Retirees filing jointly may realize long-term capital gains up to $98,900 without federal tax liability in 2026 under current rules.
Married retirees filing jointly can realize up to $98,900 in long-term capital gains tax-free in 2026, according to federal tax brackets. The threshold rises to $131,100 if capital gains are the sole income source, after accounting for the $32,200 standard deduction.
Taxable income fills the ladder with ordinary income first, including wages, pensions, and up to 85% of Social Security benefits. Long-term gains are stacked on top, with only amounts exceeding $98,900 taxed at 15%. Retirees can reset cost basis by selling and repurchasing appreciated assets, as wash-sale rules apply only to losses.
The strategy remains underutilized despite its potential to reduce tax burdens, particularly for households with minimal other income sources.