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Capital Gains Tax Calculator

Short & Long-Term Capital Gains Tax — 2025 Federal + All States

Asset & Sale Details

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Improvements, closing costs, etc. Adds to cost basis → reduces taxable gain.
Enter your purchase date to auto-detect short-term vs long-term status.
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Wages, business income, etc. Determines which CG bracket applies.
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Losses from other sales offset gains (tax-loss harvesting)
If you repurchase the same security within 30 days, the loss is disallowed.
Total Capital Gains Tax
$0
Effective Rate: 0.0%
Effective Tax Rate on Gain
0.0% 0% 40%
Sale Price —
− Cost Basis —
− Basis Adjustments —
− Capital Losses —
= Capital Gain —
Capital Gain
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Federal CG Rate
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Federal CG Tax
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NIIT (3.8%)
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State CG Tax
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After-Tax Proceeds
—
Pre-Tax Return
—
After-Tax Return
—
Tax Drag
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Tax Formulas
LT CG = Gain × 0/15/20% ST CG = Gain × ordinary rate NIIT = Gain × 3.8% (AGI > threshold) Recapture = Depr × 25%
Holding Period Status
Short-Term (Ordinary Rates) Long-Term (0/15/20%)
Your LTCG Bracket Position (2025)
0% Bracket 15% Bracket 20% Bracket

Scenario Settings

Compare selling now vs waiting, see price sensitivity, and analyze multi-year spread benefits.

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Harvested losses to offset against this gain
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Hold vs Sell Analysis
Sale Price × Holding Period — Tax Matrix
Gift Appreciated Stock
Gifting to a recipient in the 0% CG bracket (income <$48,350 single) lets them sell with no capital gains tax. Recipient inherits your cost basis.
Tax you would owe:—
Tax if recipient in 0% bracket:$0
Potential savings:—
0% Capital Gains Bracket
Long-term gains are tax-free if your total income stays below the 0% threshold. A powerful strategy in low-income or early retirement years.
0% bracket ceiling:—
Your total income:—
Room remaining:—
Tax-Loss Harvesting
Sell underperforming assets to offset gains. Offsets unlimited capital gains + up to $3,000/yr ordinary income. Excess carries forward indefinitely. Avoid wash-sale rule (30-day window).
Your capital gain:—
Losses entered:—
Tax after harvesting:—
1031 Exchange (Real Estate)
Defer capital gains indefinitely by exchanging for a like-kind property within 180 days (45-day ID window). The deferred tax continues to compound in your investment.
Deferred tax today:—
10-yr compound growth (8%):—
Benefit of deferral:—
Donate Appreciated Stock
Donating directly to a 501(c)(3) charity gives you a full FMV deduction and avoids all capital gains tax. Up to 30% of AGI limit for appreciated stock donations.
FMV charitable deduction:—
CG tax avoided:—
Installment Sale
Spread gain over multiple years by receiving payments over time. Keeps each year's income in a lower bracket. Ideal for business and real estate sales.
Gain spread over 5 yrs:—
Estimated annual tax:—
vs. Selling all at once:—
Primary Residence Exclusion
If you owned and lived in the home for 2 of the last 5 years, you can exclude up to $250k (single) or $500k (MFJ/HoH) of gain from capital gains tax.
Gain without exclusion:—
Excluded amount:—
Taxable gain after:—
Step-Up in Basis at Death
When an asset is inherited, the heir's cost basis is "stepped up" to the fair market value at the date of death — eliminating all accrued capital gains. No tax on lifetime appreciation.
Your current gain:—
Gain if inherited (stepped up):$0
Tax avoided by heirs:—

How to Use This Calculator

1

Enter Sale Details

Select your asset type, enter purchase price, sale price, and holding period. Add basis adjustments for improvements or costs.

2

Add Your Tax Situation

Enter your filing status, other annual income, capital losses, and state. All four filing statuses supported with 2025 brackets.

3

Explore Tax Strategies

See your full tax breakdown, review the Tax Optimization tab for strategies like 1031 exchanges, TLH, and primary residence exclusions.

Formula & Methodology

Capital Gain

Capital Gain = Sale Price − (Cost Basis + Adjustments) − Capital Losses

Basis adjustments (improvements, closing costs) increase your cost basis and reduce the taxable gain.

Federal Tax — Long-Term

LT CG Tax = Capital Gain × 0%, 15%, or 20% (based on total income + filing status)

Long-term gains are "stacked" on top of ordinary income to determine which rate applies. Collectibles max out at 28%.

NIIT Surtax

NIIT = min(CG, max(0, AGI − threshold)) × 3.8%

Applied on top of CG rates for high earners. Threshold: $200k single, $250k MFJ, $125k MFS.

About this calculation · Accuracy & Methodology

Key Terms

Cost Basis
Your original purchase price plus adjustments (improvements, reinvested dividends, closing costs).
Long-Term Capital Gain
Profit from selling an asset held over 1 year. Taxed at preferential 0%, 15%, or 20% rates.
Short-Term Capital Gain
Profit from an asset held 1 year or less. Taxed as ordinary income at your marginal rate (up to 37%).
NIIT
Net Investment Income Tax — 3.8% surtax on investment income for high earners (above $200k single/$250k MFJ).
Tax-Loss Harvesting
Selling losing investments to offset gains. Up to $3,000 in net losses can offset ordinary income per year; excess carries forward.
Depreciation Recapture
When rental property is sold, prior depreciation deductions are "recaptured" and taxed at a maximum 25% rate (Section 1250).
Wash Sale Rule
If you sell a security at a loss and repurchase it (or a substantially identical one) within 30 days, the IRS disallows the loss deduction.
1031 Exchange
A provision allowing real estate investors to defer all capital gains taxes by reinvesting proceeds into a like-kind property within 180 days.

Real-World Examples

Example 1

Long-Term Stock Sale

Bought: $10,000 · Sold: $25,000 · Held: 3 years · Income: $80,000 single

Gain = $15,000 · Rate = 15% · Tax = $2,250. Holding 1+ year saved ~$1,500 vs short-term rates.

Example 2

Rental Property with Depreciation

Bought: $200k · Sold: $350k · Depreciation taken: $30k · Income: $120k single

Gain = $150k at 15% + $30k recapture at 25% = $22,500 + $7,500 = $30,000 total federal tax.

Example 3

High-Earner with NIIT

Bought: $50k · Sold: $200k · Income: $300k MFJ

Gain = $150k · Fed rate = 15% = $22,500 · NIIT = $150k × 3.8% = $5,700 · Total = $28,200.

2025 Capital Gains Tax Rates — All Filing Statuses

RateSingleMarried Filing JointlyHead of HouseholdMFS
0%$0 – $48,350$0 – $96,700$0 – $64,750$0 – $48,350
15%$48,351 – $533,400$96,701 – $600,050$64,751 – $566,700$48,351 – $300,000
20%Over $533,400Over $600,050Over $566,700Over $300,000
+3.8% NIITAGI > $200kAGI > $250kAGI > $200kAGI > $125k

Mastering Capital Gains Tax Strategy

The One-Year Rule

The single most impactful tax strategy: holding for at least one year and one day converts short-term gains (taxed up to 37%) into long-term gains (taxed at 0–20%). This one decision can cut your tax bill in half.

The 0% Bracket Opportunity

In 2025, single filers with total income under $48,350 pay zero federal tax on long-term gains. Retirees, early FIRE practitioners, and anyone in a temporarily low-income year can strategically realize gains completely tax-free. This is one of the most underutilized strategies in personal finance.

Tax-Loss Harvesting Mechanics

Harvesting losses offsets capital gains of the same type first (long vs. short), then crosses over, then reduces ordinary income by up to $3,000 per year with indefinite carryforward. The key risk: the wash-sale rule disallows losses if you repurchase the same or substantially identical security within 30 days before or after the sale.

Depreciation Recapture on Real Estate

Every year you claim depreciation on a rental property reduces your cost basis. When you sell, the IRS "recaptures" those deductions at a maximum 25% rate, regardless of your income level. A 1031 exchange defers this tax indefinitely along with the capital gain.

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