2024 Capital Gains Tax Rates

Long-term capital gains thresholds by filing status

Written by Jere Salmisto · Reviewed by CalcFi Editorial·Last verified: 2026-05-13

Filing Status	0% Rate	15% Rate	20% Rate
Single	$0 — $47,025	$47,026 — $518,900	$518,901+
Married Filing Jointly	$0 — $94,050	$94,051 — $583,750	$583,751+
Married Filing Separately	$0 — $47,025	$47,026 — $291,875	$291,876+
Head of Household	$0 — $62,900	$62,901 — $551,350	$551,351+

✓ Long-Term Gains

Held more than 1 year. Taxed at preferred 0%, 15%, or 20% rates.

✗ Short-Term Gains

Held 1 year or less. Taxed as ordinary income (10% to 37%).

Plus: Net Investment Income Tax (NIIT)

If your modified adjusted gross income exceeds $200,000 (single) or $250,000 (MFJ), add 3.8% to all capital gains. This brings the top rate to 23.8% federally.

State and local taxes apply on top of federal rates.

Understanding Capital Gains Tax

Capital gains are profits from selling stocks, real estate, or other investments. The tax depends on how long you held the asset:

Long-Term vs. Short-Term Capital Gains

Long-term gains: Assets held more than 1 year—taxed at preferential 0%, 15%, or 20% rates shown in the table
Short-term gains: Assets held 1 year or less—taxed as ordinary income at rates from your tax bracket (10% to 37%)

Strategic Tax Planning with the 0% Bracket

One of the most powerful tax strategies is harvesting gains at the 0% rate. If your taxable income is low, you may be able to realize long-term capital gains with zero federal tax. Common scenarios:

Taking a sabbatical or gap year (low income year)
Retiring before Social Security and required minimum distributions begin
Selling appreciated stock in years with large business losses (offsetting ordinary income)
Charitable giving years where charitable deductions exceed income

Net Investment Income Tax (NIIT)

Don't forget the additional 3.8% Net Investment Income Tax (NIIT) that applies when modified adjusted gross income exceeds:

$200,000 (single)
$250,000 (married filing jointly)
$125,000 (married filing separately)

This effectively means the highest capital gains rate is 20% + 3.8% = 23.8% (before state taxes).

Tax Loss Harvesting

When investments decline, sell losing positions to realize capital losses. Use these losses to offset capital gains (and up to $3,000 of ordinary income annually). This powerful strategy reduces your overall tax liability while adjusting your portfolio as needed.

State and Local Taxes

Remember that capital gains are also subject to state income taxes. Some states like Florida, Texas, and South Dakota have no income tax, while California and New York have significant rates. Consider tax implications when planning investment location strategy.

Frequently asked questions

What are the 2024 long-term capital gains tax rates?: Per IRS Topic 409, long-term capital gains in 2024 are taxed at 0%, 15%, or 20% depending on taxable income and filing status. The 0% single bracket extends to $47,025, the 15% bracket starts at $47,026, and the 20% bracket begins at $518,901.
What is the difference between short-term and long-term capital gains?: Long-term gains apply to assets held more than one year and are taxed at the preferential 0/15/20% rates. Short-term gains apply to assets held one year or less and are taxed as ordinary income at marginal rates from 10% to 37%.
Who qualifies for the 0% capital gains rate in 2024?: Single filers with taxable income up to $47,025 and joint filers up to $94,050 qualify for the 0% long-term capital gains rate in 2024. Income includes the capital gain itself when measuring against the threshold.
What is the Net Investment Income Tax (NIIT)?: The NIIT is a 3.8% surcharge on investment income for taxpayers with modified adjusted gross income above $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately). It applies on top of the 0/15/20% capital gains rates, making the top effective federal rate 23.8%.
Are capital gains taxed by states too?: Yes. States with income tax typically tax capital gains as ordinary income (no preferential rate). Florida, Texas, Tennessee, Nevada, South Dakota, Wyoming, Alaska, New Hampshire (interest/dividends only), and Washington (no general income tax but a 7% long-term capital gains tax above thresholds) have varying rules.
Can capital losses offset capital gains?: Yes. Realized capital losses first offset capital gains of the same character (short-term vs long-term), then offset gains of the opposite character. Net capital losses up to $3,000 per year ($1,500 if married filing separately) can offset ordinary income, with the remainder carried forward indefinitely.
Does the 2024 0% bracket apply to all investment types?: The 0/15/20% rate schedule applies to most stock, mutual fund, ETF, and real estate gains held longer than one year. Collectibles (art, coins) are taxed at a maximum 28%, and certain unrecaptured Section 1250 real estate gains are taxed at a maximum 25%.
How are qualified dividends taxed in 2024?: Qualified dividends use the same 0/15/20% rate schedule as long-term capital gains in 2024. Non-qualified (ordinary) dividends are taxed at ordinary income rates.
What is tax-loss harvesting?: Tax-loss harvesting is the practice of intentionally realizing capital losses to offset gains. The IRS wash-sale rule disallows the loss if a substantially identical security is repurchased within 30 days before or after the sale.
Is this capital gains data official IRS data?: Yes. Brackets on this page mirror the IRS Revenue Procedure inflation adjustments published each fall. CalcFi reports only the official figures once announced by the IRS — no projections.

Related Resources

Tax Brackets 2024

Ordinary income tax rates for comparison

Standard Deduction 2024

Reduce your taxable income to stay in lower brackets

Contribution Limits 2024

Tax-advantaged savings to offset gains

401(k) Calculator

Retirement savings strategy