2020 Capital Gains Tax Rate
For 2020, the Capital Gains Tax Rate is $80,000 (Top of the 0% bracket, joint filers), $40,000 (Top of the 0% bracket, married filing separately), $53,600 (Top of the 0% bracket, heads of household) and 9 more figures below.
| Item | Rate | Joint filers | Married filing separately | Heads of household | Single filers | Estates and trusts |
|---|---|---|---|---|---|---|
| Top of the 0% bracket | - | $80,000 | $40,000 | $53,600 | $40,000 | $2,650 |
| Top of the 15% bracket | 15% | $496,600 | $248,300 | $469,050 | $441,450 | $13,150 |
| Rate above the 15% bracket | 20% | - | - | - | - | - |
A dash is a figure this site has not published for that row, not an amount of zero.
Effective 2020-01-01Source: Rev. Proc. 2019-44 (IRS)Verified 2026-08-29
Rate above the 15% bracketSource: Publication 550 (2020), Investment Income and Expenses (IRS)Verified 2026-08-29
Compared with 2019
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Top of the 0% bracket, joint filers | $78,750 | $80,000 | +$1,250 (+1.6%) |
| Top of the 0% bracket, married filing separately | $39,375 | $40,000 | +$625 (+1.6%) |
| Top of the 0% bracket, heads of household | $52,750 | $53,600 | +$850 (+1.6%) |
| Top of the 0% bracket, single filers | $39,375 | $40,000 | +$625 (+1.6%) |
| Top of the 0% bracket, estates and trusts | $2,650 | $2,650 | +$0 (+0.0%) |
| Rate above the 0% bracket | 15% | 15% | +0% (+0.0%) |
| Top of the 15% bracket, joint filers | $488,850 | $496,600 | +$7,750 (+1.6%) |
| Top of the 15% bracket, married filing separately | $244,425 | $248,300 | +$3,875 (+1.6%) |
| Top of the 15% bracket, heads of household | $461,700 | $469,050 | +$7,350 (+1.6%) |
| Top of the 15% bracket, single filers | $434,550 | $441,450 | +$6,900 (+1.6%) |
| Top of the 15% bracket, estates and trusts | $12,950 | $13,150 | +$200 (+1.5%) |
| Rate above the 15% bracket | 20% | 20% | +0% (+0.0%) |
Who it applies to
All taxpayers who realize long-term capital gains in 2020, including individuals, married couples, heads of household, and estates and trusts.
What changed this year, and why
The IRS adjusted the income thresholds for the preferential long-term capital gains rates for inflation for taxable years beginning in 2020.
Common questions
- What are the long-term capital gains tax rates for 2020?
- For 2020, long-term capital gains are taxed at two preferential rates. Gains within the bottom bracket are not subject to tax. Above that bracket, the rate is 15 percent, continuing up to a higher ceiling. Income above the 15 percent ceiling is subject to an even higher rate.
- Where does the bottom bracket end for each filing status?
- The top of the bottom bracket in 2020 is $80,000 for joint filers and surviving spouses, $40,000 for married individuals filing separately, $53,600 for heads of household, $40,000 for single filers, and $2,650 for estates and trusts.
- Where does the 15 percent bracket end for each filing status?
- The top of the 15 percent bracket in 2020 is $496,600 for joint filers and surviving spouses, $248,300 for married individuals filing separately, $469,050 for heads of household, $441,450 for single filers, and $13,150 for estates and trusts.
What the lower rates actually apply to
For 2020, the IRS applies preferential tax rates of 0%, 15%, or 20% to your net capital gain instead of ordinary income rates. Your net capital gain is the amount by which your net long-term capital gain for the year exceeds your net short-term capital loss. Which of the three rates applies depends on your taxable income and filing status. For joint filers, the 0% bracket runs up to $80,000, the 15% bracket runs from that point up to $496,600, and anything above that is taxed at 20%. For married filing separately, the 0% top is $40,000 and the 15% top is $248,300. For heads of household, the 0% top is $53,600 and the 15% top is $469,050. For single filers, the 0% top is $40,000 and the 15% top is $441,450. For estates and trusts, the 0% top is $2,650 and the 15% top is $13,150. Gains above the top of the 15% bracket are taxed at 20%.
Capital Gain Tax Rates The tax rates that apply to a net capital gain are generally lower than the tax rates that apply to other income. These lower rates are called the maximum capital gain rates. The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. For 2020, the maximum capital gain rates are 0%, 15%, 20%, 25%, and 28%.
Publication 550 (2020), Investment Income and Expenses (IRS)
How long you must hold to get the long-term rate
The holding period is the length of time you owned investment property, and it determines whether any gain or loss on the property is classified as long-term or short-term. If you hold the property for more than 1 year, any capital gain or loss is long-term; if you hold it for 1 year or less, the gain or loss is short-term. When counting, you start the day after the date you acquired the property, and the date you disposed of it is included in the holding period. For securities traded on an established market, you use the trade date, not the settlement date. A long-term holding period is necessary to qualify for the lower capital gains rates, because only net long-term capital gains in excess of net short-term capital losses make up the net capital gain that is taxed at the preferential rates. Short-term capital gains are taxed at ordinary income rates regardless of how much gain you have.
Long-term or short-term. If you hold invest- ment property more than 1 year, any capital gain or loss is a long-term capital gain or loss. If you hold the property 1 year or less, any capital gain or loss is a short-term capital gain or loss. To determine how long you held the invest- ment property, begin counting on the date after the day you acquired the property. The day you disposed of the property is part of your holding period.
