loading…

Application of current income tax brackets to capital gains brackets

(A) In general Section 1(h)(1) shall be applied— (i) by substituting “below the maximum zero rate amount” for “which would (without regard to this paragraph) be taxed at a rate below 25 percent” in subparagraph (B)(i), and (ii) by substituting “below the maximum 15-percent rate amount” for “which would (without regard to this paragraph) be taxed at a rate below 39.6 percent” in subparagraph (C)(ii)(I).

(B) Maximum amounts defined For purposes of applying section 1(h) with the modifications described in subparagraph (A)— (i) Maximum zero rate amount The maximum zero rate amount shall be— (I) in the case of a joint return or surviving spouse, $77,200, (II) in the case of an individual who is a head of household (as defined in section 2(b)), $51,700, (III) in the case of any other individual (other than an estate or trust), an amount equal to ½ of the amount in effect for the taxable year under subclause (I), and (IV) in the case of an estate or trust, $2,600. (ii) Maximum 15-percent rate amount The maximum 15-percent rate amount shall be— (I) in the case of a joint return or surviving spouse, $479,000 (½ such amount in the case of a married individual filing a separate return), (II) in the case of an individual who is the head of a household (as defined in section 2(b)), $452,400, (III) in the case of any other individual (other than an estate or trust), $425,800, and (IV) in the case of an estate or trust, $12,700.

(C) Inflation adjustment In the case of any taxable year beginning after 2018, each of the dollar amounts in clauses (i) and (ii) of subparagraph (B) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under subsection (f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2017” for “calendar year 2016” in subparagraph (A)(ii) thereof. If any increase under this subparagraph is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50.

in view

Whole section

▸rulespec code

Shown source

statutes/26/1/j.yaml

Displaying the canonical repository encoding.

This encoding covers the parent provision us/statute/26/1/j; no dedicated encoding exists for this exact provision yet.

View on GitHub

Rules

ordinary_taxable_income

Derived

source: 26 USC 1(h)(1)(A), 1(j)(2)-(3)

- name: ordinary_taxable_income
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(A), 1(j)(2)-(3)
  versions:
    - effective_from: '2026-01-01'
      formula: max(0, taxable_income - capital_gains_excluded_from_taxable_income)

income_tax_main_rates

Derived

source: 26 USC 1(h)(1)(A), 1(j)(2)-(3)

- name: income_tax_main_rates
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(A), 1(j)(2)-(3)
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        (
            income_tax_bracket_1_rate
            * min(ordinary_taxable_income, income_tax_bracket_1_threshold)
        )
        + (
            income_tax_bracket_2_rate
            * max(
                0,
                min(ordinary_taxable_income, income_tax_bracket_2_threshold)
                - income_tax_bracket_1_threshold
            )
        )
        + (
            income_tax_bracket_3_rate
            * max(
                0,
                min(ordinary_taxable_income, income_tax_bracket_3_threshold)
                - income_tax_bracket_2_threshold
            )
        )
        + (
            income_tax_bracket_4_rate
            * max(
                0,
                min(ordinary_taxable_income, income_tax_bracket_4_threshold)
                - income_tax_bracket_3_threshold
            )
        )
        + (
            income_tax_bracket_5_rate
            * max(
                0,
                min(ordinary_taxable_income, income_tax_bracket_5_threshold)
                - income_tax_bracket_4_threshold
            )
        )
        + (
            income_tax_bracket_6_rate
            * max(
                0,
                min(ordinary_taxable_income, income_tax_bracket_6_threshold)
                - income_tax_bracket_5_threshold
            )
        )
        + (
            income_tax_bracket_7_rate
            * max(0, ordinary_taxable_income - income_tax_bracket_6_threshold)
        )

regular_tax_before_credits

Derived

source: 26 USC 1(h), 1(j), and 55(c)

- name: regular_tax_before_credits
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h), 1(j), and 55(c)
  versions:
    - effective_from: '2026-01-01'
      formula: income_tax_main_rates

loading…

us/statute/26/1/j/5 — Application of current income tax brackets to capital gains brackets · Axiom

Application of current income tax brackets to capital gains brackets

Official source

in view

Whole section

▸rulespec code

Shown source

statutes/26/1/j.yaml

Displaying the canonical repository encoding.

This encoding covers the parent provision us/statute/26/1/j; no dedicated encoding exists for this exact provision yet.

View on GitHub

Rules

ordinary_taxable_income

Derived

source: 26 USC 1(h)(1)(A), 1(j)(2)-(3)

- name: ordinary_taxable_income
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(A), 1(j)(2)-(3)
  versions:
    - effective_from: '2026-01-01'
      formula: max(0, taxable_income - capital_gains_excluded_from_taxable_income)

income_tax_main_rates

Derived

source: 26 USC 1(h)(1)(A), 1(j)(2)-(3)

- name: income_tax_main_rates
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h)(1)(A), 1(j)(2)-(3)
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        (
            income_tax_bracket_1_rate
            * min(ordinary_taxable_income, income_tax_bracket_1_threshold)
        )
        + (
            income_tax_bracket_2_rate
            * max(
                0,
                min(ordinary_taxable_income, income_tax_bracket_2_threshold)
                - income_tax_bracket_1_threshold
            )
        )
        + (
            income_tax_bracket_3_rate
            * max(
                0,
                min(ordinary_taxable_income, income_tax_bracket_3_threshold)
                - income_tax_bracket_2_threshold
            )
        )
        + (
            income_tax_bracket_4_rate
            * max(
                0,
                min(ordinary_taxable_income, income_tax_bracket_4_threshold)
                - income_tax_bracket_3_threshold
            )
        )
        + (
            income_tax_bracket_5_rate
            * max(
                0,
                min(ordinary_taxable_income, income_tax_bracket_5_threshold)
                - income_tax_bracket_4_threshold
            )
        )
        + (
            income_tax_bracket_6_rate
            * max(
                0,
                min(ordinary_taxable_income, income_tax_bracket_6_threshold)
                - income_tax_bracket_5_threshold
            )
        )
        + (
            income_tax_bracket_7_rate
            * max(0, ordinary_taxable_income - income_tax_bracket_6_threshold)
        )

regular_tax_before_credits

Derived

source: 26 USC 1(h), 1(j), and 55(c)

- name: regular_tax_before_credits
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 1(h), 1(j), and 55(c)
  versions:
    - effective_from: '2026-01-01'
      formula: income_tax_main_rates