Capital Gains Tax Calculator
Estimate your capital gains tax for 2025 or 2024. Enter your ordinary income and investment gains to see your short-term tax, long-term capital gains rate (0%, 15%, or 20%), and Net Investment Income Tax (NIIT).
Total Tax
$15,449LTCG Tax Rate
15.00%NIIT (3.8%)
$0Effective Rate
12.36%Your 12.4% effective rate is below the national median of 15.6% for incomes $100k–$150k.
Based on IRS Statistics of Income data. Individual results vary.
Why this number?
For your income range ($100k–$150k), the national median effective rate is 15.6%. Your rate is 3.2pp below the median.
| Ordinary Income | $75,000 |
| Short-Term Capital Gains | $0 |
| Long-Term Capital Gains | $50,000 |
| Total Income | $125,000 |
| Federal Income Tax (ordinary + short-term) | $7,949 |
| Long-Term Capital Gains Tax (15.00%) | $7,500 |
| Net Investment Income Tax (NIIT, 3.8%) | $0 |
| Total Tax | $15,449 |
For a complete breakdown of 2026 rates and thresholds, see our 2026 capital gains tax rates guide. Also check our NIIT calculator and tax-loss harvesting calculator.
How capital gains tax works
US capital gains tax is governed by IRC §1(h) and reported on Schedule D (with line-item detail on Form 8949). The system splits gains by holding period: assets held ONE YEAR OR LESS produce short-term gains taxed at ordinary rates (10%/12%/22%/24%/32%/35%/37%), while assets held LONGER than one year produce long-term gains taxed at preferential 0%, 15%, or 20% rates.
The holding period starts the day AFTER acquisition and includes the date of sale. For inherited assets, IRC §1223(9) automatically treats the holding period as long-term regardless of how briefly the beneficiary held the asset. Gifted assets carry over the donor's holding period. For stock, the "first-in, first-out" (FIFO) default applies unless you specifically identify shares — the IRS Publication 550 "Investment Income and Expenses" covers the details.
Three additional layers can stack on top of the base 0/15/20% LTCG rate for high-income filers: the 3.8% Net Investment Income Tax (§1411, threshold $200,000 single / $250,000 MFJ), state capital gains tax (varies widely from 0% in nine states to 13.3% in California), and special asset-class adjustments — 28% on collectibles and §1202 QSBS-ineligible gain, 25% on unrecaptured §1250 depreciation.
2024 → 2026 long-term capital gains brackets
The LTCG bracket boundaries are indexed for inflation each year via IRS revenue procedure. The 20% top rate has been unchanged since the American Taxpayer Relief Act of 2012 — only the threshold creep up.
| Filing status | 2024 (0% / 15% break) | 2025 (0% / 15% break) | 2026 (0% / 15% break) |
|---|---|---|---|
| Single | $47,025 / $518,900 | $48,350 / $533,400 | $49,450 / $545,500 |
| Married Filing Jointly | $94,050 / $583,750 | $96,700 / $600,050 | $98,900 / $613,700 |
| Head of Household | $63,000 / $551,350 | $64,750 / $566,700 | $66,200 / $579,600 |
| Married Filing Separately | $47,025 / $291,850 | $48,350 / $300,025 | $49,450 / $306,850 |
The 20% top rate applies above the 15% threshold. NIIT 3.8% stacks on top whenever MAGI exceeds $200,000 single / $250,000 MFJ — that threshold has been frozen at the 2013 ACA enactment level. Sources: Rev. Proc. 2023-34 (2024), Rev. Proc. 2024-40 §3.03 (2025), Rev. Proc. 2025-32 §3.03 (2026).
Special asset-class rates
Three asset categories carry rates DIFFERENT from the standard 0/15/20% LTCG schedule:
Collectibles — 28% max
IRC §1(h)(4) caps the LTCG rate on collectibles at 28%. Includes art, rugs, antiques, gems, stamps, coins, alcoholic beverages held as investment, and physical precious metals. Gold/silver ETFs structured as grantor trusts (GLD, SLV) ALSO trigger the 28% rate because the holder is treated as owning the underlying metal. Index funds and mining-stock funds use the regular 0/15/20% rates.
Unrecaptured §1250 — 25% max
When you sell depreciated real estate, the portion of gain attributable to prior depreciation deductions ("unrecaptured §1250 gain") is taxed at up to 25%. The remaining gain follows regular LTCG rates. Reported on the Schedule D unrecaptured §1250 worksheet. Critical for landlords selling rental property — depreciation taken along the way comes back as a separate 25% tax tier on sale.
