Do you qualify for 0% capital gains tax in 2023?

For 2023, you may qualify for the 0% long-term capital gains rate with taxable income of $44,625 or less for single filers and $89,250 or less for married couples filing jointly. The rates use “taxable income,” calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

What are the taxable income thresholds for 2023?

The IRS has increased the taxable income thresholds for the 0%, 15% and 20% long-term capital gains brackets for 2023. With higher standard deductions and taxable income limits for capital gains, it’s more likely you’ll fall into the 0% bracket, experts say.

Do you qualify for 0% tax on capital gains?

You may qualify for the 0% rate if your income is low enough. On the other hand, wealthier taxpayers will likely pay tax on long-term capital gains at the 20% rate, but that's still going to be less than the tax rate they pay on other income like wages or short-term capital gains.