It’s complicated. But the simple answer is: If your taxable income (TI), after deductions and exemptions, is less than $75,900, the portion of the long term (owned more than 1 year) capital gain that raises your TI to $75,900 will be taxed at 0%. The rest will be taxed at 15%*.
At $85K gross income and Married Filing Jointly, your TI is $65K or less. So, roughly $11K will be tax free (technically taxed at 0%) and the rest taxed at 15%. Most states do not have favorable capital gains rates, so you will probably pay state tax at ordinary income rates.
