Capital Gains Tax Calculator
Calculate capital gains tax on stock sales with short-term and long-term rates
About this calculator
The Capital Gains Tax Calculator helps investors determine their tax liability when selling stocks or other capital assets. It automatically calculates both short-term capital gains (held less than one year) taxed as ordinary income, and long-term capital gains (held over one year) with preferential tax rates. This tool is essential for tax planning, investment decisions, and estimating your potential tax burden before selling securities.
How to use
Enter your original purchase price, sale price, and holding period for your stock investment. The calculator will determine if it's a short-term or long-term capital gain, apply the appropriate tax rates based on your income bracket, and display your capital gains tax owed along with your net profit after taxes.
Frequently asked questions
What's the difference between short-term and long-term capital gains?
Short-term gains (assets held under 1 year) are taxed as ordinary income, while long-term gains benefit from lower tax rates of 0%, 15%, or 20%.
How are capital gains tax rates determined?
Long-term capital gains rates depend on your total taxable income and filing status, with rates of 0%, 15%, or 20% for most taxpayers.
Can I offset capital gains with losses?
Yes, capital losses can offset capital gains dollar-for-dollar, and up to $3,000 in excess losses can offset ordinary income annually.