Capital Gains Tax Calculator - Calculate Investment Tax
Free capital gains tax calculator to determine your tax liability on investment gains. Calculate short-term and long-term capital gains tax based on your income level and holding period.
Capital Gains Tax Calculator
Results
What is Capital Gains Tax?
Capital gains tax is levied on the profit you make when selling an investment or asset for more than you paid for it. Understanding how it works helps you make better investment decisions and plan your tax strategy.
This calculator helps with:
- Investment planning - Calculate tax impact before selling assets
- Tax strategy - Compare short-term vs long-term holding periods
- Portfolio management - Optimize timing of asset sales
- Real estate - Calculate tax on property sales
- Retirement planning - Plan tax-efficient withdrawals
If you're planning your investments and want to see potential growth over time, you can use our Investment Calculator to project future values based on your contributions and expected returns.
For evaluating the profitability of your investments, try our Return on Investment Calculator to calculate the percentage return and assess the efficiency of your capital.
To ensure you're on track for a comfortable retirement, consider using our investment and savings calculators to help plan your financial future.
Short-Term vs Long-Term Capital Gains
Short-Term (≤1 year)
Taxed as ordinary income at your regular tax rate (up to 37%).
Long-Term (>1 year)
Preferential tax rates: 0%, 15%, or 20% based on income.
2024 Long-Term Capital Gains Rates
0% Rate
Single: Up to $47,025 | Married: Up to $94,050
15% Rate
Single: $47,026-$518,900 | Married: $94,051-$583,750
20% Rate
Single: Over $518,900 | Married: Over $583,750
How to Use This Calculator
Enter Purchase Price
Original amount paid for the investment or asset
Enter Sale Price
Amount received when selling the asset
Enter Annual Income
Your total taxable income to determine tax bracket
Select Holding Period
Choose short-term or long-term holding period
Choose Filing Status
Select your tax filing status for accurate rates
Get Tax Results
View tax liability and net proceeds after tax
Tax Planning Strategies
- • Hold Long-Term: Keep investments over 1 year for preferential rates.
- • Tax-Loss Harvesting: Offset gains with losses to reduce tax.
- • Income Timing: Sell during lower-income years for better rates.
- • Charitable Giving: Donate appreciated assets to avoid tax.
- • Asset Location: Use tax-advantaged accounts for frequent trading.
Understanding Your Results
Capital Gain/Loss
Profit or loss from sale (Sale Price - Purchase Price).
Tax Rate
Applicable rate based on holding period and income level.
Capital Gains Tax
Actual tax owed on your capital gain.
Net Proceeds
Amount you keep after paying capital gains tax.
Important Tax Disclaimer
This calculator provides estimates for EDUCATIONAL PURPOSES ONLY. It is not professional tax advice and should not be relied upon as a substitute for consulting with a qualified tax professional or certified public accountant (CPA).
- US Tax Law Only: This calculator applies 2024 US Federal tax rates and only covers federal taxes. It does not account for state or local taxes, which can significantly increase your tax liability.
- Limitations: This calculator does not account for Alternative Minimum Tax (AMT), Net Investment Income Tax (NIIT), state-specific rules, or other special circumstances.
- Estimates Only: Actual tax liability may differ based on your specific situation, other income sources, deductions, and recent tax law changes.
- Annual Updates: Tax rates and brackets change annually. Always verify current rates with the IRS or a tax professional.
- Consult a Professional: For investment decisions with significant tax implications, please consult with a qualified tax advisor.
Last Updated: December 2024 | For: 2024 US Federal Tax Year | Visit IRS.gov for Official Information
Capital Gains Tax Examples
✓ Long-Term Capital Gain
Purchase: Stock for $10,000 (Jan 2022)
Sale: $15,000 (Mar 2025) - Held 3+ years
Gain: $5,000
Tax Rate: 15% (long-term)
Tax Owed: $750
⚠️ Short-Term Capital Gain
Purchase: Bitcoin for $30,000 (Dec 2024)
Sale: $45,000 (Jan 2025) - Held 1 month
Gain: $15,000
Tax Rate: Ordinary income (24% bracket)
Tax Owed: $3,600 (much higher!)
📊 Real Estate Sale
Home Purchased: $300,000 (2015)
Home Sold: $450,000 (2024)
Gain: $150,000
Exclusion (married): $500,000
Taxable Gain: $0 (Covered by exclusion!)
Long-Term vs Short-Term Rates
Long-Term (Held 1+ Years)
0% Rate: Income up to $47,025 (single)
15% Rate: Income $47,026 - $518,900
20% Rate: Income over $518,900
2024 rates; subject to change
Short-Term (Held < 1 Year)
Your tax bracket applies: 10% to 37%
10% bracket: $0 - $11,600
24% bracket: $93,376 - $193,375
37% bracket: $578,100+
💡 Legal Tax Saving Strategies
Tax Loss Harvesting
Sell losing investments to offset gains. $3,000 of losses can offset ordinary income annually.
Hold for 1+ Years
Long-term gains taxed at 0%, 15%, or 20%. Short-term gains taxed as ordinary income (up to 37%).
Strategic Timing
Realize gains in lower-income years. Spread large gains across multiple tax years if possible.
Charitable Donations
Donate appreciated securities directly to charity. Avoid capital gains tax entirely while getting deduction.
Wash Sale Rule
Can't repurchase same/similar security within 30 days of selling at loss. Plan timing carefully.
Step-Up Basis
Assets inherited get "stepped up" to current value. Heirs avoid capital gains tax on appreciation.
Frequently Asked Questions (FAQ)
Q: What's the difference between short-term and long-term gains?
A: Short-term gains (≤1 year) are taxed as ordinary income. Long-term gains (>1 year) have preferential rates of 0%, 15%, or 20%.
Q: Can I offset gains with losses?
A: Yes, capital losses offset gains dollar-for-dollar. Excess losses can offset up to $3,000 of ordinary income annually.
Q: Are there any exemptions?
A: Primary residence sales can exclude up to $250,000 (single) or $500,000 (married) if you lived there 2 of the last 5 years.
Q: When is capital gains tax due?
A: Tax is due when you sell an asset for more than you paid. It must be reported on your tax return for the year of sale.
Q: What about state taxes?
A: This calculator only shows federal tax. Many states also impose capital gains taxes, increasing your total liability.
Q: What is the Net Investment Income Tax?
A: High earners pay an additional 3.8% NIIT on capital gains. Applies to single filers over $200,000 or married over $250,000.