Capital Gains Tax Calculator
Estimate federal capital gains tax on an investment sale from your purchase price, sale price and holding period.
How it works
Gain = sale price − purchase price · Tax = gain × rate · Net proceeds = sale price − tax
Capital gains tax applies to the profit when you sell an asset for more than you paid. Assets held under a year are short-term, taxed at your ordinary income rate; assets held a year or more are long-term, taxed at the preferential 0%, 15% or 20% rate depending on your taxable income. This tool estimates only the federal tax on the gain — it does not model your full return.
Worked example
Buying at $10,000 and selling at $15,000 is a $5,000 gain. Held long-term in the 15% bracket, the estimated federal tax is $750, leaving about $14,250 in net proceeds. Held short-term at a 24% ordinary rate, the tax would be $1,200 instead.
Frequently asked questions
What makes a gain long-term?
Holding the asset for more than one year before selling. Long-term gains are taxed at 0%, 15% or 20% based on your taxable income — far lower than the ordinary rates that apply to short-term gains.
Does this include state tax or the NIIT?
No. Many states tax capital gains as regular income, and high earners may owe an extra 3.8% net investment income tax. This estimate covers federal capital gains tax only, so your real total can be higher.
How can I reduce capital gains tax?
Common approaches include holding assets over a year for the long-term rate, offsetting gains with losses (tax-loss harvesting), using tax-advantaged accounts, and timing sales for lower-income years. A tax professional can tailor this to your situation.
Related calculators
This is a very rough, educational federal-only estimate — not tax advice. It uses simplified rules and ignores state and local taxes, credits, the net investment income tax, and the specifics of your situation. Confirm any figures with a tax professional or the IRS.