Deorbit Plan

0% capital gains calculator (2026): how much gain is tax-free

How much long-term gain fits in the 0% bracket, and the tax on the gain you are planning

By the Deorbit Plan editorial team, a Berrydyne program · Last reviewed · Topic: Taxes in retirement

What it computes

Long-term capital gains and qualified dividends are taxed at 0%, 15% or 20%, and they stack on top of your ordinary taxable income[3]. For 2026 the 0% rate covers taxable income up to $98,900 for a joint return ($49,450 single)[2], so the room left for tax-free gains is that line minus your taxable ordinary income. This calculator finds that room to the dollar with the simulator’s own tax function, including the age-65 deductions and the temporary senior deduction, which phases out as income (gains included) rises[7].

0% capital-gains headroom

You can realize up to $86,400 of long-term gains this year without paying federal tax on them. A $50,000 gain would cost $0 in federal tax (0% of the gain).

  • Deductions: $47,500 (standard, plus any age-65 and senior deductions at this income). Taxable ordinary income: $12,500.
  • 0% band: taxable income up to $98,900. Gains stack on top of ordinary income, so $86,400 of gains fit before the 15% rate starts.
  • Tax on a $50,000 gain: $0: capital-gains tax $0, extra ordinary tax $0, net investment income tax $0. $50,000 of it is untaxed.

Federal only. The senior deduction applies for tax years 2025–2028 to people 65 or older, and not to married people filing separately.

Worked example

A married couple, both 67, has $60,000 of pension and IRA income. Their deductions total $47,500, leaving $12,500 of taxable ordinary income, so $86,400 of long-term gains fit in the 0% band. A $50,000 gain costs them $0 in federal tax.

A $120,000 gain is different: it costs $5,940 (5% of the gain). $5,580 is 15% tax on the part above the 0% band, and $360 is extra tax on ordinary income, because the larger gain raises their income past the point where the senior deduction starts to shrink.

What it ignores

  • State income tax. Many states tax capital gains as ordinary income.
  • How a gain makes more Social Security taxable or raises MAGI for IRMAA and ACA credits; the marginal-rate map shows those together.
  • Short-term gains (taxed as ordinary income), collectibles and unrecaptured depreciation.
  • Capital-loss carryovers and the wash-sale rule for losses (gains can be rebought at once).
  • Itemized deductions; the standard deduction is assumed.

The rule behind it

The full explanation, with sources, is in The 0% capital-gains bracket is real: LTCG stacking explained.

See it over a full plan

Harvesting gains at 0% is a year-by-year decision. The simulator realizes gains whenever it draws on a taxable account and shows when they are taxed, alongside withdrawals, conversions and the senior deduction. Open it in the simulator →

If you already have a saved plan, the link only takes you to the right panel; your plan is not changed.

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This tool shows how the rules work. It is not financial, tax or investment advice. See the disclaimer.

Sources