How the capital gains tax calculator works
A capital gain is the sale price minus your cost basis. How it is taxed depends on how long you held the asset.
Long-term (held over a year), 2026: 0% up to $49,450 taxable income single ($98,900 joint), 15% up to $545,500 ($613,700), 20% above
Short-term: taxed at ordinary income tax rates
The gain is stacked on top of your other taxable income, so part of a large gain can fall in a higher bracket than the rest. The 3.8% net investment income tax applies to the smaller of the gain or the amount your income exceeds $200,000 single or $250,000 joint (a simplification that treats taxable income as modified AGI). Special rates for collectibles (28%) and depreciation recapture on real estate (25%) are not modelled, nor are home-sale exclusions or state tax.
Worked example
A single filer with $60,000 of other taxable income sells shares bought for $10,000 for $30,000, a $20,000 gain. Held over a year, the whole gain is above the 0% threshold and is taxed at 15%: $3,000. Sold within a year, it would be taxed as ordinary income in the 22% bracket: $4,400.
Tax estimates use 2026 federal figures and simplified rules. They are not tax advice; check with a tax professional.
Frequently asked questions
What are the 2026 long-term capital gains brackets?
0% up to $49,450 of taxable income for single filers ($98,900 joint), 15% up to $545,500 ($613,700 joint), and 20% above that.
How are short-term capital gains taxed?
As ordinary income at your regular tax bracket.
What is cost basis?
Usually what you paid for the asset plus purchase fees, adjusted for things like reinvested dividends or home improvements.
Is there tax on selling a home?
Up to $250,000 of gain ($500,000 joint) on a main home can be excluded if you meet the ownership and use tests.
Updated October 2026. Results are estimates for education, not financial or medical advice. All math runs in your browser; nothing you type is sent anywhere.