Capital Gains Tax Calculator 2026

A capital gains tax is a tax on the profit you earn when you sell an asset — like stocks, bonds, or real estate — for more than you paid for it. The federal government distinguishes between short-term and long-term capital gains. Short-term gains (on assets held one year or less) are taxed as ordinary income at rates from 10% to 37%. Long-term gains (on assets held more than one year) qualify for preferential rates of 0%, 15%, or 20%, depending on your total taxable income.

The key difference is how long you held the asset before selling. If you held it for 12 months or less, the gain is short-term and taxed at your ordinary income tax rate (up to 37%). If you held it for more than 12 months, the gain is long-term and taxed at lower preferential rates of 0%, 15%, or 20%. Because long-term rates are significantly lower, holding investments for at least a year before selling is a common tax-optimization strategy.

For 2026, long-term capital gains are taxed at 0%, 15%, or 20% depending on your taxable income and filing status. Single filers pay 0% on gains when total taxable income is below $48,350; 15% between $48,350 and $533,400; and 20% above $533,400. Married filing jointly thresholds are $96,700 (0%), $96,700–$600,050 (15%), and above $600,050 (20%). Head of household thresholds are $64,750 (0%), $64,750–$566,700 (15%), and above $566,700 (20%).

The Net Investment Income Tax (NIIT) is an additional 3.8% surtax that applies to investment income — including capital gains — for high-income filers. It applies to single filers and head-of-household filers with modified adjusted gross income above $200,000, and to married filing jointly filers above $250,000. The 3.8% NIIT is applied to the lesser of your net investment income or the amount by which your income exceeds the threshold. This means high earners can face an effective capital gains rate of up to 23.8% (20% + 3.8% NIIT).

Yes, most U.S. states also tax capital gains, though the rules vary widely. Some states, like California and New York, tax all capital gains as ordinary income with rates as high as 13.3%. A few states — including Florida, Texas, Nevada, and Washington — have no state income tax, so capital gains are not taxed at the state level. This calculator computes federal capital gains tax only. Check your state's tax rules to understand your full tax liability.