US Capital Gains Tax Calculator
Profits from the sale of capital assets — including stocks, bonds, mutual funds, cryptocurrency, real estate, and private business equity — are subject to federal and state capital gains taxes. The tax rate depends critically on holding period: assets held for one year or less trigger short-term capital gains taxed at ordinary income rates (up to 37%), whereas assets held for more than one year qualify for preferential long-term capital gains brackets (0%, 15%, or 20%). In addition, high earners are subject to the 3.8% Net Investment Income Tax (NIIT) and applicable state capital gains taxes. This calculator provides an exact calculation of your taxable capital gain, statutory federal tiers, surtaxes, and net in-pocket proceeds.
Capital Gains Tax Inputs
Calculate federal capital gains brackets, NIIT 3.8% surtax, and state tax rules.
Assets held more than 1 year qualify for preferential 0%, 15%, or 20% federal rates under IRC §1(h).
Total proceeds received from selling the asset.
Original purchase price + improvements + buying fees.
Broker commissions, legal fees, and closing costs.
Wages/salary. Determines your base bracket tier.
Determines 0%, 15%, 20% thresholds and NIIT limits.
State capital gains tax regulations.
Unused net capital losses from previous tax years offset this gain.
Calculation Breakdown
Federal statutory tax based on preferential long-term brackets
Applicable state tax on capital gains for california
•Calculated based on 2026 IRS statutory long-term capital gains brackets under IRC §1(h).
•Includes 3.8% Net Investment Income Tax (NIIT) where applicable.
Gain & Tax Performance
Tax Component Summary
How Your Capital Gains Tax Was Calculated
Long-Term Capital Asset: Sold after 1+ year — qualifies for preferential 0% / 15% / 20% federal rates under IRC §1(h). Based on a $120,000.00 gross sale vs. $50,000.00 cost basis.
Compute Net Capital Gain (or Loss)
$68,000.00Capital Gain = $120,000.00 (Gross Sale) − $2,000.00 (Selling Costs) − $50,000.00 (Adjusted Cost Basis)
Your gross capital gain of $68,000.00 represents the economic profit from the sale. The adjusted cost basis includes your original purchase price plus any capitalized improvements and purchasing fees. Selling expenses (broker commissions, transfer fees, legal costs) reduce the realized gain dollar-for-dollar.
Long-Term Status: Preferential Rate Bracket Stacking
0% / 15% / 20%Stack: $85,000.00 ordinary income + $68,000.00 capital gain = $153,000.00 combined 0% threshold: $49,450.00 | 15% threshold: $545,500.00 | 20% above
The IRS requires capital gains to be “stacked” on top of ordinary taxable income to determine which bracket applies. Your ordinary income of $85,000.00 fills the lower income space first. The remaining room up to the $49,450.00 threshold ($0.00) is taxed at 0%. Gains above that threshold but below $545,500.00 are taxed at 15%. Gains above $545,500.00 combined are taxed at 20%.
Federal Capital Gains Tax (IRC §1(h))
$-10,200.00-$10,200.00 federal tax on $68,000.00 net taxable gain
Under IRC §1(h), long-term capital gains qualify for preferential rates. The $-10,200.00 federal tax reflects the statutory bracket that applies after stacking your $85,000.00 in ordinary income. Holding any capital asset for at least one year and one day is sufficient to qualify for these reduced rates.
Net Investment Income Tax — NIIT (3.8% Surtax · IRC §1411)
Not ApplicableMAGI $153,000.00 ≤ $200,000 threshold → NIIT = $0.00 (below threshold)
Your combined MAGI of $153,000.00 does not exceed the $200,000.00 NIIT threshold for Single filers. No additional 3.8% Medicare surtax applies to this transaction.
State Capital Gains Tax
$-6,324.00State: CALIFORNIA → State Tax = $68,000.00 (taxable gain) × applicable state rate = $-6,324.00
California taxes all capital gains — short and long-term — as ordinary income through the California Franchise Tax Board (FTB). The top marginal state rate is 13.3% (including the 1% Mental Health Services surtax on income over $1M), the highest of any US state. California does not offer preferential long-term capital gains rates.
Net Cash In-Pocket After All Taxes
$101,476.00Net Cash = $120,000.00 (Gross Sale) − $2,000.00 (Selling Costs) − $-10,200.00 (Federal Tax) − $0.00 (NIIT) − $-6,324.00 (State Tax)
Your net cash in-pocket of $101,476.00 represents the gross sale proceeds less all selling costs and combined tax obligations. The effective all-in tax rate on your capital gain is 24.3%, combining federal (0%/15%/20%), NIIT (0%), and state (up to 13.3%) levies.
How this calculator works
How it works
- 01Cost Basis & Net Proceeds: Your capital gain equals the gross sale price minus allowable selling expenses (broker commissions, legal fees) and your adjusted cost basis (original purchase price plus capitalized improvements).
- 02Holding Period Determination: Assets held one year or less are classified as short-term; assets held greater than one year qualify for preferential long-term statutory rates.
- 03Tax Bracket Stacking: Capital gains sit on top of your other ordinary taxable income (such as salary and business profits), which determines where your gains fall within the 0%, 15%, or 20% federal brackets.
- 04Net Investment Income Tax (NIIT): Applies an additional 3.8% surtax under IRC §1411 on net investment income if your Modified Adjusted Gross Income (MAGI) exceeds $200,000 (Single) or $250,000 (Married Filing Jointly).
