The long-term soil management effects on C and N stocks of soil physical fractions are still poorly understood for South American subtropical soils. This study aimed (i) to evaluate the influence of cereal- and legume-based cropping systems and N fertilisation on C and N stocks of the sand-, silt- and clay-size fractions of a no-tilled subtropical Acrisol in southern Brazil, (ii) to compute the Carbon Management Index (CMI) for those cropping systems using physical fractionation data, and (iii) to investigate the possible existence of finite capacity of those soil physical fractions to store C and N. Soil samples of a long-term experiment were collected from the 0–2.5 and 2.5–7.5 cm layers of three no-till cropping systems [fallow bare soil, oat/maize (O/M) and pigeon pea+maize (P+M)] under two N fertilisation levels (0 and 180 kg N ha−1). However, for fallow bare soil, only the non-fertilised sub-plot was sampled. An adjacent native grassland soil was sampled as a reference. The C and N stocks of the three soil physical fractions were higher in the legume-based cropping system (P+M) than in O/M and bare soil, because of the higher residue input in the former. The P+M cropping system restored the C and N stocks in sand- and silt-size fractions to the same levels found in grassland soil. Higher C and N stocks in all physical fractions were also obtained with N fertilisation. The C and N stocks and the C:N ratio were most affected by cropping systems in the sand- and least in the clay-size fraction. Particulate organic matter was found in the silt-size fraction, showing this fraction is not only constituted by mineral-associated organic mater, as commonly believed. Taking grassland soil as reference (CMI = 100), the CMI ranged from 46, in O/M no N, to 517, in P+M with N, pointing to a better soil management in the latter. The clay-size fraction tended to show a finite capacity to store C and N (48.8 g C kg−1 and 4.9 g N kg−1 of clay), which was not verified in sand- and silt-size fractions. The adoption of no-tillage and legume-based cropping systems with high residue input are adequate soil management strategies to improve soil quality and make the agricultural production systems more sustainable in subtropical regions.