US Capital Gains Tax Calculator 2026
Calculate your US federal capital gains tax for 2026. Enter your adjusted basis, sale price, and holding period. Long-term gains (over 1 year) qualify for preferential 0%, 15%, or 20% rates. Short-term gains taxed as ordinary income.
Selling an asset? Know your tax bill before you commit.
Federal only. State capital gains tax varies. Consult a tax professional.
US state capital gains tax comparison
How states treat capital gains
Most states tax capital gains as ordinary income. No preferential long-term rate at state level (unlike federal).
| State | Top rate | Treatment |
|---|---|---|
| California | 13.3% | Ordinary income |
| New York | 10.9% | Ordinary income |
| New Jersey | 10.75% | Ordinary income |
| Oregon | 9.9% | Ordinary income |
| Massachusetts | 9.0% | 5% flat + 4% surtax on $1m+ |
| Washington | 7–9.9% | Excise on long-term gains above ~$278k exemption |
| Texas, Florida, NV, TN | 0% | No state income tax |
Total effective rate
$100k long-term gain in California: 20% federal + 3.8% NIIT + 13.3% state = 37.1% effective. Same gain in Texas: 23.8% federal only. Huge state-level difference.
Net Investment Income Tax (NIIT)
NIIT thresholds 2026
3.8% tax on lesser of: net investment income OR MAGI above threshold. Single $200k / MFJ $250k / MFS $125k. Not indexed for inflation — more people affected each year.
What NIIT covers
Interest, dividends, capital gains, rental income, royalties, passive business income. Not: wages, self-employment, active trade/business, muni bond interest.
Avoiding NIIT
Muni bonds (federal tax-free interest not counted). Retirement account investments (tax-deferred or Roth). Active real estate participation (may escape NIIT). Timing investment sales across years.
US capital gains tax examples 2026
Long-term gain tax scenarios
| Gain | Total income | LT rate | Tax |
|---|---|---|---|
| $10,000 | $40k single | 0% | $0 |
| $20,000 | $75k single | 15% | $3,000 |
| $50,000 | $150k single | 15% | $7,500 |
| $100,000 | $300k single | 15% + 3.8% NIIT | $18,800 |
| $100,000 | $600k single | 20% + 3.8% | $23,800 |
Short-term (ordinary rate) comparison
Same $20k gain, $75k single, held <1 year: 22% bracket = $4,400 tax. Held 1+ year at 15% LTCG: $3,000. Holding 1+ year saves $1,400 in this case.
Primary residence exclusion example
$400k gain on $200k-basis home sold for $600k. Single: $250k exclusion = $150k taxable. LT rate 15%: $22,500. MFJ: $500k exclusion = $0 taxable — entire gain tax-free.
US capital gains tax reduction strategies
Hold 1+ year for long-term rates
Massive rate differential. Short-term: 22-37% ordinary. Long-term: 0-20%. Waiting just 1 extra day past 1-year mark can save thousands.
Tax-loss harvesting
Sell losers to offset gains. Up to $3,000/year can offset ordinary income. Excess carries forward. Watch wash sale rule (30 days before and after).
Primary residence exclusion
Section 121: $250k single / $500k MFJ exclusion on home sale. Live in home 2 of 5 years. Use every 2 years. Biggest individual US tax break for most people.
1031 like-kind exchange
Defer all capital gains tax on investment property by reinvesting in like-kind property. 45-day identification, 180-day close. Qualified intermediary required. Chain can defer indefinitely.
Qualified Opportunity Zones
Defer capital gains by investing in designated economically distressed areas. Hold 10+ years: new gains tax-free. Made permanent by the 2025 OBBBA — new zone designations take effect January 1, 2027, with a rolling 5-year deferral for investments made after 2026.
Charitable donation of appreciated stock
Donate stock held 1+ year to charity. Deduct fair market value. Avoid capital gains tax on the appreciation entirely. Donor-Advised Funds enable flexibility on when charity receives money.
Short-term vs long-term capital gains tax rates
Two regimes
Short-term capital gains (assets held 1 year or less) are taxed at your ordinary income tax rate (10%–37%). Long-term capital gains (held more than 1 year) receive preferential rates of 0%, 15%, or 20% depending on total income. This difference makes holding period one of the most powerful tax planning tools available. [Source: IRS Topic 409 — Capital Gains & Losses].
