Capital Gains Tax Calculator
Calculate tax on investment gains and profits
About this calculator
A capital gains tax calculator helps investors determine the tax liability on profits from selling investments like stocks, bonds, or real estate. This tool calculates both short-term and long-term capital gains taxes based on your income level, holding period, and profit amount. Understanding your potential tax burden is crucial for making informed investment decisions, timing asset sales strategically, and planning your overall tax strategy to maximize after-tax returns.
How to use
Enter your original purchase price and sale price of the investment to determine your capital gain. Input your annual income and filing status to calculate your tax bracket. Specify how long you held the asset to determine if it qualifies for long-term or short-term capital gains treatment.
Frequently asked questions
What's the difference between short-term and long-term capital gains?
Short-term gains (assets held under one year) are taxed as ordinary income, while long-term gains benefit from lower preferential tax rates.
Are there any capital gains tax exemptions?
Yes, primary residence sales may qualify for up to $250,000 ($500,000 married) exemption, and certain small business stock has exclusions.
Can I offset capital gains with losses?
Yes, capital losses can offset capital gains, and up to $3,000 in excess losses can offset ordinary income annually.