Xavier Lorenzo | Moment | Getty Images
The IRS announced higher capital gains tax brackets 2025.
in its announcement On Tuesday, the agency raised the taxable income limit For the long-term capital gains category, it applies to assets owned for more than one year.
The IRS also added to the numbers for dozens of other provisions, including federal income tax bracketsestate and gift tax exemptions, child tax credit eligibility, and more.
More from Personal Finance:
Tax brackets may increase after 2025.
Buy a house? Here are the key steps top advisors need to consider
Trump’s tax cuts may expire after 2025.
The capital gains rate you pay depends on which bracket you fall into based on your taxable income.
You calculate taxable income by subtracting the greater of the standard deduction or itemized deductions from your adjusted gross income. In 2025, the standard deduction will rise to It’s $15,000 for single filers and $30,000 for married couples filing jointly.
Starting in 2025, a single filer with taxable income of $48,350 will qualify for the 0% long-term capital gains rate or less, or $96,700 or less for married couples filing jointly.
