Capital Gains Tax Estimator
Estimate 2026 federal tax on an investment sale — short-term gains at ordinary rates, long-term gains at 0/15/20% stacked on your income — with all four filing statuses, the home-sale exclusion, collectibles and rental depreciation recapture, losses, the 3.8% NIIT and state tax.
How it works
Gain = sale price − selling costs − (purchase price + purchase fees and improvements) · Short-term: ordinary tax on (income + gain) − ordinary tax on income · Long-term: gain stacked on top of your other taxable income at 0% (to $49,450 single / $98,900 joint in 2026), 15% (to $545,500 / $613,700) and 20% above · Collectibles at ordinary rates up to 28%, depreciation recapture up to 25% · NIIT = 3.8% × lesser of gain or income over $200,000 / $250,000
How long you hold an investment changes the tax dramatically. Assets sold within a year produce short-term gains, taxed as ordinary income at your regular bracket. Assets held longer than a year produce long-term gains, taxed at 0%, 15% or 20%. The rate is not picked from one bracket: the gain sits on top of your other taxable income, so part of it can fall in the 0% band and the rest at 15%. The calculator uses the 2026 figures the IRS published in Rev. Proc. 2025-32 for all four filing statuses, can work out the holding period from your purchase and sale dates, and shows what the same sale would cost if held short- or long-term. It also handles the special cases: up to $250,000 of gain on your main home ($500,000 for joint filers) is tax-free if you owned and lived in it two of the last five years; long-term gains on collectibles are taxed at up to 28%; and the depreciation you took on a rental is taxed at up to 25% when you sell. Capital losses offset the gain, and a net loss can reduce ordinary income by up to $3,000 a year. Higher earners also pay the 3.8% net investment income tax, and you can add a flat state rate.
Worked example
A $10,000 investment sold for $16,000 is a $6,000 gain. Held long-term by a single filer with $75,000 of other taxable income, it falls entirely in the 15% band: $900 of tax, leaving $15,100. Held short-term, the same $6,000 is taxed at the 22% ordinary rate — $1,320, so waiting past a year saves $420. A single filer with $40,000 of taxable income and a $20,000 long-term gain pays 0% on the first $9,450 (up to $49,450) and 15% on the other $10,550: $1,582.50 in all. A single homeowner who bought for $300,000 and sells for $700,000 excludes $250,000 of the $400,000 gain and pays 15% on $150,000 ($22,500) plus $950 of net investment income tax.
Sources: IRS Rev. Proc. 2025-32 — 2026 tax brackets and capital gains rate thresholds · IRS Topic 409 — Capital gains and losses · IRS Topic 559 — Net investment income tax · IRS Topic 701 — Sale of your home
Frequently asked questions
What is the difference between short- and long-term capital gains?
Short-term gains come from assets held one year or less and are taxed as ordinary income at your regular bracket. Long-term gains come from assets held more than a year and get preferential 0/15/20% rates. The holding period starts the day after you buy, so selling on the one-year anniversary is still short-term; sell at least one day later.
What are the 2026 long-term capital gains brackets?
For 2026, single filers pay 0% while taxable income (including the gain) stays at or below $49,450, 15% up to $545,500 and 20% above. Married couples filing jointly: 0% to $98,900, 15% to $613,700. Head of household: 0% to $66,200, 15% to $579,600. Married filing separately: 0% to $49,450, 15% to $306,850.
Can part of my gain be taxed at 0% and part at 15%?
Yes. Your other income fills the brackets first and the gain sits on top. If your other taxable income is $40,000 as a single filer, the first $9,450 of long-term gain fits under the $49,450 limit at 0% and the rest is taxed at 15%. The bands table shows how much of your gain falls in each.
Do I pay tax when I sell my house?
Often not. If you owned and lived in the home as your main residence for at least two of the five years before the sale, up to $250,000 of gain ($500,000 married filing jointly) is excluded. Choose “My main home” to apply it; only gain above the exclusion is taxed, and a loss on your own home is not deductible.
How do capital losses reduce my tax?
Losses offset gains dollar for dollar. If losses exceed gains, up to $3,000 of the net loss ($1,500 married filing separately) reduces your ordinary income each year, and the rest carries forward with no time limit. Enter losses from other sales and any carryover under More options.
What does this estimate leave out?
It is a simplified federal estimate. It assumes the gain stacks on top of the taxable income you enter, uses taxable income plus the gain in place of modified AGI for the net investment income tax, and applies one flat state rate. It does not model the alternative minimum tax, installment sales, Section 1202 small-business stock, inherited basis rules or the wash-sale adjustment.
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Educational estimate using 2026 US federal tax figures — not tax advice. It simplifies the netting of gains and losses, the net investment income tax and state rules; confirm your actual liability with a tax professional or the IRS.