Capital Gains Tax Brackets 2025: Are You in the 0%, 15%, or 20% Range?
If you’re thinking of selling stocks, investment property, or other assets this year, you’re probably wondering how much of that gain you’ll actually get to keep. It’s one of the most common questions we get, especially as tax laws shift: "How much will I owe on this sale?" The answer depends heavily on your income level, and understanding the capital gains tax brackets 2025 could make a major difference in how much you owe (or don’t owe).
Here’s what you need to know about how capital gains work, what’s changing in 2025, and how to position yourself to keep more of your money in your own pocket.
Not All Capital Gains Are Created Equal
Let’s start with the basics. A capital gain is what you earn when you sell an investment for more than you paid for it. But not all gains are taxed the same way.
Short-term capital gains apply to investments you’ve held for one year or less. These are taxed just like your regular income, at your ordinary income tax rate. That can be as high as 37%, depending on your income.
Long-term capital gains, on the other hand, apply to investments held for more than a year. These are the ones eligible for lower, preferential tax rates: 0%, 15%, or 20% depending on your income and filing status.
Why it matters: The difference between selling something in 11 months vs. 13 months can literally mean thousands of dollars in taxes. That’s why holding on to an asset just a bit longer is often worth it.
Your Tax Bracket Sets the Stage
Capital gains don’t exist in a vacuum. The rate you pay on long-term capital gains depends on your taxable income (after deductions) and your filing status (single, married filing jointly, etc.).
In general:
Lower-income earners may qualify for the 0% capital gains tax rate.
Middle-income households usually fall into the 15% bracket.
Higher-income earners will likely owe the 20% rate, and possibly face an additional 3.8% Net Investment Income Tax on top of that.
So, how do you know where you fall in the capital gains tax brackets for 2025? Let’s break it down.
The 2025 Long-Term Capital Gains Brackets
For 2025, the IRS has adjusted income thresholds that determine which rate applies to your long-term capital gains. While final figures can shift slightly due to inflation indexing, here’s a general outline based on current proposals:
0% Rate (You’ll pay no federal tax on long-term gains if your income is below these levels):
Single: Up to $47,025
Married Filing Jointly: Up to $94,050
15% Rate (Most taxpayers fall here):
Single: $47,026 to $518,900
Married Filing Jointly: $94,051 to $583,750
20% Rate (Applies to gains above the top thresholds):
Single: Over $518,900
Married Filing Jointly: Over $583,750
Note: These are estimates based on inflation-adjusted figures. For precise planning, always consult your tax pro (that’s us!).
The opportunity here? With some thoughtful planning, you may be able to time asset sales to fall in a lower bracket. That could mean the difference between paying nothing on your gain… or paying tens of thousands.
Why Understanding This Can Save You Big
Smart tax planning isn’t just about what you earn—it’s about when you take the income. Here are a few ways understanding capital gains brackets can work to your advantage:
Timing sales strategically: Selling before or after year-end can determine which bracket you fall into. Sometimes waiting just a few months means falling into a lower rate.
Tax-loss harvesting: If you’re sitting on investments that lost value, selling them can offset gains and reduce your taxable income.
Gifting to family: Giving appreciated assets to family members in lower tax brackets may reduce overall tax exposure (with some caveats).
Charitable giving: Donating appreciated stock can allow you to avoid capital gains entirely while still getting a deduction.
Watch for phase-ins: Capital gains can push you into a higher bracket if you’re close to the threshold. It’s all about knowing where you stand in the bigger picture.
Bottom line? Being proactive gives you control over your tax outcome. And when tax law is changing—as it is in 2025—that control becomes even more important.
Capital Gains Tax Planning That Works
Navigating the capital gains tax brackets in 2025 might sound technical, but it’s really about empowering you to make smarter financial moves. Whether you're thinking of selling a rental property, rebalancing your portfolio, or cashing out on a high-performing stock, this is the kind of tax strategy that can save you thousands.
At AccountAbility, we believe taxes shouldn’t feel like a guessing game. If you’re unsure where your income puts you—or how to time your sales to minimize taxes—we’re here to walk through it with you.
Let’s simplify your options, look at your income and goals, and help you feel confident heading into the next phase of your financial plan.
