Capital Gains Tax Calculator

Calculate the tax owed on profits from the sale of investments like stocks, real estate, or crypto.

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Total Capital Gain
$0
Capital Gains Tax
$0
Net Cash After Tax
$0
Formula / Calculation
Capital Gains Tax = (Selling Price - Purchase Price) × Tax Rate

The Essentials of Capital Gains Tax

Capital gains tax is levied on the profit you make when you sell an asset that has increased in value. This applies to stocks, bonds, real estate, cryptocurrencies, and even collectibles. The amount of tax you owe depends heavily on how long you held the asset before selling it. Short-term gains are taxed at ordinary income rates, while long-term gains benefit from preferential, lower tax brackets (typically 0%, 15%, or 20%).

Short-Term vs. Long-Term Gains

Short-Term Capital Gains

Applies to assets held for one year or less. These profits are taxed at your ordinary marginal income tax rate, which can be up to 37%.

Long-Term Capital Gains

Applies to assets held for more than one year before being sold. The tax rates are significantly lower, ranging from 0% to 20% depending on your taxable income.

Cost Basis Adjustments

Your original purchase price (cost basis) can be adjusted by adding capital improvements (e.g., home renovations) or subtracting depreciation, which alters the final taxable gain.

Strategies to Minimize Capital Gains Tax

Hold assets for at least one year and one day to qualify for long-term tax rates.
Use tax-loss harvesting — sell losing investments to offset the gains from winning ones.
Utilize tax-advantaged accounts like IRAs or 401(k)s where investments grow tax-deferred or tax-free.
For real estate, use a 1031 Exchange to defer taxes by rolling profits into a new property.
Consider donating highly appreciated assets to charity to avoid capital gains tax entirely.

Frequently Asked Questions

What is a capital loss?
A capital loss occurs when you sell an asset for less than its cost basis. You can use these losses to offset capital gains and, in some cases, up to $3,000 of ordinary income per year.
Are primary residences subject to capital gains tax?
Under IRS Section 121, you can generally exclude up to $250,000 ($500,000 for married couples) of capital gains from the sale of your primary home, provided you lived in it for two of the last five years.
Do I pay tax on crypto gains?
Yes, the IRS treats cryptocurrency as property. Selling, trading, or using crypto to make a purchase triggers a taxable event based on capital gains rules.
How does tax-loss harvesting work?
It involves selling securities at a loss to offset a capital gains tax liability. The "wash-sale" rule prevents you from buying a "substantially identical" asset within 30 days.