What are the 2026 long-term capital gains rates?

0% for single filers with taxable income up to approximately $48,350, 15% up to approximately $533,400, and 20% above that. Married filing jointly: 0% up to $96,700, 15% up to $600,050, 20% above. These thresholds are projected with inflation adjustments.

The Net Investment Income Tax is a 3.8% surtax on investment income (capital gains, dividends, interest, rental income) for taxpayers with MAGI above $200,000 (single) or $250,000 (married filing jointly). These thresholds are not inflation-adjusted and have remained unchanged since 2013.

Do states tax capital gains differently?

Most states tax capital gains as ordinary income at their standard rates. A few exceptions: nine states have no income tax. Some states offer exclusions for certain types of gains (e.g., small business stock, in-state real estate). State rates range from 0% to 13.3%.

What about depreciation recapture?

When selling depreciable property (rental real estate, business equipment), previously claimed depreciation is recaptured and taxed at 25% (Section 1250 recapture) rather than the standard capital gains rates. This calculator does not separately account for depreciation recapture.

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Capital Gains Tax Calculator

Calculate short-term and long-term capital gains tax with 2026 federal rate thresholds, NIIT (3.8%), state tax, and net proceeds after all taxes.

Purchase Price (Cost Basis)

Sale Price (Proceeds)

Holding Period

Filing Status

Other Taxable Income ($)

Wages, business income, etc. Used to determine your capital gains bracket and NIIT applicability.

State Capital Gains Tax Rate (%)

Most states tax capital gains as ordinary income. Enter 0 for no-income-tax states (TX, FL, WA, etc.).

Your Results

Enter purchase and sale details to calculate.

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Introduction

This Capital Gains Tax is designed for professionals who need accurate and reliable calculations in their daily work. Whether you are planning finances, managing projects, or making critical business decisions, having the right numbers at your fingertips is essential. This tool provides instant results based on proven formulas, saving you time and reducing the risk of manual calculation errors. By using this calculator, you can focus on analysis and decision-making rather than spending time on complex computations. The interface is straightforward and designed for practical use, ensuring that you get the information you need quickly and efficiently.

What This Calculator Does

This capital gains tax calculator estimates the federal, state, and Net Investment Income Tax (NIIT) on profits from selling investments, real estate, or other capital assets. It distinguishes between short-term gains (taxed as ordinary income) and long-term gains (taxed at preferential 0%, 15%, or 20% rates). The tool uses 2026 projected federal thresholds, accounts for the 3.8% NIIT on high earners, and includes state-level capital gains tax based on your entered rate.

The Formula

Capital Gain = Sale Price - Cost Basis | Total Tax = Federal CG Tax + NIIT (3.8%) + State Tax | Net Proceeds = Sale Price - Total Tax

The capital gain is the difference between the sale price and the cost basis (original purchase price plus improvements). Short-term gains (assets held one year or less) are taxed at ordinary income rates up to 37% in 2026. Long-term gains (held over one year) are taxed at 0%, 15%, or 20% depending on total taxable income. The Net Investment Income Tax adds 3.8% on investment income for taxpayers with modified adjusted gross income (MAGI) above $200,000 (single) or $250,000 (married filing jointly). Most states tax capital gains as ordinary income.

Step-by-Step Example

Enter purchase and sale prices

Purchase: $50,000. Sale: $80,000. Capital gain: $30,000.

Select holding period and filing status

Long-term (held over 1 year), single filer.

Enter other income and state rate

Other taxable income: $75,000. State rate: 5%.

Review tax breakdown

Federal: $4,500 (15%). NIIT: $190 (3.8% on $5,000 above threshold). State: $1,500. Total: $6,190. Net proceeds: $73,810.

Real-World Use Cases

Stock Sale Planning

Calculate the tax impact before selling investments to determine whether the after-tax return justifies the sale.

Real Estate Capital Gains

Estimate taxes on the sale of rental property or a second home to plan for tax liability at closing.

Tax-Loss Harvesting

Understand how realized gains interact with your income to optimize when to harvest losses to offset gains.

Common Mistakes to Avoid

Not accounting for the holding period. The difference between short-term (up to 37%) and long-term (up to 20%) rates can be enormous. Holding for one year and one day saves thousands on large gains.
Forgetting the NIIT. High earners pay an additional 3.8% on the lesser of net investment income or MAGI above the threshold, which can push the effective rate to 23.8% plus state tax.
Using the wrong cost basis. Inherited assets receive a stepped-up basis to fair market value at date of death. Gifted assets carry over the donor cost basis. Stock splits and reinvested dividends also adjust basis.
Not considering the primary residence exclusion. Single filers can exclude up to $250,000 and married filers up to $500,000 of gain on a primary residence (IRC Section 121) if ownership and use tests are met.

Frequently Asked Questions

Accuracy and Disclaimer

Capital gains tax calculations are based on 2026 projected federal thresholds and rates. Actual liability depends on your complete tax situation including other income, deductions, credits, and state-specific rules. This calculator does not account for depreciation recapture, qualified opportunity zone deferrals, or installment sale treatment. Consult a licensed tax professional for investment tax planning.

Conclusion

This calculator provides a reliable way to perform essential calculations for your professional needs. The results are based on standard formulas and should be used as estimates for planning and analysis purposes. For critical decisions, especially those involving financial, legal, or medical matters, it is always advisable to verify results with a qualified professional. Use this tool as part of your broader decision-making process, and explore related calculators on this platform to support your comprehensive planning needs. Regular use of accurate calculation tools helps ensure consistency and precision in your professional work.