Estimate your investment tax liability and plan your finances efficiently
Capital Gain
$500.00
Total Tax
$75.00
Net Profit After Tax
$425.00
Effective Tax Rate
15%
| Tax Type | Rate | Amount |
|---|---|---|
| Federal Capital Gains Tax | 15% | $75.00 |
| State Capital Gains Tax | 0% | $0.00 |
| Total Tax | 15% | $75.00 |
Fill out the form to calculate your capital gains tax liability
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Get detailed breakdowns of your capital gains tax
Single: Up to $44,625
Married Filing Jointly: Up to $89,250
Head of Household: Up to $59,750
Single: $44,626 to $492,300
Married Filing Jointly: $89,251 to $553,850
Head of Household: $59,751 to $523,050
Single: Over $492,300
Married Filing Jointly: Over $553,850
Head of Household: Over $523,050
Short-term capital gains (assets held for one year or less) are taxed as ordinary income according to federal income tax brackets:
| Tax Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 - $11,000 | $0 - $22,000 | $0 - $15,700 |
| 12% | $11,001 - $44,725 | $22,001 - $89,450 | $15,701 - $59,850 |
| 22% | $44,726 - $95,375 | $89,451 - $190,750 | $59,851 - $95,350 |
| 24% | $95,376 - $182,100 | $190,751 - $364,200 | $95,351 - $182,100 |
| 32% | $182,101 - $231,250 | $364,201 - $462,500 | $182,101 - $231,250 |
| 35% | $231,251 - $578,125 | $462,501 - $693,750 | $231,251 - $578,100 |
| 37% | Over $578,125 | Over $693,750 | Over $578,100 |
*Tax brackets are subject to change. The figures shown are for the tax year 2025.
Capital gains are the profits realized when you sell an asset for more than its original purchase price. The difference between the selling price and the purchase price (adjusted for expenses) is your capital gain or loss.
Assets held for 1 year or less
Taxed at ordinary income rates (10% to 37%)
Assets held for more than 1 year
Lower tax rates (0%, 15%, or 20%)
Capital Gain = Selling Price - (Purchase Price + Expenses)
Where expenses include transaction costs, improvements, and other qualified expenses.
Hold assets for at least one year to qualify for lower long-term capital gains tax rates.
Offset capital gains with capital losses to reduce your overall tax liability.
Exclude up to $250,000 ($500,000 for married couples) of capital gains on the sale of your primary residence.
Consider donating appreciated assets to charity to avoid capital gains tax and potentially receive a tax deduction.
Invest through retirement accounts like 401(k)s and IRAs where investments can grow tax-deferred or tax-free.
Capital gains are the profits realized when you sell an asset (like stocks, property, or other investments) for more than what you paid for it. The gain is the difference between the selling price and the purchase price (known as the "cost basis").
Long-term capital gains (from assets held for more than one year) are typically taxed at lower rates than ordinary income. Short-term capital gains (from assets held for one year or less) are taxed at the same rates as your regular income.
No, capital gains tax is only triggered when you sell an asset. Unrealized gains (increases in value on assets you still own) are not taxed until you sell.
You can include expenses directly related to buying, selling, or improving the asset. For stocks, this might include broker commissions. For real estate, this could include closing costs, improvements, and selling expenses.
Yes, several exceptions exist. For example, up to $250,000 ($500,000 for married couples) of capital gains from the sale of a primary residence can be excluded if certain conditions are met. There are also special provisions for small business stock, like-kind exchanges, and inheritances.
State capital gains tax rules vary widely. Some states have no income tax and therefore no capital gains tax. Others tax capital gains at the same rate as regular income. A few states offer special rates or exemptions for capital gains. Our calculator includes state-specific capital gains tax information.
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