Tax-Loss Harvesting: Cut Your Capital Gains Tax
A $10,000 realized loss in a taxable brokerage account saves $3,700 in federal taxes for someone in the 37% bracket — and you can stay fully invested
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Federal Tax Guide 2026
Federal income tax brackets, standard deduction, capital gains rates, and filing strategies updated for 2026.
9 guides available
The 2026 Tax Landscape
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, is the biggest tax overhaul since the TCJA. It made the seven-bracket structure permanent and gave the bottom two brackets (10% and 12%) a 4% inflation adjustment — nearly double the 2.3% applied to higher brackets. That asymmetry is deliberate: Congress is pushing more income into lower-rate territory for earners under $50,400 (single) and $100,800 (married filing jointly).
Three OBBBA provisions stand out. First, a new $6,000 deduction for taxpayers 65 and older (phasing out above $75,000 single / $150,000 joint MAGI) — the first age-targeted deduction in decades. Second, the SALT cap jumped from $10,000 to $40,400, a meaningful change for homeowners in high-tax states like New York, New Jersey, and California. Third, new above-the-line deductions for tips, overtime pay, and auto loan interest went into effect.
Meanwhile, the Fed holds rates at 3.50–3.75% and tariff-driven inflation is running hotter than the 2.7% CPI used for bracket adjustments. That mismatch means real bracket creep: if your raise barely keeps pace with grocery and gas prices, you may still get pushed into a higher marginal rate. The strategies below — from maxing your HSA to tax-loss harvesting volatile positions — are designed to keep more of your income on the right side of that bracket line.
2026 Key Figures at a Glance
$16,100
Standard Deduction
Single Filers
$32,200
Standard Deduction
Married Filing Jointly
37%
Top Marginal Rate
Over $640,600 (single)
$2,200
Child Tax Credit
Per qualifying child
$4,400
HSA Limit
Individual Coverage
$8,750
HSA Limit
Family Coverage
April 15, 2027
Filing Deadline
2026 Returns
$40,400
SALT Cap
OBBBA (up from $10K)
$6,000
Senior Deduction
Age 65+ (OBBBA new)
Tax Topics
Federal Tax Brackets
2026 has seven tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Single filers: top rate above $640,600. Married filing jointly: top rate above $768,700. The US uses progressive taxation — you only pay higher rates on income above each threshold.
Capital Gains Tax
Long-term capital gains (held >1 year) are taxed at 0%, 15%, or 20%. Single filers pay 0% up to $49,450, 15% up to $545,500, and 20% above. Short-term gains are taxed as ordinary income. Tax-loss harvesting can offset gains.
Read our capital gains taxguide →Standard Deduction
The 2026 standard deduction is $16,100 (single), $32,200 (married filing jointly), or $24,150 (head of household). Itemize only if your deductions exceed these amounts.
Read our standard deductionguide →Tax-Loss Harvesting
Sell losing investments to offset capital gains and reduce your tax bill. You can deduct up to $3,000 in net capital losses against ordinary income per year. Unused losses carry forward indefinitely. Watch the wash-sale rule — no repurchasing the same security within 30 days.
Read our tax-loss harvestingguide →Child Tax Credit
The 2026 child tax credit is $2,200 per qualifying child under 17, with up to $1,700 refundable. The credit phases out for higher incomes. Dependents aged 17-18 or full-time students 19-24 may qualify for a $500 credit.
Read our child tax creditguide →AMT (Alternative Minimum Tax)
The AMT is a parallel tax system ensuring high-income taxpayers pay a minimum amount. 2026 exemption: $90,100 (single) / $140,200 (married). Exercising incentive stock options and large state/local tax deductions are common AMT triggers.
Read our amt (alternative minimum tax)guide →Health Savings Account (HSA)
The only account with a triple tax advantage: deductible contributions, tax-free growth, and tax-free medical withdrawals. 2026 limits: $4,400 (individual) / $8,750 (family), plus $1,000 catch-up at 55+. Requires an HDHP with a minimum $1,700 deductible.
Read our health savings account (hsa)guide →Estimated Quarterly Taxes
Self-employed workers, freelancers, and investors must pay taxes quarterly if they expect to owe $1,000+. The 2026 deadlines: April 15, June 15, September 15, and January 15. The safe harbor rule — paying 100% of prior year's tax — eliminates penalty risk entirely.
Read our estimated quarterly taxesguide →2026 Federal Income Tax Brackets
| Rate | Single Filer | Married Filing Jointly |
|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 |
| 37% | Over $640,600 | Over $768,700 |
2026 Long-Term Capital Gains Rates
| Rate | Single Filer | Married Filing Jointly |
|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 |
| 15% | $49,450 – $545,500 | $98,900 – $613,700 |
| 20% | Over $545,500 | Over $613,700 |
Short-term capital gains (assets held one year or less) are taxed at your ordinary income tax rate. An additional 3.8% Net Investment Income Tax (NIIT) may apply for high earners.
Which Tax Strategy Should You Use?
Single filer earning under $50K
You fall entirely within the 10–12% brackets. Prioritize Roth contributions (pay tax now at low rates) and max your standard deduction at $16,100. If you have a high-deductible health plan, an HSA gives you the only triple-tax-advantaged account available.
