Capital Gains Tax Calculator
Estimate your short-term or long-term capital gains tax on the sale of assets like stocks or property.
Understanding Capital Gains Tax
A capital gains tax is a tax on the profit realized on the sale of a non-inventory asset that was purchased for a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals, real estate, and property.
Short-term vs. Long-term
The US tax code distinguishes between short-term and long-term gains based on how long the asset was held before it was sold:
- Short-term (held 1 year or less): Taxed at your ordinary income tax rate.
- Long-term (held more than 1 year): Taxed at favorable rates, usually 0%, 15%, or 20%, depending on your taxable income.
Worked Example
- Purchase Price: $100,000
- Sale Price: $150,000
- Capital Gain: $50,000
- Holding Period: Long Term (Qualifies for 15% rate for most earners)
- Estimated Tax Owed: $7,500.
Frequently Asked Questions
Are real estate sales exempt?
If the property was your primary residence for at least two of the five years preceding the sale, you may exclude up to $250,000 of the gain ($500,000 for married couples filing jointly) under Section 121.
Disclaimer: This calculator is for educational and informational purposes only. It is not a substitute for professional financial advice. Results are estimates based on the information provided and may not reflect actual outcomes. Please consult with a qualified financial advisor, accountant, or tax professional before making any financial decisions. Past performance does not guarantee future results.