Capital Gains Bracket Calculator (0/15/20)
See how a long-term capital gain is split across the 0%, 15% and 20% brackets once it stacks on top of your ordinary income.
How it works
Gains stack above ordinary income · 0% up to the bracket top, 15% to the next top, 20% beyond · Tax = 15% layer × 0.15 + 20% layer × 0.20
Long-term capital gains (assets held over a year) are taxed at 0%, 15%, or 20% depending on your total taxable income. The gain sits on top of your ordinary income, so the ordinary income effectively fills up the lower brackets first. A modest income can leave room in the 0% band, letting part of a gain escape tax entirely, while large gains spill into the 15% and 20% layers.
Worked example
A single filer with $60,000 of ordinary income and a $20,000 gain: the 0% bracket tops out at $47,025, already used up by ordinary income, so the whole $20,000 falls in the 15% band ($60,000–$80,000) for $3,000 of tax — a 15% effective rate.
Frequently asked questions
What are the long-term capital gains rates?
Zero percent, 15%, or 20% based on your total taxable income and filing status. These apply to assets held more than one year; short-term gains are taxed as ordinary income instead.
How can part of my gain be taxed at 0%?
If your ordinary income leaves room below the 0% bracket ceiling, the portion of your gain that fits in that space is taxed at 0%. Only the amount above it moves into the 15% and 20% brackets.
Does the gain push my ordinary income into higher brackets?
No. Long-term gains are stacked on top and taxed at their own preferential rates; they can raise the rate on the gain itself but do not change the bracket of your wages or other ordinary income.
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Educational estimate, not tax advice. Uses recent federal parameters that change yearly and ignores your full situation — confirm with a tax professional or the IRS.