What is the difference between short-term and long-term capital gains?

Short-term capital gains apply to assets held for one year or less and are taxed as ordinary income at your marginal tax rate. Long-term capital gains apply to assets held for more than one year and are taxed at 0%, 15%, or 20% depending on your taxable income.

What counts as the cost basis?

The cost basis is the original purchase price of the asset, including any commissions or fees paid at acquisition. For inherited assets, the basis is typically the fair market value on the date of the original owner's death (stepped-up basis).

Does this calculator account for the Net Investment Income Tax (NIIT)?

This calculator focuses on the standard federal capital gains rates. High-income taxpayers may also owe a 3.8% Net Investment Income Tax on gains above certain thresholds. Consult a tax professional for a complete picture.

Are state taxes included?

No. This tool calculates federal capital gains tax only. Most states also tax capital gains as ordinary income, so your total tax bill may be higher. Check your state's tax rules separately.

Can I use this for real estate gains?

Yes, for investment properties. However, your primary home may qualify for an exclusion of up to $250,000 ($500,000 married filing jointly) if you lived in it for at least 2 of the last 5 years. This tool does not apply that exclusion automatically.

Capital Gains Tax Calculator

Name: Capital Gains Tax Calculator
Availability: InStock
Author: Nham Vu

Enter your purchase price, sale price, income, and holding period to estimate your capital gains tax owed.

Asset Details

Purchase Price (Cost Basis)

Sale Price

Holding Period

Filing Status

Annual Taxable Income (before this gain)

Fill in the fields and click Calculate Tax to see your estimated capital gains tax.

Summary

Enter your purchase price, sale price, income, and holding period to estimate your capital gains tax owed.

How it works

Enter the original purchase price (cost basis) of your asset.
Enter the sale price you received when selling the asset.
Select your filing status (Single, Married Filing Jointly, etc.).
Enter your estimated annual taxable income.
Choose whether you held the asset for more or less than one year.
The calculator instantly shows your capital gain, applicable tax rate, and estimated tax owed.

Use cases

Estimate tax before selling stocks or mutual funds.
Plan the optimal time to sell — wait for the long-term rate to apply.
Compare tax impact for different filing statuses.
Calculate gains on cryptocurrency disposals.
Evaluate real estate investment sale tax exposure.
Understand the break-even point between short-term and long-term holding.
Model tax scenarios with different income levels.
Plan year-end tax-loss harvesting decisions.

Frequently Asked Questions

Last updated: 2026-06-25 · Reviewed by Nham Vu