Capital Gains Tax Calculator
Calculate taxes on your investment profits. Supports both short-term and long-term capital gains rates for the 2025 tax year.
Investment Details
How Capital Gains are Taxed
When you sell an investment asset — such as stocks, bonds, mutual funds, or real estate — for more than you paid, the profit is called a capital gain. The tax rate depends on how long you held the asset before selling it and your taxable income level.
Short-Term vs. Long-Term Capital Gains
- Short-Term Capital Gains: Assets held for one year or less. These are taxed as ordinary income at your regular federal tax bracket (up to 37%).
- Long-Term Capital Gains: Assets held for more than one year. These benefit from preferential tax rates of 0%, 15%, or 20%, depending on your taxable income.
2025 Long-Term Capital Gains Tax Rates
| Rate | Single | Married Filing Jointly |
|---|---|---|
| 0% | Up to $48,350 | Up to $96,700 |
| 15% | $48,351 – $533,400 | $96,701 – $600,050 |
| 20% | Over $533,400 | Over $600,050 |
Net Investment Income Tax (NIIT)
High earners may also be subject to an additional 3.8% Net Investment Income Tax if their modified adjusted gross income (MAGI) exceeds $200,000 (single) or $250,000 (married filing jointly). The NIIT applies to the lesser of your net investment income or the amount by which your MAGI exceeds the threshold.
Strategies to Minimize Capital Gains Tax
- Hold investments longer: Holding an asset for over one year qualifies you for the lower long-term rate.
- Tax-loss harvesting: Sell losing investments to offset gains from winners.
- Use tax-advantaged accounts: Invest through 401(k) or IRA accounts where gains grow tax-free or tax-deferred.
- Gift appreciated assets: Donating stocks to charity lets you avoid capital gains and take a deduction.
Frequently Asked Questions
What is the difference between short-term and long-term capital gains?
Short-term gains apply to assets held for one year or less and are taxed as ordinary income (up to 37%). Long-term gains apply to assets held for more than one year and are taxed at preferential rates of 0%, 15%, or 20%.
What is the Net Investment Income Tax (NIIT)?
The NIIT is an additional 3.8% tax on investment income for individuals with MAGI above $200,000 (single) or $250,000 (married filing jointly). It applies to capital gains, dividends, interest, rental income, and other investment income.
Do I pay capital gains tax on my primary residence?
You can exclude up to $250,000 ($500,000 for married couples) in capital gains from the sale of your primary residence if you've lived in it for at least 2 of the last 5 years.