Capital Gains Tax Calculator
Calculate capital gains tax on investment sales including short-term and long-term rates
About this calculator
The Capital Gains Tax Calculator helps investors determine their tax liability when selling investments like stocks, bonds, or real estate. This tool 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. Understanding your potential tax burden before selling investments enables better financial planning and timing decisions to optimize your after-tax returns.
How to use
Enter your original purchase price, sale price, and holding period to calculate your capital gain or loss. The calculator will automatically determine if it's short-term or long-term based on the holding period, then apply the appropriate tax rates based on your income level to show your estimated tax liability.
Frequently asked questions
What's the difference between short-term and long-term capital gains?
Short-term gains (assets held less than one year) are taxed as ordinary income, while long-term gains receive preferential 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 capital losses?
Yes, capital losses can offset capital gains dollar-for-dollar, and up to $3,000 in excess losses can offset ordinary income annually.