2021 Capital Gains Tax Rate
For 2021, the Capital Gains Tax Rate figures are $80,800 (Top of the 0% bracket, joint filers), $40,400 (Top of the 0% bracket, married filing separately), $54,100 (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 | - | $80,800 | $40,400 | $54,100 | $40,400 | $2,700 |
| Top of the 15% bracket | 15% | $501,600 | $250,800 | $473,750 | $445,850 | $13,250 |
| 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 2021-01-01Source: Rev. Proc. 2020-45 (IRS)Verified 2026-09-02
Rate above the 15% bracketSource: Publication 550 (2021), Investment Income and Expenses (IRS)Verified 2026-09-02
Compared with 2020
| Item | 2020 | 2021 | Change |
|---|---|---|---|
| Top of the 0% bracket, joint filers | $80,000 | $80,800 | +$800 (+1.0%) |
| Top of the 0% bracket, married filing separately | $40,000 | $40,400 | +$400 (+1.0%) |
| Top of the 0% bracket, heads of household | $53,600 | $54,100 | +$500 (+0.9%) |
| Top of the 0% bracket, single filers | $40,000 | $40,400 | +$400 (+1.0%) |
| Top of the 0% bracket, estates and trusts | $2,650 | $2,700 | +$50 (+1.9%) |
| Top of the 15% bracket, joint filers | $496,600 | $501,600 | +$5,000 (+1.0%) |
| Top of the 15% bracket, married filing separately | $248,300 | $250,800 | +$2,500 (+1.0%) |
| Top of the 15% bracket, heads of household | $469,050 | $473,750 | +$4,700 (+1.0%) |
| Top of the 15% bracket, single filers | $441,450 | $445,850 | +$4,400 (+1.0%) |
| Top of the 15% bracket, estates and trusts | $13,150 | $13,250 | +$100 (+0.8%) |
| Rate above the 0% bracket | 15% | 15% | +0% (+0.0%) |
| Rate above the 15% bracket | 20% | 20% | +0% (+0.0%) |
Top of the 0% bracket
Top of the 15% bracket
$2,700$501,600
One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic - each faint line is ten times the one before it, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.
Who it applies to
All individual taxpayers, estates, and trusts that realize long-term capital gains in taxable year 2021
What changed this year, and why
For taxable years beginning in 2021, long-term capital gains are taxed at three rates based on taxable income and filing status. Gains within the lowest bracket are not taxed. Gains above the lowest bracket threshold and up to the middle bracket threshold are taxed at 15%. Gains above the middle bracket threshold are taxed at 20%. The income thresholds for each filing status are: for married filing jointly, the lowest bracket extends to $80,800 and the middle bracket extends to $501,600; for married filing separately, the lowest bracket extends to $40,400 and the middle bracket extends to $250,800; for head of household, the lowest bracket extends to $54,100 and the middle bracket extends to $473,750; for single filers, the lowest bracket extends to $40,400 and the middle bracket extends to $445,850; for estates and trusts, the lowest bracket extends to $2,700 and the middle bracket extends to $13,250. These thresholds are adjusted annually for inflation.
Common questions
- Do these rates apply to short-term capital gains?
- No. These reduced rates apply only to long-term capital gains, which are gains on assets held for more than one year. Short-term capital gains are taxed at ordinary income tax rates.
What the lower rates actually apply to
The 0%, 15%, and 20% capital gain rates do not apply automatically to every gain. They apply only to your "net capital gain," which the IRS defines as the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. In other words, you must first net all of your long-term capital gains and losses for the year, then subtract any net short-term capital loss, and only the positive remainder qualifies for the preferential rates. For 2021, the maximum capital gain rates are 0%, 15%, 20%, 25%, and 28%. The 0%, 15%, and 20% brackets for regular investment (stocks, bonds, mutual funds) have income thresholds that depend on filing status. For single filers, the 0% bracket ends at $40,400 of taxable income and the 15% bracket ends at $445,850. For married filing jointly, the 0% bracket ends at $80,800 and the 15% bracket ends at $501,600. For heads of household, the 0% bracket ends at $54,100 and the 15% bracket ends at $473,750. Above those thresholds, the remaining net capital gain is taxed at 20%. If the regular tax computation produces a lower tax than the capital gain computation, the regular computation applies instead.
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 2021, the maximum capital gain rates are 0%, 15%, 20%, 25%, and 28%.
Publication 550 (2021), Investment Income and Expenses (IRS)
How long you must hold to get the long-term rate
To qualify for the preferential capital gain rates, you must hold the investment property for more than 1 year. Your holding period determines whether any capital gain or loss is short-term or long-term. If you hold the property 1 year or less, any capital gain or loss is treated as short-term and is taxed at ordinary income rates rather than at the reduced rates that apply to long-term gains. You begin counting your holding period on the day after you acquired the property, and the day you disposed of the property counts as part of your holding period. For securities traded on an established market, the holding period begins the day after the trade date you bought the securities and ends on the trade date you sold them. For example, if you bought investment property on January 31, 2020, and sold it on January 29, 2021, your holding period is not more than 1 year and you have a short-term capital gain or loss. If you sold it on February 6, 2021, your holding period is more than 1 year and you have a long-term capital gain or loss eligible for the reduced rates.
