Capital Gains Tax Calculator - Calculate Investment Tax
Free capital gains tax calculator to determine your tax liability on investment gains. Calculate short-term and long-term capital gains tax based on your income level and holding period.
Capital Gains Tax Calculator
Results
What is Capital Gains Tax?
Capital gains tax is levied on the profit you make when selling an investment or asset for more than you paid for it. Understanding how it works helps you make better investment decisions and plan your tax strategy.
This calculator helps with:
- Investment planning - Calculate tax impact before selling assets
- Tax strategy - Compare short-term vs long-term holding periods
- Portfolio management - Optimize timing of asset sales
- Real estate - Calculate tax on property sales
- Retirement planning - Plan tax-efficient withdrawals
If you're planning your investments and want to see potential growth over time, you can use our Investment Calculator to project future values based on your contributions and expected returns.
For evaluating the profitability of your investments, try our Return on Investment Calculator to calculate the percentage return and assess the efficiency of your capital.
To ensure you're on track for a comfortable retirement, our Retirement Calculator can help you estimate how much you need to save and plan your financial future.
Short-Term vs Long-Term Capital Gains
Short-Term (≤1 year)
Taxed as ordinary income at your regular tax rate (up to 37%).
Long-Term (>1 year)
Preferential tax rates: 0%, 15%, or 20% based on income.
2024 Long-Term Capital Gains Rates
0% Rate
Single: Up to $47,025 | Married: Up to $94,050
15% Rate
Single: $47,026-$518,900 | Married: $94,051-$583,750
20% Rate
Single: Over $518,900 | Married: Over $583,750
How to Use This Calculator
Enter Purchase Price
Original amount paid for the investment or asset
Enter Sale Price
Amount received when selling the asset
Enter Annual Income
Your total taxable income to determine tax bracket
Select Holding Period
Choose short-term or long-term holding period
Choose Filing Status
Select your tax filing status for accurate rates
Get Tax Results
View tax liability and net proceeds after tax
Tax Planning Strategies
- • Hold Long-Term: Keep investments over 1 year for preferential rates.
- • Tax-Loss Harvesting: Offset gains with losses to reduce tax.
- • Income Timing: Sell during lower-income years for better rates.
- • Charitable Giving: Donate appreciated assets to avoid tax.
- • Asset Location: Use tax-advantaged accounts for frequent trading.
Understanding Your Results
Capital Gain/Loss
Profit or loss from sale (Sale Price - Purchase Price).
Tax Rate
Applicable rate based on holding period and income level.
Capital Gains Tax
Actual tax owed on your capital gain.
Net Proceeds
Amount you keep after paying capital gains tax.
Frequently Asked Questions (FAQ)
Q: What's the difference between short-term and long-term gains?
A: Short-term gains (≤1 year) are taxed as ordinary income. Long-term gains (>1 year) have preferential rates of 0%, 15%, or 20%.
Q: Can I offset gains with losses?
A: Yes, capital losses offset gains dollar-for-dollar. Excess losses can offset up to $3,000 of ordinary income annually.
Q: Are there any exemptions?
A: Primary residence sales can exclude up to $250,000 (single) or $500,000 (married) if you lived there 2 of the last 5 years.
Q: When is capital gains tax due?
A: Tax is due when you sell an asset for more than you paid. It must be reported on your tax return for the year of sale.
Q: What about state taxes?
A: This calculator only shows federal tax. Many states also impose capital gains taxes, increasing your total liability.
Q: What is the Net Investment Income Tax?
A: High earners pay an additional 3.8% NIIT on capital gains. Applies to single filers over $200,000 or married over $250,000.