Capital Gains Tax Calculator
Calculate Short-Term & Long-Term Capital Gains Tax (2026 IRS Rules)
Estimated Capital Gains Tax
$0.00
Effective rate: 0.0%
Note: Does not include state capital gains tax or wash sale rules
Use 0% for states with no capital gains tax (TX, FL, WA, NV, etc.). Default NIIT is 3.8%.
Example Scenarios
$5,000 LTCG — Moderate Income (15% Rate)
Ordinary income of $60,000 exceeds the 0% bracket threshold ($49,625), so the entire $5,000 gain is taxed at 15%.
$20,000 Gain — Short-Term vs. Long-Term
Short-term gains are taxed as ordinary income, which can nearly double your tax bill vs. holding for long-term treatment. The 1-year holding threshold is critical.
$100,000 LTCG — High Income (20% + NIIT)
MAGI of $350,000 exceeds the $200,000 NIIT threshold. The 3.8% surtax on investment income pushes the effective rate to 23.8%.
Understanding Capital Gains Tax Brackets for 2026
Capital gains tax is levied on the profit you make when you sell an asset for more than you paid for it. The IRS distinguishes between two types of capital gains based on how long you held the asset before selling. Understanding this distinction is crucial for tax planning, as the tax rates differ dramatically between short-term and long-term gains.
Short-Term vs. Long-Term Capital Gains
Short-term capital gains apply to assets held for one year or less. These gains are taxed at your ordinary income tax rate, which can be as high as 37% for top earners. Long-term capital gains apply to assets held for more than one year and are taxed at preferential rates of 0%, 15%, or 20% depending on your total taxable income. The holding period is calculated from the day after you acquire the asset to the day you sell it. For example, if you bought stock on January 15, 2025, and sold it on January 15, 2026, it's a short-term gain. If you sold it on January 16, 2026, it's long-term.
2026 Long-Term Capital Gains Tax Brackets
For single filers in 2026: 0% rate applies to taxable income up to $49,625; 15% rate applies from $49,626 to $545,500; 20% rate applies above $545,500. For married filing jointly: 0% up to $99,250; 15% from $99,251 to $613,700; 20% above $613,700. For head of household: 0% up to $66,500; 15% from $66,501 to $580,950; 20% above $580,950. These brackets are applied to your total taxable income, which includes both your ordinary income and your capital gains stacked on top.
Step-by-Step Example Calculation
Consider a single filer with $75,000 in ordinary income who sells stock for a $40,000 long-term gain (bought at $10,000, sold at $50,000). First, the ordinary income of $75,000 fills up the 0% LTCG bracket ($49,625) and enters the 15% bracket. The $40,000 gain stacks on top: $49,625 - $75,000 = $0 room in the 0% bracket (already exceeded by ordinary income). So the entire $40,000 gain is taxed at 15%, resulting in $6,000 in federal capital gains tax. If the same person had only $30,000 in ordinary income, the first $19,625 of gains ($49,625 - $30,000) would be taxed at 0%, and the remaining $20,375 at 15%, for a total tax of $3,056 — demonstrating how ordinary income level significantly impacts capital gains tax.
Net Investment Income Tax (NIIT)
The NIIT is an additional 3.8% tax that applies to the lesser of your net investment income or the amount by which your Modified Adjusted Gross Income (MAGI) exceeds $200,000 for single filers or $250,000 for married filing jointly. This means high-income investors face an effective capital gains rate of up to 23.8% (20% + 3.8%) on long-term gains. The NIIT applies to interest, dividends, capital gains, rental income, and other passive income. It does not apply to income from active businesses or retirement account distributions.
Cryptocurrency Capital Gains
Cryptocurrency is treated as property by the IRS, meaning every crypto-to-crypto trade is a taxable event. If you trade Bitcoin for Ethereum, you must calculate the gain or loss on the Bitcoin based on its fair market value at the time of the trade. Short-term crypto gains (held ≤ 1 year) are taxed as ordinary income. Long-term crypto gains (held > 1 year) qualify for the 0%/15%/20% rates. Unlike stocks, cryptocurrency does not have a wash sale rule as of 2026, meaning you can sell at a loss and immediately rebuy without restriction. However, keeping detailed records of every transaction is essential for accurate tax reporting.
Collectibles and Real Estate
Long-term gains on collectibles (art, antiques, precious metals, coins, wine) are taxed at a maximum 28% rate instead of the standard 20% cap. This rate applies regardless of your income level. Real estate gains have special rules: the primary residence exclusion allows single filers to exclude up to $250,000 ($500,000 for married couples) of gain on the sale of a primary residence if you lived there for at least 2 of the 5 years before the sale. Investment property gains are taxed as regular capital gains, but you may also face depreciation recapture taxed at 25%.
Tax-Loss Harvesting Strategies
Tax-loss harvesting involves selling investments at a loss to offset capital gains. You can use capital losses to offset capital gains dollar-for-dollar, and if losses exceed gains, you can deduct up to $3,000 of net capital losses against ordinary income each year. Unused losses carry forward indefinitely. Be aware of the wash sale rule for stocks: if you sell a security at a loss and buy a "substantially identical" security within 30 days before or after the sale, the loss is disallowed. This rule does not currently apply to cryptocurrency.
When to Use This Calculator
- Selling stocks, ETFs, or mutual funds: Estimate the federal tax due on your investment gains before placing a sell order.
- Exercising stock options or RSUs: Calculate the capital gains portion after shares vest and are sold at a profit.
- Cryptocurrency trades and sales: Every crypto-to-crypto or crypto-to-fiat transaction is a taxable event — know your liability.
- Real estate investment property sales: Estimate capital gains on rental or investment properties beyond your primary residence.
- Year-end tax planning & estimated payments: Model your gains before December 31 to avoid underpayment penalties.
Limitations — What's Not Included
- State capital gains tax: State-level rates vary widely (0%–13.3%); only a flat override estimate is provided.
- Wash sale rules: Disallowed losses from repurchasing substantially identical securities within 30 days are not accounted for.
- Carried interest / Section 1256 contracts: Special tax treatment for fund managers and futures/options traders is not supported.
- Crypto-specific basis tracking: FIFO, LIFO, and HIFO cost basis methods for cryptocurrency are not automated.
- Depreciation recapture (Section 1250): The 25% recapture rate on real estate depreciation is not separately calculated.
- Qualified Small Business Stock (QSBS) exclusion: Section 1202 gains exclusion (up to 100% for eligible small business stock) is not included.
- Net operating loss (NOL) carryforwards: Prior-year capital loss carryforwards are not factored into the calculation.