Crypto Capital Gains Bracket Calculator 2026
Enter your income and your long-term crypto gain to see which federal rate applies, how much you can sell tax-free this year, and your estimated federal tax before you transact.
2026 federal long-term capital gains brackets
| LTCG rate | Single — taxable income up to | Married filing jointly — taxable income up to |
|---|---|---|
| 0% | $49,450 | $98,900 |
| 15% | $545,500 | $613,700 |
| 20% | Above $545,500 | Above $613,700 |
Source: IRS Rev. Proc. 2025-32. Taxable income = gross income minus standard deduction (Single: $16,100 / MFJ: $32,200 in 2026) or itemized deductions. Long-term gains stack on top of taxable ordinary income. A separate 3.8% Net Investment Income Tax (NIIT) applies when MAGI exceeds $200,000 (Single) or $250,000 (MFJ).
Why the bracket math matters for crypto
Most crypto investors think of their tax rate as a single number. It isn't. Your long-term crypto gains occupy a specific zone of the rate ladder determined by where your ordinary income leaves off. That zone can straddle two brackets — or even three if you're near the 0%/15% or 15%/20% boundary.
The practical consequence: selling the same $500,000 of Bitcoin can cost between $0 and $119,000 in federal capital gains tax depending on your income and filing status. That gap is the planning opportunity. An advisor who understands the rate ladder helps you structure the sale across tax years, offset gains with harvested losses, and coordinate the timing with charitable giving or gifting strategies.
The 0% harvest window
If your taxable ordinary income is below $49,450 (Single) or $98,900 (MFJ) in 2026, you have unused space in the 0% long-term capital gains bracket. Selling long-term crypto into that space triggers zero federal capital gains tax on those gains — legally and permanently.
Common situations where this matters:
- A year when ordinary income is lower than usual (sabbatical, early retirement, business loss)
- A married couple where one spouse takes leave
- A year with large itemized deductions (bunched charitable giving, mortgage interest, large medical expenses)
- After tax-loss harvesting has offset enough gains to push taxable income below the threshold
The window resets every January 1. Unused 0% bracket space from 2025 cannot be carried forward.
NIIT: the hidden 3.8%
Long-term crypto gains are also subject to the Net Investment Income Tax when your Modified Adjusted Gross Income (MAGI) exceeds $200,000 (Single) or $250,000 (MFJ). Unlike the LTCG brackets, the NIIT threshold is not indexed for inflation — so it catches more taxpayers each year as incomes rise.
The NIIT is calculated as 3.8% on the lesser of your net investment income or your MAGI above the threshold. This means even gains that fall in the 0% LTCG bracket can be subject to NIIT if your total MAGI crosses the threshold. The maximum combined long-term rate is 23.8% (20% + 3.8% NIIT) for high-income investors — and 26.8% before state taxes in high-tax states.
Short-term gains: a different calculation
Short-term crypto gains (positions held 12 months or less) are taxed as ordinary income at rates from 10% to 37%. They do not benefit from the 0%, 15%, or 20% long-term rate schedule. They also sit below long-term gains in the rate stack — short-term gains increase your taxable ordinary income, which can push more of your long-term gains into higher brackets.
For a position approaching the 12-month mark, the rate difference between short-term and long-term treatment can be 15–20 percentage points. On a $500,000 gain, that is $75,000–$100,000 in additional federal tax. Most of the time, waiting is worth it — but the right answer depends on the volatility risk of holding versus the tax cost of selling early.
When a financial advisor changes the math
A fee-only advisor who understands crypto doesn't just file your return. They model the bracket math before you transact:
- Multi-year sale plans: Spreading a large gain over two or three tax years to keep each year's income below the 20% threshold saves the difference between 15% and 20% on each year's tranche.
- Loss harvesting before the sale: Identifying unrealized losses in other tax lots reduces net gain before the higher-bracket gains trigger. For crypto, there is no wash sale rule (IRC §1091 does not apply) — you can rebuy immediately.
- DAF contributions: Donating appreciated crypto to a Donor-Advised Fund before selling eliminates capital gains entirely on the donated portion, provides a fair-market-value deduction, and shifts the gift to future charitable grants at your direction.
- Bracket management across filing status: If marriage changes your filing from Single to MFJ, the 0% bracket nearly doubles — a timing consideration for large positions.
- Charitable remainder trusts: For very large gains ($1M+), a CRT can spread recognition over decades and convert capital gains into income stream without the immediate tax hit.
Get matched with a specialist financial advisor
Tell us where you are in the process. We will match you with a fee-only advisor who understands this planning problem and can coordinate with your tax and legal professionals.
Sources
- IRS Rev. Proc. 2025-32 — 2026 inflation-adjusted amounts including LTCG thresholds and standard deductions
- IRS Newsroom: 2026 Tax Inflation Adjustments (OBBBA) — updated figures including OBBBA amendments
- IRS Form 8960 Instructions — Net Investment Income Tax calculation and thresholds
- Tax Foundation: 2026 Tax Brackets and Federal Income Tax Rates — independent verification of IRS bracket data
- IRS Notice 2014-21 — foundational guidance that virtual currency is property for federal tax purposes
Capital gains brackets verified against 2026 IRS guidance (Rev. Proc. 2025-32). NIIT threshold of $200,000/$250,000 is statutory (IRC §1411) and not indexed for inflation. Values current as of June 2026.