Capital Gains Tax Calculator (2026)
See exactly what rate your gains land at once they’re stacked on top of your ordinary income.
Capital Gains Tax Calculator
Sell an investment for more than you paid, and the profit is a capital gain — but how it’s taxed depends entirely on how long you held it, and on how much other income you already have. This calculator shows the actual 2026 federal tax on your gains, both short-term (taxed like wages) and long-term (taxed at preferential rates that depend on where your ordinary income already leaves off), plus the Net Investment Income Tax that catches higher earners on top of both.
Short-Term vs. Long-Term: The One-Year Line
Hold an asset for a year or less before selling, and the gain is taxed as ordinary income — exactly like your salary, up to a 37% top rate. Hold it more than a year, and the gain instead qualifies for the long-term rates: 0%, 15%, or 20%, virtually always lower. That single day past the one-year mark can be the difference between paying your top marginal rate and paying 15% or even 0% — a genuinely significant reason to check the purchase date before selling.
Why Gains Don’t Get Their Own 0% Bracket
The 0%/15%/20% long-term brackets don’t apply to your gain in isolation — they apply to your TOTAL taxable income, with the gain stacked on top of your ordinary income. For 2026, the 0% bracket covers taxable income up to $49,450 (single) or $98,900 (married filing jointly); the 15% bracket runs up to $545,500 (single) or $613,700 (MFJ); anything above that is 20%. If your wages alone already fill $80,000 of taxable income, a $20,000 long-term gain doesn’t get any 0% treatment at all — it lands squarely in the 15% bracket, because your ordinary income already used up the 0% room.
The Net Investment Income Tax (NIIT)
Above certain income thresholds, an additional 3.8% applies to investment income — both short- and long-term capital gains count — on top of whatever capital gains tax you already owe. For 2026, this kicks in above $200,000 modified adjusted gross income (single or head of household), $250,000 (married filing jointly), or $125,000 (married filing separately). It applies to whichever is smaller: your net investment income, or the amount your MAGI exceeds the threshold — so it phases in rather than hitting your full gain immediately at the threshold.
Example: $90,000 Wages, $20,000 Long-Term Gain, Single
Ordinary taxable income: $90,000 − $16,100 (2026 standard deduction) = $73,900, all taxed normally at $10,970 (same as any ordinary income at this level). The $20,000 long-term gain stacks from $73,900 to $93,900 — both comfortably inside the 15% long-term bracket (which runs from $49,450 to $545,500 for single filers) — so the entire gain is taxed at 15%: $3,000. No NIIT applies since total income is well under the $200,000 threshold. Total tax: $13,970, with the gain itself costing exactly 15% — both the marginal and effective rate on this particular gain.
Frequently Asked Questions
What’s the difference between short-term and long-term capital gains tax?
Short-term gains (assets held one year or less) are taxed as ordinary income, at the same brackets as your wages — up to 37%. Long-term gains (held more than a year) get preferential rates of 0%, 15%, or 20%.
Do my capital gains get their own separate 0% bracket?
No. Long-term gains stack ON TOP of your ordinary taxable income when the brackets are applied — your ordinary income effectively “uses up” the lower brackets first. A high earner’s gains can land entirely in the 15% or 20% bracket even if the gain itself is modest.
What is the Net Investment Income Tax (NIIT)?
An additional 3.8% tax on investment income for taxpayers with modified adjusted gross income above $200,000 (single/head of household), $250,000 (married filing jointly), or $125,000 (married filing separately) — on top of the regular capital gains tax.
Does this include state capital gains tax?
No — this calculator is federal-only. Most states tax capital gains as ordinary income at their regular state rates; add your state’s rate separately for a fuller picture.
This calculator provides a simplified federal-only estimate of 2026 capital gains tax. It does not model state tax, the collectibles/Section 1250 special rates, capital loss carryforwards, or the 0%/15%/20% rate applied to qualified dividends alongside gains. Check a qualified tax professional for your specific situation.
