Capital Gains Tax Calculator 2026
Federal 0% / 15% / 20% LTCG, 3.8% NIIT, and state cap gains tax
Last updated: November 2025 · Sources: IRS Rev. Proc. 2025-32 §4.03, IRC §1(h), IRC §1411
Filing & Income
Used to determine which LT bracket your gain falls into.
Asset Sale Details
Sale proceeds minus your cost basis.
If provided, sale price = basis + gain = $25,000.
More than 12 months = long-term per IRC §1222(3).
Currently treating as: Long-Term (preferential rates)
Tax Breakdown
Understanding 2026 Capital Gains Tax
2026 Long-Term Capital Gains Brackets
Per IRS Rev. Proc. 2025-32 §4.03, the 2026 long-term capital gains rates apply to assets held more than one year:
- 0% on stacked taxable income up to $49,450 single / $98,900 MFJ / $66,200 HoH
- 15% from there up to $545,500 single / $613,700 MFJ / $579,600 HoH
- 20% above
Short-term gains (held one year or less) are taxed as ordinary income at your marginal rate, 10% through 37% in 2026.
Net Investment Income Tax (NIIT)
IRC §1411 imposes a 3.8% surtax on the lesser of net investment income or MAGI above thresholds of $200,000 single, $250,000 MFJ, or $125,000 MFS. Investment income includes capital gains, dividends, interest, rental income, and passive partnership/S-corp income. These thresholds are NOT inflation-adjusted, so they capture more taxpayers each year (bracket creep by design since 2013).
State Capital Gains Tax
Most US states tax capital gains as ordinary income with no preferential treatment, California (up to 13.3%), New Jersey (10.75%), Oregon (9.9%), Minnesota (9.85%), and New York (10.9%) are among the highest. Nine no-income-tax states (AK, FL, NV, NH, SD, TN, TX, WA, WY) levy 0%, with one exception: Washington's 7% capital gains tax on long-term gains above an inflation-adjusted threshold (~$278,000 for 2026, per RCW 82.87), affecting only the highest earners selling stocks or businesses.
Cost Basis & Tax Reporting
Cost basis is your investment in an asset: purchase price plus commissions, plus reinvested dividends, plus capital improvements for real estate. Capital gain = sale price − basis. Brokers report basis on Form 1099-B for "covered" securities (stocks bought 2011+, mutual funds 2012+, bonds 2014+). Inherited assets receive a "step-up" to fair market value at the date of death under IRC §1014, often eliminating gain accumulated during the decedent's lifetime, a major estate-planning consideration.
Tax-Loss Harvesting
Capital losses first offset capital gains of the same type (short-term losses first offset short-term gains, then long-term). Net losses up to $3,000 per year ($1,500 MFS) can offset ordinary income. Remaining losses carry forward indefinitely. Watch the wash-sale rule (IRC §1091): buying a "substantially identical" security within 30 days before or after a loss sale disallows the loss and adds it to the new basis. Common workaround, sell SPY at a loss, buy IVV (a different ETF tracking the same index).
Strategies to Minimize Capital Gains Tax
- Hold investments more than one year to qualify for LT rates.
- Use the 0% LT bracket in low-income years (retirement, sabbatical) to harvest gains tax-free.
- Donate appreciated stock to charity, deduct fair market value, never pay capital gains.
- Tax-loss harvest at year-end to offset realized gains.
- Use tax-advantaged accounts (401(k), Roth IRA, HSA) for high-turnover or high-dividend funds.
- For real estate, consider §1031 like-kind exchanges or §121 home-sale exclusion ($250k single / $500k MFJ).
Frequently Asked Questions
What are the 2026 long-term capital gains tax rates?
Per IRS Rev. Proc. 2025-32 §4.03, the 2026 LTCG brackets are 0% on stacked income up to $49,450 single / $98,900 MFJ, 15% from there to $545,500 single / $613,700 MFJ, and 20% above. Head of household: 0% to $66,200, 15% to $579,600. Long-term means held more than one year per IRC §1222.
Short-term vs long-term capital gains?
Short-term (held one year or less) is taxed at ordinary income rates (10-37%). Long-term (held more than one year) gets 0%/15%/20% preferential rates. The clock starts the day AFTER you acquire the asset.
What is the Net Investment Income Tax?
A 3.8% surtax (IRC §1411) on net investment income when MAGI exceeds $200,000 single / $250,000 MFJ / $125,000 MFS. These thresholds are NOT indexed for inflation.
How are capital gains taxed at the state level?
Most states tax cap gains as ordinary income. Nine no-income-tax states levy 0%, except Washington which imposes 7% on long-term gains above ~$278k.
How does the 0% LT bracket work?
Long-term gain dollars that stack up to $49,450 single / $98,900 MFJ of total taxable income pay 0% federal tax. Low-income years are an opportunity to harvest gains tax-free.
Can I offset gains with losses?
Yes. Losses first offset gains of the same type, then $3,000/year against ordinary income, with the remainder carried forward. Watch the wash-sale rule (IRC §1091): no buying a substantially identical security within 30 days before or after a loss sale.
What is cost basis?
Your investment in an asset, what you paid plus commissions and reinvested dividends. Gain = sale price − basis. Inherited assets get a "step-up" to fair market value at date of death under IRC §1014.