Capital Gains Tax Calculator

Calculate taxes on investment profits, compare short-term vs long-term rates, and determine your net profit after tax.

Short-term: use your ordinary income tax rate (10%-37%). Long-term: typically 0%, 15%, or 20%.

Broker fees, commissions, or improvement costs that increase your cost basis.

Cost Basis = Purchase Price + Expenses\nCapital Gain = Sale Price − Cost Basis\nTax Owed = Capital Gain * Tax Rate\nNet Profit = Capital Gain − Tax Owed\nROI = (Capital Gain / Cost Basis) * 100
Example:\nPurchase Price: $10,000\nSale Price: $15,000\nHolding Period: Long-term\nTax Rate: 15%\nExpenses: $100\n\nCost Basis = $10,000 + $100 = $10,100\nCapital Gain = $15,000 − $10,100 = $4,900\nTax Owed = $4,900 * 15% = $735\nNet Profit = $4,900 − $735 = $4,165\nROI (After Tax) = 41.24%

What is capital gains tax?

Capital gains tax is a tax on the profit when you sell an asset that has increased in value. The gain is the difference between the sale price and the original purchase price.

What is the difference between short-term and long-term capital gains?

Short-term capital gains (assets held for 1 year or less) are taxed as ordinary income at your regular tax rate. Long-term capital gains (assets held for more than 1 year) receive preferential tax rates: 0%, 15%, or 20% depending on your income level.

How do I reduce capital gains tax?

Strategies include: holding assets for more than 1 year to qualify for lower long-term rates, tax-loss harvesting (selling losing investments to offset gains), using retirement accounts, and timing sales strategically across tax years.

Are there any capital gains exemptions?

Yes. Primary residence sales may exclude up to $250,000 ($500,000 for married couples) if you lived there 2 of the last 5 years. Some small business stock sales and qualified opportunity zone investments also have special exemptions.

Do I pay state capital gains tax?

Most states tax capital gains as ordinary income. A few states (like Washington) have separate capital gains taxes. States without income tax (Texas, Florida, etc.) do not tax capital gains. Check your state tax laws.