2026 tax year
Capital gains tax calculator
One day past a year changes the rate. This shows by how much.
Sell an asset for more than you paid and the profit is a capital gain. Held a year or less, it is short-term and taxed like wages. Held more than a year, it is long-term and taxed at 0%, 15% or 20% depending on your income. This nets your gains and losses, applies the right rate to each, adds the 3.8% net investment income tax where it bites, and carries any excess loss forward.
Adds your state's treatment of gains.
Positions your gains in the 0/15/20% brackets.
Enter your gains and other income.
Worked example, $5,000 short-term and $20,000 long-term gains
A single filer with $80,000 of other income realizes $5,000 of short-term and $20,000 of long-term gains:
| Component | Tax |
|---|---|
| Short-term gain ($5,000) at ordinary rates | $1,100 |
| Long-term gain ($20,000) at 0/15/20% | $3,000 |
| Total federal tax on the gains | $4,100 |
| Effective rate on the gains | 16.4% |
The long-term rate does the work: $20,000 of long-term gain costs $3,000 at 15%. Had that same $20,000 been short-term, sold before the one-year mark, the whole $25,000 would be ordinary income and the tax on it would be $5,500, roughly $1,400 more. That gap is the reward for holding past a year.
How your state changes it
Federal is only half the story. On the same $5,000 short-term and $20,000 long-term gains, four states show the whole range of how states treat gains:
| State | Treatment | State tax on the gains |
|---|---|---|
| California | Taxed as ordinary income | $2,325 |
| South Carolina | Excludes part of long-term gains | $844 |
| Missouri | No tax on gains | $0 |
| Washington | Standalone excise | $0 |
California taxes the gains at its full ordinary rate. South Carolina excludes 44% of the long-term gain first. Missouri, which exempted capital gains in 2025, charges nothing. Washington's $0 here is not a mistake, its 7% excise only bites on long-term gains above a large annual exemption (about $278,000), so a $20,000 gain is under it. Pick your state in the calculator to see your own figure.
Questions
What is the difference between short and long-term gains?
The holding period. One year or less is short-term, taxed at your ordinary income rate (up to 37%). More than one year is long-term, taxed at 0%, 15% or 20%. The clock runs from the day after you bought to the day you sold.
Who pays 0% on long-term gains?
Filers whose taxable income (including the gain) stays under the 0% ceiling, $49,450 for a single filer in 2026, $98,900 for a couple. The gain stacks on top of your other income, so a large gain can fill the 0% band and spill into 15%. The calculator handles the stacking.
Can I deduct capital losses?
Yes. Losses first offset gains of the same type, then the other type. A net loss beyond that deducts up to $3,000 against ordinary income per year ($1,500 if married filing separately), and anything left carries forward to future years indefinitely.
What is the 3.8% net investment income tax?
An extra 3.8% on investment income once your modified AGI passes $200,000 (single) or $250,000 (joint). It applies to the smaller of your net investment income and the amount over the threshold, so it phases in rather than hitting all at once. The calculator adds it automatically.
Does my state tax capital gains too?
Usually yes, pick your state above and the calculator adds it. Most states tax gains as ordinary income with no preferential rate. A handful differ: Washington levies a standalone 7% excise on large long-term gains, several states (South Carolina, Wisconsin, North Dakota and others) exclude part of long-term gains, Hawaii and Montana apply a reduced rate, and nine states, including Missouri, which exempted capital gains in 2025, do not tax them.
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Estimate for the 2026 tax year using the standard deduction. Federal by default; pick a state to add its treatment of gains. Not tax advice.