US Capital Gains Tax Calculator 2025
Selling an asset? Know your tax bill before you commit.
Calculate your US federal capital gains tax for 2025. 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.
Federal only. State capital gains tax varies. Consult a tax professional.
US state capital gains tax comparison
State CGT treatment
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+ |
| Texas, Florida, NV, WA | 0% | No state income tax |
Total effective CGT
$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 2025
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 2025
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 CGT 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 CGT 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. Program ends 2026 — plan accordingly.
Charitable donation of appreciated stock
Donate stock held 1+ year to charity. Deduct fair market value. Avoid CGT on 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 (2025)
| Filing status | 0% rate | 15% rate | 20% rate |
|---|---|---|---|
| Single | Up to $47,025 | $47,026–$518,900 | Over $518,900 |
| Married filing jointly | Up to $94,050 | $94,051–$583,750 | Over $583,750 |
| Head of household | Up to $63,000 | $63,001–$551,350 | Over $551,350 |
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 other income, the $50,000 gain is taxed at 22% = $11,000 tax. If you wait until month 13 (long-term), the same gain is taxed at 15% = $7,500. Tax saving from waiting just 2 extra months: $3,500. 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 CGT 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 CGT 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 CGT as well?
Most US states also tax capital gains, typically at the ordinary income tax rate. States with no income tax (TX, FL, NV, WA, SD, WY, AK) have no state CGT. California taxes capital gains as ordinary income (up to 13.3%), making it one of the highest CGT 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 CGT 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 bracket, threshold, and deduction on this page is taken directly from the 2025 source of record — the Internal Revenue Service (IRS) and Social Security Administration (SSA) — plus the Tax Foundation for comparative state data.
- 2025 brackets & standard deduction — IRS — Tax Inflation Adjustments for Tax Year 2025 (Rev. Proc. 2024-40).
- Federal income tax rates — IRS — Federal Income Tax Rates and Brackets.
- Social Security wage base (
SSA — Contribution and Benefit Base. - FICA rates (6.2% + 1.45%) — IRS Topic 751 — SS & Medicare Withholding.
- Additional Medicare Tax (0.9%) — IRS Topic 560 — Additional Medicare Tax.
- Self-employment tax (15.3%) — IRS — Self-Employment Tax.
- SALT cap & medical deduction floor — IRS Topics 503 & 502 — Deductible Taxes, Medical.
- Capital gains tax rates — IRS Topic 409 — Capital Gains and Losses.
- State income tax comparisons — Tax Foundation — State Individual Income Tax Rates.
Last checked: April 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 tax position based on the income, deductions, and offsets you entered — using current published tax rates and thresholds.
Use this to understand your tax position before lodging. Compare scenarios — a salary sacrifice, additional deduction, or income change — to see how each affects your tax.
Not a tax return or IRS assessment. Your actual tax outcome depends on your complete federal return, including items not modelled here. Consult a CPA or enrolled agent for complex situations.
Uses current published rates and thresholds. All calculations run in your browser — no data is stored or sent to any server.
Tax results are driven by your total taxable income, marginal rate bracket, and eligible deductions. The interaction between these three determines your effective tax rate.
Each dollar above a threshold is taxed at the next rate. Moving from the 32.5% to the 37% bracket doesn't mean all income is taxed at 37% — only the portion above the threshold.
Deductions reduce taxable income (saving at your marginal rate). Offsets reduce tax payable dollar-for-dollar. An offset is worth more than a deduction of the same amount.
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 your tax, focus on legitimate strategies that shift income timing, increase deductions, or take advantage of concessional structures.
Claim all eligible work-related expenses, home office costs, and investment deductions. A tax agent can identify deductions you may be missing.
Contributions up to the concessional cap are taxed at 15% inside super instead of your marginal rate — an immediate saving for anyone above the 19% bracket.
Prepaying deductible expenses before December 31 or deferring income into the next tax year can shift your liability between tax years.
Tax is connected to income, super, 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.
Pay calculator →See the tax benefit of additional salary sacrifice or voluntary super contributions.
Super contributions →If you're selling an asset, model the CGT impact including the 50% discount for assets held over 12 months.
CGT calculator →