Income & Taxes · Investments
Capital Gains Tax Calculator
Updated May 9, 2026 · See your federal, state, and NIIT capital gains tax in seconds.
Your Capital Gains Tax Results
Total Tax Owed
Long-term at 0%
For a $5,000 capital gain (sold $15,000 asset purchased for $10,000): If held over 1 year, you pay 15% long-term rate = $750 tax. If held under 1 year, you pay your ordinary income rate (22-37%) = $1,100 tax. Holding longer saves you $350.
Typical scenario — enter your purchase and sale details for your personalized estimate.
Holding Period
Investment Summary
Tax Breakdown
Not Tax Advice — IRS Circular 230 Notice: To comply with requirements imposed by the IRS under Circular 230, we inform you that any U.S. federal tax information provided by this calculator is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any tax-related matter. Tax laws change frequently. This calculator is not affiliated with the IRS or any government agency. Consult a qualified tax professional, CPA, or enrolled agent for advice specific to your situation.
Short-Term vs Long-Term Capital Gains
The single biggest lever in capital gains tax planning is your holding period. Just one day past the 365-day mark flips your gain from ordinary-income rates (10–37%) to preferential long-term rates (0%, 15%, or 20%).
| Classification | Holding Period | Tax Rate | Example |
|---|---|---|---|
| Short-Term | 1 year or less | 10% – 37% (ordinary income rates) |
Buy stock Jan 1, sell Dec 31 same year |
| Long-Term | More than 1 year | 0%, 15%, or 20% (preferential rates) |
Buy stock Jan 1, sell Jan 2+ next year |
Why It Matters
For someone in the 24% tax bracket, holding an investment for one more day (from 365 to 366 days) can drop the federal tax rate from 24% to 15% — a 9 percentage point swing on every dollar of gain.
The One-Year Rule
To qualify for long-term capital gains treatment, you must hold the asset for more than one year. The holding period starts the day after you purchase the asset and includes the day you sell it.
2026 Capital Gains Tax Brackets
Long-term capital gains tax rates depend on your taxable income and filing status. Here are the projected 2026 brackets:
| Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 0% | Up to $49,550 | Up to $99,100 | Up to $66,350 |
| 15% | $49,551 – $546,700 | $99,101 – $615,050 | $66,351 – $580,850 |
| 20% | Over $546,700 | Over $615,050 | Over $580,850 |
Net Investment Income Tax (NIIT): High earners may also owe an additional 3.8% surtax on capital gains if MAGI exceeds $200,000 (single) or $250,000 (married filing jointly). This can bring the effective top federal rate to 23.8%.
How to Reduce Capital Gains Taxes
Hold Investments Longer
The simplest strategy: hold assets for more than one year to qualify for the lower long-term capital gains rates (0%, 15%, or 20%) instead of paying ordinary income rates up to 37%.
Harvest Tax Losses
Offset capital gains by selling losing investments. Capital losses reduce gains dollar-for-dollar; if losses exceed gains, deduct up to $3,000 per year against ordinary income and carry the rest forward.
Use Tax-Advantaged Accounts
Invest through IRAs, 401(k)s, or other retirement accounts where gains grow tax-deferred or tax-free. Roth IRAs allow completely tax-free withdrawals in retirement, including capital gains.
Time Your Sales Strategically
Consider spreading large gains across multiple tax years, selling in lower-income years, or using the 0% long-term rate if your income is low enough (under $49,550 single / $99,100 married for 2026).
Frequently Asked Questions
Capital gains tax is a tax on the profit made from selling an investment or asset. The tax rate depends on how long you held the asset: short-term capital gains (held 1 year or less) are taxed as ordinary income at rates from 10% to 37%, while long-term capital gains (held more than 1 year) are taxed at preferential rates of 0%, 15%, or 20% depending on your income.
The key difference is the holding period and tax rate. Short-term capital gains are for assets held 1 year or less and are taxed at ordinary income rates (10–37%). Long-term capital gains are for assets held more than 1 year and are taxed at preferential rates (0%, 15%, or 20%).
Yes, capital losses offset capital gains dollar-for-dollar. If losses exceed gains, you can deduct up to $3,000 per year ($1,500 if married filing separately) against ordinary income. Excess losses carry forward indefinitely. This is the basis for "tax-loss harvesting."
Yes — the IRS treats cryptocurrency as property, so capital gains tax applies when you sell crypto for a profit. Same short-term vs long-term rules apply. Even crypto-to-crypto trades are taxable events.
Tax-loss harvesting is selling investments at a loss to offset capital gains from profitable investments. Be aware of the wash sale rule, which disallows the loss if you buy a "substantially identical" security within 30 days before or after the sale.
Several legal strategies: (1) hold over one year for lower long-term rates, (2) tax-loss harvesting, (3) use tax-advantaged accounts (401(k)s, IRAs, Roth), (4) time sales for lower-income years (qualify for the 0% rate), (5) donate appreciated assets to charity, (6) use 1031 exchanges for real estate.
Yes — nine states have no state income tax and therefore no state capital gains tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire only taxes dividend and interest income, not capital gains.
The NIIT is an additional 3.8% surtax on investment income for high-income taxpayers with MAGI above $200,000 (single) or $250,000 (married filing jointly). It applies to the lesser of net investment income or the excess MAGI above the threshold.
Related Guides
Related Calculators
Official Sources
- IRS Topic No. 409: Capital Gains and Losses (opens in new tab) — Authoritative IRS guidance on capital gains tax rates, holding periods, and reporting.
- IRS Publication 550: Investment Income and Expenses (opens in new tab) — Comprehensive guide on investment income, including capital gains, dividends, and tax-loss harvesting.
- IRS Topic No. 559: Net Investment Income Tax (opens in new tab) — Official guidance on the 3.8% NIIT surtax including MAGI thresholds and computation rules.
- IRS: Qualified Opportunity Zones FAQ (opens in new tab) — QOZ program rules for deferring capital gains via investments in designated communities.
- Tax Foundation: State Individual Income Tax Rates (opens in new tab) — State-by-state income tax rates that determine state-level capital gains treatment.
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