Capital Gains Tax Calculator

A capital gain is the profit you earn when you sell an asset — such as stocks, bonds, or real estate — for more than you paid for it. The gain is calculated as the sale price minus your original purchase price (cost basis). Only realized gains (from completed sales) are subject to capital gains tax.

Short-term capital gains apply to assets sold within one year of purchase and are taxed at your ordinary income tax rate, which can range from 10% to 37%. Long-term capital gains apply to assets held for more than one year and are taxed at preferential rates of 0%, 15%, or 20%, depending on your income and filing status. Holding an investment longer can significantly reduce your tax bill.

Long-term capital gains tax rates for 2025 are 0%, 15%, or 20%, depending on your taxable income and filing status. Short-term gains are taxed as ordinary income at rates from 10% to 37%. High-income earners may also owe an additional 3.8% Net Investment Income Tax (NIIT) on investment gains.

You generally owe capital gains tax when you sell a property for more than you paid for it. However, homeowners may exclude up to $250,000 of gain ($500,000 for married couples filing jointly) if they owned and lived in the home as their primary residence for at least 2 of the last 5 years. Investment properties do not qualify for this exclusion.

Common strategies include holding assets for more than one year to qualify for lower long-term rates, using tax-advantaged accounts like IRAs or 401(k)s, harvesting capital losses to offset gains, donating appreciated assets to charity, or timing sales in lower-income years. Consulting a financial advisor can help you choose the best approach for your situation.

Yes. The income thresholds for each long-term capital gains tax rate (0%, 15%, 20%) differ based on whether you file as single, married filing jointly, married filing separately, or head of household. Married couples filing jointly generally benefit from higher income thresholds before moving into a higher rate bracket.

Yes, in most states. Many states tax capital gains as ordinary income, while a few states like Florida, Texas, and Washington have no state income tax. State capital gains tax rates can range from 0% to over 13%. This calculator focuses on federal capital gains tax only.

The NIIT is an additional 3.8% federal tax on net investment income — including capital gains — for taxpayers whose modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly). It applies on top of the regular capital gains tax rate.