Finance
Capital Gains Tax Calculator
Short-term gains are taxed as ordinary income; long-term gains get preferential 0%, 15%, or 20% rates that stack on top of your other taxable income. Estimate the tax on a sale here.
Quick answer: Assets held over a year get long-term rates of 0%, 15%, or 20%; assets held a year or less are taxed at your ordinary income rate.
How it works
1. Determine your holding period
Find how long you owned the asset before selling. Held one year or less, the gain is short-term and taxed as ordinary income at your regular bracket (up to 37%). Held more than one year, it is long-term and qualifies for preferential rates.
2. Apply the long-term rate brackets
Long-term capital gains are taxed at 0%, 15%, or 20% depending on your taxable income. Many middle-income filers fall in the 15% band, while the 0% rate covers lower incomes and 20% applies only at the highest income levels. The brackets stack on top of your ordinary income.
3. Factor in basis and extra taxes
Your gain is the sale price minus your cost basis (purchase price plus improvements and certain fees). High earners may also owe the 3.8% Net Investment Income Tax on top of the capital-gains rate. The calculator estimates the tax so you can plan the timing of a sale.
Frequently asked questions
What's the difference between short- and long-term gains?
Assets held one year or less produce short-term gains taxed at your ordinary income rate. Assets held more than a year get long-term rates of 0%, 15%, or 20% depending on income.
How are long-term capital gains taxed?
The gain stacks on top of your ordinary taxable income, and the portion falling in each long-term bracket is taxed at that bracket's rate (0/15/20%). The calculator handles the stacking for you.
Is this calculator exact?
It's a 2026 planning estimate using projected brackets. It doesn't include the 3.8% net investment income tax or state tax. Confirm with a CPA for a real sale.