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Capital Gains Tax Over 65: How Much Is Taxed at 0%

There's no special capital gains rate for people over 65, but many retirees pay 0% on long-term gains because their taxable income is low: in 2026 the 0% rate applies up to $98,900 of taxable income for joint filers and $49,450 for single filers. Enter your income to see how much of a gain would be tax-free.

2026 capital gains brackets Verified October 23, 2026

Your details

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Both spouses on a joint return; box 5 of the SSA-1099.

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More gains you could take at 0%

$49,702

Beyond the $25,000 you entered, with no extra federal tax — after accounting for Social Security that becomes taxable.

Gain taxed at 0%

$25,000

Gain taxed at 15%

$0

0% bracket ends at

$98,900

taxable income, 2026

There's no age break — but there is a trap

Turning 65 doesn’t change capital gains rates. What changes things for retirees is Social Security: extra gains can make more benefits taxable, which can turn a “0%” gain into a taxed one. The room shown already includes that effect.

Show the math

Long-term gains and qualified dividends stack on top of ordinary taxable income. The part below $98,900 of taxable income is taxed at 0%, then 15%, then 20%. We find the largest extra gain that leaves your 2026 federal tax unchanged by recalculating the full return. The 3.8% NIIT is included if your income is high enough.

Next stepSelling a lot? Check the 3.8% NIITIt applies above $200,000 single / $250,000 joint, never indexed.
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0% Capital Gains Bracket 2026: $98,900 Joint, $49,450 Single

Long-term gains and qualified dividends are taxed at 0%, 15% or 20%, depending on where they fall in your taxable income — income after deductions, with gains stacked on top of everything else. (IRS Rev. Proc. 2025-32)

2026 taxable income 0% up to 15% up to 20% above
Single $49,450 $545,500 $545,500
Married filing jointly $98,900 $613,700 $613,700
Head of household $66,200 $579,600 $579,600

Because deductions come off first, a married couple over 65 can have well over $98,900 of total income and still pay 0% on part of a gain.

Stock market chart on a screen
Photo: StockRadars Co., / Pexels

Capital Gains Tax Over 65 Calculator: Your Gain, Your Rate

The calculator stacks your gain on your other income and runs the whole 2026 return. Two retiree-specific effects matter. First, gains raise provisional income, so they can make more Social Security taxable and turn a "0%" gain into a taxed one. Second, above $250,000 of joint MAGI the 3.8% net investment income tax applies (IRS Topic 409).

The old one-time home-sale exclusion for people 55 and older ended in 1997; today's $250,000/$500,000 exclusion applies at any age.

Older couple outside their house with a for-sale sign
Photo: Thirdman / Pexels

Our take: harvest gains in your low-income years

The years between retiring and starting RMDs or Social Security are often the cheapest time to realize gains — sometimes at 0%. Sell enough to use the room each year rather than all at once. Check the 3.8% line on the NIIT calculator, the Medicare line on the IRMAA calculator, and the full return on the retirement tax calculator. Moving soon? Compare tax-friendly states for retirement.

Frequently asked questions

Do I pay capital gains tax when I sell my home?

Usually not on the first $250,000 of gain ($500,000 for married couples) if you owned and lived in it for two of the last five years. Only gain above that is taxed.

What happens to my unrealized gains when I die?

Heirs generally get a stepped-up basis to the value at your death, so gains built up during your life are never taxed. That makes holding appreciated assets attractive late in life.

Do states tax capital gains?

Most states with an income tax treat gains as ordinary income. A handful have no income tax, and Washington taxes some large long-term gains separately.

Are short-term gains taxed at 0% too?

No. Gains on assets held a year or less are taxed as ordinary income at your regular bracket.

Sources

Primary sources only. We re-check them whenever an agency publishes new figures.

  1. IRS
    IRS Rev. Proc. 2025-32 — 2026 inflation adjustments· published October 9, 2025
  2. IRS
    IRS Topic 409 — Capital gains and losses
  3. IRS
    IRS — Net Investment Income Tax

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Where people go next

NIIT CalculatorWhether you owe the 3.8% net investment income tax and how much, at the unindexed thresholds.Open Retirement Tax CalculatorYour 2026 federal tax on Social Security, pensions, IRA withdrawals and investments.Open IRMAA CalculatorWill your income trigger Medicare's IRMAA surcharge? See your tier, the yearly cost, and how far you are from the next cliff.Open