— Tax, VAT & Sales
Capital Gains Tax Calculator
Estimate US tax on an investment gain. Enter purchase and sale prices, income, and holding period to see the gain, tax, after-tax proceeds, and how long-term capital-gains rates compare with short-term ordinary-income treatment.
Capital gains tax
$750
- Capital gain
- $5,000
- After-tax proceeds
- $14,250
- Effective rate on the gain
- 15%
- If sold short-term (≤ 1 year)
- $1,100
- Rate applied
- Long-term 15% tier
— How it works
Gain = sale price − cost basis. Long-term tax uses the 0/15/20% tiers, with the gain stacked on top of your taxable income. Short-term tax = the extra ordinary income tax the gain adds at your marginal bracket.
The one-year line that changes everything
The single biggest lever in investment tax is how long you hold. Sell an asset you have owned a year or less and the gain is short-term — taxed at your ordinary income rate, up to 37%. Hold it more than a year and it becomes long-term, taxed at the preferential rates of 0%, 15% or 20% depending on your income. For most middle-income investors that is the difference between a 22–24% rate and a 15% one, so crossing the one-year mark can cut the tax on a gain by a third or more. The calculator always shows what the other holding period would cost, so the incentive is explicit.
Worked example — bought at $10,000, sold at $15,000, $60,000 other income (single, 2025): The $5,000 gain held long-term is taxed at 15% = $750. Held short-term it would be taxed at the 22% ordinary rate = $1,100 — so waiting past a year saves $350.
How the long-term tiers stack
Long-term rates are not a flat percentage — they depend on your total income, because the gain stacks on top of your ordinary taxable income. A single filer in 2025 pays 0% on long-term gains while total income stays under about $48,350, then 15% up to roughly $533,400, and 20% above that. So a gain can straddle two tiers: part taxed at 0% and part at 15%, for example. This is why two people with the same gain can owe very different tax — and why realising gains in a low-income year (early retirement, a gap year, a sabbatical) can mean paying little or nothing on them.
Basis, losses and the extra 3.8%
The taxable gain is the sale price minus your cost basis, and getting the basis right matters: reinvested dividends, improvements and commissions all add to it and shrink the gain — enter them under cost-basis adjustments. Realised losses elsewhere can be netted against the gain (tax-loss harvesting), and a net loss beyond that offsets up to $3,000 of ordinary income a year, carrying the rest forward. High earners also face the Net Investment Income Tax — an extra 3.8% on investment income above $200,000 (single) or $250,000 (joint) — which the advanced options can add. State tax varies: most states tax gains as ordinary income, a few not at all, so the state field is a rough flat estimate.
— Reader questions
What is the difference between short-term and long-term capital gains?
Short-term gains are on assets held a year or less and are taxed at your ordinary income rate (up to 37%). Long-term gains are on assets held more than a year and are taxed at 0%, 15% or 20% depending on your income — almost always lower. Holding past one year is the key tax saving.
How is long-term capital gains tax calculated?
The gain stacks on top of your taxable income, and the portion in each tier is taxed at 0%, 15% or 20%. For a single filer in 2025, gains keeping total income under about $48,350 are taxed at 0%, up to ~$533,400 at 15%, and above that at 20%.
How much tax will I pay on a $5,000 stock gain?
It depends on holding period and income. Held long-term with $60,000 of other income, a $5,000 gain is taxed at 15% = $750. Held short-term it is taxed as ordinary income — at a 22% bracket that is $1,100. Enter your numbers to see both.
Can capital losses reduce my tax?
Yes. Realised losses offset realised gains dollar-for-dollar, and a net loss beyond that deducts up to $3,000 against ordinary income a year, with the rest carried forward. Enter losses under the advanced options to net them against this gain.
What is the Net Investment Income Tax?
An extra 3.8% tax on investment income (including capital gains) for higher earners — those with modified AGI above $200,000 single or $250,000 married filing jointly. Toggle it on under the advanced options; the calculator applies it when your income is above the threshold.
Do I pay state tax on capital gains too?
Usually. Most states tax capital gains as ordinary income, a handful have no income tax, and a few treat gains specially. This calculator takes a flat state rate as a rough estimate — check your state’s rules for precision.