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Data effective: 2026 tax year · Last updated: 2026-07-16

Capital Gains Tax Calculator

Estimate tax on short-term vs long-term capital gains for the 2026 tax year.

Held >1 year — preferential rates

Held ≤1 year — taxed as ordinary income

Total Capital Gains Tax

$4,500

Effective Rate: 15.0%

Long-Term Tax

$4,500

15.0%

Short-Term Tax

$0

0%

NIIT (3.8%)

$0

above $200K MAGI

CategoryAmountTaxRate
Long-Term Capital Gains$30,000$4,50015.0%
Short-Term Capital Gains$0$0
Total Tax on Gains$30,000$4,50015.0%
LTCG: 0%/15%/20%
STCG: Ordinary rates
Researched by CentCalc Financial Editorial TeamData: IRS Pub. 544 + 2026 long/short-term brackets

How This Is Calculated

This calculator estimates your capital gains tax by applying the appropriate tax rates based on how long you held the asset and your total taxable income.

Long-term capital gains (assets held >1 year) use preferential rates: 0% on gains that keep total taxable income below $49,450 (single) / $98,900 (married jointly), 15% up to $545,500 / $613,700, and 20% above those thresholds (2026 brackets).

Short-term capital gains (assets held ≤1 year) are taxed as ordinary income using the standard federal tax brackets (10%–37%). The calculator computes the incremental tax by comparing your tax with and without the short-term gains.

Net Investment Income Tax (NIIT): An additional 3.8% applies to investment income (including capital gains) when your modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly). This calculator factors in NIIT automatically.

Based on IRS 2026 tax brackets. LTCG: 0%/15%/20% preferential rates. NIIT: 3.8% on investment income above $200K (single) / $250K (MFJ). State taxes not included in this estimate.

How to Read Your Results

What the numbers mean and how to use them

The Capital Gains Calculator shows how much tax you owe when you sell an investment. The single most important factor is not the gain amount — it is how long you held the asset. Holding an asset just one day past the one-year mark can cut your tax rate from 37% (short-term) to 0-20% (long-term).

Short-term vs long-term rate

If you held the asset ≤1 year, the gain is taxed as ordinary income (10-37%). If you held it >1 year, you pay preferential LTCG rates of 0%, 15%, or 20%. On a $50,000 gain for a $120,000-income earner, that is the difference between ~$11,000 (short-term) and ~$7,500 (long-term).

What to do: If you are close to the one-year mark, check the purchase date — waiting even a few weeks can save thousands.

Your LTCG bracket (0% / 15% / 20%)

Your long-term rate depends on total taxable income, not the gain alone. For 2026, a single filer earning under $49,450 pays 0% on long-term gains. Between $49,450 and $545,500 pays 15%. Above that pays 20%.

What to do: If your income is near a bracket boundary, consider spreading large gains across two tax years to stay in the lower bracket.

NIIT surtax (3.8%)

If your modified AGI exceeds $200,000 (single) or $250,000 (married), the calculator adds a 3.8% Net Investment Income Tax on top of your LTCG rate. At the 15% bracket, your effective rate becomes 18.8%.

What to do: High-income earners should budget for NIIT — it is often overlooked and can add thousands to a tax bill.

Net proceeds

This is what you actually keep after federal capital gains tax. On a $50,000 long-term gain at the 15% bracket, you keep $42,500 (before NIIT and state tax).

What to do: Use this number — not the gross gain — when deciding whether to sell. Many investors overestimate their after-tax proceeds.

When You'll Actually Use This

Selling employee stock options (RSUs)

Your RSUs vest and you sell immediately — that gain is always short-term (taxed as ordinary income). But if you hold vested shares over a year before selling, the appreciation qualifies for the 15-20% long-term rate. Use the calculator with your actual cost basis (vest-date FMV) to see the tax difference.

Tax-loss harvesting before year-end

If you have $20,000 in gains this year and $8,000 in unrealized losses in another position, selling the loser offsets $8,000 of the gains. Run both scenarios through the calculator to quantify the savings before December 31.

Retirement income planning

A retiree with $40,000 in Social Security + pension income can realize up to ~$9,450 in long-term gains at the 0% federal rate. Use this calculator to model how much you can harvest tax-free each year.

Frequently Asked Questions

What is the difference between short-term and long-term capital gains?
Short-term capital gains apply to assets held one year or less and are taxed as ordinary income at your regular tax rate (10%-37%). Long-term capital gains apply to assets held more than one year and receive preferential rates of 0%, 15%, or 20%, depending on your taxable income.
How does the Net Investment Income Tax (NIIT) work?
The NIIT is an additional 3.8% tax on net investment income (including capital gains) for individuals with modified adjusted gross income above $200,000 (single) or $250,000 (married filing jointly). It applies to the lesser of your net investment income or the amount your MAGI exceeds the threshold.
What are the 2026 long-term capital gains tax brackets?
For 2026, the 0% rate applies to taxable income up to $49,450 (single) or $98,900 (married filing jointly). The 15% rate applies up to $545,500 (single) or $613,700 (married filing jointly). The 20% rate applies above those thresholds.
How can I reduce capital gains taxes?
Common strategies include: holding assets for more than one year to qualify for long-term rates, tax-loss harvesting to offset gains, contributing to tax-advantaged accounts, and timing sales across tax years.
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Estimates only. Actual capital gains tax depends on your full tax situation. State taxes not included. Consult a tax professional.