In its announcement Thursday, the agency boosted the taxable income limits for the long-term capital gains brackets, which apply to assets owned for more than one year.
It also increased figures for dozens of other provisions, including federal income tax brackets, the estate and gift tax exemption, and eligibility for the earned income tax credit, among others.
The new capital gains brackets could impact investors’ 2027 plans for sales or rebalancing, which can trigger taxes for brokerage account investments.
The table shows capital gains tax rates for 2027 according to income bracket filing status and taxable income.
| Single Filing | |
| $0 to $51,050 | 0% |
| $51,051 to $563,200 | 15% |
| $563,201+ | 20% |
| Married Filing Jointly | |
| $0 to $102,100 | 0% |
| $102,101 to $633,600 | 15% |
| $633,601+ | 20% |
How the capital gains brackets work
The capital gains rate you pay is based on which bracket you fall into based on taxable income. You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income. For 2027, the standard deduction will rise to $16,600 for single filers, up from $16,100, and $33,200 for married couples filing jointly, up from $32,200.
For more information see Kate Dore “IRS unveils higher capital gains tax brackets for 2027” CNBC, November 5, 2026.
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