Xavier Lorenzo | moment | getty images
The IRS announced higher capital gains tax brackets for 2025.
In Tuesday’s announcement, the agency increased the taxable income limit for long-term capital gains coverage, which applies to assets owned for more than one year.
The IRS also increased the numbers for dozens of other provisions, including federal income tax brackets, estate and gift tax exemptions, child tax credit eligibility, and more.
More information about personal finance:
Your tax bracket may increase after 2025. This may affect your brokerage account.
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The capital gains rate you pay is determined by which bracket you fall into based on your taxable income.
Calculate your taxable income by subtracting the greater of your standard deduction or itemized deductions from your adjusted gross income. The standard deduction will increase to 2025. $15,000 for single filers and $30,000 for married couples filing jointly.
Starting in 2025, single filers will be eligible for a 0% long-term capital gains rate with taxable income of $48,350. Below and for married couples filing jointly, taxes below $96,700 apply.
