Capital Gains Tax Calculator
Calculate your capital gains tax liability on investments, stocks, real estate, and other assets
Calculate Capital Gains Tax
Original cost basis of the asset
Amount received from selling the asset
Commissions, fees, closing costs
Selling commissions, fees, costs
✓ Long-term (>1 year) - Lower tax rates
Your ordinary income (salary, wages, etc.)
Your tax filing status affects your tax brackets
Tax Calculation Results
Investment Summary
Tax Details
Tax Bracket Breakdown
Formula: Capital Gain = Sale Price - Purchase Price - Purchase Costs - Sale Costs
Tax Type: Long-term (held > 1 year) - preferential rates apply
Tax Optimization Strategies
Example Capital Gains Tax Calculation
Stock Investment Example
Purchase Price: $10,000
Sale Price: $25,000
Holding Period: 18 months (long-term)
Taxable Income: $50,000 (single filer)
Tax Calculation
Capital Gain: $25,000 - $10,000 = $15,000
Long-term rate (15%): $15,000 × 0.15 = $2,250
Total Tax: $2,250
Net Profit: $12,750
Short-term would have been taxed at 22% = $3,300 (saved $1,050!)
2024 Long-Term Capital Gains Rates
Single Filers
Married Filing Jointly
Short-term gains (≤1 year) are taxed as ordinary income at your marginal tax rate (10%-37%)
Capital Gains Tips
Hold assets >1 year for preferential tax treatment
Keep detailed records of purchase prices and dates
Use capital losses to offset gains
Consider tax-advantaged accounts (IRA, 401k)
Plan asset sales around your income levels
High-income earners may face 3.8% NIIT surcharge
Understanding Capital Gains Tax
What is Capital Gains Tax?
Capital gains tax is a tax on the profit realized from selling an asset for more than you paid for it. Assets can include stocks, bonds, real estate, cryptocurrency, collectibles, and business interests.
Short-Term vs. Long-Term
- •Short-Term: Assets held for 1 year or less - taxed as ordinary income (10%-37%)
- •Long-Term: Assets held for more than 1 year - preferential rates (0%, 15%, or 20%)
- •The holding period starts the day after purchase and includes the sale date
Capital Gains Calculation Formula
Capital Gain = Sale Price - Cost Basis
Cost Basis = Purchase Price + Purchase Costs
- Sale Price: Amount received from selling
- Purchase Price: Original cost of asset
- Purchase Costs: Commissions, fees, improvements
- Sale Costs: Commissions, fees, closing costs
Pro Tip: Long-term capital gains rates are significantly lower than short-term rates. Holding an asset for just over a year can save thousands in taxes!
Tax Optimization Strategies
Tax-Loss Harvesting
Sell losing investments to offset capital gains. You can deduct up to $3,000 in net losses against ordinary income annually, with excess losses carried forward.
Asset Location Strategy
Hold high-growth investments in tax-advantaged accounts (Roth IRA, 401k) and tax-efficient investments in taxable accounts.
Timing Strategies
Time asset sales to align with years of lower income, or spread large gains across multiple tax years to stay in lower brackets.
Primary Residence Exclusion
Exclude up to $250k (single) or $500k (married) of gains on primary residence sales if you lived there 2 of the last 5 years.