Capital Gains Tax Calculator (US) 2026
Calculate short-term vs long-term capital gains tax. Long-term rates: 0/15/20% based on income.
Long-term capital gains (assets held 12+ months) are taxed at 0%, 15%, or 20% depending on income — significantly lower than ordinary income rates. A single filer earning $85,000 who sells stock for a $40,000 long-term gain pays 15% on the gain ($6,000), not their 22% ordinary rate.
Total Gain
$30,000.00
Tax Rate Applied
15%
Tax Owed
$4,500.00
Net Profit After Tax
$25,500.00
2026 long-term 0% rate: up to $48,350 (single) / $96,700 (MFJ). 20% above $533,400 / $600,050.
2026 long-term 0% rate: up to $48,350 (single) / $96,700 (MFJ). 20% above $533,400 / $600,050.
About This Calculator
Capital gains taxes apply to profits from selling investments, real estate, and other assets. The most important distinction is holding period: short-term gains (held under 12 months) are taxed as ordinary income; long-term gains (held 12+ months) get preferential rates of 0%, 15%, or 20%.
For 2026, the long-term capital gains rate for single filers is: 0% on taxable income up to $47,025; 15% on $47,025–$518,900; 20% above $518,900. Married filing jointly: 0% up to $94,050; 15% up to $583,750; 20% above.
Additionally, a 3.8% Net Investment Income Tax (NIIT) applies to gains for taxpayers with MAGI above $200,000 (single) or $250,000 (married). This makes the effective top capital gains rate 23.8%.
Home sale exclusion: If you've lived in your primary residence for 2 of the last 5 years, you can exclude up to $250,000 (single) or $500,000 (married) of gain from taxation.
How to Use
- 1Enter the original purchase price (cost basis) of the asset.
- 2Enter the sale price and select whether the holding period is short-term (<1 year) or long-term (1+ year).
- 3Enter your total annual income — this determines which long-term capital gains bracket applies.
- 4Select your filing status.
- 5Review total capital gains tax, effective rate on the gain, and after-tax proceeds.
Formula & Methodology
Capital Gain = Sale Price − Purchase Price − Selling Costs. Tax = Gain × Long-Term Capital Gains Rate (0%, 15%, or 20% based on total taxable income). Add 3.8% NIIT if MAGI > $200K (single) or $250K (MFJ).
Frequently Asked Questions
What is the capital gains tax rate for 2026?
Long-term rates (held 12+ months): 0% for single filers with taxable income under $47,025 ($94,050 for MFJ); 15% up to $518,900 ($583,750 MFJ); 20% above that. Short-term gains are taxed as ordinary income (10–37%). Plus 3.8% NIIT applies if MAGI exceeds $200K/$250K.
How do I reduce capital gains tax?
Strategies: (1) Hold assets 12+ months to qualify for long-term rates. (2) Tax-loss harvesting — sell losing positions to offset gains. (3) Use tax-advantaged accounts (IRA, 401k) for high-growth investments. (4) Give appreciated assets to charity (deduct fair market value, pay no gains). (5) Gift appreciated assets to family members in lower tax brackets.
Do I owe capital gains tax on my home sale?
The primary residence exclusion lets you exclude up to $250,000 (single) or $500,000 (married) of gain if you owned and lived in the home for at least 2 of the last 5 years. Only gains above the exclusion are taxable. If you sold for less than you paid, there's no deductible loss on a personal residence.
Sources & References
- IRS — Topic 409: Capital Gains and Losses
- IRS — Net Investment Income Tax
- IRS — Schedule D Instructions
Last updated: 2026-04-12