QSBS §1202 — 100% exclusion
For Qualified Small Business Stock acquired after 2010 and held 5+ years, IRC §1202 excludes up to the GREATER of $10M or 10× basis from gain — entirely federal-tax-free. State conformity varies (CA does NOT conform). Strict requirements: C-corp, <$50M assets at issuance, qualified trade or business. Reported on Form 8949 with code "Q" and Schedule D.
Five worked 2025 examples
All numbers use 2025 brackets (Rev. Proc. 2024-40) and the standard deduction at 2025 levels. The calculator above runs your exact inputs; these scenarios illustrate the bracket-stacking mechanics.
Retiree, single, $30k ordinary + $50k LTCG
Taxable ordinary income after standard deduction (~$48,350 top of 0% bracket): ~$14k. LTCG fills up to $48,350 at 0%, then the rest at 15%. $0 federal LTCG tax on most of the $50k; small amount at 15%.
MFJ, $150k W-2 + $100k LTCG
Taxable ordinary ≈ $118k. LTCG stacks above — first portion to $96,700 at 0% if ordinary is below; here ordinary already exceeds, so full $100k LTCG taxed at 15%. $15,000 LTCG tax. No NIIT (under $250,000).
High-income single, $400k W-2 + $200k LTCG
Ordinary income above $48,350, below $533,400. All $200k LTCG taxed at 15% = $30k. NIIT 3.8% on lesser of $200k NII or ($600k MAGI − $200,000) = $200k. NIIT = $7,600. Total tax on the $200k LTCG: $37,600 (18.8% effective).
Ultra-high income, $1M ordinary + $500k LTCG
Ordinary income exceeds $533,400, so all $500k LTCG taxed at 20% = $100k. NIIT 3.8% on lesser of $500k NII or excess MAGI = $500k. NIIT = $19,000. Total tax on the $500k LTCG: $119,000 (23.8% effective) — plus state if applicable.
Primary home sale, MFJ, $700k gain
$500k excluded under §121 (lived in 2/5 last). Remaining $200k taxable LTCG. With $120k ordinary income, the $200k stacks at 15%. LTCG tax: $30,000. No NIIT (under $250,000 threshold). All $200k is long-term because home was owned >1 year.
Short-term flip, $40k gain
Sold day 360 — short-term. Added to $90k W-2 → $130k AGI. The $40k short-term gain is taxed entirely at the 24% marginal bracket. Tax: ~$9,600 vs $6,000 if held one more week to long-term — a $3,600 timing cost.
Planning levers to reduce capital gains tax
- Hold over 12 months. The single biggest lever. Short-term gains taxed at up to 37% vs long-term at up to 20% — a difference of up to 17 percentage points. Check your purchase date before selling near the one-year mark.
- Tax-loss harvesting. Realize losses to offset realized gains, then up to $3,000/year against ordinary income. Watch the §1091 wash-sale rule (30-day window). The /tax-loss-harvesting-calculator/ models the value; /wash-sale-calculator/ handles the trap.
- Specific-share identification. When selling part of a position, identify the highest-basis lots to minimize gain. Your broker requires written instruction — many default to FIFO which often realizes the largest gain. Confirm on the trade confirmation.
- Bunch gains into low-income years. The 0% LTCG bracket $48,350 single / $96,700 MFJ creates an annual "free harvest" window. Retirees between job exit and Social Security claim often have artificially low ordinary income — realize gains to flush them up to the 0% threshold.
- Charitable donation of appreciated stock. Donate long-term-held appreciated shares directly to a §501(c)(3) charity or Donor-Advised Fund — you skip the capital gains tax AND deduct the full FMV (subject to 30%-of-AGI cap for appreciated-property gifts). Cleaner than sell-then-donate which realizes the gain.
- §1031 like-kind exchange (real estate). Defer all gain by rolling proceeds into replacement real property. 45-day identification, 180-day close, qualified intermediary required. Useful for landlords trading up; gain is deferred until eventual cash-out.
- Step-up at death. §1014 erases all unrealized gain at death. For taxpayers 70+ with highly appreciated low-basis stock, holding until death may be preferred over selling and paying 20% + 3.8% NIIT + state. Estate planning trade-off vs §2010 lifetime exemption ($15M under OBBBA §70102).
