§1256 · 60/40 · SPX vs SPY
SPX vs SPY on the same 0DTE trade: run your own tax number
SPX (and XSP) options are §1256 contracts: 60% of the gain is taxed at long-term rates and 40% at ordinary rates no matter how long you held. SPY and QQQ options held under a year are 100% short-term. At a 37% ordinary / 20% long-term rate the blended SPX rate is 26.8% — a 10.2-point gap. Enter your numbers below.
Presets: 2026 federal brackets, verified 2026-09-25 (IRS). §1256 losses can be carried back three years; the $3,000 net-capital-loss limit applies to both. Wash-sale rules do not apply to §1256 contracts (they are marked to market). This is arithmetic on the rates you enter — not tax advice; confirm with a tax professional.
Quick answers
Are SPX options taxed 60/40?
Yes. SPX, SPXW and XSP options are §1256 contracts: 60% of net gain is long-term, 40% short-term, regardless of holding period, and open positions are marked to market at year end.
Are SPY or QQQ options §1256?
No. They are equity options; gains on contracts held under a year are short-term and taxed at ordinary rates.
How big is the gap?
At the top federal bracket (37% ordinary, 20% long-term) the blended §1256 rate is 26.8% — 10.2 points lower on the same dollar of gain. At 24%/15% the gap is 5.4 points. Run your own rates above.
Do wash-sale rules apply to SPX 0DTE?
Not to §1256 contracts — they are marked to market. They do apply to SPY/QQQ options.
Is this tax advice?
No. It multiplies the gain you enter by the rates you enter. Confirm with a tax professional; the presets are federal brackets with a verified-on date.
Next
- SPX 0DTE simulator cash-settled — the §1256 side
- SPY 0DTE simulator physical — the short-term side
- Does the PDT rule still apply? per-broker status, 2026