Capital Gains Tax Calculator

When you sell a capital asset—stocks, bonds, real estate, cryptocurrency, even collectibles—for more than you paid, the profit is a capital gain subject to federal tax. The rate depends on two things: how long you held the asset (the holding period) and your overall taxable income. Holding an asset for more than one year before selling unlocks dramatically lower "long-term" rates; selling after one year or less triggers "short-term" rates that match ordinary income tax brackets.

Short-term vs long-term: the one-year cliff

The single biggest lever investors control is when they sell. A short-term gain (held one year or less) is taxed at ordinary income rates up to 37% federally. A long-term gain (held more than one year) qualifies for the preferential 0%, 15%, or 20% LTCG rates. For a top-bracket taxpayer, the difference can be 17 percentage points or more. Holding an asset just one extra day past the one-year mark can save tens of thousands of dollars on a large gain.

The 2024 long-term capital gains brackets

LTCG brackets are stacked on top of ordinary income. Your other taxable income fills the brackets first, then your long-term gain fills the remaining space:

• 0% rate applies when total taxable income is at or below $47,025 (single), $63,000 (HoH), or $94,050 (MFJ).
• 15% rate applies when total taxable income falls between the 0% threshold and $518,900 (single), $551,350 (HoH), or $583,750 (MFJ).
• 20% rate applies to taxable income above those 15% thresholds.

Because the brackets stack, a single filer with $30,000 of ordinary income and a $50,000 long-term gain has taxable income of $80,000—$17,025 fits in the 0% bracket (from $30,001 to $47,025), and the remaining $32,975 is taxed at 15%. The effective rate on the gain is just 9.9%, even though the top marginal rate is 15%.

The 3.8% Net Investment Income Tax (NIIT)

High earners face an additional surcharge: a 3.8% tax on the lesser of (a) net investment income, or (b) the amount by which modified adjusted gross income exceeds $200,000 (single/HoH) or $250,000 (MFJ). For a large long-term gain, this typically means the entire gain is subject to NIIT. Combined with a 20% top LTCG rate, the effective top federal rate on investment income is 23.8%—before any state tax.

Special assets and rules

Primary residences qualify for the Section 121 exclusion: $250,000 of gain ($500,000 MFJ) is tax-free if you owned and lived in the home for 2 of the past 5 years. Investment real estate is subject to depreciation recapture (capped at 25%) plus capital gains, but a 1031 exchange can defer gains if you reinvest in like-kind property within set timelines. Collectibles (art, coins, gold) are taxed at a 28% top LTCG rate. Cryptocurrency is treated as property by the IRS—every crypto-to-fiat, crypto-to-crypto, or crypto-to-goods transaction is a taxable event.

Tax-loss harvesting

You can offset unlimited capital gains with capital losses, plus up to $3,000 of ordinary income per year ($1,500 if married filing separately), carrying forward any excess. Strategic loss harvesting—selling underwater positions to offset gains elsewhere—is one of the most powerful year-end tax moves. Beware the wash-sale rule: you cannot repurchase the same or a "substantially identical" security within 30 days before or after the sale, or the loss is disallowed.

What this calculator doesn't capture

This tool estimates federal capital gains tax using 2024 brackets. It excludes state capital gains taxes (which most states tax as ordinary income—California's top rate is 13.3%), the Section 121 home exclusion, depreciation recapture, qualified small business stock exclusions, wash-sale interactions, and any foreign tax credits. For multi-asset portfolios or significant transactions, work with a qualified CPA.