How this calculator works
Capital gains tax hinges on one question with an outsized answer: how long did you hold the asset? Sell something you've owned a year or less and the profit is a short-term gain, taxed as ordinary income at your regular bracket — up to 37%. Hold it more than a year and the same profit becomes a long-term gain, taxed at preferential rates of just 0%, 15%, or 20%. For many investors that's the difference between a 22%+ bite and a 15% one on identical dollars, which is why the one-year mark is one of the most valuable lines in the tax code.
This calculator takes your sale price, cost basis, and other income, and computes the federal tax both ways using 2026 brackets — properly stacking the gain on top of your ordinary income so each slice is taxed at the right rate. It adds the 3.8% net investment income tax if your income crosses the threshold, applies any state rate you enter, and shows what you'd actually keep.
The method
Long-term rates depend on your total taxable income, so a large gain can span more than one rate band — the calculator splits it accordingly.
$30,000 gain ($50,000 sale, $20,000 basis), $80,000 other income, single:
- Short-term (held under a year): taxed at your ordinary rates — about
$6,733, a 22.4% effective rate. - Long-term (held a year+): taxed at the capital-gains rate —
$4,500, a 15% effective rate. - Holding past a year saves about $2,233 on the identical profit.
- Low-income years are special: with little other income, long-term gains can be taxed at
0%up to the bracket limit.
Acronyms used on this page
- LTCG
- Long-Term Capital Gains
- AGI
- Adjusted Gross Income
- NIIT
- Net Investment Income Tax
2026 long-term capital gains brackets
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 0% | up to $49,450 | up to $98,900 | up to $66,200 |
| 15% | $49,450–$545,500 | $98,900–$613,700 | $66,200–$579,600 |
| 20% | over $545,500 | over $613,700 | over $579,600 |
Thresholds are based on total taxable income (ordinary income plus the gain). An additional 3.8% net investment income tax applies to investment income once modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly).
Frequently asked questions
Short-term vs long-term — what's the difference?
Held one year or less: short-term, taxed as ordinary income (up to 37%). Held more than a year: long-term, taxed at 0/15/20%. Crossing the one-year mark can sharply cut the tax on the same gain.
What are the 2026 long-term rates?
0% up to $49,450 single / $98,900 married; 15% above that to $545,500 / $613,700; 20% beyond. High earners may also owe a 3.8% net investment income tax.
How can I reduce capital gains tax?
Hold past a year for long-term rates, harvest losses to offset gains, time sales for lower-income years, and use tax-advantaged accounts. In low-income years, long-term gains may be taxed at 0%.
What if I have a loss?
Losses offset gains dollar for dollar; up to $3,000 of net loss can offset ordinary income per year, with the rest carried forward to future years.