If you’ve spent any time lately scrolling through financial news or listening to chatter about the One Big Beautiful Bill Act (OBBBA), you’ve probably heard the rumor. It’s the one where people claim Donald Trump is planning to just delete the capital gains tax from the tax code entirely. Honestly, it sounds like a dream for anyone with a brokerage account or a house they’re looking to sell.
But is it actually happening?
The short answer is no—at least, not for everyone and not for all assets. Tax law is rarely that simple. While the 2025 legislative blitz led by the Trump administration has fundamentally shifted how we look at investments, the "total elimination" of capital gains tax is more of a headline-grabbing myth than a line-item reality.
Instead, what we have is a weird, complex mix of permanent cuts, inflation adjustments, and a very specific proposal to wipe out the tax on primary residences. Let’s look at what’s actually on the table and what’s already been signed into law for 2026.
The Reality of the One Big Beautiful Bill Act (OBBBA)
Most of the confusion stems from the One Big Beautiful Bill Act, which President Trump signed on July 4, 2025. This massive piece of legislation did a lot of things, but its main job was making the 2017 Tax Cuts and Jobs Act (TCJA) permanent.
Before this, the individual tax cuts from the first Trump term were supposed to vanish at the end of 2025. If that had happened, capital gains rates would have effectively jumped for many people because the underlying income brackets they’re tied to would have reverted to old, higher rates.
The OBBBA stopped that. It locked in the lower brackets permanently. It also introduced something called the "senior bonus deduction" for folks over 65, which actually expands the 0% capital gains bracket for a lot of retirees.
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But "getting rid of" the tax? No. For most of us, the 15% and 20% rates are still very much alive.
The Proposal to Kill the "Home Sale Tax"
This is where the "Will Trump get rid of capital gains tax" question gets interesting. There is a very real push from the administration to eliminate capital gains tax on the sale of primary residences.
Currently, if you sell your home, you get an exclusion: up to $250,000 in gain is tax-free if you’re single, and $500,000 if you’re married. In the 90s, that felt like a fortune. In 2026? With home prices in places like Austin, Miami, or Boise skyrocketing, a lot of middle-class families are hitting those caps and getting hit with a tax bill just for moving.
Trump has explicitly called for removing this ceiling entirely.
Basically, the idea is that if it’s your main home, you shouldn't owe the IRS a dime when you sell it, regardless of how much it appreciated. It’s a popular idea because it targets "labor mobility"—meaning people are more likely to move for a better job if they aren't worried about losing $50,000 in home equity to taxes.
What About Stocks and Crypto?
If you’re waiting for the capital gains tax on your Nvidia stock or your Bitcoin stash to go to zero, don't hold your breath.
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There hasn't been a serious legislative push to eliminate capital gains on traditional financial assets across the board. The 2024 campaign platform was much more focused on indexing for inflation.
Indexing is a nerdy but massive deal.
Imagine you bought a stock for $100 ten years ago and sell it for $150 today. Right now, you pay tax on that $50 gain. But if inflation was high during those ten years, that $150 might actually buy less than the $100 did a decade ago. You’ve "lost" money in real terms, yet the IRS still wants a cut of your "gain."
The Trump administration's goal is to adjust your "basis" (the $100) for inflation so you only pay tax on the real profit. It’s not an elimination, but it would drastically lower the effective tax rate for long-term investors.
2026 Long-Term Capital Gains Brackets (Standard)
| Taxable Income (Single) | Taxable Income (Married Joint) | Capital Gains Rate |
|---|---|---|
| $0 – $49,450 | $0 – $98,900 | 0% |
| $49,451 – $545,500 | $98,901 – $613,700 | 15% |
| Over $545,500 | Over $613,700 | 20% |
Note: These figures reflect the 2026 inflation adjustments recently released by the IRS following the OBBBA implementation.
The 0% Rate is Already Real for Many
Sorta.
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Most people don't realize that the 0% capital gains rate already exists. If your total taxable income (including the gain) is below $98,900 for a married couple in 2026, you pay zero in federal capital gains tax.
The OBBBA actually made this easier to hit by boosting the standard deduction. For 2026, the standard deduction for a married couple is $32,200. That means a couple could potentially have a "gross" income of over $130,000 and still pay 0% on their long-term gains if they manage their withdrawals correctly.
Why He Probably Won't (and Can't) Delete the Whole Tax
There are three big reasons why a total elimination of capital gains tax is unlikely, even with a Republican-controlled Congress:
- The Deficit: The OBBBA already added trillions to the projected national debt. Wiping out capital gains revenue entirely would create a hole that even aggressive tariffs might not be able to fill.
- The "Tax Shelter" Problem: If capital gains were 0% and ordinary income was 37%, every CEO in America would stop taking a salary and only take stock options. The IRS hates this. It creates a massive "tax sheltering" industry that doesn't actually help the economy; it just helps lawyers.
- Political Optics: While Trump's base loves tax cuts, a 0% rate on multi-million dollar stock trades is a tough sell in swing states when compared to things like the Child Tax Credit or Social Security exemptions.
Actionable Next Steps for Your Portfolio
Since the tax isn't going away, but the rules are changing, here is what you should actually do:
- Check Your "Basis": If the inflation indexing proposal gains more steam in 2026, you’ll need meticulous records of when you bought your assets. Start organizing those old brokerage statements now.
- Maximize the 0% Bracket: If you are nearing retirement or have a low-income year, consider "tax gain harvesting." Sell assets to lock in the 0% rate up to the income threshold ($49,450 for singles), then immediately buy them back. You’ll reset your basis to a higher number for free.
- Home Sellers, Wait and See: If you’re sitting on a massive gain on your primary home that exceeds the $250k/$500k limit, keep a close eye on the "primary residence" legislation. If it passes, waiting a few months to sell could save you tens of thousands of dollars.
- Consult a Pro for the "Senior Bonus": If you're over 65, the new OBBBA rules are tricky. The extra deductions can accidentally push you out of the 0% bracket if you have too much Social Security or 401(k) income.
The talk about Trump getting rid of capital gains tax is mostly about specific carve-outs and keeping current rates low. It’s not a "get out of taxes free" card, but for homeowners and long-term savers, the 2026 landscape is definitely looking more favorable than it has in years.