Calculate your tax liability on investment profits. Estimate Short Term (STCG) and Long Term Capital Gains (LTCG).
Calculate Short Term and Long Term Capital Gains.
The Capital Gains Calculator is an essential tool for investors, traders, and anyone selling appreciated assets in 2026. Capital gains tax applies when you sell an investment or asset for more than you originally paid—affecting stocks, bonds, mutual funds, ETFs, real estate, cryptocurrency, collectibles, and other property. Understanding your potential tax liability before selling can help you make smarter decisions about timing, asset selection, and tax-efficient investing strategies.
The U.S. tax code distinguishes between short-term and long-term capital gains based on how long you held the asset. Short-term gains (assets held one year or less) are taxed at your ordinary income rate, which can be as high as 37%. Long-term gains (assets held more than one year) receive preferential tax treatment with rates of 0%, 15%, or 20% depending on your income. This significant difference makes holding period planning one of the most powerful tax strategies available to investors.
Beyond federal taxes, many states impose their own capital gains taxes, and high earners may owe an additional 3.8% Net Investment Income Tax (NIIT). This calculator helps you estimate your total capital gains, applicable tax rates, and net proceeds after taxes—giving you the complete picture before you execute a sale.
Selling Price = Total proceeds from the sale (after broker commissions)
Purchase Price (Cost Basis) = Original purchase price + acquisition costs
Expenses = Transaction fees, commissions, legal fees, transfer costs
Your cost basis may include reinvested dividends, stock splits, and capital improvements (for real estate). Keep detailed records to maximize your basis and minimize taxable gains.
Tax rates vary significantly based on holding period and income level:
| Type | Tax Rate | Holding Period | Income Threshold (Single) |
|---|---|---|---|
| Short-Term | 10% - 37% | ≤ 1 year | Taxed as ordinary income |
| Long-Term (0%) | 0% | > 1 year | Up to $47,025 |
| Long-Term (15%) | 15% | > 1 year | $47,026 - $518,900 |
| Long-Term (20%) | 20% | > 1 year | Over $518,900 |
| NIIT (Additional) | +3.8% | Any | MAGI over $200,000 |
Note: Collectibles (art, coins, antiques) are taxed at a maximum 28% rate. Qualified small business stock may qualify for exclusions under Section 1202.
Capital gains rules apply to virtually all investment property:
❌ Not tracking your cost basis: Keep records of purchase prices, reinvested dividends, and stock splits. Without accurate basis, you may overpay taxes significantly.
❌ Ignoring holding period: Selling one day before the one-year mark triggers short-term rates instead of long-term rates—potentially doubling your tax bill.
❌ Forgetting wash sale rules: If you sell at a loss and repurchase the same or substantially identical security within 30 days, the loss is disallowed for tax purposes.
❌ Missing state taxes: States like California tax capital gains as ordinary income (up to 13.3%). Factor in state taxes for accurate planning.
❌ Not harvesting losses: Realized losses can offset gains dollar-for-dollar, plus up to $3,000 of ordinary income annually, with unlimited carryforward.
| Strategy | How It Works | Best For |
|---|---|---|
| Tax-Loss Harvesting | Sell losing investments to offset gains | Active investors with mixed performance |
| 1031 Like-Kind Exchange | Defer gains by reinvesting in similar property | Real estate investors |
| Qualified Opportunity Zones | Invest gains in designated areas for deferral | Long-term investors with significant gains |
| Charitable Giving | Donate appreciated assets to avoid gains + get deduction | Philanthropic investors |
| Specific Identification | Choose which shares to sell (highest cost first) | Investors with multiple purchase lots |
| Installment Sales | Spread gain recognition over multiple tax years | Large one-time asset sales |
Sources & Disclaimer: Tax rates and thresholds based on IRS Publication 550 (Investment Income and Expenses) and IRS Topic No. 409 (Capital Gains and Losses). 2026 brackets reflect inflation adjustments per IRS Revenue Procedure. State taxes vary; consult your state's tax authority for specific rates. This calculator provides estimates for educational purposes only and does not constitute tax advice. Consult a qualified tax professional for personalized guidance. Calculator updated January 2026.
To calculate capital gains tax, use the formula: Capital Gain = Selling Price - Purchase Price - Expenses (commissions, fees, improvements). For short-term gains (assets held under 1 year), apply your ordinary income tax rate (10-37%). For long-term gains (held over 1 year), apply preferential rates of 0%, 15%, or 20% based on your taxable income bracket. Don't forget to factor in state capital gains taxes, which vary by state.
Short-term capital gains apply to assets held for one year or less and are taxed at ordinary income rates (10% to 37% in 2026). Long-term capital gains apply to assets held for more than one year and receive preferential tax rates: 0% for income up to $47,025 (single filers), 15% for income between $47,026 and $518,900, and 20% for income above $518,900. The holding period starts the day after you acquire the asset and ends on the day you sell it.
Legal strategies to minimize capital gains tax include: (1) Hold assets for over 1 year to qualify for lower long-term rates, (2) Use tax-loss harvesting to offset gains with investment losses, (3) Utilize 1031 like-kind exchanges for real estate investments, (4) Invest in Qualified Opportunity Zones to defer and reduce gains, (5) Maximize contributions to tax-advantaged accounts like 401(k)s and IRAs, (6) Gift appreciated assets to charity for a deduction, (7) Use specific identification method for cost basis to sell highest-cost shares first.