2026 Capital Gains Changes: What they mean for high earners
As we move through 2026, the tax conversation in Raleigh has shifted from "what if" to "what now." The passage of the One Big Beautiful Bill Act (OBBBA) has brought much-needed clarity to the individual tax landscape, making several key rates permanent that were previously set to sunset. However, for high earners and business owners, the "Real" story is in the details.
The New Normal for Capital Gains
The OBBBA has adjusted the thresholds for capital gains, creating new "zones" for investors to navigate. While the top rate remains at 20% (plus the 3.8% Net Investment Income Tax for many), the income levels where these rates kick in have been indexed for inflation in a way that requires proactive management.
Current 2026 Thresholds (Married Filing Jointly):
- 0% Rate: Up to approximately $98,900
- 15% Rate: Up to $613,700
- 20% Rate: Above $613,700
The "Hidden" Costs: Deductions and SALT
While the headline rates are more stable, the OBBBA has maintained some of the complexities around itemized deductions. For high-income families in North Carolina, the "SALT" (State and Local Tax) cap remains a focal point. Planning for these caps is essential to ensuring you aren't overpaying on your total tax bill.
Modern Strategies for a New Era
At The Friend Wealth Group, we believe tax planning is a year-round "Active" process, not just a scramble in April. We are helping our clients look at:
- Roth Conversions: Evaluating if current rates make it the right time to move traditional IRA assets into a Roth environment for tax-free growth.
- Asset Location: Placing tax-inefficient investments (like high-yield bonds) in retirement accounts while keeping tax-efficient assets (like index funds) in taxable accounts.
Clarity in Complexity
The 2026 tax landscape may seem daunting, but our goal is to make it "Plain and Simple." By staying "Visionary" and looking 3–5 years ahead, we can help you turn tax challenges into opportunities for growth.
Sources for Blog:
- Kiplinger: 2026 Tax Brackets and Capital Gains Thresholds — Kiplinger Tax Guide
- RG Wealth: Impact of the One Big Beautiful Bill Act (OBBBA) — Analysis Link
- RBC Wealth Management: Year-round tax-efficient investing — RBC Insights