For the 2025 tax year, long-term capital gains are taxed at 0%, 15%, or 20%, depending on your total taxable income and filing status.
Short-term capital gains are taxed at ordinary income tax rates, which range from 10% to 37%.
These brackets apply to Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying surviving spouse filers.
2025 Long-Term Capital Gains Tax Brackets
These rates apply to assets held for more than one year. The capital gains tax brackets for 2025 are as follows:
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- 0%: For individuals with taxable income up to $44,625 (or $89,250 for married couples filing jointly).
- 15%: For individuals with taxable income between $44,626 and $492,300 (or $89,251 to $553,850 for married couples filing jointly).
- 20%: For individuals with taxable income over $492,300 (or over $553,850 for married couples filing jointly).
The income thresholds are adjusted annually for inflation and were released by the IRS.
A 3.8% Net Investment Income Tax (NIIT) may also apply to higher-income taxpayers above certain Modified Adjusted Gross Income (MAGI) thresholds (e.g., $250,000 for married couples filing jointly).
Short-Term Capital Gains Tax Rates
Short-term gains (assets held for one year or less) are taxed as ordinary income at the same federal income tax brackets used for wages. The 2025 ordinary income tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
Special Cases
- Collectibles (such as art, antiques, or coins) have a maximum capital gains tax rate of 28%.
- Unrecaptured Section 1250 gain from the sale of real property is taxed at a maximum rate of 25%.
Why Electronic Filing Is Recommended
Capital gains reporting often requires multiple forms, such as Schedule D and Form 8949, along with accurate basis calculations. Electronic filing is recommended because it:
Automatically calculates capital gains tax rates
Applies the correct long-term or short-term treatment
Accounts for NIIT when applicable
Reduces math and reporting errors
Speeds up IRS processing and refunds
Helps track carryforward losses correctly
Most tax software imports brokerage statements directly, ensuring accuracy and saving time.
Understanding how capital gains are taxed in 2025 can help you make smarter investment and tax-planning decisions.
Filing electronically ensures your gains are reported correctly and that you receive the most favorable tax treatment allowed under the law.
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