How this calculator works
Short-term gains (one year or less) are taxed as ordinary income on top of your other income. Long-term gains stack on top of your taxable income and are taxed at 0%, 15% or 20% depending on where they fall in the 2026 thresholds. The 3.8% net investment income tax applies above $200,000 of income ($250,000 married filing jointly).
Worked example
With the example values below: Estimated tax on the gain, $2,250 (15.0% effective rate). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Purchase price (cost basis) | $20,000 |
| Sale price | $35,000 |
| Held for | More than one year |
| Filing status | Single |
| Taxable income, excluding this sale | $90,000 |
How long-term gains stack on your income
Long-term gains are taxed after your ordinary income fills the brackets. If you're single with $40,000 of taxable income and a $20,000 long-term gain, the first $9,450 of the gain falls under the $49,450 threshold and is taxed at 0%; the remaining $10,550 is taxed at 15%.
That stacking is why some retirees and lower earners can sell investments with little or no federal tax.
Special cases
- Collectibles such as art, coins and precious metals: long-term gains taxed at up to 28%.
- Real estate depreciation recapture: up to 25% on gains from depreciation previously deducted.
- Main home: up to $250,000 of gain ($500,000 married filing jointly) excluded if you owned and lived in it two of the last five years.
- Inherited assets: cost basis steps up to the value at death, which often erases the gain.
Ways to lower capital gains tax
Hold for more than a year, harvest losses to offset gains, give appreciated shares to charity instead of cash, and time sales in years when your income is lower. Holding growth investments in a Roth IRA or 401(k) avoids yearly tax entirely. The stock profit calculator gives the gain to plug in here.
Frequently asked questions
What is the capital gains tax rate for 2026?
Long-term gains are taxed at 0%, 15% or 20%. In 2026 the 0% rate applies up to $49,450 of taxable income for single filers ($98,900 married filing jointly), and 20% applies above $545,500 ($613,700 married filing jointly). Short-term gains are taxed at your ordinary income rate.
What's the difference between short-term and long-term capital gains?
It depends on how long you held the asset. Sold after one year or less, the gain is short-term and taxed like wages. Held more than one year, it's long-term and qualifies for the lower 0%, 15% or 20% rates.
How can I reduce capital gains tax?
Hold investments for more than a year, offset gains with losses (up to $3,000 of net losses a year can also offset ordinary income), and invest through tax-advantaged accounts such as a 401(k) or IRA. Profit on selling your main home is excluded up to $250,000 ($500,000 married filing jointly) if you meet the ownership and use tests.
How do I calculate capital gains tax?
Subtract your cost basis from the sale proceeds. Short-term gains are added to your income and taxed at ordinary rates; long-term gains are taxed at 0%, 15% or 20% depending on where they fall above your other taxable income, plus 3.8% NIIT for high earners.
Do I pay capital gains tax if I reinvest?
Yes, in a taxable account. Selling and reinvesting still realizes the gain. Trades inside IRAs and 401(k)s aren't taxed until withdrawal, or at all in a Roth.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.