Federal long-term capital gains rates by income (2026)
| Filing status | 0% rate | 15% rate | 20% rate |
|---|---|---|---|
| Single | Up to $49,450 | $49,451–$545,500 | Over $545,500 |
| Married filing jointly | Up to $98,900 | $98,901–$613,700 | Over $613,700 |
| Head of household | Up to $66,200 | $66,201–$579,600 | Over $579,600 |
Thresholds are taxable income, per IRS Rev. Proc. 2025-32. NIIT (3.8%) applies to investment income when MAGI exceeds $200,000 (single) or $250,000 (MFJ).
Why holding an asset for over 1 year can save thousands in tax
Example: $50,000 gain
If you sell after 11 months (short-term) with $100,000 of other income, the $50,000 gain is taxed at your 2026 ordinary rates (22–24%) — roughly $11,900 for a single filer. If you wait until month 13 (long-term), the same gain is taxed at 15% = $7,500. Tax saving from waiting about 2 extra months: roughly $4,400. For larger gains, this difference is even more dramatic.
Wash-sale rule and collectibles capital gains rates
The wash-sale rule (IRS Section 1091)
If you sell a security at a loss, you cannot claim that loss for tax purposes if you purchase a "substantially identical" security within 30 days before or after the sale (a 61-day window total). The disallowed loss is added to the cost basis of the replacement security, deferring — not eliminating — the loss. The wash-sale rule applies to stocks, bonds, ETFs, mutual funds, and options. It does not currently apply to cryptocurrency (though legislation has been proposed). Be especially careful with automatic dividend reinvestment plans (DRIPs), which can trigger a wash sale.
Collectibles: 28% maximum rate
Long-term capital gains on collectibles are taxed at a maximum rate of 28%, rather than the usual 0/15/20% long-term rates. Collectibles include art, antiques, coins, stamps, precious metals (gold, silver), gems, and most wine/spirits. If your ordinary income puts you in a bracket below 28%, you pay your ordinary rate on the collectible gain instead. This higher rate makes collectibles less tax-efficient than stocks or real estate for long-term appreciation.
Section 1031 exchanges and depreciation recapture tax
Section 1031 like-kind exchange
A 1031 exchange allows you to defer capital gains tax on the sale of an investment or business property by reinvesting the proceeds into a "like-kind" replacement property. Key requirements: (1) The replacement property must be identified within 45 days of selling the original property. (2) The exchange must be completed within 180 days. (3) A qualified intermediary must hold the funds — you cannot touch the proceeds. (4) Both properties must be held for investment or business use (not personal residences). If done correctly, all capital gains tax is deferred until you eventually sell without exchanging. Many real estate investors chain 1031 exchanges for decades, deferring gains until death (when heirs receive a stepped-up basis).
Depreciation recapture (Section 1250)
When you sell rental or commercial property, any gain attributable to depreciation deductions you previously claimed is subject to depreciation recapture tax at 25% — higher than the standard 15/20% long-term capital gains rate. For example: you bought a rental property for $300,000 and claimed $80,000 in depreciation over the years. If you sell for $400,000, the $80,000 of depreciation recapture is taxed at 25% ($20,000), and the remaining $20,000 of gain is taxed at your normal long-term capital gains rate. Depreciation recapture cannot be avoided through a primary residence exclusion, but it can be deferred with a 1031 exchange.
Frequently askedFrequently asked questions
Does the US have a capital gains tax exemption?
Yes. The most significant exemption is the primary residence exclusion: singles can exclude up to $250,000 in gains from selling their main home; married couples filing jointly can exclude up to $500,000. You must have owned and lived in the home as your primary residence for at least 2 of the last 5 years.
What is the Net Investment Income Tax (NIIT)?
The NIIT is an additional 3.8% tax on net investment income (including capital gains) for taxpayers with Modified Adjusted Gross Income (MAGI) over $200,000 (single) or $250,000 (MFJ). This means high earners can face an effective long-term CGT rate of 23.8% (20% + 3.8%).
Can I offset capital gains with capital losses?
Yes. Capital losses can offset capital gains dollar-for-dollar. If losses exceed gains, you can deduct up to $3,000 of net capital losses against ordinary income per year. Unused losses carry forward to future tax years indefinitely.
Do I pay state capital gains tax as well?
Most US states also tax capital gains, typically at the ordinary income tax rate. States with no income tax (TX, FL, NV, SD, TN, WY, AK) have no state capital gains tax — but Washington, despite having no income tax, levies a 7% excise tax on long-term gains above an inflation-indexed exemption (about $278,000), plus 2.9% more on gains over $1 million. California taxes capital gains as ordinary income (up to 13.3%), making it one of the highest capital-gains jurisdictions in the world.
