Capital Gains Tax Calculator
Estimate US federal tax on a capital gain for 2026, and compare long-term and short-term results.
Results
| Item | Value |
|---|
Quick Answer
Long-term gains on assets held over a year are taxed at 0%, 15% or 20%. For 2026, a single filer pays 0% up to $49,450 of taxable income, 15% up to $545,500, and 20% above that. With $60,000 of taxable income, a $20,000 long-term gain costs $3,000 in federal tax.
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Table of Contents
- Capital Gains Tax Calculator
- Quick Answer
- Related Calculators
- How This Capital Gains Tax Calculator Works
- How to Use the Capital Gains Tax Calculator
- 2026 Thresholds and Formulas
- Worked Example
- Real-Life Examples
- Long-Term vs Short-Term Capital Gains
- 2026 Long-Term Tax on a $20,000 Gain
- What This Estimate Leaves Out
- Common Mistakes to Avoid
- Frequently Asked Questions
- References & Sources
How This Capital Gains Tax Calculator Works
A capital gain is the profit from selling an asset for more than you paid. Long-term gains stack on top of your other taxable income, so part of a gain can fall into one rate and the rest into another. This calculator splits the gain across each rate.
Quick explanation: tax = gain at 0% + gain at 15% + gain at 20%.
- Taxable income: your income after deductions, before this gain.
- Long-term: held for more than one year.
- Short-term: held for one year or less, taxed as ordinary income.
How to Use the Capital Gains Tax Calculator
- Choose your filing status.
- Enter your taxable income before the gain, after deductions.
- Enter the gain: the sale price minus what you paid, including fees.
- Enter your ordinary tax rate to compare a short-term sale.
- Press Calculate to see the long-term tax, the short-term tax and how the gain splits across the 0%, 15% and 20% rates.
2026 Thresholds and Formulas
| Filing status | 0% up to | 15% up to |
|---|---|---|
| Single | $49,450 | $545,500 |
| Married filing jointly | $98,900 | $613,700 |
| Married filing separately | $49,450 | $306,850 |
| Head of household | $66,200 | $579,600 |
Income above the 15% limit is taxed at 20%. The gain sits on top of your other taxable income when these limits are applied.
Worked Example
A married couple filing jointly has $80,000 of taxable income and a $40,000 long-term gain.
- $18,900 fills the space up to $98,900, taxed at 0%
- The other $21,100 is taxed at 15%, which is $3,165
- Total long-term tax = $3,165
Real-Life Examples
- Waiting a few weeks: a single filer with $60,000 of taxable income sells shares for a $20,000 gain after 11 months. At a 22% ordinary rate, that is about $4,400. Waiting until the shares are held over a year cuts it to $3,000.
- A retiree with low income: a single filer with $30,000 of taxable income and a $15,000 long-term gain pays $0, because the whole gain fits under the 0% limit.
- Selling your home: you may exclude up to $250,000 of gain ($500,000 for married couples filing jointly) on a main home if you meet the ownership and use tests.
- Offsetting with losses: capital losses reduce gains. If losses are bigger, up to $3,000 a year ($1,500 if married filing separately) can offset other income.
Long-Term vs Short-Term Capital Gains
- Holding period: long-term means held for more than one year. Short-term is one year or less.
- Tax rate: long-term gains use 0%, 15% or 20%. Short-term gains use your ordinary income tax rates, up to 37%.
- Planning: waiting past the one-year mark can lower the tax on a sale, but prices can change while you wait.
2026 Long-Term Tax on a $20,000 Gain
Federal tax only, before state tax and the net investment income tax.
| Taxable income before gain | Single | Married filing jointly |
|---|---|---|
| $20,000 | $0 | $0 |
| $40,000 | $1,582 | $0 |
| $60,000 | $3,000 | $0 |
| $100,000 | $3,000 | $3,000 |
| $200,000 | $3,000 | $3,000 |
| $540,000 | $3,725 | $3,000 |
| $610,000 | $4,000 | $3,815 |
What This Estimate Leaves Out
- State tax: many states also tax capital gains.
- Net investment income tax: this can apply at higher incomes.
- Losses: capital losses can offset gains.
- Special rules: collectibles, some real estate gains and home sales have their own rules.
Common Mistakes to Avoid
- Using gross income. The limits use taxable income, after deductions.
- Forgetting the cost basis. Include purchase fees and reinvested dividends in what you paid.
- Selling one day too early. Long-term starts after more than one year of holding.
- Ignoring state tax. Many states tax capital gains as ordinary income.
- Missing the 3.8% surtax. The net investment income tax can apply above $200,000 of income for single filers and $250,000 for married couples filing jointly.
Frequently Asked Questions
Long-term rates are 0%, 15% and 20%, depending on your taxable income and filing status.
More than one year. Assets held for one year or less are short-term.
They are taxed as ordinary income, at your normal tax rates.
Yes, on the part of your gain that falls under the 0% limit. For a single filer in 2026, that limit is $49,450 of taxable income.
No. It estimates federal tax only.
It is an extra 3.8% federal tax on investment income for people with modified adjusted gross income above $200,000 (single) or $250,000 (married filing jointly).
Often not, if it is your main home and the gain is below $250,000 ($500,000 for joint filers) and you meet the IRS ownership and use tests.
Losses first offset gains. Up to $3,000 of extra net loss a year can reduce other income, and the rest carries forward.
References & Sources
| Source | Used For | Link |
|---|---|---|
| IRS, Rev. Proc. 2025-32 (Internal Revenue Bulletin 2025-45) | 2026 capital gains thresholds. | https://www.irs.gov/irb/2025-45_IRB |
| IRS, Topic no. 409, Capital gains and losses | Long-term and short-term rules. | https://www.irs.gov/taxtopics/tc409 |