Capital gains rates, which are lower than a taxpayer’s ordinary income rate, depend on the taxpayer’s taxable income and filing status. The maximum adjusted capital gains rates apply for both the regular income tax and the alternative minimum tax.
For 2021, the maximum zero rate amount on adjusted net capital gains for married persons will be $80,800 for joint returns and $40,400 for married individuals’ separate returns; $54,100 for a head of household and $40,400 for single individual returns.
The taxable income level that triggers the maximum capital gains tax of 20% for an individual. For married people filing jointly, the amount is $501,600.
The 15% rate amount will apply to adjusted net capital gains up to $501,600 for joint returns; $250,800 for married individuals’ separate returns; $473,750 for head of household returns; and $445,850 for single individual returns. Above these ceilings, the applicable capital gains rate is set at 20%.