2026 Capital Gains Tax Calculator
Estimate your 2026 capital gains tax on stocks and real estate. Automatically calculates short-term vs long-term rates based on your income and holding period, including 3.8% NIIT when applicable.
To estimate your tax liability, subtract your purchase price (cost basis) from your sale price to find your capital gain. If the asset was held for less than one year, the gain is taxed as ordinary income. If held for more than one year, it qualifies for long-term capital gains rates of 0%, 15%, or 20% based on your total income.
Your initial cost basis.
💡 Essential: Capital gains stack on top of your regular income to determine your exact tax bracket.
🔒 Your data is never stored or shared. Calculations run entirely in your browser.
(Sale Price – Purchase Price)
Long-Term Rate Applied
Our 2026 capital gains tax calculator actively utilizes the official progressive investment tax brackets established by the Internal Revenue Service (IRS). By accurately stacking your investment profits on top of your standard annual income, this tool calculates your exact exposure to short-term ordinary rates, discounted long-term rates, and the 3.8% Net Investment Income Tax (NIIT).
Your tax rate depends entirely on your holding period and your total income. If you hold an asset for less than one year, the IRS taxes your profit as Short-Term Capital Gains at your standard ordinary income rate (up to 37%). However, if you hold the asset for longer than one year, you qualify for discounted Long-Term Capital Gains rates of 0%, 15%, or 20%. High earners may also face an additional 3.8% Net Investment Income Tax (NIIT).
Why You Need a 2026 Capital Gains Tax Calculator
Anyone dabbling in stocks, cryptocurrency, or real estate knows the thrill of watching an asset grow in value. But the moment you hit the “sell” button to lock in those profits, the IRS expects a cut. Figuring out exactly how much you owe can be incredibly confusing, which is why running your numbers through a reliable 2026 capital gains tax calculator is a smart move before finalizing any trade.
What Actually Counts as a Capital Gain?
In simple terms, almost everything you own—from a handful of index funds to the physical house you live in—is considered a “capital asset.” When you sell it for more than you originally paid (your cost basis), the cash left over is your capital gain. The good news is that you only pay taxes on the pure profit, not the total revenue from the sale.
Short-Term vs. Long-Term: The Core of Our Capital Gains Calculator
The IRS treats your investment profits very differently depending on how long you held onto the asset. They essentially reward patience and apply higher tax rates to quick flips.
The Critical 365-Day Threshold
Time is literally money when it comes to investing. If you buy a stock and sell it 364 days later, that is a short-term gain. If you hold it for just one more day until day 366, it magically transforms into a long-term gain.
Short-Term Gains Mean Higher Taxes
If you prefer day trading or quick real estate flips, the IRS treats your profit just like regular income from a day job. It gets stacked on top of your W-2 salary and taxed at your standard ordinary income tax brackets. Depending on your income, that can hit up to 37%.
Long-Term Gains Unlock Massive Discounts
This is where investors build real wealth. Holding an asset for over a year unlocks special Long-Term Capital Gains rates. Our 2026 capital gains tax calculator automatically spots this and applies the discounted rates, which cap your base tax burden at 0%, 15%, or 20%.
2026 Capital Gains Tax Rate Comparison
*Note: Ordinary income brackets used in this tool are projected estimates based on IRS inflation adjustments.
| Holding Period | IRS Classification | 2026 Tax Rates Applied |
|---|---|---|
| Less than 1 Year | Short-Term Capital Gain | 10% to 37% (Ordinary Income Rates) |
| More than 1 Year | Long-Term Capital Gain | 0%, 15%, or 20% (Discounted Rates) |
How Our 2026 Capital Gains Tax Calculator Stacks Income
A lot of people misunderstand how tax brackets actually work. Capital gains are not taxed in a vacuum. To find your true tax rate, you need to understand how the IRS “stacks” your money.
The Income Stacking Mechanic
Think of your income as a bucket. Your regular W-2 salary fills the bottom of the bucket first. Your capital gains are poured in right on top. Because your regular salary already filled up the lower tax brackets, your investment profits are pushed up into the higher marginal brackets.
Example: Crossing the Bracket Threshold
Let’s say you are a single filer making $80,000 at your day job, and you make a $30,000 long-term profit on a stock sale.
Because your $80,000 salary already pushed your taxable income past the 0% threshold, your entire $30,000 gain is taxed at 15%. You cannot claim the 0% rate because your standard salary filled up the lowest bracket before your investment profit was even considered.
The 3.8% NIIT Penalty for High Earners
If you are making a high income, the 20% bracket isn’t actually your ceiling. You also have to factor in the Net Investment Income Tax (NIIT), which is a 3.8% surcharge that targets passive investment income.
What Triggers the NIIT?
The NIIT kicks in if your Modified Adjusted Gross Income (MAGI) crosses specific federal thresholds. It applies to both short-term and long-term gains, as well as other passive income streams like stock dividends and rental income.
Income Thresholds for the 3.8% Surcharge
Unlike regular tax brackets, these income limits rarely change with inflation:
- Single / Head of Household: MAGI over $200,000
- Married Filing Jointly: MAGI over $250,000
- Married Filing Separately: MAGI over $125,000
⚠️ The True Maximum Tax Rate
When you combine the top 20% long-term bracket with the 3.8% NIIT surcharge, the true maximum federal rate for high-income investors reaches 23.8% on long-term gains.
Using the Capital Gains Tax Calculator for Real Estate
While this tool provides excellent baseline estimations for stocks and cryptocurrency, real estate investors have a couple of extra tricks up their sleeve to avoid taxes entirely.
Section 121: The Primary Residence Loophole
If you are selling the house you actually live in, the IRS cuts you a massive break. Under Section 121, if you lived in the home as your primary residence for at least two of the last five years, you can exclude up to $250,000 of profit from taxes as a single filer, or $500,000 if you are married.
Section 1031: Swapping Investment Properties
Landlords and commercial investors use the 1031 Exchange to defer taxes indefinitely. If you sell a rental property and immediately use the cash to buy a new, similar property following strict IRS timelines, you can roll your tax bill forward to keep your wealth growing.
Smart Strategy: Tax-Loss Harvesting
Nobody likes losing money on an investment, but you can actually use those losses to your advantage to lower your overall tax bill at the end of the year.
Canceling Out Your Winning Trades
The IRS only taxes your net gains. If you made $10,000 on one stock but lost $4,000 on a bad crypto trade, you only owe taxes on $6,000. Smart investors intentionally sell losing assets near the end of the year to cancel out the taxes generated by their winners.
Deducting Losses Against Your Salary
If you had a rough year and your losses outweighed your gains, you can use up to $3,000 of those excess losses to offset your regular W-2 income. This effectively lowers your standard tax bracket. Any losses beyond that $3,000 limit simply roll over to the next year.