- Opportunity Zone deferral. §1400Z-2 defers gain recognition when invested in a QOF within 180 days — until 2026-12-31 cliff. 10-year hold removes appreciation INSIDE the QOF entirely. See /opportunity-zone-calculator/.
Common capital gains mistakes
- Triggering wash sales by accident. Selling SPY at a loss and buying VOO (substantially identical S&P 500 ETF) within 30 days disallows the loss. Also applies if your spouse buys the same security, or if you buy in an IRA. Use a non-correlated alternative (RSP, IVV-not-VOO, or a 30-day waiting period).
- Forgetting depreciation recapture on rental sales. Years of depreciation deductions come back as §1250 unrecaptured gain at up to 25% — separate from the LTCG rate on the remaining gain. Many landlords are surprised by a five-figure tax bill on what they thought was a §121-style exclusion.
- Crypto-to-crypto swaps treated as nontaxable. Each swap is a taxable disposition of the OUT coin. Trading BTC for ETH realizes BTC gain; trading ETH for SOL realizes ETH gain. The IRS has clarified this repeatedly since 2014.
- Missing the §121 use test on a converted rental. Property converted from rental to primary residence must still meet 24-month use within the 5 years before sale. Time spent renting it OUT doesn't count — only personal use. Partial exclusion available only for qualifying hardship.
- Reporting basis from the 1099-B without checking. Brokers must report basis for "covered" securities purchased after 2011 (stocks) / 2012 (mutual funds) — but cost-basis methods, gifted securities, and inherited assets often need manual adjustment on Form 8949. Compare the 1099-B against your own records.
- Ignoring state capital gains tax. Most states tax capital gains at the same rate as ordinary income — adding 4-13% on top of the federal rate. Nine states have no income tax. Washington enacted a 7% LTCG tax in 2022 above $250k (upheld 2023). Always model state tax alongside federal.
Quick-reference card
Short-term vs long-term
≤1 year = ordinary rates up to 37%. >1 year = preferential 0%/15%/20%.
Net Investment Income Tax
3.8% surtax above $200,000 (Single) / $250,000 (MFJ) MAGI. Form 8960. Thresholds NOT inflation-indexed since 2013.
Capital loss deduction
Losses offset gains. Up to $3,000/year against ordinary income; remainder carries forward indefinitely (§1212).
Home sale exclusion (§121)
$250k single / $500k MFJ on primary residence (own + use 24 of last 60 months).
Frequently asked questions
What is the difference between short-term and long-term capital gains?
Short-term capital gains come from assets held for one year or less (measured day-by-day from purchase) and are taxed at your ordinary income tax rates — up to 37% in 2025. Long-term capital gains apply to assets held for more than one year and benefit from preferential 0%/15%/20% rates under IRC §1(h). The one-day difference around the 12-month mark is consequential: a stock sold on day 365 is short-term; day 366 is long-term.
What are the 2025 long-term capital gains tax rates?
For 2025 (Rev. Proc. 2024-40 §3.03): 0% rate applies when taxable income is at or below $48,350 single / $96,700 MFJ / $64,750 head-of-household. 15% rate applies from that threshold up to $533,400 / $600,050 / $566,700. 20% rate applies above. The threshold is on TAXABLE income (after the standard or itemized deduction), not gross income — a single filer making $63k gross with the $15,750 standard deduction has $47,250 taxable, putting them at the very top of the 0% bracket.
What are the 2026 capital gains rates?
For 2026 (Rev. Proc. 2025-32 §3.03): 0% up to $49,450 single / $98,900 MFJ. 15% to $545,500 / $613,700. 20% above. The thresholds are inflation-indexed annually under §1(h)(1). The 20% top rate has been unchanged since the American Taxpayer Relief Act of 2012.
What is the Net Investment Income Tax (NIIT)?
The 3.8% Net Investment Income Tax (IRC §1411) applies on top of LTCG/short-term rates when MAGI exceeds $200,000 single / $250,000 MFJ / $125,000 MFS. The tax is 3.8% × the lesser of (a) net investment income, or (b) MAGI excess over the threshold. Reported on Form 8960. Thresholds were set in 2013 statute and are NOT indexed for inflation — a textbook example of fiscal drag.
How does ordinary income affect my capital gains rate?
