Your total taxable income includes your capital gain. Using the figures from your post, your total taxable income for 2024 would be $428K plus $86K, or $514K.
The non-LTCG portion of your income would be taxed as ordinary income. (Thus your LTCG income cannot push you into a higher ordinary income tax bracket.) For 2024, the LTCG portion of your income would be taxed according to this table:
The brackets are based on total taxable income including the LTCG.
Rate
Single
Married Filing Jointly
Married Filing Separately
Head of Household
0%
$0 – $47,025
$0 – $94,050
$0 – $47,025
$0 – $63,000
15%
$47,025 – $518,900
$94,050 – $583,750
$47,025 – $291,850
$63,000 – $551,350
20%
$518,900+
$583,750+
$291,850+
$551,350+
For 2024 an MFJ taxpayer with total taxable income of $514K would pay a tax rate of 15% on the LTCG portion of his income.
High earners may also be subject to the Net Investment Income Tax (NIIT) of 3.8% on their capital gains, depending on their filing status and income level. This web article explains:
