Capital Gains Tax Calculator
Selling an investment for a profit triggers a taxable capital gain, but the rate you pay depends heavily on how long you held the asset and your income level, and understanding the difference can save you a meaningful amount at tax time. This calculator estimates your federal capital gains tax for both short-term holdings (assets held one year or less, taxed as ordinary income at rates up to 37%) and long-term holdings (assets held more than one year, taxed at preferential rates of 0%, 15%, or 20% based on your income bracket). Enter your filing status, your taxable income excluding the gain, the size of your capital gain, and whether the gain is short-term or long-term, and the calculator returns your estimated federal capital gains tax, your effective rate on the gain, and your after-tax proceeds. The long-term versus short-term distinction is one of the most important in tax planning: holding an asset just over one year instead of just under can cut the federal rate on the gain from as high as 37% to as low as 0% or 15%, a difference that on a large gain can run into thousands or tens of thousands of dollars. The calculator excludes state capital gains taxes — most states tax gains as ordinary income, so add your state's rate separately — and the 3.8% Net Investment Income Tax that applies to high earners. Use it to estimate the tax before you sell, to compare the after-tax outcome of selling now versus holding longer, and to plan sales across tax years to minimize the bite.
Capital Gains Tax Calculator
Estimate federal capital gains tax on an investment sale.
Estimated federal tax
$750
At 15% rate
Capital gain
$5,000
After-tax proceeds
$9,250
Estimates use 2026 federal capital gains brackets. Does not include state taxes, the 3.8% Net Investment Income Tax, or deductions. Long-term rates (0/15/20%) apply to assets held over one year; short-term gains are taxed as ordinary income.
About This Calculator
Selling an investment for a profit triggers a taxable capital gain, but the rate you pay depends heavily on how long you held the asset and your income level, and understanding the difference can save you a meaningful amount at tax time. This calculator estimates your federal capital gains tax for both short-term holdings (assets held one year or less, taxed as ordinary income at rates up to 37%) and long-term holdings (assets held more than one year, taxed at preferential rates of 0%, 15%, or 20% based on your income bracket). Enter your filing status, your taxable income excluding the gain, the size of your capital gain, and whether the gain is short-term or long-term, and the calculator returns your estimated federal capital gains tax, your effective rate on the gain, and your after-tax proceeds. The long-term versus short-term distinction is one of the most important in tax planning: holding an asset just over one year instead of just under can cut the federal rate on the gain from as high as 37% to as low as 0% or 15%, a difference that on a large gain can run into thousands or tens of thousands of dollars. The calculator excludes state capital gains taxes — most states tax gains as ordinary income, so add your state's rate separately — and the 3.8% Net Investment Income Tax that applies to high earners. Use it to estimate the tax before you sell, to compare the after-tax outcome of selling now versus holding longer, and to plan sales across tax years to minimize the bite.
Disclaimer: This calculator provides estimates for educational purposes only and does not constitute financial, tax, or investment advice. Results depend on assumptions that may not reflect your actual situation.
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Written by
James MitchellSenior Financial Analyst & Personal Finance Expert
Certified Financial Planner (CFP) • MBA in Finance, University of Chicago Booth School of Business