- The IRS on Tuesday unveiled 2025 inflation adjustments for the long-term capital gains tax brackets, which apply to investments owned for more than one year.
- For 2025, single filers can earn up to $48,350 in taxable income — $96,700 for married couples filing jointly — and still pay 0% for long-term capital gains.
- You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income.
The IRS has unveiled higher capital gains tax brackets for 2025.
In its announcement Tuesday, the agency boosted the taxable income limits for the long-term capital gains brackets, which apply to assets owned for more than one year.
The IRS also increased figures for dozens of other provisions, including federal income tax brackets, the estate and gift tax exemption and eligibility for the child tax credit, among others.
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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 2025, the standard deduction will rise to $15,000 for single filers and $30,000 for married couples filing jointly.
Starting in 2025, single filers will qualify for the 0% long-term capital gains rate with taxable income of $48,350 or less and married couples filing jointly are eligible with $96,700 or less.
