IRS Sets 2027 Capital Gains Tax Brackets and IRA Deadline
The IRS announced 2027 capital gains tax rates and income thresholds, alongside the April 15, 2027 deadline for making 2026 IRA contributions.
The IRS has released the 2027 capital gains tax brackets, adjusting the income thresholds for the 0%, 15%, and 20% rates. The agency also confirmed the deadline for making Traditional IRA contributions to reduce 2026 taxable income is April 15, 2027. These updates, issued on November 7, 2026, provide a framework for investment and retirement planning for the tax year that will be filed in 2028.
The 2027 capital-gains tax rates apply to long-term investments held for over one year. This includes returns from stocks, qualified dividends, bond sales, and cryptocurrency sales. The rates do not apply to interest from savings accounts or certificates of deposit. Income thresholds for each rate vary by filing status.
| Filing Status | 0% Rate Threshold | 15% Rate Threshold | 20% Rate Threshold |
|---|---|---|---|
| Single | $51,050 | $563,200 | Over $563,200 |
| Married Filing Jointly | $102,100 | $633,600 | Over $633,600 |
| Head of Household | $68,350 | $598,400 | Over $598,400 |
A separate 3.8% net investment income tax applies to income over $200,000 for individuals and $250,000 for married couples filing jointly. The standard deduction and ordinary income-tax brackets were also adjusted for inflation. The top income tax rate remains 37%, applying to single filers with income above $661,375 and married couples filing jointly above $793,650.
IRA contribution deadline for 2026 tax savings
Investors have until April 15, 2027, to make contributions to a Traditional IRA for the 2026 tax year. These pre-tax contributions can lower an individual's 2026 taxable income. Contributions to employer-sponsored plans like 401(k)s and 403(b)s also reduce taxable income if made to pre-tax accounts.
Key capital gains and loss rules
Long-term capital gains are taxed at 0%, 15%, or 20% based on an investor's taxable income. Taxable income is calculated by subtracting above-the-line deductions and either the standard or itemized deduction from gross income. Investors can deduct up to $3,000 in net capital losses against ordinary income each year. This $3,000 deduction limit is not indexed for inflation.
Other notable 2027 tax adjustments
The announcement included several other inflation-adjusted figures. The standard deduction for 2027 rises to $16,600 for single filers, $33,200 for married couples filing jointly, and $24,925 for heads of households. The child tax credit increases to $2,300 per qualifying child under 17, with up to $1,800 of it being refundable. The maximum saver's credit is $1,000 for single filers or $2,000 for married couples filing jointly. The student loan interest deduction allows up to $2,500. The maximum earned income tax credit for families with three or more children is $8,231 for the 2026 tax year.
