Calculate your short-term and long-term capital gains tax, including Net Investment Income Tax (NIIT), for tax year 2025.
Calculate Your Investment Tax Liability
When you sell stocks, bonds, real estate, or other investments for a profit, you may owe capital gains tax. The rate you pay depends on how long you held the asset and your overall taxable income. Our free Capital Gains Tax Calculator helps you understand your tax liability before you sell.
Calculate both short-term and long-term capital gains tax
Uses official 2025 IRS tax brackets and rates
Includes Net Investment Income Tax (NIIT) for high earners
Shows net after-tax proceeds from your sale
Enter your income, sale details, and holding period to see exactly how much tax you'll owe on your investment gains.
Enter Your Investment Details
Wages, salary, and other income before capital gains
Total amount received from selling the asset
Original purchase price plus fees
Enter directly or let us calculate from proceeds - cost basis
0%
Up to $48,350 (S) / $96,700 (MFJ)
15%
Up to $533,400 (S) / $600,050 (MFJ)
20%
Above thresholds
3.8%
NIIT for high earners
Your Capital Gains Tax Results
Total Tax on Gains
$0
Capital Gain$0
Holding PeriodLong-Term
Tax Rate Applied0%
Capital Gains Tax$0
NIIT (3.8%)$0
Combined Taxable Income$0
Net After-Tax Proceeds$0
Effective Rate on Gains0%
Need Investment Tax Help?
Our tax experts specialize in capital gains strategies, tax-loss harvesting, and minimizing investment taxes.
Input your ordinary income (wages, salary) to determine your tax bracket for capital gains.
2
Add Sale Details
Enter your sale proceeds and cost basis, or directly input your capital gain amount.
3
Select Holding Period
Choose whether you held the asset for more than one year (long-term) or one year or less (short-term).
4
Get Your Tax
Instantly see your capital gains tax, NIIT if applicable, and net after-tax proceeds.
Frequently Asked Questions About Capital Gains Tax
What is capital gains tax?+
Capital gains tax is a tax on the profit you make when you sell an asset for more than you paid for it. The gain is calculated as the difference between your sale price and your cost basis (original purchase price plus any improvements or fees). Capital gains tax applies to investments like stocks, bonds, mutual funds, real estate, collectibles, and other capital assets. The tax rate depends on how long you held the asset and your overall taxable income level.
What is the difference between short-term and long-term capital gains?+
The key difference is how long you held the asset before selling. Short-term capital gains apply to assets held for one year or less and are taxed as ordinary income at your marginal tax rate, which can be as high as 37% for 2025. Long-term capital gains apply to assets held for more than one year and qualify for preferential tax rates of 0%, 15%, or 20% depending on your taxable income. Holding investments longer than one year can significantly reduce your tax burden.
What is the Net Investment Income Tax (NIIT)?+
The Net Investment Income Tax (NIIT) is an additional 3.8% tax on investment income established under the Affordable Care Act. It applies to the lesser of your net investment income (including capital gains, dividends, interest, rental income, and royalties) or the amount by which your modified adjusted gross income (MAGI) exceeds $200,000 for single filers, $250,000 for married filing jointly, or $125,000 for married filing separately. This tax is in addition to regular capital gains tax.
How can I reduce capital gains tax?+
There are several strategies to minimize capital gains tax: (1) Hold investments for more than one year to qualify for lower long-term rates. (2) Use tax-loss harvesting by selling losing investments to offset gains. (3) Contribute to tax-advantaged accounts like 401(k)s, IRAs, or HSAs. (4) Time your sales strategically to keep income below NIIT thresholds. (5) Gift appreciated assets to charity for a deduction without paying capital gains. (6) Use installment sales to spread gains over multiple years. (7) Consider opportunity zone investments for deferral and exclusion benefits.
Are there exemptions for home sales?+
Yes, the primary residence exclusion allows you to exclude up to $250,000 of capital gains ($500,000 for married couples filing jointly) when selling your main home. To qualify, you must have owned the home and used it as your primary residence for at least 2 of the 5 years before the sale (the ownership and use tests). You can use this exclusion once every 2 years. Any gain above the exclusion amount is subject to capital gains tax. This is one of the most valuable tax breaks available to homeowners.
What are the 2025 long-term capital gains tax rates?+
For 2025, long-term capital gains tax rates are structured in three brackets based on your total taxable income: The 0% rate applies to single filers with taxable income up to $48,350 (or $96,700 for married filing jointly). The 15% rate applies to single filers with income from $48,351 to $533,400 (or $96,701 to $600,050 for MFJ). The 20% rate applies to income exceeding those thresholds. These preferential rates only apply to assets held for more than one year.
Our tax experts specialize in investment taxation, capital gains strategies, and minimizing your tax liability on stocks, real estate, and other investments.
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