Income & Tax
Capital Gains Tax Calculator
Calculate your estimated capital gains tax based on your income, filing status, and how long you held the investment.
Enter your investment details and income to estimate the capital gains tax you might owe and see the benefit of holding investments longer than one year.
Income & Tax
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Example
Selling an investment for $18,000 that you bought for $10,000 would realize an $8,000 gain. Holding for over a year means lower long-term capital gains rates.
Results
Capital gain
$8,000
Estimated tax
$1,200
Holding status
Long-term
Projection
Distribution view
Milestones
Decision cues
Breakdown
Cost mix
Result reading
The visual trend is moving up, with an approximate change of $8,800 across the period shown.
Planning cue
Use the output as a scenario test rather than a promise. Small input changes can materially change the result.
This is an estimate only. Actual tax depends on many factors including state taxes, other income, deductions, and specific circumstances. Consult a tax professional for personalized advice.
How it works
What the result is showing you
These sections explain what the calculator measures, which assumptions matter most, and where the number can be misleading.
Short-term vs long-term capital gains
Gains on investments held for one year or less are taxed as ordinary income, like your salary. Gains on investments held for more than one year qualify for lower long-term capital gains rates, which can be 0%, 15%, or 20% depending on your income.
How tax brackets affect your gains
Your capital gains stack on top of your ordinary income. This means some of your gains could be taxed at 0% if they fall within the lowest brackets, then 15% in the middle, and 20% at the highest income levels.
Tax-loss harvesting strategy
You can offset capital gains with capital losses in the same year. This strategy, called tax-loss harvesting, can reduce or eliminate the tax you owe on your investment gains. Any unused losses can carry forward to future years.
FAQ
Frequently asked questions
Quick answers to the questions people ask most about this calculator.
What is the capital gains tax rate?
Long-term capital gains rates are 0%, 15%, or 20% depending on your income and filing status. Short-term gains are taxed at your ordinary income tax rates, which can be significantly higher.
Can capital losses offset gains?
Yes, you can use capital losses to offset capital gains. If you have more losses than gains, you can deduct up to $3,000 against ordinary income and carry forward the rest to future years.
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