MayoCalc / Finance

Capital Gains Tax Estimator

Estimate your 2026 federal capital gains tax on stocks, real estate, crypto, and other assets.

This tool provides estimates for educational purposes only. Not financial or tax advice. Neither MayoCalc nor Cook Media Systems assumes any liability. See our Disclaimer and Terms.

What Are Capital Gains?

A capital gain is the profit you make when you sell an asset (stocks, real estate, crypto, or other investments) for more than you paid for it. Capital gains are taxed differently depending on how long you held the asset. Short-term gains (assets held one year or less) are taxed as ordinary income at your marginal tax rate. Long-term gains (assets held longer than one year) are taxed at preferential rates of 0%, 15%, or 20%, depending on your taxable income.

How to Use This Calculator

Enter the purchase price (cost basis), the sale price, your filing status, your taxable income, and whether the gain is short-term or long-term. The calculator shows your capital gain amount, the applicable tax rate, the tax owed, and your net proceeds after tax. For investments with reinvested dividends or multiple purchase lots, use the total cost basis across all shares.

2026 Capital Gains Tax Rates

Long-term (held > 1 year): 0% for single filers with taxable income up to $49,450; 15% for income $49,451 to $546,650; 20% for income above $546,650. An additional 3.8% Net Investment Income Tax (NIIT) applies to investment income above $200,000 for single filers ($250,000 for married filing jointly). Short-term (held 1 year or less): Taxed at your ordinary income rate, which can be as high as 37%. The Tax Bracket Calculator shows your marginal rate.

Capital Gains Tax FAQ

How do I reduce capital gains tax?
Hold investments for more than one year to qualify for lower long-term rates. Use tax-loss harvesting to offset gains with losses. Invest in tax-advantaged accounts (401(k), IRA, Roth IRA) where gains grow tax-deferred or tax-free. For real estate, a 1031 exchange can defer gains when reinvesting in like-kind property.
Are crypto gains taxed the same way?
Yes. The IRS treats cryptocurrency as property. Short-term crypto gains are taxed as ordinary income and long-term gains at the preferential rates. Every trade, including crypto-to-crypto swaps, is a taxable event. Use the Crypto Profit Calculator to estimate your gains.
What is cost basis?
Cost basis is the original price you paid for an asset, plus any commissions or fees. For stocks with reinvested dividends, the dividends you reinvested increase your cost basis. For inherited assets, the cost basis is typically "stepped up" to the fair market value at the date of the decedent's death, which can dramatically reduce or eliminate taxable gains.

How Capital Gains Tax Works

Capital gains tax applies to profits from selling assets including stocks, bonds, real estate, and cryptocurrency. The tax rate depends on how long you held the asset. Short-term gains (held less than one year) are taxed as ordinary income at your marginal tax rate (10-37% for 2025). Long-term gains (held one year or longer) receive preferential rates of 0%, 15%, or 20% depending on your taxable income.

For 2026, single filers pay 0% long-term capital gains tax on taxable income up to $49,450, 15% on income from $49,451 to $546,650, and 20% above $546,650. High earners may also owe the 3.8% Net Investment Income Tax (NIIT), bringing the effective top rate to 23.8%. These thresholds are the primary reason tax-loss harvesting (selling losing investments to offset gains) is a widely used strategy.

Strategies to Minimize Capital Gains Tax

Tax-loss harvesting offsets realized gains with realized losses, reducing your tax bill. The wash sale rule prevents you from repurchasing a "substantially identical" security within 30 days before or after selling at a loss. Holding investments for at least one year and one day converts short-term gains to long-term, potentially cutting the tax rate in half. Donating appreciated assets to charity allows you to deduct the full market value without ever paying capital gains tax on the appreciation. The Tax Bracket Calculator shows your marginal and effective tax rates.

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Short-Term vs. Long-Term Capital Gains

Assets held for one year or less are taxed at your ordinary income rate (up to 37% in 2026). Hold them for more than a year and the rate drops to 0%, 15%, or 20% depending on your income. For most people, that means a 15% long-term rate vs. a 22-32% short-term rate. The difference is significant enough that timing your sales around the one-year mark can save thousands.

This calculator computes your capital gains tax for both short and long-term scenarios, including the 3.8% Net Investment Income Tax that applies above certain income thresholds. Enter your purchase price, sale price, holding period, and filing status for a complete breakdown.