The IRS revealed new long-term capital gains tax brackets for 2027, raising the taxable income limits that determine the applicable tax rates. The 0% rate will apply to single filers earning up to $51,050 and married couples filing jointly earning up to $102,100.
The 15% rate will apply to incomes up to $563,200 for single filers and $633,600 for married couples, while the 20% rate will affect those earning above these thresholds. Additionally, the standard deduction will increase to $16,600 for single filers and $33,200 for married couples.
This adjustment comes amid rising living costs, and it may prompt investors to reconsider their strategies for asset sales and portfolio rebalancing in light of the new tax implications