How do short-term and long-term capital gains rates differ?

Gains on assets held less than one year are taxed at ordinary income rates. Gains on assets held more than one year get preferential 0% / 15% / 20% rates, plus a possible 3.8% NIIT for high earners.

The Net Investment Income Tax adds 3.8% on top of capital gains for high earners — single filers with AGI above $200,000 and married filers above $250,000.

Is capital gains tax separate from income tax?

Long-term gains use their own preferential brackets, but your total income determines which bracket you land in. Our Income Tax Calculator shows the ordinary-rate side.

Why hold an asset over one year?

Crossing the one-year mark can drop your rate from ordinary (up to 37%) to 0/15/20%, a meaningful saving on large gains — especially for crypto, stocks, and real estate.

Capital Gains Tax Calculator 2026

Estimate the tax on your investment gains and see exactly how much you keep. Compare short-term (ordinary rate) versus long-term (preferential 0% / 15% / 20% + NIIT) treatment.

How to Use This Calculator

Enter the capital gain amount (profit, not total proceeds).
Add any other annual income to place the gain in the right bracket.
Pick the holding period: short-term (< 1 year) or long-term (≥ 1 year).
Select your filing status, then review the tax, effective rate, and after-tax gain.

Long-Term Capital Gains Brackets (2026 estimate)

Single:       0%  ≤ $48,350
              15% ≤ $533,400
              20% above
Married:      0%  ≤ $96,700
              15% ≤ $600,050
              20% above
+ 3.8% NIIT if AGI > $200k (single) / $250k (married)

Why Holding Period Matters

The one-year mark is one of the most valuable lines in the tax code. A short-term gain is taxed exactly like a salary, while a long-term gain can be taxed at 0% for lower-income filers. For crypto, stock, and real-estate investors, timing a sale just past twelve months can turn a 37% hit into a 15% one.

Related Tax Tools

Income Tax Calculator →Federal Tax Bracket Calculator →FICA Calculator →After-Tax Income Calculator →State Tax Burden Calculator →Estate Tax Calculator →

Related Tax Guides

Complete US Capital Gains Tax Guide (2026) →

In-Depth Guide

Worked Example

You bought stock for $10,000 and sold it for $16,000, a $6,000 gain. If you held it less than a year, the gain is short-term and taxed as ordinary income at your bracket rates. If you held it more than a year, it is long-term and taxed at 0%, 15%, or 20% depending on income; a typical mid-income filer pays 15%, or $900 here. High-income sellers face an extra 3.8% Net Investment Income Tax once AGI exceeds $200,000 single or $250,000 married, adding $228 in this example for a total of $1,128. The calculator asks your holding period and income, then applies the correct long-term rate plus NIIT so you see the after-tax proceeds before you trade.

Common Mistakes to Avoid

Investors often forget that holding period, not the gain size, decides the rate; under one year and the preferential rates disappear. Another error is ignoring the 3.8% NIIT, which applies to investment income above the AGI thresholds regardless of the long-term rate. People also overlook that capital losses offset gains and can deduct up to $3,000 of excess loss against ordinary income. State tax is separate and may not follow federal long-term treatment, so a state with income tax can still take a bite. Finally, wash-sale rules disallow a loss if you repurchase the same security within thirty days, so time re-entry carefully.

When to Consult a Tax Professional

The calculator handles a single gain, but consult an advisor for ongoing portfolio strategy. Tax-loss harvesting, lot-level selling, and coordinating gains with losses across accounts need a full picture. Those near the NIIT threshold should plan realizations to stay under it where possible. Inherited basis, like-kind exchanges for real estate, and options all carry rules the tool cannot model. If you are selling a business or a large block of stock, an enrolled agent or CPA can sequence the sale to manage the rate and the 3.8% surtax.

Sources & Further Reading

Long-term rates and the NIIT are explained by the IRS at IRS.gov. The SSA is not directly relevant, but the Federation of Tax Administrators covers state capital gains treatment at TaxAdmin.org. For income distribution context the Census Bureau offers data at Census.gov. The calculator uses the federal rates described above.

Disclaimer: SaveTaxUS calculators provide estimates only and do not constitute official tax advice. All calculations run locally in your browser — we never upload your income, property, or financial data.

Data source: Rates are based on publicly available 2026 IRS federal brackets and state tax publications. For formal filing, consult a licensed CPA. Last updated: July 2026.