Capital Gains Tax Calculator
Capital Gains Tax Calculator
Estimate Federal Tax on an Asset Sale
Sale Details
Estimated Tax Owed
Enter your sale details to estimate the tax.
Understanding Capital Gains Tax
When you sell an investment or asset for more than you paid, the profit is a capital gain -- and how it's taxed depends heavily on how long you held it before selling.
Short-Term: 12 Months or Less
Assets held one year or less are taxed as ordinary income, at the same marginal rate as your salary or wages.
Long-Term: Over 12 Months
Assets held over a year qualify for preferential long-term rates -- 0%, 15%, or 20% depending on your total taxable income and filing status.
Gains Stack on Top of Other Income
Long-term capital gains "stack" on top of your other taxable income -- a gain can straddle two brackets, with each portion taxed at its own rate.
Estimate Only
This tool uses approximate 2024 federal bracket thresholds and doesn't account for the Net Investment Income Tax, state taxes, or other credits and deductions. Confirm current figures with a tax professional or the IRS before filing.
Worked Example
Suppose you bought stock for $10,000, sold it 2 years later for $16,000, filing single with $70,000 in other taxable income:
- Capital gain: $16,000 − $10,000 = $6,000.
- Holding period: 24 months → long-term.
- Stacked income: $70,000 to $76,000 falls entirely in the 15% long-term bracket for a single filer.
- Tax owed: $6,000 × 15% = $900.
Summary
- Gain: $6,000
- Tax Owed: $900
- Net Proceeds: $15,100
Key Takeaways
- Holding Period Matters: Waiting past the 12-month mark can dramatically lower the tax rate on a gain.
- Losses Aren't Taxed: This tool shows $0 tax on a loss -- in reality, capital losses can offset other gains or a limited amount of ordinary income.
- An Estimate, Not Tax Advice: Verify exact figures with the IRS or a tax professional before making decisions.