IRS Raises Capital Gains Tax Thresholds for 2027
The IRS has announced inflation-adjusted long-term capital gains brackets for 2027, raising the income limits at which investors owe nothing.
The Internal Revenue Service has released updated long-term capital gains tax brackets for 2027, lifting the income thresholds at which taxpayers qualify for the zero-percent rate — a development with direct implications for investors planning their year-end strategies.
Long-term capital gains, which apply to profits on assets held longer than one year, are taxed at preferential rates compared with ordinary income. The three federal tiers — 0%, 15%, and 20% — are adjusted periodically for inflation, meaning the ceiling on the lowest bracket rises modestly most years, allowing more taxpayers to shelter gains from taxation.
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The IRS announcement reflects the agency's standard annual cost-of-living adjustments, which ripple across dozens of tax provisions. For investors, particularly retirees and those in lower income years, knowing the precise threshold for the 0% bracket can inform decisions about when to sell appreciated assets, harvest gains, or rebalance portfolios without triggering a federal tax bill.
Financial planners generally advise that taxpayers who expect their income to fall near bracket boundaries in a given year consider accelerating or deferring asset sales accordingly. The updated 2027 figures give investors additional lead time to structure transactions in a tax-efficient manner before the brackets take effect.
Continue reading at US Top News and Analysis for the full breakdown of the 2027 income thresholds by filing status.
