Calculate your federal capital gains tax for 2026. Enter your filing status, income, purchase price, and sale price — get short-term vs long-term tax, NIIT, and state tax instantly.
✓ Last verified: April 2026 · IRS Publication 550 · Rev. Proc. 2024-40
📋 Your Situation
Determines your long-term capital gains tax bracket
$
Please enter your taxable income.
Your gross income minus deductions — from line 15 of Form 1040
$
Please enter your cost basis.
Purchase price + commissions + improvements
$
Please enter the sale price.
Net proceeds after selling commissions
Determines short-term vs long-term rate
🏻 Additional Factors
Most states tax capital gains as ordinary income
$
Total depreciation claimed on rental property (taxed at 25%)
Primary home only — 2-of-5-year ownership & use test required
Total Tax Owed
—
📊 Full Tax Breakdown
⚠️ Disclaimer: This calculator provides estimates for educational purposes only and does not constitute tax advice. Tax rates, brackets, and rules change annually. Consult a licensed CPA or tax professional before making investment or tax decisions. State tax rates shown are approximations for illustrative purposes.
Was this calculator helpful?
✓ Thanks for your feedback!
Sources & Methodology
✓Tax rates and brackets verified against IRS Rev. Proc. 2024-40 and IRS Publication 550. NIIT thresholds from IRC Section 1411.
IRS guidance on short-term vs long-term classification, depreciation recapture rules, and home sale exclusion eligibility
Methodology: Capital gain = Sale Price − Cost Basis − Home Sale Exclusion (if applicable). Short-term gains taxed at ordinary income rates (10% to 37%). Long-term gains taxed at 0%, 15%, or 20% using 2026 IRS thresholds. NIIT of 3.8% applies when MAGI exceeds $200,000 (single) or $250,000 (MFJ). Depreciation recapture taxed at 25%. State tax applied as flat rate on the taxable capital gain. Total tax = federal capital gains tax + NIIT (if applicable) + depreciation recapture tax + state tax.
⏱ Last reviewed: April 2026 using 2026 IRS inflation-adjusted brackets
Capital Gains Tax Rates & Rules for 2026
Capital gains tax is the tax you pay when you sell an asset for more than you paid for it. The rate depends on how long you held the asset, your taxable income, and your filing status. Understanding the difference between short-term and long-term gains can save you thousands of dollars in a single tax year.
2026 Long-Term Capital Gains Tax Brackets
Rate
Single Filers
Married Filing Jointly
Head of Household
0%
Up to $47,025
Up to $94,050
Up to $63,000
15%
$47,026 – $518,900
$94,051 – $583,750
$63,001 – $551,350
20%
Above $518,900
Above $583,750
Above $551,350
Source: IRS Rev. Proc. 2024-40 (2026 inflation-adjusted thresholds). Short-term gains taxed as ordinary income at 10%-37%.
Short-Term vs Long-Term: The Critical Difference
Capital Gain = Sale Price - Cost Basis - Exclusions
Example — Stock held 14 months: Bought at $50,000, sold at $90,000. Gain = $40,000.
Single filer, taxable income $85,000 before gain → falls in 15% long-term bracket.
Federal tax = $40,000 × 15% = $6,000
Same gain, held only 8 months (short-term): taxed at ordinary rate 22% = $8,800
Waiting 6 more months saves $2,800 in this example.
The Net Investment Income Tax (NIIT)
High earners pay an additional 3.8% NIIT on top of their capital gains rate. This applies when your modified adjusted gross income (MAGI) exceeds $200,000 for single filers or $250,000 for married couples filing jointly. This means the top federal rate on long-term capital gains is effectively 23.8% (20% + 3.8%), and the top rate on short-term gains is 40.8% (37% + 3.8%).
Home Sale Exclusion
When you sell your primary residence, you can exclude up to $250,000 of capital gains from tax if single, or up to $500,000 if married filing jointly. To qualify, you must have owned and used the home as your primary residence for at least 2 of the last 5 years. Only the gain above the exclusion amount is taxed. Your adjusted cost basis includes the original purchase price, closing costs you paid, and any capital improvements made during ownership.