What is the wash-sale rule?
The wash-sale rule (IRS Section 1091) prevents you from claiming a capital loss if you buy a substantially identical security within 30 days before or after the sale. The disallowed loss is added to the cost basis of the replacement shares, so the tax benefit is deferred, not permanently lost. Watch out for automatic reinvestment in mutual funds or DRIPs that can inadvertently trigger the rule.
How does a 1031 exchange defer capital gains tax?
A Section 1031 like-kind exchange lets you sell an investment property and reinvest the full proceeds into a replacement property without paying capital gains tax at the time of sale. You must identify a replacement within 45 days and close within 180 days, using a qualified intermediary. The gain is deferred until you sell the replacement property (or you can chain exchanges indefinitely). It applies only to investment/business real estate, not personal residences or securities.
Where these figures come from
Every rate and threshold on this page is taken directly from the 2026 source of record — the Internal Revenue Service (IRS) — plus the Tax Foundation and state revenue departments for comparative state data.
- 2026 long-term capital gains thresholds & federal brackets — IRS — Tax Inflation Adjustments for Tax Year 2026 (Rev. Proc. 2025-32).
- Capital gains and losses (0/15/20% rates, 28% collectibles, $3,000 loss limit) — IRS Topic 409 — Capital Gains and Losses.
- Net Investment Income Tax (3.8% over $200k/$250k MAGI) — IRS Topic 559 — Net Investment Income Tax.
- Home sale exclusion ($250k single / $500k MFJ) — IRS Topic 701 — Sale of Your Home.
- Wash sales (Section 1091) — IRS Publication 550 — Investment Income and Expenses.
- Like-kind exchanges (Section 1031) — IRS — About Form 8824, Like-Kind Exchanges.
- State income tax comparisons — Tax Foundation — State Individual Income Tax Rates.
- Washington capital gains excise tax (7%, plus 2.9% over $1m) — Washington Department of Revenue — Capital Gains Tax.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your result shows the estimated federal capital gains tax on your sale, based on the cost basis, sale proceeds, holding period, and income you entered — using current published IRS rates and thresholds.
Use this to understand the tax consequences of a sale before you commit. Compare scenarios — selling this year versus next, or holding past the one-year mark — to see how each changes the tax.
Not a tax return or IRS assessment. Your actual tax outcome depends on your complete federal return, including items not modeled here. Consult a CPA or enrolled agent for complex situations.
Uses current published rates and thresholds. All calculations run in your browser — GlobalCalc does not store your figures as calculator records, and the calculator code does not submit them to obtain a result.
Capital gains tax is driven by your holding period, your total taxable income, and the type of asset. The interaction of these three determines the rate applied to your gain.
Assets held more than one year qualify for the preferential 0%, 15%, or 20% long-term rates. Held one year or less, the gain is taxed as ordinary income at rates up to 37%.
Long-term gains stack on top of your ordinary income. Crossing the 15% or 20% breakpoint doesn't tax the whole gain at the higher rate — only the portion above the threshold.
A 3.8% NIIT applies to investment income (interest, dividends, capital gains, rental net income) when modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly). This sits on top of the ordinary capital-gains rate. Source: IRS Topic 559.
To reduce capital gains tax, focus on legitimate strategies that use the holding-period rules, offset gains with losses, and shelter investments in tax-advantaged accounts.
The single biggest lever. Waiting until the day after the one-year mark converts a gain taxed at ordinary rates of up to 37% into one taxed at 0–20%.
Selling losing positions offsets gains dollar-for-dollar, and up to $3,000 of excess net loss offsets ordinary income each year. Mind the 30-day wash-sale rule.
Gains inside a 401(k), traditional IRA, or Roth IRA aren't subject to capital gains tax. Pre-tax 401(k) contributions also lower taxable income, which can pull your gain under the 0% or 15% breakpoint.
Capital gains connect to your income, retirement, and investment decisions. Use these calculators to model the adjacent factors.
See exactly how much reaches your bank account after federal tax, FICA, and any student loan withholding.
Paycheck calculator →See how pre-tax contributions reduce your taxable income — and potentially the rate that applies to your long-term gains.
401(k) calculator →Capital gains sit on top of your ordinary income. Model your complete 2026 federal income tax position.
Income tax calculator →