- 05State Capital Gains Tax: Factors in state tax rules — from 0% in states like Texas, Florida, and Nevada, to regular income rates in California (up to 13.3%) and New York (up to 10.9%), and Washington's 7% long-term excise tax on gains over $262,000.
- 06Capital Loss Offsets: Offsets current-year capital gains against capital loss carryovers; if total capital losses exceed gains, up to $3,000 ($1,500 MFS) can deduct directly against ordinary income with the remainder carried forward.
Tax rules that apply
- •Long-term capital gains receive preferential federal rates of 0%, 15%, and 20% under IRC §1(h), creating massive tax savings compared to ordinary income rates which reach up to 37%.
- •The 0% Long-Term Capital Gains bracket applies to taxable income up to $49,450 for Single filers and $98,900 for Married Filing Jointly in 2026 — meaning lower-income taxpayers pay zero federal tax on long-term gains.
- •Net Investment Income Tax (NIIT 3.8%) applies strictly to the lesser of net investment income or the excess of MAGI over $200,000 (Single) / $250,000 (Married Filing Jointly). The threshold is NOT adjusted for inflation.
- •Washington State enacted a 7% excise tax on long-term capital gains exceeding $262,000 (statutory 2026 threshold), with statutory exemptions for real estate, retirement assets, and family-owned small businesses.
- •Capital losses can completely wipe out capital gains dollar-for-dollar without limit; excess net capital losses can then reduce ordinary income by up to $3,000 per year.
Current Tax Rates
| Tax / Deduction | Rate | Notes |
|---|---|---|
| Long-Term 0% Bracket (Single) | Up to $49,450 | Married Jointly: Up to $98,900 |
| Long-Term 15% Bracket (Single) | $49,451 – $545,500 | Married Jointly: $98,901 – $613,700 |
| Long-Term 20% Bracket (Single) | Over $545,500 | Married Jointly: Over $613,700 |
| Net Investment Income Tax (NIIT) | 3.80% | Applies if MAGI > $200k (Single) / $250k (MFJ) |
| Short-Term Capital Gains Rate | 10% – 37% | Taxed at regular progressive ordinary income tax rates |
| Annual Capital Loss Deduction Limit | $3,000 / year | $1,500 if Married Filing Separately; remainder carries forward |
What this calculator assumes
- Reflects 2026 IRS statutory long-term capital gains brackets under Rev. Proc. 2025-32.
- Assumes standard marketable capital assets (stocks, crypto, mutual funds, secondary real estate). Does not calculate primary home Section 121 exclusion ($250k single / $500k married) unless cost basis is adjusted.
- Collectibles (art, bullion, stamps) are taxed at a statutory maximum 28% federal rate and are not modeled here.
Where our numbers come from
These calculators are based on official government tax rates and rules. We link directly to the source so you can verify everything yourself.
IRS Topic No. 409 — Capital Gains and Losses (IRC §1(h), §1222)
Internal Revenue Service — U.S. Department of the Treasury
IRS Topic No. 559 — Net Investment Income Tax (IRC §1411)
Internal Revenue Service — U.S. Department of the Treasury
California FTB — 2026 Withholding Schedules (DE 4)
California Franchise Tax Board
Frequently Asked Questions
What is the difference between short-term and long-term capital gains?
Short-term capital gains arise from selling an asset held for one year or less. They are taxed at your ordinary federal income tax rates (10% to 37%). Long-term capital gains result from selling an asset held for more than one year and qualify for preferential tax brackets of 0%, 15%, or 20%, resulting in substantial tax savings.
How do capital gains stack on top of ordinary income?
Capital gains do not stand in isolation: the IRS stacks your capital gains on top of your ordinary taxable income to determine which capital gains bracket applies. For example, if you are single with $40,000 in ordinary taxable income, the 0% long-term capital gains threshold ($49,450) has only $9,450 of room remaining. The first $9,450 of your long-term capital gain is taxed at 0%, and the remainder is taxed at 15%.
What is the Net Investment Income Tax (NIIT 3.8%)?
The NIIT is a 3.8% Medicare surtax under IRC §1411 on net investment income (including capital gains, dividends, and interest) that applies to high earners. It is triggered when your Modified Adjusted Gross Income (MAGI) exceeds $200,000 for single filers or $250,000 for married couples filing jointly.
How are capital losses used to offset capital gains and taxes?
Capital losses offset capital gains dollar-for-dollar without any cap. If your total capital losses exceed your capital gains for the tax year, you can deduct up to $3,000 ($1,500 if married filing separately) of the remaining net loss against your ordinary wage income. Any leftover losses carry forward indefinitely to offset future gains.
Do states tax capital gains at the same preferential rates as the IRS?
Most states do NOT offer preferential capital gains rates. In states like California, New York, and Illinois, capital gains are taxed as ordinary income at standard state rates (e.g. up to 13.3% in California). States with no income tax (like Texas and Florida) levy 0% on capital gains. Washington State has no wage income tax, but levies a 7% excise tax on long-term capital gains exceeding $262,000.
Is profit from selling a primary home subject to capital gains tax?
Under Section 121 of the Internal Revenue Code, you can exclude up to $250,000 of capital gain ($500,000 for married couples filing jointly) from the sale of your primary residence, provided you owned and lived in the home as your main residence for at least 2 of the 5 years prior to the sale.
