How much you can make in 2026 and still pay 0% capital gains

The IRS has released the 2026 capital gains tax brackets, featuring increased income thresholds for the 0% long-term capital gains rate, which financial experts highlight as a significant tax planning opportunity. For 2026, single filers can have taxable income up to $49,450 and married couples up to $98,900 to qualify for the 0% rate, an increase from 2025 levels. This adjustment, alongside higher standard deductions, enables investors to potentially harvest gains, rebalance, or diversify portfolios tax-free, especially following strong market performance.

Analysis

The IRS has released the 2026 capital gains tax brackets, featuring increased income thresholds for the 0% long-term capital gains rate. For single filers, the limit rises to $49,450 in taxable income, and for married couples filing jointly, it increases to $98,900, up from $48,350 and $96,700 respectively in 2025. This adjustment, coupled with higher standard deductions ($16,100 for singles, $32,200 for married couples), creates a more generous environment for investors.

This development presents a significant tax planning opportunity, particularly following robust market performance, with the S&P 500 up nearly 14% year-to-date and over 23% in 2024. Financial experts highlight that these higher limits enable investors to harvest gains or rebalance diversified taxable portfolios without incurring immediate tax liabilities. The 0% bracket applies to profitable assets held for over one year, distinguishing it from short-term gains subject to ordinary income tax rates.

The expanded 0% bracket allows investors to strategically manage their portfolios, potentially reducing overall tax burdens on realized gains. However, investors must project how selling profitable assets will increase their taxable income, as exceeding the threshold would subject gains to higher rates. This necessitates careful planning to fully leverage the increased limits.

Key Decisions for Investors

• Investors should review their taxable brokerage accounts for long-term gains that can be realized within the new 0% capital gains thresholds for 2026.
• Utilize the expanded 0% bracket to strategically rebalance or diversify portfolios, especially after strong market performance, without triggering immediate tax consequences.
• It is crucial to work with a financial advisor to project taxable income and the impact of asset sales to ensure gains remain within the 0% bracket limits.