Capital Gains Tax Calculator 2026

How Capital Gains Tax Works in the US

When you sell an asset — stocks, real estate, cryptocurrency, or collectibles — for more than you paid, the profit is a "capital gain." The IRS taxes that gain differently depending on how long you held the asset before selling.

Long-Term vs Short-Term Capital Gains

If you hold an asset for more than one year before selling, the gain qualifies as long-term and receives preferential tax rates: 0%, 15%, or 20% depending on your taxable income. Sell before the one-year mark and the gain is taxed as ordinary income at your regular federal rate — up to 37%.

Net Investment Income Tax (NIIT)

High earners face an additional 3.8% surtax on investment income — including capital gains, dividends, and rental income — if their modified adjusted gross income (MAGI) exceeds $200,000 (single) or $250,000 (married filing jointly). This is on top of the regular capital gains rate.

State Capital Gains Tax

Most states tax capital gains as ordinary income. Some notable exceptions: Florida, Texas, and Nevada have no state income tax. California taxes capital gains at up to 13.3%, the highest in the nation. Washington state applies a 7% tax on long-term gains above $250,000.

How to Reduce Capital Gains Tax

• Hold for over a year — qualifies for lower long-term rates
• Tax-loss harvesting — offset gains with investment losses
• Primary residence exclusion — exclude up to $250K/$500K on home sale
• Invest through tax-advantaged accounts — 401(k), IRA, Roth IRA
• Charitable donations — donate appreciated assets to avoid gains
• 1031 exchange — defer real estate gains by reinvesting

Frequently Asked Questions

Do I pay capital gains tax on crypto?

Yes. The IRS treats cryptocurrency as property. Selling, trading, or using crypto to buy goods triggers a taxable event. The same long-term/short-term rules apply based on your holding period.

What is the wash sale rule?

If you sell a security at a loss and buy the same or "substantially identical" security within 30 days before or after the sale, the loss is disallowed for tax purposes. This rule currently applies to stocks and bonds but not cryptocurrency (though legislation may change this).

Can I offset capital gains with capital losses?

Yes. Capital losses first offset capital gains of the same type (short-term vs long-term). Any remaining losses can offset gains of the other type, and up to $3,000 of net losses can offset ordinary income. Unused losses carry forward indefinitely.

How does the primary residence exclusion work?

If you've lived in your home for at least 2 of the past 5 years, you can exclude up to $250,000 (single) or $500,000 (married filing jointly) of capital gains from the sale. This is one of the most valuable tax breaks in the US tax code.

For a complete view of your tax situation, use our Federal Income Tax Calculator alongside this capital gains calculator.