Capital Gains Tax Calculator — Stock Sale
Tax owed on long-term stock sale: bought at $10K, sold at $50K after 2+ years.
Quick Answer
Tax owed: $6,000 (15% long-term)
Purchase price
$10,000
Sale price
$50,000
Capital gain
$40,000
Holding period
Long-term (≥ 1 yr)
Tax rate
15% long-term
Tax owed
$6,000
Net after tax
$34,000
- ✓Long-term rate of 15% long-term is much lower than ordinary income rates — a key incentive to hold 12+ months
- ✓Net after-tax gain: $34,000 on a $40,000 gain
- ✓NIIT (3.8%) may apply on top if income exceeds $200K single / $250K married — not included here
- ✓Tax-loss harvesting can offset gains dollar-for-dollar from other investments
Total Gain
$40,000.00
Tax Rate Applied
15%
Tax Owed
$6,000.00
Net Profit After Tax
$34,000.00
2026 long-term 0% rate: up to $48,350 (single) / $96,700 (MFJ). 20% above $533,400 / $600,050.
Frequently Asked Questions
How much capital gains tax do I owe on a $40,000 gain?
Tax owed: $6,000 (15% long-term). Long-term rates (0%, 15%, or 20%) apply because you held the asset over 12 months.
Would selling earlier (short-term) have cost more in taxes?
Yes — if you'd sold before 12 months, the gain would be taxed as ordinary income at your marginal bracket, likely 22–37%. Long-term rate saved you significantly.
Can I offset this capital gain with investment losses?
Yes — capital losses from other investments offset gains dollar-for-dollar. If you have unrealized losses in your portfolio, harvesting them before year-end can reduce or eliminate this tax. Up to $3,000 in net losses can also offset ordinary income each year.
Do I need to pay estimated taxes on this capital gain?
If your total tax liability (including this gain) exceeds $1,000 after withholding, you may owe quarterly estimated taxes. Capital gains are typically reported and taxed when you file your return — but if the gain is large, paying estimated taxes by January 15 avoids underpayment penalties.
Related Scenarios
Results are estimates for informational purposes only and do not constitute financial advice. Tax figures use 2026 US rates. Consult a licensed financial advisor before making financial decisions.Last updated: April 2026