IRS unveils higher capital gains tax brackets for 2027

The IRS announced higher long-term capital gains tax brackets for 2027, adjusting the income thresholds at which investors qualify for the 0%, 15% and 20% rates. The inflation-driven revision raises the income cutoffs for each bracket, meaning some taxpayers will pay a lower rate on gains than they would under current thresholds. The change matters because capital gains treatment directly affects after-tax returns on taxable brokerage accounts and can influence when investors choose to realize gains. The new brackets apply to tax year 2027, so investors planning sales in 2026 should compare the current and forthcoming thresholds before year-end.