Capital Gains Tax Calculator
Last updated July 2, 2026
Capital gains taxes apply to profits from selling assets — stocks, bonds, mutual funds, real estate, and other investments — and the rate depends entirely on two things: how long you held the asset and your total taxable income. Short-term capital gains, from assets held one year or less, are taxed as ordinary income at your marginal bracket rate — up to 37 percent in 2026. Long-term capital gains, from assets held more than one year, are taxed at preferential rates of 0, 15, or 20 percent depending on total taxable income. For 2026, the 0 percent long-term rate applies to taxable income up to $48,350 for single filers and $96,700 for married couples filing jointly. The 15 percent rate applies up to $533,400 for single filers and $600,050 for married filers. Income above those thresholds faces the 20 percent rate.
Capital gains stack on top of ordinary income — they don't get their own separate bracket calculation in isolation. A single filer earning $40,000 in wages and realizing $50,000 in long-term capital gains has total taxable income (after the $16,100 standard deduction) of about $73,900. The wages fill the bottom of the bracket structure; the capital gains stack on top, with the portion above $48,350 in total taxable income taxed at 15 percent rather than 0. High earners also face the 3.8 percent Net Investment Income Tax on capital gains when modified AGI exceeds $200,000 for single filers or $250,000 for married filers, bringing the effective top rate on long-term gains to 23.8 percent federally before state taxes. In California, where capital gains are taxed as ordinary income at up to 13.3 percent, the combined federal and state top rate on long-term gains can approach 37 percent.
The holding period decision — whether to sell before or after the one-year mark — is one of the most impactful and controllable tax decisions in investing. On a $50,000 gain, the difference between short-term and long-term treatment at a 22 percent marginal rate versus 15 percent long-term rate is $3,500. Calculate your long-term capital gains tax using your total taxable income including both ordinary income and the gain, not just the gain in isolation — the stacking effect frequently pushes gains into higher brackets than expected.