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Calculator Answers

Capital Gains Tax Calculator

Blake Boege
Written by Blake Boege · Founder, Calculator Answers

Capital gains tax is a levy assessed on the profit realized from the sale of a non-inventory asset, such as stocks, bonds, or real estate. A capital gains tax calculator estimates the tax liability owed on investment profits by applying federal and state tax rates. It distinguishes between short-term capital gains, which are taxed at ordinary income rates, and long-term capital gains, which benefit from lower preferential rates. Investors and financial planners use this tool to estimate tax obligations and optimize the timing of asset sales.

Enter purchase price, sale price, holding period, filing status, your other taxable income, and an optional state rate. The calculator returns the gain, its classification, the estimated federal capital gains tax, optional state tax, and after-tax proceeds.

Quick Answer

Estimate federal and state taxes owed on your investment profits. Enter your purchase price, selling price, holding period, and filing status.

$

e.g. 10,000

$

e.g. 18,000

Holding period
Filing status
$

Used to find your bracket; capital gain stacks on top. · e.g. 80,000

%

Many states tax capital gains at ordinary rates. Set to 0 for no state estimate. · e.g. 0

About this estimate

Long-term capital gains use 2025 federal LTCG brackets (0/15/20%). Short-term gains are taxed as ordinary income using 2025 federal income tax brackets. The gain is stacked on top of your other taxable income to find the marginal bracket. The Net Investment Income Tax (3.8% NIIT) is not modeled.

Tax estimate only. Not tax, legal, or financial advice. Real returns include carryover losses, AMT, basis adjustments, and state-specific treatment.

Estimated capital gains tax

Total estimated tax

$1,200.00

Gain $8,000.00 (long-term)

Capital gain (loss)$8,000.00
ClassificationLong-term (>1 year)
Federal capital gains tax$1,200.00
Effective federal rate on gain15%
State tax$0.00
Total estimated tax$1,200.00
After-tax sale proceeds$16,800.00

Short-term gains stack on top of ordinary income at marginal brackets. Long-term gains use the preferential 0/15/20% bracket system. Many states tax capital gains the same as ordinary income; a few (Washington, Nevada, et cetera) do not tax them at all.

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Examples

$10k → $18k · long-term · single · $80k income · 0% state

Gain $8k · fed tax ≈ $1,200

$10k → $18k · short-term · single · $80k income · 0% state

Gain $8k · fed tax ≈ $1,920 (24%)

$50k → $100k · long-term · married jointly · $200k income · 5% state

Gain $50k · total tax ≈ $10,000

$10k → $9k · long-term

Capital loss; no tax (loss may offset other gains)

How it works

The basic math is gain = sale − basis. The tax depends on whether the gain is long-term or short-term and where it falls in the federal bracket structure once stacked on top of other income.

Gain · sale_price − purchase_price

Long-term · stack gain on income; apply 0/15/20% LTCG brackets

Short-term · stack gain on income; apply ordinary 10-37% brackets

Net Investment Income Tax (3.8% NIIT) above the income threshold and state-specific treatment are not modeled.

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Disclaimer. Tax estimate only. Does not model basis adjustments, wash-sale rules, AMT, NIIT, carryover losses, or state-specific treatment. Not tax, legal, or financial advice. Consult a tax professional before acting on the output.

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Frequently asked questions

An asset held more than one year before sale produces a long-term capital gain, taxed at the preferential 0%, 15%, or 20% federal rate. An asset held one year or less produces a short-term capital gain, taxed as ordinary income at your marginal federal rate (10% up to 37%). The same dollar gain can be taxed very differently depending on holding period.

The 0/15/20% LTCG rates are bracketed by total taxable income (ordinary income plus the long-term gain). For 2026, per IRS Revenue Procedure 2025-32 section .03: single filers pay 0% on long-term capital gains up to $49,450 of total taxable income, 15% up to $545,500, and 20% above. The 2025 figures, which this page carried until 22 August 2026, were $48,350 and $533,400 from Revenue Procedure 2024-40, so check which year a figure belongs to before using it. Brackets are higher for married filing jointly and head of household. The calculator stacks the gain on top of your other taxable income.

Cost basis is what you paid for the asset, adjusted for any commissions, reinvested dividends, or other basis adjustments. For most stocks, basis is purchase price plus brokerage commission. For real estate, basis includes the purchase price plus capital improvements and certain closing costs. Your broker or the IRS Form 8949 reporting documents are the official source.

The NIIT is an additional 3.8% federal tax on investment income (including capital gains) for higher-income taxpayers. It applies when modified AGI exceeds $200,000 (single) or $250,000 (married jointly). This calculator does not model NIIT to keep the math simple; high-income filers should add it manually if it applies.

Most states tax capital gains the same as ordinary income at their state income tax rates. A few states (Washington, with the new 7% LTCG tax, and certain bracket arrangements in others) treat them specially, and several states (Texas, Florida, Nevada, et cetera) do not tax personal income at all. Enter your state's effective capital-gains tax rate as a percent; the calculator applies it to the gain.

Yes, but with limits. Capital losses first offset capital gains of the same type, then offset gains of the other type, then up to $3,000 per year offsets ordinary income (single or married jointly). Excess losses carry forward to future years. This calculator does not model loss carryovers; enter the net gain or a 0 sale value if the position is at a loss.

No. This is a planning estimate. Real capital-gains tax depends on basis adjustments, wash-sale rules, holding-period nuances, AMT, NIIT, state-specific treatment, and carryover losses. Consult a tax professional before making decisions based on the output.