Capital Gains Tax Calculator

Description

The Capital Gains Tax Calculator helps investors, property owners, and cryptocurrency holders estimate the federal tax owed on gains from selling capital assets such as stocks, bonds, mutual funds, real estate, and digital assets. Capital gains taxation is one of the most important — and most frequently misunderstood — areas of U.S. tax law, with rates varying significantly based on the type of asset, how long you held it, your overall income level, and your filing status. This calculator handles both short-term capital gains (assets held one year or less, taxed as ordinary income at your marginal rate) and long-term capital gains (assets held more than one year, taxed at preferential rates of 0%, 15%, or 20% depending on your taxable income). The calculator also accounts for the Net Investment Income Tax (NIIT) — a 3.8% surtax on investment income for taxpayers with modified adjusted gross income exceeding $200,000 (single) or $250,000 (married filing jointly) — which can increase the effective tax rate on capital gains to as high as 23.8% for the highest earners. For real estate gains, the calculator includes special handling for the primary residence exclusion under IRC Section 121 ($250,000 single / $500,000 married filing jointly), depreciation recapture taxed at 25% under Section 1250, and the installment sale method for gains received over multiple years. For international investors and expats, the calculator addresses the interaction between capital gains and the Foreign Tax Credit, helping you understand how foreign taxes paid on asset sales can offset your U.S. capital gains tax liability. The calculator also handles the unique treatment of collectibles (taxed at 28%), qualified small business stock (potential exclusion under Section 1202), and wash sale adjustments that may affect your cost basis.

Input Fields

Formula Explanation

Capital gain = Sale Proceeds - Cost Basis. For short-term gains: taxed as ordinary income at your marginal tax rate. For long-term gains: taxed at 0% (taxable income up to approx $47,025 single), 15% (up to approx $518,900 single), or 20% (above approx $518,900 single). NIIT of 3.8% applies if MAGI exceeds $200,000 (single) / $250,000 (MFJ). Total capital gains tax = applicable rate x capital gain + NIIT if applicable.

Example Calculation

Frequently Asked Questions