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.
Publication 550 (2021), Investment Income and Expenses (IRS)
How much of a loss you can deduct in one year
When your capital losses exceed your capital gains for the year, you can deduct the net loss against other income, but only up to a limit. The allowable capital loss deduction is the lesser of $3,000 ($1,500 if married filing separately) or your total net loss shown on line 16 of Schedule D. You can use the total net loss to reduce your ordinary income dollar for dollar, but only up to the $3,000 limit in a single year. If your total net loss exceeds this limit, the unused portion becomes a capital loss carryover that you treat as if you incurred it in the next tax year. You can continue carrying over the loss to later years until it is completely used up. When you carry over a loss, it retains its original character as long-term or short-term. A carried-over long-term capital loss reduces the next year's long-term capital gains before it reduces short-term gains. The carryover amount is figured by taking the total net loss that exceeds the lesser of the allowable deduction or your taxable income increased by that deduction.
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).
Publication 550 (2021), Investment Income and Expenses (IRS)
The loss you cannot deduct if you buy back in
A wash sale occurs when you sell stock or securities at a loss and buy substantially identical stock or securities within 30 days before or after the sale. The rule also applies if you acquire the identical securities in a fully taxable trade, acquire a contract or option to buy them, or acquire them for your IRA or Roth IRA. If your spouse or a corporation you control buys substantially identical stock, that also triggers a wash sale. When the wash sale rule applies, you cannot deduct the loss in the current year. Instead, you add the disallowed loss to the cost basis of the replacement stock or securities, which postpones the loss deduction until you eventually sell the new position. Your holding period for the replacement shares includes the holding period of the shares you sold. The only exception is for losses incurred by dealers in the ordinary course of business. The 30-day window applies both before and after the sale, so buying substantially identical stock even a few weeks before you sell at a loss will trigger the rule.
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 (2021), Investment Income and Expenses (IRS)
The extra tax on top of the capital gain rate
The NIIT is not one of the capital gain rates and it does not replace them. It is a separate 3.8% charge that can sit on top of whichever rate applies, so a long-term gain taxed at 15% can carry 3.8% more, and one taxed at 20% likewise. What it is charged on is the smaller of two amounts, not on the gain itself: your net investment income, or the part of your modified adjusted gross income that is over a threshold set by your filing status. That structure is why a single large sale can trigger it for one year and not the next, and why a taxpayer whose MAGI stays under the threshold pays none of it however much of their income is investment income. Work out the two amounts before assuming the rate on this page is the whole of what a sale costs.
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 (2021), Investment Income and Expenses (IRS)
Certain hedges force you to recognize the gain before you actually sell
A taxpayer who enters into certain hedging transactions involving an appreciated financial position in stock, a partnership interest, or certain debt instruments may be treated as having made a constructive sale. When this occurs, the taxpayer must recognize gain as if the position were disposed of at its fair market value on the date of the constructive sale. This gives the position a new holding period that begins on the date of the constructive sale. Later, when the taxpayer closes the transaction, the gain or loss is adjusted by the amount previously recognized on the constructive sale. A constructive sale is triggered when the taxpayer enters into a short sale of the same or substantially identical property, enters into an offsetting notional principal contract relating to the same or substantially identical property, enters into a futures or forward contract to deliver the same or substantially identical property, or acquires the same or substantially identical property. The rule also applies when a related person enters into such a transaction with a view toward avoiding constructive sale treatment. An exception exists for contracts to sell nonmarketable securities that settle within a specified period.
Constructive sale. You are treated as having made a constructive sale of an appreciated fi- nancial position if you: • Enter into a short sale of the same or sub- stantially identical property, • Enter into an offsetting notional principal contract relating to the same or substan- tially identical property, • Enter into a futures or forward contract to deliver the same or substantially identical property (including a forward contract that provides for cash settleme
Publication 550 (2021), Investment Income and Expenses (IRS)
There is no flat-rate line - a worksheet blends the rates against your income
When computing tax on net capital gains, taxpayers use a special worksheet called the Tax computation using maximum capital gain rates rather than a flat-rate line. This worksheet blends the applicable capital gains rates against the taxpayer's income to determine the correct tax amount. The maximum capital gain rates for 2021 are 0%, 15%, 20%, 25%, and 28%. The worksheet applies these rates in layers based on the taxpayer's taxable income and filing status. For example, the 0% rate applies to net capital gains up to certain thresholds: $80,800 for joint filers, $40,400 for single filers and married filing separately, $54,100 for heads of household, and $2,700 for estates and trusts. The 15% rate applies above those thresholds up to higher limits: $501,600 for joint filers, $445,850 for single filers, $473,750 for heads of household, $250,800 for married filing separately, and $13,250 for estates and trusts. Any net capital gain above the 15% threshold is taxed at 20%. If the regular tax computation produces a lower tax than the maximum capital gain rate computation, the regular tax computation applies instead.
