FreeCalculators

Capital Gains Tax Calculator

Calculate your potential tax from selling investments with our capital gains tax calculator. Understand long-term and short-term tax implications.

Personal Finance · Reviewed by FreeCalculators Editorial · Updated 2026-08-20

Your details

What you originally paid, including reinvested dividends.

1+ year = long-term rates.

Determines the 0%/15%/20% bracket.

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How it works

The Capital Gains Tax Calculator helps you determine the taxes owed on the profit from selling your investments. To calculate your capital gain, subtract the cost basis (the original purchase price) from the sale price. For example, if you sell an asset for $25,000 and your cost basis is $15,000, your capital gain would be $10,000. The tax rate applied depends on how long you've held the asset. If held for more than a year, it's considered a long-term gain, subject to rates of 0%, 15%, or 20%, based on your total annual income. For instance, with an annual income of $80,000 and a long-term gain of $10,000, you would likely fall into the 15% tax bracket, resulting in a capital gains tax of $1,500. Additionally, if your income exceeds $200,000, a 3.8% Net Investment Income Tax (NIIT) may apply. This calculator provides a comprehensive view of your potential tax liabilities and net proceeds from the sale.

Formula


                Gain = Sale - cost basis | Long-term rate by income: 0% / 15% / 20% | +3.8% NIIT above $200k

Tips

  • Keep detailed records of your investment purchases and sales to easily calculate your cost basis.
  • Consider holding investments for more than a year to benefit from lower long-term capital gains tax rates.
  • Consult a tax professional if your income is near the thresholds for different capital gains tax rates.
  • Use tax-loss harvesting strategies to offset capital gains with losses from other investments.

Frequently asked questions

What is the capital gains tax rate for long-term investments?
The long-term capital gains tax rate can be 0%, 15%, or 20%, depending on your taxable income.
How do I calculate my capital gain?
Subtract your cost basis from the sale price. For example, if your sale price is $25,000 and cost basis is $15,000, your capital gain is $10,000.
What is the NIIT and when does it apply?
The Net Investment Income Tax (NIIT) of 3.8% applies to individuals with modified adjusted gross income over $200,000.
Can I reduce my capital gains tax?
Yes, you can reduce your capital gains tax by offsetting gains with losses from other investments or by utilizing tax-advantaged accounts.