Long-term capital gains — profit from an asset you held for more than a year before selling — get taxed at just three rates: 0%, 15%, or 20%, based entirely on your taxable income for the year. For 2026, the income thresholds that decide which rate applies moved up slightly with inflation. * The 0% rate is the one worth knowing best, because it means paying nothing on investment gains: it applies to single filers with taxable income up to $49,450, and married couples filing jointly with income up to $98,900. A lot of retirees and lower-income investors qualify for this rate without realizing it. * Above those thresholds, the 15% rate kicks in and covers the large majority of middle- and upper-middle-income taxpayers. The top 20% rate only applies once income climbs well into six figures — for married couples filing jointly, that threshold rose from $600,050 in 2025 to $613,700 in 2026, an increase of more than $13,600. * One distinction that trips people up: this whole rate structure only applies to long-term gains. Sell an asset you've owned for a year or less, and the profit is taxed as ordinary income instead, at your regular tax bracket rate — which for high earners can mean paying nearly double what they'd owe on the same gain held just a few months longer.