Zero Capital Gains for lowest income brackets

[Account Closed]

Seller is single and reports W-2 income of $10K.  Property being sold is non owner occupied inherited property, owned 10 years.  Never treated as income property as it was always vacant.  Property basis is $100K, property sale is $165K. 

So the seller is in the lowest two income brackets so is eligible for some tax free capital gains, correct?  Up to what amount?  Is it the difference between the $10K income and $36K max for single people, so the first $26K is zero capital gains?

At what rate is the remainder taxed?