Tax year 2026 · IRS Rev. Proc. 2025-32 long-term rates
Capital Gains Tax Calculator (US, 2026)
See your federal tax on a stock, crypto or property gain — at the 0/15/20% long-term rates or short-term ordinary rates, plus the 3.8% NIIT, in seconds.
Holding period
Sale price minus what you paid (cost basis).
Wages/other income before this gain. We subtract the $16,100 standard deduction.
Filing status
Federal tax on your $20,000 long-term gain
$3,000
That's an effective rate of 15% on the gain. You keep $17,000.
How it's taxed
Federal only — most states tax capital gains as ordinary income (add yours with the paycheck calculator). NIIT applies when MAGI exceeds $200,000.
Federal capital gains only, tax year 2026. Long-term rates (0/15/20%) apply to assets held more than one year and are based on total taxable income per IRS Rev. Proc. 2025-32; short-term gains are taxed at ordinary rates. We subtract the standard deduction from your other income to estimate ordinary taxable income — itemizers and other adjustments will differ. The 3.8% Net Investment Income Tax applies to MAGI over $200,000 (single/HoH), $250,000 (MFJ) or $125,000 (MFS); MAGI is approximated here by your income plus the gain. State capital gains tax, the Section 1202 exclusion, collectibles (28%), §1250 real-estate recapture (25%) and the $250k/$500k home-sale exclusion are not modelled. General information, not tax advice.
How US capital gains tax works in 2026
A capital gain is the profit when you sell an asset — stock, crypto, a fund, real estate — for more than your cost basis(what you paid, plus commissions and improvements). How it's taxed hinges on one thing: how long you held it. Hold for one year or less and the profit is a short-term gain, taxed as ordinary income at your regular bracket — up to 37%. Hold for more than a year and it's a long-term gain, taxed at the preferential 0%, 15% or 20% rates. That single distinction can change your tax bill by thousands of dollars on the same profit.
The long-term rate you pay depends on your total taxable income, because the gain stacks on top of your other income. For 2026, a single filer pays 0% on long-term gains while total taxable income stays under $49,450, 15% up to $545,500, and 20% above that (the breakpoints are wider for joint filers). Only the slice of the gain in each band gets that band's rate — so a modest gain on a middle income is often taxed at 15%, not 20%. This calculator applies the exact IRS worksheet method to split your gain across the bands.
The 3.8% surtax high earners forget
On top of the headline rate, the Net Investment Income Tax (NIIT) adds 3.8% on investment income once your modified AGI passes $200,000 (single), $250,000 (married filing jointly) or $125,000 (married filing separately). Because these thresholds have been frozen since 2013, more taxpayers cross them every year. When it applies, NIIT stacks on the 15% or 20% rate — making the true top federal rate on long-term gains 23.8%. The calculator adds it automatically when your income crosses the line, so your number reflects the tax you'll actually owe, not just the bracket rate.
The one-year rule is worth real money
The gap between short- and long-term treatment is the single biggest lever you control. Someone in the 24% bracket who sells a $20,000 gain at 11 months pays about $4,800 in federal tax; waiting one more month to cross the one-year line drops it to the 15% long-term rate — about $3,000 — saving roughly $1,800 for doing nothing but waiting. The tool shows this comparison whenever you select short-term, so you can weigh holding a little longer against the risk of the price moving. It rarely makes sense to sell days before the one-year anniversary.
Legal ways to cut the tax
Several strategies reduce capital gains tax legitimately. Tax-loss harvesting offsets gains with losses from other positions — up to $3,000 of net loss can also offset ordinary income each year, with the rest carried forward. Tax-gain harvesting in a low-income year realises long-term gains inside the 0% band tax-free. Holding investments inside a Roth IRA or 401(k) avoids capital gains tax entirely. And simply holding past one yearconverts ordinary rates to the preferential ones. What you can't do is ignore state tax — most states tax gains as ordinary income, which the federal figure here doesn't include.
Worked example: a $20,000 stock gain, $90,000 salary (single)
Set the stage. After the $16,100 standard deduction, ordinary taxable income is $73,900. The $20,000 long-term gain stacks on top, filling taxable income from $73,900 to $93,900 — comfortably inside the 15% long-term band (which runs to $545,500 for a single filer) and above the $49,450 zero-rate ceiling.
Long-term. The whole $20,000 is taxed at 15% = $3,000. Income is well under $200,000, so no NIIT. You keep $17,000 — an effective 15%.
Short-term instead. Held under a year, the $20,000 is ordinary income stacked on $73,900, landing in the 22% bracket = about $4,400. That's $1,400 more than the long-term result — the price of selling too soon. Change the holding period, gain or income above to see every band recompute instantly.
Frequently asked questions
What are the 2026 long-term capital gains tax rates?
Long-term gains — on assets held more than a year — are taxed at 0%, 15% or 20% for 2026, based on your total taxable income. For single filers, the 0% rate applies up to $49,450 of taxable income, 15% from there to $545,500, and 20% above that. For married filing jointly the breakpoints are $98,900 and $613,700; for head of household, $66,200 and $579,600. The gain stacks on top of your ordinary income, so only the portion falling in each band gets that band's rate. High earners may also owe the 3.8% Net Investment Income Tax on top.
What's the difference between short-term and long-term capital gains?
It's the holding period, and it matters enormously. If you hold an asset one year or less, the profit is a short-term gain taxed as ordinary income — at your regular bracket, up to 37%. Hold it more than one year and it's a long-term gain taxed at the preferential 0/15/20% rates. On a $20,000 gain, that difference can be several thousand dollars. This is why the one-year mark is one of the most valuable dates in personal finance — the calculator above shows exactly what waiting would save you.
How do I calculate capital gains tax?
First find the gain: sale price minus your cost basis (what you paid, plus commissions and improvements). Then determine the holding period — over a year is long-term. For long-term gains, stack the gain on top of your ordinary taxable income and apply the 0/15/20% breakpoints. For short-term, add it to income and tax at your marginal rate. Finally, add the 3.8% NIIT if your modified AGI exceeds $200,000 single / $250,000 joint. Enter your numbers above and the tool does all of this instantly.
How can I pay 0% on capital gains?
If your total taxable income (including the gain) stays under the 0% ceiling — $49,450 single or $98,900 married filing jointly in 2026 — your long-term gains are taxed at 0%. This is the basis of 'tax-gain harvesting': in a low-income year (early retirement, a gap year, a sabbatical), you can realise long-term gains tax-free up to that limit and reset your cost basis higher. The gain still counts toward the income that fills the bracket, so the 0% applies only to the portion below the ceiling. The calculator flags when part of your gain qualifies.
What is the Net Investment Income Tax (NIIT)?
The NIIT is an extra 3.8% tax on investment income — including capital gains, dividends and interest — for higher earners. It applies to the lesser of your net investment income or the amount your modified adjusted gross income exceeds a threshold: $200,000 for single and head-of-household filers, $250,000 for married filing jointly, and $125,000 for married filing separately. These thresholds are not indexed for inflation, so more people cross them each year. When it applies, it stacks on top of the 15% or 20% long-term rate, effectively making the top rate 23.8%.
Do I pay state tax on capital gains too?
Usually yes. Most states tax capital gains as ordinary income at their regular rates, with no special long-term discount — so a California resident can pay up to 13.3% state tax on a gain on top of the federal 20% and 3.8% NIIT. A handful of states (including Texas, Florida and Washington for most gains) levy no income tax, and a few offer partial exclusions. This calculator shows federal tax only; estimate your state's bite by adding the gain as income in our paycheck calculator.
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