Capital Gains Tax Calculator
Estimate the tax owed on profits from selling investments, property, or other assets.
Capital Gain / Loss
+$8,000
Tax Rate
15%
Tax Owed
$1,200
Net Proceeds
$16,800
2026 Long-term Capital Gains Rates (Single):
Formula
Calculates capital gains tax on investment profits using short-term (ordinary income rates) or long-term (preferential rates) rates.
Tax = Capital Gain × Tax Rate (0%, 15% or 20% for long-term)
Worked Example
You sell stock bought for $50,000 and held 2+ years for $75,000, long-term rate 15%:
- Sale price: $75,000
- Cost basis: $50,000
- Capital gain: $25,000
- Tax owed (15%): $3,750
- Net profit: $21,250
Common Questions
What's the difference between short and long-term gains?
Short-term (held <1 year): taxed as ordinary income (up to 37%). Long-term (held >1 year): 0%, 15%, or 20% depending on income. Hold longer to save big on taxes.
Can I offset gains with losses?
Yes. Harvest losses to offset gains (tax-loss harvesting). You can carry unused losses forward to future years.
What about state taxes?
This shows federal only. Most states tax capital gains as ordinary income (3–13.3%); about 8 states have no capital gains tax.
Key Takeaways
- Hold investments 1+ year for long-term rates (15% vs. 37% short-term)—massive tax savings.
- Tax-loss harvesting (selling losers to offset winners) can save thousands annually.
- In tax-advantaged accounts (401k, IRA), gains aren't taxed until withdrawal—keep long-term winners there.