Here are the 2027 capital-gains tax rates for each income level

The IRS has released the capital-gains tax thresholds that will apply in 2027, giving investors an early look at how gains on taxable accounts will be treated next year. Long-term capital gains — profits on assets held more than a year — are taxed at graduated rates, and the income bands at which each rate kicks in are adjusted periodically, typically for inflation.

For investors, the key takeaway is that the rate applied to a gain depends on total taxable income, not the size of the gain alone. A gain that pushes income across a threshold can be taxed at more than one rate, with only the portion above each cutoff facing the higher rate. Short-term gains, by contrast, are generally taxed as ordinary income.

What to watch: how the updated brackets compare with prior years, and whether portfolio decisions such as realizing gains or harvesting losses might be timed around income levels. Because rules vary by filing status and individual circumstances, investors may want to consult a tax professional before acting.