Married filing jointly, $100K–$200K
You span the 12–22% brackets. Split contributions between traditional 401(k) (to lower your marginal rate) and Roth IRA (to build tax-free growth). The OBBBA's expanded SALT cap at $40,400 may make itemizing worthwhile if you have a mortgage in a high-tax state.
Investor with capital gains
Harvest losses in volatile positions to offset gains — you can deduct up to $3,000 in net losses against ordinary income. Hold appreciated assets over one year to qualify for the 0%/15%/20% long-term rates instead of ordinary income rates.
Self-employed or freelancer
Pay quarterly estimated taxes to avoid underpayment penalties. The safe harbor: pay 100% of last year's tax liability. Deduct health insurance premiums, home office, and consider a SEP IRA (up to 25% of net earnings) to reduce your self-employment tax burden.
Age 65+ (new OBBBA benefit)
Claim the new $6,000 senior deduction on top of the standard deduction — that's $16,100 + $6,000 = $22,100 for single filers. This phases out above $75,000 MAGI (single) / $150,000 (joint). Consider Roth conversions while in a lower bracket.
Tax Guides
Estimated Quarterly Taxes: What You Owe and When
The Q2 2026 estimated tax deadline is June 15 — just two months after Q1's April 15 payment. First-time quarterly filers miss this one constantly beca
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Child Tax Credit 2026: $2,200 Per Child Rules
The federal Child Tax Credit puts $2,200 per qualifying child directly against your tax bill for 2026 — dollar for dollar, not as a deduction. For a f
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Standard Deduction 2026: Amounts and Filing Tips
The 2026 standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly — and for the first time, taxpayers age 65 and
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Capital Gains Tax 2026: Short-Term vs Long-Term Rates
Every time you sell a stock, mutual fund, or piece of real estate for more than you paid, the IRS wants its share. Capital gains tax is one of the mos
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Alternative Minimum Tax 2026: Who Pays AMT
Roughly 4.5 million taxpayers owed Alternative Minimum Tax in the final year before the TCJA slashed that number to under 200,000. The One Big Beautif
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HSA Explained: Triple Tax Advantage for 2026
$4,400 into an HSA at the 22% federal bracket saves $968 in income tax — plus $337 in FICA taxes that even a 401(k) contribution can't avoid. That's $
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Tax Analysis & Strategy
Frequently Asked Questions
What are the federal tax brackets for 2026?+
For 2026, there are seven federal income tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For single filers, the 10% bracket applies to taxable income up to $12,400, while the top 37% rate applies to income over $640,600. For married couples filing jointly, the 10% bracket covers income up to $24,800, and the 37% rate kicks in above $768,700.
What is the standard deduction for 2026?+
The 2026 standard deduction is $16,100 for single filers and married individuals filing separately, $32,200 for married couples filing jointly, and $24,150 for heads of household. Most taxpayers benefit from taking the standard deduction rather than itemizing.
What are the capital gains tax rates for 2026?+
Long-term capital gains (assets held over one year) are taxed at 0%, 15%, or 20% depending on your taxable income. For 2026, single filers pay 0% on gains up to $49,450, 15% up to $545,500, and 20% above that. Married filing jointly: 0% up to $98,900, 15% up to $613,700, and 20% above. Short-term capital gains (assets held one year or less) are taxed as ordinary income at your marginal rate.
What is the difference between marginal and effective tax rates?+
Your marginal tax rate is the rate applied to your last dollar of income — it determines which tax bracket you fall into. Your effective tax rate is the average rate you actually pay across all your income, calculated by dividing total tax owed by total taxable income. Because the US uses a progressive tax system, your effective rate is always lower than your marginal rate. For example, a single filer in the 22% bracket does not pay 22% on all income — only on the portion above the 12% bracket threshold.
When is the 2026 tax filing deadline?+
The deadline to file your 2026 federal tax return is April 15, 2027. You can request an automatic six-month extension using IRS Form 4868, which extends the filing deadline but not the payment deadline — estimated taxes are still due by the original date to avoid penalties and interest.
How does the One Big Beautiful Bill Act (OBBBA) change taxes in 2026?+
The OBBBA made the TCJA tax rates permanent and added several new provisions for 2026: a $6,000 additional deduction for taxpayers 65+, a $40,400 SALT deduction cap (up from $10,000), new deductions for tips, overtime pay, and auto loan interest, and inflation indexing for the child tax credit. The bottom two brackets (10% and 12%) received a larger 4% inflation adjustment compared to 2.3% for higher brackets.
Tax Calculators
Tax Calculator
Estimate your 2026 federal income tax, effective rate, and take-home pay by filing status.
Open Tax Calculator →Capital Gains Calculator
Calculate short-term and long-term capital gains tax on stock sales, crypto, and other investments.
Open Capital Gains Calculator →Explore More
Disclaimer: This content is for informational purposes only and does not constitute tax, legal, or financial advice. Tax brackets and figures are based on 2026 IRS guidelines and may be subject to legislative changes. Consult a qualified tax professional or CPA before making tax-related decisions.