Question 1

What is the 0% long-term capital gains bracket?

Accepted Answer

Long-term capital gains and qualified dividends are taxed at 0%, 15%, or 20% federally. The 0% bracket roughly tracks the top of the 12% ordinary-income bracket — for 2026 estimated, about $49,475 of taxable income for single filers and $98,950 for married filing jointly. Any LTCG that 'stacks' on top of your ordinary taxable income but stays below this threshold is taxed at 0%.

Question 2

How does 0% LTCG harvesting work?

Accepted Answer

If you have appreciated long-term holdings and your taxable income is low enough, you can sell them, realize the gain at 0% federal tax, and immediately rebuy the same security to step up your cost basis. Unlike loss harvesting, the wash-sale rule does NOT apply to gain harvesting. The window is most useful in low-income years (early retirement, sabbaticals, gap years).

Question 3

Does the Net Investment Income Tax (NIIT) apply to 0% LTCG?

Accepted Answer

NIIT is a separate 3.8% tax on net investment income above MAGI of $200,000 (single) or $250,000 (MFJ). If you're harvesting in the 0% LTCG bracket your MAGI is usually well below the threshold, but very large harvests can push you over. State capital-gains tax also still applies — this calculator covers federal LTCG only.

0% LTCG Bracket Harvester

Income & Investments

Tax-Free Harvest Available

0% LTCG Bracket Top

Taxable Ordinary Income

Already Consumed

Tax Saved (vs 15% rate)

NIIT Warning

Where the 0% LTCG Bracket Sits

Harvest Plan