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Capital Gains Tax Calculator 2025

Last verified: May 2026 · IRS Schedule D

Calculate your federal and state capital gains tax on the sale of stocks, real estate, crypto, or any investment. See how holding period changes your tax bill.

Total Capital Gains Tax

$14,000

Capital Gain

$70,000

Federal Tax

$10,500

Effective Rate

15.0%

Net Proceeds

$56,000

Sale Proceeds Breakdown

Net Proceeds
$56,000
Federal Tax
$10,500
State Tax
$3,500
Cost Basis
$50,000

Short-Term vs Long-Term Federal Tax

2025 Long-Term Capital Gains Rates

RateSingleMarried Filing Jointly
0%Up to $47,025Up to $94,050
15%$47,026–$518,900$94,051–$583,750
20%Over $518,900Over $583,750

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What is Capital Gains Tax?

Capital gains tax is triggered when you sell an asset for more than its cost basis. The tax rate depends on how long you held the asset and your total income.

Long-term capital gains (assets held over 1 year) are taxed at preferential rates of 0%, 15%, or 20% depending on your taxable income. Short-term gains are taxed as ordinary income — the same rate as wages.

High earners may also owe the 3.8% Net Investment Income Tax (NIIT) on gains above $200,000 (single) or $250,000 (married).

The Formula — How to Calculate Capital Gains Tax

Capital Gain = Sale Price − Cost Basis Federal Tax = Gain × Applicable Rate NIIT = Excess NII × 3.8%

Cost Basis = Original purchase price plus commissions and improvements

Holding Period = >1 year = long-term (preferred rates), ≤1 year = short-term (ordinary rates)

NIIT = Net Investment Income Tax applies to high earners

Frequently Asked Questions

Sources & References

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This tool is for educational purposes only and does not constitute financial, tax, or investment advice. Consult a qualified financial professional for advice specific to your situation.

Analysis & insights

On a $70,000 capital gain, you owe approximately $14,000 in federal capital gains tax (effective rate 20.0%). Your long-term classification (held 12+ months) qualifies you for the preferential 0/15/20% federal rates — typically 10-15 percentage points lower than ordinary income. Don't forget state tax — varies from 0% (FL, TX, WA, etc.) to 13.3% (CA). And if your AGI exceeds $200K single / $250K married, add a 3.8% Net Investment Income Tax surtax on top.

20% long-term bracket

Top long-term rate. Triggered when taxable income exceeds $518,900 single / $583,750 married (2025). Still better than ordinary rates.

Risk & benchmark gauge

Current band

20% LT bracket

Effective rate: 20.0%

0255075100
0% LT bracket15% LT bracket20% LT bracketShort-term

Industry benchmarks

  • Capital gain$70,000
  • Federal tax owed$14,000
  • Effective rate20.0%
  • 0% LT bracket cap (single)$47,025
  • 15% LT bracket cap (single)$518,900
  • NIIT threshold (single)$200,000 AGI → +3.8%

Key insights

Long-term vs short-term: huge difference

Long-term (held >12 months): 0/15/20% federal. Short-term (held ≤12 months): taxed as ordinary income at your marginal rate (10-37%). Crossing the 12-month line can save 10-20 percentage points.

Net Investment Income Tax (NIIT)

AGI over $200K single / $250K married adds an extra 3.8% surtax on investment income — including capital gains. Effective top rate becomes 23.8% federal.

Tax-loss harvesting

Selling other investments at a loss in the SAME year offsets gains dollar-for-dollar. Excess losses up to $3,000/year offset ordinary income; the rest carries forward indefinitely.

State tax varies wildly

Some states (CA, NJ, NY) tax capital gains as ordinary income — 9-13% on top of federal. Others (FL, TX, WA) have no state income tax. Verify your state's treatment.

Recommended actions(4)

Harvest tax losses this same year

High priority

Identify any losing investments in your portfolio. Selling them creates losses that offset your gain dollar-for-dollar.

Impact: Each $1 of harvested loss saves you 20.0% in federal capital gains tax on this gain.

Time gains around income gaps

Medium priority

If you're between jobs, in early retirement, or have a low-income year, you can fill up the 0% long-term bracket ($47K single / $94K married 2025) with gains tax-free.

Use specific lot identification when selling

Medium priority

When you bought shares at different prices, choose which "lots" to sell. Selling high-basis lots minimizes the realized gain. Default is often FIFO — change it explicitly.