Capital Gains Tax Calculator 2026: Short vs Long-Term Rates
What is Capital Gains Tax?
Capital gains tax is the tax you pay on the profit from selling an asset — stocks, bonds, real estate, crypto or any other investment. The profit is called a "capital gain" and equals the selling price minus the original purchase price (your "cost basis").
Capital Gains Tax = Capital Gain × Applicable Tax Rate
Example
Sold 100 shares at $200 = $20,000 proceeds
Capital gain = $20,000 − $15,000 = $5,000
Tax at 15% long-term rate = $750
Short-Term vs Long-Term Capital Gains — The Critical Difference
Taxed as ordinary income — same as your salary. Rates from 10% to 37% depending on your total income. The most expensive way to realize gains.
Taxed at preferential rates of 0%, 15% or 20%. Massively lower than short-term rates. Holding an extra day past 1 year can save thousands.
2026 Long-Term Capital Gains Tax Rates
| Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 | Up to $66,200 |
| 15% | $49,451–$545,500 | $98,901–$613,700 | $66,201–$579,600 |
| 20% | Over $545,500 | Over $613,700 | Over $579,600 |
If your total taxable income (including the capital gain) stays under $49,450 (single) or $98,900 (married), you pay zero federal tax on long-term capital gains. This is one of the most powerful tax-planning opportunities for early retirees, people in low-income years, or those doing strategic "tax-gain harvesting."
2026 Short-Term Capital Gains Tax Rates (Ordinary Income)
| Tax Bracket | Single Filers | Married Filing Jointly |
|---|---|---|
| 10% | Up to $12,400 | Up to $24,800 |
| 12% | $12,401–$50,400 | $24,801–$100,800 |
| 22% | $50,401–$105,700 | $100,801–$211,400 |
| 24% | $105,701–$201,775 | $211,401–$403,550 |
| 32% | $201,776–$256,225 | $403,551–$512,450 |
| 35% | $256,226–$640,600 | $512,451–$768,700 |
| 37% | Over $640,600 | Over $768,700 |
Real Example — The Cost of Selling Too Early
You bought $50,000 of Tesla stock. It's now worth $80,000 — a $30,000 gain. Here's what you'd pay depending on when you sell:
| Scenario | Holding Period | Tax Rate | Tax Owed | You Keep |
|---|---|---|---|---|
| High earner, sells at 11mo | Short-term | 35% | $10,500 | $69,500 |
| Middle earner, sells at 11mo | Short-term | 22% | $6,600 | $73,400 |
| High earner, waits 1 more month | Long-term | 20% | $6,000 | $74,000 |
| Middle earner, waits 1 more month | Long-term | 15% | $4,500 | $75,500 |
| Lower earner, waits 1 more month | Long-term | 0% | $0 | $80,000 |
Waiting just one more month can save a middle-income earner $2,100 on a $30,000 gain. For a high earner, the savings from short-term to long-term is $4,500 on this single trade.
Calculate Your Capital Gains Tax
Enter your purchase price, sale price, holding period and income — get your exact federal tax owed in seconds.
Open Capital Gains Calculator →Capital Gains Tax on Real Estate
Real estate has special rules that differ from stocks:
- Primary residence exclusion: If you've lived in your home for 2 of the last 5 years, you can exclude up to $250,000 of gains ($500,000 if married) from capital gains tax entirely.
- Investment property: No exclusion. Long-term gains taxed at 0%, 15% or 20% depending on income.
- Depreciation recapture: If you took depreciation deductions on a rental property, the IRS "recaptures" that at a flat 25% rate upon sale — separate from capital gains tax.
- 1031 Exchange: Swap one investment property for another of equal or greater value and defer all capital gains taxes indefinitely.
Primary Home Sale Example
Gain = $300,000 | Single filer exclusion = $250,000
Taxable gain = $300,000 − $250,000 = $50,000
Tax at 15% long-term rate = $7,500 (instead of $45,000 without exclusion)
Capital Gains Tax on Cryptocurrency
The IRS treats crypto exactly like stocks — every sale, trade, or use of crypto to purchase goods is a taxable event. The same short-term vs long-term rules apply:
| Crypto Action | Taxable? | Tax Type |
|---|---|---|
| Sell crypto for USD | Yes | Capital gains (short or long term) |
| Trade BTC for ETH | Yes | Capital gains on BTC at time of trade |
| Buy crypto with USD | No | Not taxable — establishes cost basis |
| Transfer between your wallets | No | Not taxable |
| Receive crypto as income/mining | Yes | Ordinary income at fair market value |
| Receive crypto as gift | No (recipient) | Inherits giver's cost basis |
| Crypto staking rewards | Yes | Ordinary income when received |
Many crypto investors don't realize that trading one coin for another (BTC → ETH) is a taxable event. You must calculate the gain on the BTC at the moment of the trade. With hundreds of transactions, this gets complex fast. Use a crypto tax tool like Koinly to track all transactions.
5 Legal Ways to Reduce Capital Gains Tax
- Hold for 1+ year — The simplest strategy. Qualify for long-term rates and save 10–22% in taxes.
- Tax-loss harvesting — Sell investments at a loss to offset gains. Up to $3,000 in losses can offset ordinary income per year; unlimited offset against capital gains.
- Use tax-advantaged accounts — Gains inside a Roth IRA or 401k are never taxed. Use these accounts for your highest-growth investments.
- Primary residence exclusion — Live in your home 2 of 5 years. Exclude up to $250K ($500K married) in gains tax-free.
- Donate appreciated assets — Donating stock directly to charity avoids capital gains tax entirely and gives you a full market-value deduction.
You have $10,000 in capital gains from selling Apple stock. You also have $8,000 in unrealized losses on another stock. Selling the losing stock "harvests" the loss — offsetting $8,000 of your gains. You only pay tax on $2,000 instead of $10,000. The IRS wash-sale rule prevents you from immediately repurchasing the same stock within 30 days.
Net Investment Income Tax (NIIT) — The Hidden 3.8%
High earners face an additional 3.8% Net Investment Income Tax on top of regular capital gains tax. This applies to:
- Single filers with Modified AGI over $200,000
- Married filing jointly with Modified AGI over $250,000
This means high-earning investors can face 23.8% on long-term gains (20% + 3.8%) or even higher when adding state taxes. California, for example, taxes capital gains as ordinary income — the top combined federal + California rate on long-term gains can exceed 37%.
Calculate Your Exact Capital Gains Tax
Stocks · Real estate · Crypto · Short-term vs long-term — all 2026 rates included.
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