See what you'd owe on an investment gain, and how holding a year changes it.
A capital gains tax calculator estimates federal tax on an investment gain, applying the lower long-term rates for assets held over a year and ordinary rates for short-term gains.
Assets held more than a year qualify for long-term capital gains rates of 0%, 15%, or 20%, which stack on top of your other taxable income, many people pay 15%, and lower earners may pay 0%. Assets held a year or less are 'short-term' and taxed as ordinary income at your regular bracket, which is usually much higher. The one-year line can be worth a lot of money.
This covers federal tax on the gain and excludes state taxes and the 3.8% net investment income tax that can apply at higher incomes. It also assumes the gain stacks cleanly on your other income. Strategies like holding past a year, harvesting losses to offset gains, and timing sales across tax years can all lower the real bill.
Long-term gains (held over a year) use 0/15/20% federal rates; short-term gains are taxed as ordinary income. Your bracket and income determine which applies.
Hold assets over a year for long-term rates, harvest losses to offset gains, and consider your income timing. This estimate excludes such strategies.
No, it estimates federal tax only and excludes the 3.8% net investment income tax and any state tax.
See the exact formula and a worked example on our methodology page.