Publication 550 (2020), Investment Income and Expenses (IRS)
How much of a loss you can deduct in one year
When your total capital losses for the year exceed your total capital gains, you can deduct the excess on your return, but the deduction is subject to an annual limit. Your allowable capital loss deduction is the lesser of your total net loss or $3,000 if you file as single, married filing jointly, head of household, or qualifying widow(er), or $1,500 if you are married and file a separate return. This deduction reduces your ordinary income dollar for dollar, up to the limit. If your total net loss is larger than the annual limit, you may carry the unused portion over to the next tax year and treat it as if it had been incurred in that year. A carried-over loss retains its original character as long-term or short-term. In later years, the carryover first reduces that year's long-term capital gains before reducing short-term gains. Any remaining unused loss continues to carry forward to subsequent years until it is fully used.
Limit on deduction. Your allowable capital loss deduction, figured on Schedule D (Form 1040), is the lesser of: • $3,000 ($1,500 if you are married and file a separate return), or • Your total net loss as shown on line 16 of Schedule D (Form 1040). You can use your total net loss to reduce your income dollar for dollar, up to the $3,000 limit. Capital loss carryover. If you have a total net loss on line 16 of Schedule D (Form 1040) that is more than the yearly limit on capital loss de- ductions, you can carry over the unused part to the next year and treat it as if you had incurred it in that next year.
Publication 550 (2020), Investment Income and Expenses (IRS)
The loss you cannot deduct if you buy back in
A wash sale happens when you sell stock or securities at a loss and then buy back substantially identical property within a 30-day window before or after the sale. The same rule applies if your spouse or a corporation you control makes the repurchase, or if you acquire the identical stock inside an IRA or Roth IRA. When the rule applies, the loss is not deductible in the year of the sale. Instead, the disallowed loss is added to the cost basis of the replacement property, which preserves the loss for the year you eventually sell the replacement shares. Your holding period for the new shares also picks up the holding period of the shares you sold. The wash sale rules cover losses on contracts and options to acquire stock or securities as well, but they do not apply to losses from commodity futures contracts or foreign currencies. Dealers who incur losses in the ordinary course of their business are exempt. Because of these rules, an investor who wants a deductible loss must wait out the 30-day window before repurchasing the same or a substantially identical position.
You cannot deduct losses from sales or trades of stock or securities in a wash sale unless the loss was incurred in the ordinary course of your business as a dealer in stock or securities. A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: 1. Buy substantially identical stock or securi- ties, 2. Acquire substantially identical stock or se- curities in a fully taxable trade, 3. Acquire a contract or option to buy sub- stantially identical stock or securities, or 4. Acquire substantially identical stock for your individual retirement arrangement (IRA) or Roth IRA.
Publication 550 (2020), Investment Income and Expenses (IRS)
The extra tax on top of the capital gain rate
The Net Investment Income Tax, or NIIT, is an additional 3.8% tax that applies on top of whatever regular capital gains rate you owe. It is imposed on the lesser of your net investment income or the amount by which your modified adjusted gross income exceeds a threshold set by filing status. The thresholds are based on your filing status and determine whether the additional tax applies to your investment income. Because the NIIT is calculated separately from the regular capital gains brackets, a taxpayer whose modified adjusted gross income exceeds the applicable threshold effectively pays an extra 3.8% on investment income, including capital gains, whether the underlying gain is taxed at the regular capital gains rates or not. Taxpayers with income below the applicable threshold do not owe the NIIT regardless of how much investment income they have.
Net investment income tax (NIIT). You may be subject to the NIIT. The NIIT is a 3.8% tax on the lesser of your net investment income or the amount of your modified adjusted gross income (MAGI) that is over a threshold amount based on your filing status.
Publication 550 (2020), Investment Income and Expenses (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2019-44 (IRS)
- Top of the 0% bracket, joint filers
the Maximum Zero Rate Amount under § 1(h)(1)(B)(i) is $80,000 in the case of a joint return or surviving spouse ($40,000 in the case of a married individual filing a separate return),
- Top of the 0% bracket, married filing separately
($40,000 in the case of a married individual filing a separate return)
- Top of the 0% bracket, heads of household
Zero Rate Amount under § 1(h)(1)(B)(i) is $80,000 in the case of a joint return or surviving spouse ($40,000 in the case of a married individual filing a separate return), $53,600 in the case of an individual who is a head of household (§ 2(b))
- Top of the 0% bracket, single filers
$40,000 in the case of any other individual (other than an estate or trust), and $2,650 in the case of an estate or trust.
- Top of the 0% bracket, estates and trusts
and $2,650 in the case of an estate or trust.
- Rate above the 0% bracket
The Maximum 15-percent Rate Amount under § 1(h)(1)(C)(ii)(l) is
- Top of the 15% bracket, joint filers
The Maximum 15-percent Rate Amount under § 1(h)(1)(C)(ii)(l) is $496,600 in the case of a joint return or surviving spouse ($248,300 in the case of a married individual filing a separate return),
- Top of the 15% bracket, married filing separately
($248,300 in the case of a married individual filing a separate return)
- Top of the 15% bracket, heads of household
The Maximum 15-percent Rate Amount under § 1(h)(1)(C)(ii)(l) is $496,600 in the case of a joint return or surviving spouse ($248,300 in the case of a married individual filing a separate return), $469,050 in the case of an individual who is the head of a household (§ 2(b))
- Top of the 15% bracket, single filers
$441,450 in the case of any other individual (other than an estate or trust), and $13,150 in the case of an estate or trust.
- Top of the 15% bracket, estates and trusts
and $13,150 in the case of an estate or trust.
Publication 550 (2020), Investment Income and Expenses (IRS)
- Rate above the 15% bracket
other gain1 and the regular tax rate that would apply is 37% your taxable income is... $496,601 or more if married filing jointly or surviving spouse; $496,051 or more if head of household; $248,301 or more if married filing separately; $441,451 or more if single; or $13,151 or more if estate or trust… 20%