Finance

Capital Gains Tax Calculator

Calculate short-term and long-term capital gains tax with 2026 federal tax brackets.

Quick Answer

A $15,000 long-term capital gain on $75,000 income (single filer) owes $2,250 in federal tax (15% rate). The same gain as short-term would owe $3,300-$3,600 depending on bracket -- holding over a year saves roughly $1,000+.

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Your taxable income before the capital gain (affects tax bracket)

Disclaimer: This calculator estimates federal capital gains tax only. State taxes, the 3.8% NIIT, AMT, and other factors may apply. Tax brackets shown are for single filers and are approximations of 2026 projected amounts. Consult a tax professional for your specific situation.

About This Tool

The Capital Gains Tax Calculator estimates the federal tax you owe when selling an investment, property, or other capital asset. It calculates your gain, determines whether short-term or long-term rates apply, and factors in your other taxable income to show your marginal and effective tax rates.

The distinction between short-term and long-term capital gains is one of the most impactful tax planning opportunities available to individual investors. Long-term gains (assets held over one year) benefit from preferential rates of 0%, 15%, or 20%, compared to ordinary income rates of 10-37% for short-term gains. For many investors, simply waiting to sell until the one-year mark can save thousands in taxes.

Tax-Loss Harvesting

If you have realized gains, look for losing positions you can sell to offset those gains. This strategy, called tax-loss harvesting, can reduce or eliminate your capital gains tax bill. Just be aware of the wash-sale rule, which prevents you from claiming a loss if you buy a substantially identical security within 30 days before or after the sale.

Frequently Asked Questions

What is the difference between short-term and long-term capital gains?
Short-term capital gains apply to assets held for one year or less and are taxed as ordinary income (10-37% for 2026). Long-term capital gains apply to assets held for more than one year and receive preferential tax rates of 0%, 15%, or 20% depending on your taxable income. The holding period starts the day after purchase and ends on the sale date.
What are the 2026 long-term capital gains tax brackets?
For single filers in 2026: 0% on gains within the first $48,350 of taxable income, 15% on gains within $48,350 to $533,400, and 20% on gains above $533,400. High earners may also owe the 3.8% Net Investment Income Tax (NIIT) on top of these rates if modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly).
Can I offset capital gains with losses?
Yes, capital losses offset capital gains dollar-for-dollar. Short-term losses first offset short-term gains, and long-term losses first offset long-term gains. Remaining losses can offset the other type. If total losses exceed total gains, you can deduct up to $3,000 of net losses against ordinary income per year. Unused losses carry forward to future tax years indefinitely.
Do I owe capital gains tax on my home?
If you have lived in your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 in gains ($500,000 for married couples filing jointly) from capital gains tax. Only gains above these thresholds are taxed. Investment properties and second homes do not qualify for this exclusion but may use 1031 exchanges to defer gains.
How can I reduce capital gains tax?
Strategies include: holding assets over one year for long-term rates, tax-loss harvesting to offset gains, donating appreciated assets to charity, using tax-advantaged accounts (IRA, 401k), timing sales in low-income years, utilizing the primary residence exclusion, and for investment properties, 1031 exchanges. Qualified Opportunity Zone investments can also defer and reduce capital gains.

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