Depreciation Recapture on Rental Property
When you sell a rental property, the IRS requires you to pay tax on all depreciation deductions you claimed at a rate of up to 25% — regardless of your regular capital gains rate. This is called depreciation recapture and applies to Section 1250 property (residential and commercial real estate). If you claimed $50,000 in depreciation over 10 years and then sell the property, that $50,000 is taxed at up to 25% before the remaining gain is taxed at your long-term capital gains rate.
💡 Tax-Loss Harvesting: You can offset capital gains by selling investments at a loss. Capital losses offset capital gains dollar for dollar. If losses exceed gains, you can deduct up to $3,000 against ordinary income per year, with the remainder carrying forward indefinitely. This makes December a popular month for reviewing your portfolio for tax-loss harvesting opportunities.
Frequently Asked Questions
For 2026, long-term capital gains rates are 0%, 15%, or 20% based on taxable income and filing status. Single filers pay 0% up to $47,025, 15% from $47,026 to $518,900, and 20% above $518,900. Short-term gains are taxed as ordinary income at 10% to 37%. High earners also owe 3.8% NIIT, making the top effective long-term rate 23.8%.
Short-term capital gains apply to assets held one year or less and are taxed at your ordinary income rate (10%-37%). Long-term capital gains apply to assets held more than one year and are taxed at preferential rates of 0%, 15%, or 20%. The difference can be enormous. A $50,000 gain in the 22% income bracket costs $11,000 short-term but only $7,500 long-term at 15%.
Not always. The home sale exclusion lets single filers exclude up to $250,000 of gains and married couples exclude up to $500,000, provided you owned and lived in the home as a primary residence for at least 2 of the last 5 years. Only gains above the exclusion are taxed. If your gain is below the threshold, you owe nothing.
The NIIT is an additional 3.8% tax on investment income for high earners. It applies when your MAGI exceeds $200,000 (single) or $250,000 (married filing jointly). It applies to capital gains, dividends, interest, and rental income. Combined with the 20% long-term rate, the top effective federal rate on long-term capital gains is 23.8%.
Capital gain = sale proceeds minus your cost basis (purchase price plus commissions). If held over one year, the gain is long-term and taxed at 0%, 15%, or 20%. If held one year or less, it is short-term and taxed as ordinary income. Example: 100 shares bought at $50, sold at $120. Gain = $7,000. If long-term at 15% bracket, federal tax = $1,050.
Yes. The IRS treats cryptocurrency as property. Selling, trading, or using crypto triggers a taxable event. Short-term gains on crypto held one year or less are taxed as ordinary income at 10%-37%. Long-term gains on crypto held more than one year are taxed at 0%, 15%, or 20%. Crypto-to-crypto swaps are also taxable events and you must track cost basis for every transaction.
Yes. Capital losses offset capital gains dollar for dollar. If losses exceed gains in a year, you can deduct up to $3,000 of net losses against ordinary income. Remaining losses carry forward to future years indefinitely. This strategy, called tax-loss harvesting, is one of the most powerful tools for reducing capital gains tax legally.
Most states tax capital gains as ordinary income at state income tax rates. California has the highest rate at 13.3% with no preferential long-term rate. Nine states have no income tax and therefore no capital gains tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Wyoming, and New Hampshire. Always add your state rate to your federal rate for the total tax picture.
When you sell a rental property, all depreciation you previously claimed is taxed at up to 25% upon sale, regardless of your regular capital gains rate. This is called depreciation recapture under Section 1250. If you claimed $60,000 in depreciation over the years and sell the property, that $60,000 is taxed at 25% before the remaining gain is taxed at your long-term capital gains rate.
Legal strategies include: holding assets over one year for preferential long-term rates; tax-loss harvesting to offset gains with losses; using IRAs and 401(k)s where gains grow tax-deferred or tax-free; gifting appreciated assets to charity via a donor-advised fund; timing sales to a lower-income year to drop into the 0% bracket; and investing in Qualified Opportunity Zones for deferral and potential exclusion.