Capital Gains Tax Calculator

Calculate federal and state capital gains taxes on your investments. Compare short-term vs. long-term rates and plan tax-loss harvesting.

Investment Details

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Preferential tax rates: 0%, 15%, or 20%

Tax Information

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Transaction Summary

Purchase Price:$50,000
Sale Price:$75,000
Capital Gain:$25,000

Total Tax

$7,075

Federal Tax

$3,750

State Tax

$3,325

Net Proceeds (After Tax)

$67,925

Effective Tax Rate

28.30%

Federal Marginal Rate

15.0%

Tax Breakdown

Short-Term vs. Long-Term Comparison

Short-Term (≤1 year)
$8,825
Ordinary income rates
Long-Term (>1 year)
$7,075
Preferential rates
Potential Savings by Holding >1 Year:
$1,750

Understanding Capital Gains Tax

Long-Term vs. Short-Term

  • Long-Term (>1 year): 0%, 15%, or 20% federal rates based on income
  • Short-Term (≤1 year): Taxed as ordinary income (10%-37%)
  • Holding period starts: Day after purchase, ends on sale date

Tax Minimization Strategies

  • Hold >1 year: Qualify for lower long-term rates
  • Tax-Loss Harvesting: Offset gains with losses
  • 0% Rate: Keep income below $44,625 (single) for 0% LTCG
  • Retirement Accounts: No capital gains tax in IRAs/401(k)s

2024 Long-Term Rates

Single Filers:
• 0% rate: Income up to $44,625
• 15% rate: $44,626 to $492,300
• 20% rate: Over $492,300
Married Filing Jointly:
• 0% rate: Income up to $89,250
• 15% rate: $89,251 to $553,850
• 20% rate: Over $553,850

Important Notes

  • NIIT: Additional 3.8% Medicare tax for high earners
  • State Taxes: Vary widely (0% to 13.3%)
  • Capital Losses: Offset gains + $3,000 ordinary income/year
  • Wash Sale Rule: Can't claim loss if repurchasing within 30 days
  • Cost Basis: Include purchase price + fees/commissions