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Capital Gains Tax Calculator

Capital gains tax applies to the profit from selling an asset for more than its purchase price. The tax rate depends on the holding period and taxable income. Long-term gains (assets held longer than 12 months) are taxed at 0%, 15%, or 20% based on income and filing status using 2025 brackets. Short-term gains (12 months or less) are taxed at ordinary income tax rates. For example, selling stock purchased for $10,000 at $25,000 after holding for 2 years, with $80,000 in other taxable income as a single filer, produces a $15,000 long-term gain with an estimated federal tax of approximately $2,250 at the 15% rate, leaving estimated net proceeds of approximately $22,750. Enter your sale details below. This is an estimate for informational purposes only and does not constitute tax advice.

Quick Answer

A $15,000 long-term capital gain for a single filer with $80,000 taxable income has an estimated federal tax of approximately $2,250 (15% rate), leaving estimated net proceeds of approximately $22,750.

Common Examples

Input Result
$10,000 purchase, $25,000 sale, 24 months held, $80,000 income, single Estimated $2,250 tax (15% long-term rate)
$50,000 purchase, $75,000 sale, 18 months held, $40,000 income, single Estimated $0 tax (0% long-term rate)
$20,000 purchase, $35,000 sale, 6 months held, $90,000 income, single Estimated $3,300 tax (22% short-term marginal rate)
$100,000 purchase, $180,000 sale, 36 months held, $500,000 income, mfj Estimated $12,000 tax (15% long-term rate)
$5,000 purchase, $12,000 sale, 3 months held, $50,000 income, single Estimated $1,540 tax (22% short-term marginal rate)

How It Works

Step 1: Calculate the Capital Gain

Capital Gain = Sale Price - Purchase Price (Cost Basis)

If the sale price is lower than the purchase price, the result is a capital loss, and no tax is owed on that transaction.

Step 2: Determine Long-Term vs. Short-Term

  • Long-term: Asset held for more than 12 months. Taxed at preferential rates.
  • Short-term: Asset held for 12 months or less. Taxed at ordinary income tax rates.

Step 3: Apply the Tax Rate

For long-term gains (2025 brackets, single filer):

Taxable Income (including gain) Rate
Up to $48,350 0%
$48,351 to $533,400 15%
Over $533,400 20%

For married filing jointly, the 0% threshold is $96,700 and the 15% threshold is $600,050.

For short-term gains, the gain is added to ordinary income and taxed at the applicable marginal bracket (10% to 37%). The calculator computes the incremental tax by comparing total tax with and without the gain.

If the gain straddles a bracket boundary, the portions in each bracket are taxed at their respective rates.

Net Proceeds = Sale Price - Estimated Tax

Worked Example

Purchase price $10,000, sale price $25,000, held for 24 months, $80,000 other taxable income, single filer:

Capital gain = $25,000 - $10,000 = $15,000. Held over 12 months, so this is a long-term gain. Total income including gain = $80,000 + $15,000 = $95,000. For a single filer, $95,000 falls in the 15% long-term bracket ($48,351 to $533,400). Estimated tax = $15,000 x 0.15 = $2,250. Net proceeds = $25,000 - $2,250 = $22,750.

For a short-term example: $5,000 purchase, $12,000 sale, held 3 months, $50,000 income, single. Gain = $7,000. This is short-term, taxed at ordinary rates. At $50,000 income, the $7,000 gain falls in the 22% bracket ($48,475 to $103,350 for 2025). Estimated incremental tax = $7,000 x 0.22 = $1,540.

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Frequently Asked Questions

What is the difference between long-term and short-term capital gains?
Long-term capital gains apply to assets held for more than 12 months and are taxed at reduced rates (0%, 15%, or 20%). Short-term capital gains apply to assets held for 12 months or less and are taxed at your ordinary income tax rate, which can be as high as 37%. The holding period starts the day after purchase and ends on the day of sale.
What is a cost basis?
Cost basis is the original purchase price of an asset, plus any commissions, fees, or improvements. For stocks, it includes the purchase price plus any brokerage fees. For real estate, it includes the purchase price plus closing costs and capital improvements. The cost basis is subtracted from the sale price to determine the capital gain or loss.
Does this calculator include the Net Investment Income Tax (NIIT)?
No. High-income taxpayers may owe an additional 3.8% Net Investment Income Tax on capital gains if their modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly). This calculator estimates only the standard capital gains tax rates.
Can capital losses offset gains?
Yes. Capital losses can offset capital gains dollar for dollar. If total losses exceed total gains, up to $3,000 of net losses can be deducted against ordinary income per year, with the remainder carried forward. This calculator does not account for loss offsets; it calculates the tax on a single sale.
How accurate is this estimate?
This calculator provides a simplified federal estimate based on 2025 brackets. It does not include state capital gains taxes, the NIIT, alternative minimum tax, depreciation recapture, qualified opportunity zone deferrals, or other special provisions. Actual tax liability may differ. Consult a qualified tax professional for precise calculations.