Capital Gain Tax Calculator
Calculate the taxes you'll owe on your investment profits. This calculator helps you estimate capital gains taxes for both short-term and long-term investments based on your tax bracket and holding period.
Tax Summary
| Capital Gain | $0.00 |
|---|---|
| Federal Tax Rate | 0% |
| Federal Tax | $0.00 |
| State Tax | $0.00 |
| Net Profit | $0.00 |
| Total Tax | $0.00 |
| Effective Tax Rate | 0% |
About Capital Gain Tax
Capital gains tax is a tax on the profit realized on the sale of a non-inventory asset. The most common capital gains are realized from the sale of stocks, bonds, precious metals, real estate, and property.
Short-Term vs. Long-Term Capital Gains
Capital gains are classified as either short-term or long-term depending on how long you held the asset before selling:
- Short-term capital gains are taxed as ordinary income according to federal income tax brackets (for assets held less than one year).
- Long-term capital gains are taxed at reduced rates (0%, 15%, or 20%) depending on your taxable income (for assets held one year or more).
How to Calculate Capital Gains Tax
To calculate your capital gains tax:
- Determine your cost basis (usually what you paid for the asset)
- Calculate your capital gain (sale price minus cost basis)
- Determine your holding period (short-term or long-term)
- Apply the appropriate tax rate based on your income and holding period
- Add any applicable state capital gains taxes
Capital Gains Tax Rates (2023)
Long-term capital gains tax rates for 2023:
| Tax Rate | Single Filers | Married Filing Jointly |
|---|---|---|
| 0% | Up to $44,625 | Up to $89,250 |
| 15% | $44,626 to $492,300 | $89,251 to $553,850 |
| 20% | Over $492,300 | Over $553,850 |