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 2021, the maximum capital gain rates are 0%, 15%, 20%, 25%, and 28%. See Ta- ble 4-4 for details. If you figure your tax using the maxi- mum capital gain rate and the regular tax computation results in a lower tax, the regular tax computation applies.
Publication 550 (2021), 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. 2020-45 (IRS)
- Top of the 0% bracket, joint filers
the Maximum Zero Rate Amount under § 1(h)(1)(B)(i) is $80,800 in the case of a joint return or surviving spouse ($40,400 in the case of a married individual filing a separate return), $54,100 in the case of an individual who is a head of household (§ 2(b)), $40,400 in the case of any other individual (other than an estate or trust), and $2,700 in the case of an estate or trust.
- Top of the 0% bracket, married filing separately
the Maximum Zero Rate Amount under § 1(h)(1)(B)(i) is $80,800 in the case of a joint return or surviving spouse ($40,400 in the case of a married individual filing a separate return), $54,100 in the case of an individual who is a head of household (§ 2(b)), $40,400 in the case of any other individual (other than an estate or trust), and $2,700 in the case of an estate or trust.
- Top of the 0% bracket, heads of household
the Maximum Zero Rate Amount under § 1(h)(1)(B)(i) is $80,800 in the case of a joint return or surviving spouse ($40,400 in the case of a married individual filing a separate return), $54,100 in the case of an individual who is a head of household (§ 2(b)), $40,400 in the case of any other individual (other than an estate or trust), and $2,700 in the case of an estate or trust.
- Top of the 0% bracket, single filers
the Maximum Zero Rate Amount under § 1(h)(1)(B)(i) is $80,800 in the case of a joint return or surviving spouse ($40,400 in the case of a married individual filing a separate return), $54,100 in the case of an individual who is a head of household (§ 2(b)), $40,400 in the case of any other individual (other than an estate or trust), and $2,700 in the case of an estate or trust.
- Top of the 0% bracket, estates and trusts
the Maximum Zero Rate Amount under § 1(h)(1)(B)(i) is $80,800 in the case of a joint return or surviving spouse ($40,400 in the case of a married individual filing a separate return), $54,100 in the case of an individual who is a head of household (§ 2(b)), $40,400 in the case of any other individual (other than an estate or trust), and $2,700 in the case of an estate or trust.
- Top of the 15% bracket, joint filers
The Maximum 15-percent Rate Amount under § 1(h)(1)(C)(ii)(l) is $501,600 in the case of a joint return or surviving spouse ($250,800 in the case of a married individual filing a separate return), $473,750 in the case of an individual who is the head of a household (§ 2(b)), $445,850 in the case of any other individual (other than an estate or trust), and $13,250 in the case of an estate or trust.
- Top of the 15% bracket, married filing separately
The Maximum 15-percent Rate Amount under § 1(h)(1)(C)(ii)(l) is $501,600 in the case of a joint return or surviving spouse ($250,800 in the case of a married individual filing a separate return), $473,750 in the case of an individual who is the head of a household (§ 2(b)), $445,850 in the case of any other individual (other than an estate or trust), and $13,250 in the case of an estate or trust.
- Top of the 15% bracket, heads of household
The Maximum 15-percent Rate Amount under § 1(h)(1)(C)(ii)(l) is $501,600 in the case of a joint return or surviving spouse ($250,800 in the case of a married individual filing a separate return), $473,750 in the case of an individual who is the head of a household (§ 2(b)), $445,850 in the case of any other individual (other than an estate or trust), and $13,250 in the case of an estate or trust.
- Top of the 15% bracket, single filers
The Maximum 15-percent Rate Amount under § 1(h)(1)(C)(ii)(l) is $501,600 in the case of a joint return or surviving spouse ($250,800 in the case of a married individual filing a separate return), $473,750 in the case of an individual who is the head of a household (§ 2(b)), $445,850 in the case of any other individual (other than an estate or trust), and $13,250 in the case of an estate or trust.
- Top of the 15% bracket, estates and trusts
The Maximum 15-percent Rate Amount under § 1(h)(1)(C)(ii)(l) is $501,600 in the case of a joint return or surviving spouse ($250,800 in the case of a married individual filing a separate return), $473,750 in the case of an individual who is the head of a household (§ 2(b)), $445,850 in the case of any other individual (other than an estate or trust), and $13,250 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
Publication 550 (2021), 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... $501,601 or more if married filing jointly or surviving spouse; $473,751 or more if head of household; $250,801 or more if married filing separately; $445,851 or more if single; or $13,251 or more if estate or trust… 20%