Calculate federal capital gains tax on investment sales using 2026 IRS rates. Supports short-term and long-term gains.
Trade Details
Holding Period
Used to determine your long-term capital gains bracket
Tax Breakdown
The Capital Gains Tax Calculator estimates the federal tax owed on a stock, ETF, or fund sale, using 2026 IRS rules. The calculation differs dramatically depending on how long you held the investment: short-term gains (assets held one year or less) are taxed as ordinary income at your marginal tax rate, while long-term gains (held more than one year) get preferential 0%, 15%, or 20% rates based on your total taxable income.
Enter your trade details and holding period to see your gain, the applicable tax rate, the tax owed, and your after-tax profit. This is a useful sanity check before selling a position — and the difference between holding for one extra day to cross the one-year mark can be substantial.
Tax = Gain × Rate, where Rate = Marginal Income Tax Rate (short-term) or 0% / 15% / 20% (long-term, based on income)Capital gain equals your sale proceeds minus your cost basis. For short-term gains, that gain is taxed at the same marginal rate as your ordinary income (10–37% in 2026). For long-term gains, the rate depends on where your total income — including the gain — falls within the 2026 long-term brackets.
Example 1: Long-term gain in the 15% bracket
You bought 100 shares at $50 and sold at $80 after holding for 2 years (long-term). Your other taxable income is $75,000 (single filer).
Capital gain = $3,000. Total income ($78,000) falls in the 15% long-term bracket, so tax = $450. Net profit after tax = $2,550 (a 17% after-tax return on the $5,000 cost basis).
Example 2: Short-term gain taxed as ordinary income
Same trade ($50 to $80, 100 shares, $3,000 gain), but held only 6 months (short-term), and you're in the 22% marginal tax bracket.
Tax = $3,000 × 22% = $660. Net profit after tax = $2,340 — about $210 less than the long-term scenario, purely due to the holding period.
Example 3: Large long-term gain pushing into the 20% bracket
A single filer with $480,000 of other taxable income sells investments for a $100,000 long-term gain.
The gain straddles brackets: a portion is taxed at 15% and the remainder at 20% since total income exceeds the 2026 top long-term threshold (~$518,900). Effective tax owed is roughly $19,000–$20,000, leaving a net profit of about $80,000–$81,000.
Methodology
Long-term gain tax = gain × applicable LT rate (0/15/20% based on total income). Short-term gain tax = gain × ordinary income marginal rate. Net profit = gain − tax owed.
Long-term capital gains (assets held > 1 year) are taxed at 0%, 15%, or 20% depending on your income. Single filers pay 0% up to $47,025, 15% up to $518,900, and 20% above that. The net investment income tax (3.8%) applies to higher earners.
Short-term gains (assets held ≤ 1 year) are taxed as ordinary income at your marginal federal tax rate — the same bracket that applies to your salary income, ranging from 10% to 37%.
Capital gain = sale price × shares − cost basis (purchase price × shares) − commissions. If the result is positive, you owe tax. If negative, you have a capital loss you can use to offset gains or deduct up to $3,000 against ordinary income.
Disclaimer: Calculations are for informational purposes only and do not constitute professional financial advice. Please consult with a certified professional before making financial decisions.