was your primary residence for at least 2 of the last 5 years.