Your ordinary income "fills up" the lower tax brackets first, then LTCG stacks on top. The bracket your LTCG lands in determines its rate. If your ordinary taxable income already exceeds the 0% LTCG threshold ($48,350 single 2025), all LTCG is taxed at 15% or 20%. If it's below, some LTCG may qualify for 0% — the portion that fills up to the 0% ceiling, with the remainder at 15%/20%. The IRS Schedule D Tax Worksheet walks the stacking line by line.
How do I qualify for the §121 home sale exclusion?
Under IRC §121 you can exclude up to $250,000 (single) or $500,000 (MFJ) of gain on the sale of your primary residence IF you both owned the home AND used it as your principal residence for at least 24 months out of the 60 months immediately preceding the sale. Both spouses must satisfy use for the full $500,000; only one needs to satisfy ownership. Partial exclusions exist for job relocations, health, or unforeseen circumstances. Vacation homes, rentals, and second homes don't qualify.
What is the wash sale rule?
Under IRC §1091, if you sell a security at a loss and buy "substantially identical" stock within 30 days BEFORE or AFTER the sale (61-day window), the loss is DISALLOWED — added to the cost basis of the replacement shares. This blocks the simplest tax-loss harvesting maneuver of selling at a loss and immediately rebuying. The rule applies to spouse purchases and IRA purchases too. The /wash-sale-calculator/ models common edge cases.
How does tax-loss harvesting work?
Realized capital losses offset realized gains dollar-for-dollar — short-term losses first against short-term gains, long-term first against long-term, then cross-netted. Net losses offset up to $3,000 of ordinary income per year ($1,500 MFS); remaining losses carry forward indefinitely under §1212. The /tax-loss-harvesting-calculator/ models the value of harvesting a position; the /wash-sale-calculator/ handles the 30-day trap. For high earners, harvesting also reduces NIIT by lowering investment income.
Does inheriting an asset trigger capital gains?
No. Under IRC §1014 inherited assets receive a "stepped-up" basis equal to fair market value on the date of death (or alternate valuation date six months later, if elected). The decedent's unrealized gain is permanently erased — beneficiaries only pay tax on appreciation AFTER inheritance. This is the single largest tax break in the Internal Revenue Code, estimated at ~$50B/year. There's no step-up for gifts during life — gifted assets carry over the donor's basis.
How are qualified dividends taxed?
Qualified dividends (from US corporations or qualified foreign issuers; holding period ≥61 days within the 121-day window around ex-dividend) are taxed at the SAME 0%/15%/20% LTCG brackets — they share the §1(h) thresholds with long-term capital gains. Non-qualified (ordinary) dividends are taxed at ordinary rates. Box 1a on Form 1099-DIV is total ordinary dividends; box 1b is the qualified portion. The /qualified-dividend-calculator/ separates the two layers.
What's the §1031 like-kind exchange?
IRC §1031 allows real property held for investment or business use to be exchanged for "like-kind" real property without recognizing gain — deferring the tax until eventual cash-out sale. TCJA limited §1031 to real estate only (no more equipment, art, or collectible exchanges). Strict rules: 45 days to identify replacement property, 180 days to close, qualified intermediary required. Reported on Form 8824. The deferred basis carries over to the new property — gain isn't forgiven, just delayed.
How does the Opportunity Zone deferral work?
Under IRC §1400Z-2, gains invested in a Qualified Opportunity Fund (QOF) within 180 days defer recognition until the EARLIER of QOF sale or 2026-12-31 (the statutory cliff). Hold the QOF investment 10+ years and the appreciation INSIDE the QOF is permanently excluded — basis steps up to FMV at sale. Beneficial for filers with large 2024–2025 gains; less so post-2026 cliff. See /opportunity-zone-calculator/.
Does the §121 exclusion stack with state taxes?
The §121 exclusion applies for federal tax only. Most states conform automatically (using federal taxable income), so the exclusion flows through. A handful of states (notably California for non-residents) require separate state-level recapture for property converted from rental to primary use. Check the destination state's conformity rules before assuming a clean state exclusion.
Are crypto gains taxed at LTCG rates?
Yes — IRS Notice 2014-21 treats virtual currency as PROPERTY, so crypto sales follow the same short-term (ordinary) / long-term (0/15/20%) rules as stocks. The one-year holding period starts on acquisition. Crypto-to-crypto trades are taxable events (each swap realizes gain on the disposed coin). Wash sale rules do NOT currently apply to crypto (it's not a "security" under §1091) — but a legislative fix has been proposed in successive Treasury budgets.
Sources
Your capital gains tax also depends on where you live.
State taxes can significantly change your total liability. See how it varies.
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