IRS Releases 2027 Capital-Gains Tax Rates by Income Level
The IRS has published 2027 capital-gains tax brackets, giving investors clarity on what they'll owe based on their income.
The Internal Revenue Service has released its capital-gains tax rates for 2027, providing investors and financial planners with the bracket thresholds they need to estimate tax liabilities on investment profits, according to a MarketWatch report.
Capital-gains taxes apply to profits from the sale of assets such as stocks, bonds, and real estate. The rate an individual pays depends on their taxable income and how long they held the asset — short-term gains on assets held under a year are taxed as ordinary income, while long-term gains on assets held longer benefit from lower preferential rates.
Read more Medicare Advantage vs. Traditional Medicare: Key Differences Explained →
The IRS typically adjusts income thresholds annually to account for inflation, meaning the bracket cutoffs for 2027 may differ from those in prior years. Taxpayers in lower income brackets may qualify for a 0% long-term capital-gains rate, while higher earners face rates of 15% or 20%, with an additional 3.8% net investment income tax potentially applying at the top tier.
Financial advisers generally recommend reviewing updated bracket information well before the tax year ends to allow time for strategic moves such as tax-loss harvesting or timing asset sales to stay within a more favorable rate threshold. The newly published figures give investors a roughly two-year planning window.
Continue reading at MarketWatch.com
