Capital Gains Tax Calculator (2026)
Work out the federal tax on your investment gains for 2026. Long-term gains are taxed at preferential rates that depend on your total income, so the calculator stacks them correctly on top of your other earnings.
Reviewed by Teja K, CPA ·
Determines which gains rate applies
Taxed as ordinary income
Long-term gains tax
$0
Short-term gains tax
$0
NIIT (3.8%)
$0
Total tax on your gains
$0
Federal only
Effective rate on gains
0.0%
On $0 of gains
Federal estimate for 2026. State tax and the home-sale exclusion are not included.
One year changes everything
The single biggest factor in what you pay is how long you held the asset. The dividing line is one year, measured from the day after you acquired it to the day you sold.
- Held one year or less — a short-term gain, taxed as ordinary income at your normal bracket, which can reach 37%.
- Held more than one year — a long-term gain, taxed at a preferential 0%, 15% or 20%.
For a higher earner the gap between the two is roughly 17 percentage points on the same profit. Selling a few days before the one-year mark rather than a few days after is one of the most expensive avoidable mistakes in personal tax, and it is entirely a matter of the calendar.
Why the rate depends on your other income
The 0%, 15% and 20% long-term rates are not tied to the size of your gain. They are tied to your total taxable income, with the gain stacked on top of your ordinary income.
That is why the same $20,000 gain can be taxed at 0% for one person and 15% for another. Your salary fills the lower bands first, and the gain is taxed in whatever bands are left.
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 | Up to $66,200 |
| 15% | $49,450 – $545,500 | $98,900 – $613,700 | $66,200 – $579,600 |
| 20% | Over $545,500 | Over $613,700 | Over $579,600 |
These thresholds are measured against total taxable income, after your deduction — not against the gain on its own.
The 3.8% surtax most calculators forget
On top of the headline rate, the Net Investment Income Tax adds 3.8% once your modified AGI passes $200,000 (single or head of household) or $250,000 (married filing jointly). It applies to the lesser of your net investment income or the amount by which your MAGI exceeds the threshold.
These thresholds were set in statute in 2013 and are deliberately not indexed for inflation, so each year they catch more people. The effective top federal rate on a long-term gain is therefore 23.8%, not 20%.
Using losses to reduce the bill
Capital losses offset capital gains dollar for dollar, netting within the short-term and long-term categories first and then against each other. If losses exceed gains, up to $3,000 of the excess can be deducted against ordinary income each year, and anything beyond that carries forward indefinitely.
Deliberately realising losses to offset gains — tax-loss harvesting — is legitimate and widely used. The constraint is the wash-sale rule: if you buy the same or a substantially identical security within 30 days before or after the sale, the loss is disallowed for now and folded into the basis of the new position.
Crypto is treated as property, so gains and losses work the same way as for stock. Every disposal is a taxable event, including swapping one token for another and spending crypto on goods.
Sources
Frequently Asked Questions
What are the 2026 capital gains tax rates?
Long-term gains on assets held more than a year are taxed at 0%, 15% or 20%. For a single filer the 0% rate applies up to $49,450 of taxable income, 15% up to $545,500, and 20% above that. For married couples filing jointly the 0% band runs to $98,900 and 20% begins above $613,700. Short-term gains are taxed as ordinary income at rates up to 37%.
How do I pay 0% on capital gains?
By keeping total taxable income inside the 0% band — up to $49,450 single or $98,900 joint for 2026, after your standard deduction. This is genuinely achievable in a low-income year, between jobs, in early retirement before Social Security starts, or for a student. Realising gains deliberately in such a year is a standard planning move.
Do I pay capital gains tax if I reinvest the proceeds?
Yes. The tax is triggered by the sale, not by what you do with the money afterwards. Reinvesting in another stock or fund does not defer anything. The exceptions are inside tax-advantaged accounts such as a 401(k) or IRA, where trades produce no current tax at all, and Section 1031 exchanges, which are limited to real property.
How is crypto taxed?
As property, on the same rules as stock. The one-year holding period determines whether a gain is short or long-term. Crucially, every disposal is taxable — not just cashing out to dollars, but trading one token for another, and using crypto to buy something. Each of those needs a cost basis and a fair market value at the time of disposal, which is why crypto records get complicated quickly.
What about selling my home?
The principal-residence exclusion lets you exclude up to $250,000 of gain if single, or $500,000 if married filing jointly, provided you owned and lived in the home for at least two of the previous five years. Gain above the exclusion is taxed as a long-term capital gain. This calculator does not apply the exclusion — enter only the taxable portion.
Does my state tax capital gains too?
Most do, and most tax them as ordinary income with no preferential long-term rate. This calculator covers federal tax only. States with no personal income tax do not tax capital gains at all, which is a significant consideration in the timing of a large sale if you are relocating.
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