Capital Gains Tax Calculator
Calculate capital gains tax on your investments. This calculator handles both short-term and long-term capital gains for stocks, real estate, and other assets using 2024 tax rates.
Capital Gains Summary
Tax Rate Information
2024 Capital Gains Rates
Understanding Capital Gains Tax
Capital gains tax is levied on the profit from the sale of assets such as stocks, real estate, and collectibles. The tax rate depends on how long you held the asset and your income level. Long-term capital gains receive preferential tax treatment.
Short-Term vs. Long-Term Capital Gains
Holding Period Matters
Short-Term Capital Gains
Assets held 1 year or less
Taxed as ordinary income
Rates: 10% to 37%
Same as your income tax bracket
Long-Term Capital Gains
Assets held more than 1 year
Preferential tax rates
Rates: 0%, 15%, or 20%
Based on taxable income
2024 Long-Term Capital Gains Tax Rates
| Filing Status | 0% Rate | 15% Rate | 20% Rate |
|---|---|---|---|
| Single | $0 - $47,025 | $47,026 - $518,900 | $518,901+ |
| Married Filing Jointly | $0 - $94,050 | $94,051 - $583,750 | $583,751+ |
| Head of Household | $0 - $63,000 | $63,001 - $551,350 | $551,351+ |
Calculating Capital Gains
Capital Gain Formula
Capital Gain = Sale Price - Purchase Price - Adjustments
Step 1: Determine Cost Basis
Purchase price plus certain adjustments (commissions, fees, improvements)
Step 2: Calculate Gain or Loss
Sale price minus adjusted cost basis
Step 3: Determine Holding Period
More than 1 year = long-term, 1 year or less = short-term
Step 4: Apply Appropriate Tax Rate
Short-term gains taxed as ordinary income, long-term at preferential rates
Special Rules for Different Assets
Real Estate
- $250,000/$500,000 exclusion for primary residence
- Depreciation recapture taxed as ordinary income
- 1031 exchanges can defer taxes
- Installment sales possible
Collectibles
- Art, antiques, coins, stamps
- Taxed at 28% (long-term)
- No 0% rate available
- Short-term gains taxed as ordinary income
Tax Loss Harvesting
Tax loss harvesting involves selling losing investments to offset capital gains. Up to $3,000 of net capital losses can be deducted against ordinary income each year, with excess losses carried forward.
Wash Sale Rules
The wash sale rule prevents taxpayers from claiming a loss on a security if they repurchase a substantially identical security within 30 days before or after the sale. This rule applies to stocks, bonds, and mutual funds.
Net Investment Income Tax
High-income taxpayers (over certain thresholds) may be subject to an additional 3.8% Net Investment Income Tax on capital gains and other investment income.
State Capital Gains Taxes
Most states follow federal rules for capital gains taxation, but some states have different rates or additional taxes. Nine states have no income tax: Texas, Florida, Nevada, Washington, Wyoming, South Dakota, Alaska, Tennessee, and New Hampshire.
Key Takeaways for Capital Gains Tax
- Hold investments longer than 1 year for lower tax rates
- Long-term capital gains rates are 0%, 15%, or 20%
- Short-term gains taxed as ordinary income (up to 37%)
- Tax rates based on taxable income, not total gain
- Real estate has special rules and exclusions
- Collectibles taxed at higher rates (28%)
- Tax loss harvesting can offset gains
- State taxes may apply in addition to federal
- Net Investment Income Tax for high earners
- Consult a tax professional for complex situations