Calculate Your Capital Gains Tax
Selling an investment at a profit triggers capital gains tax. The rate depends on how long you held it - short-term gains are taxed as ordinary income, long-term gains have their own lower brackets. This calculator shows your estimated tax.
Short-Term vs Long-Term Capital Gains
| Holding Period | Tax Treatment | 2026 Rate |
|---|---|---|
| Under 1 year (short-term) | Ordinary income brackets | 10-37% |
| Over 1 year (long-term) | Preferential brackets | 0%, 15%, or 20% |
2026 Long-Term Capital Gains Brackets
| Rate | Single Filer Income | Married Filing Jointly |
|---|---|---|
| 0% | Up to $48,350 | Up to $96,700 |
| 15% | $48,351 - $533,400 | $96,701 - $600,050 |
| 20% | Above $533,400 | Above $600,050 |
Additional Tax: Net Investment Income Tax
High earners pay an extra 3.8% NIIT on investment income above $200,000 (single) or $250,000 (married).
Worked Example: $10,000 Gain Held 2 Years
- Purchase: $20,000 stock
- Sale: $30,000
- Gain: $10,000
- Holding period: 2 years (long-term)
- Filing status: Single, $60,000 income
- Tax bracket: 15%
- Tax owed: $1,500
How to Reduce Capital Gains Tax
- Hold investments over 1 year for long-term rates
- Use tax-advantaged accounts (401k, IRA, HSA)
- Harvest losses to offset gains
- Donate appreciated stock to charity
- Time sales in low-income years
- Take advantage of the 0% bracket if income is low
Frequently Asked Questions
What is the capital gains tax rate for 2026?
Short-term: your ordinary income bracket. Long-term: 0%, 15%, or 20% depending on income.
Do I pay tax on a house sale?
Primary residence gains up to $250,000 (single) or $500,000 (married) are excluded if you lived there 2+ years.
How are crypto gains taxed?
As capital gains - short-term if held under a year, long-term if over a year.
What is tax-loss harvesting?
Selling investments at a loss to offset gains. You can deduct up to $3,000 in net losses per year against ordinary income.
Do I report every stock trade?
Yes. Every sale is a taxable event, reported on Schedule D and Form 8949.
What is the wash sale rule?
If you sell at a loss and rebuy within 30 days, the loss is disallowed. Wait 31 days to repurchase.