Last updated: January 19, 2026
Short-term capital gains (STCG) apply when you sell an investment within one year of purchase. These gains are usually taxed at higher rates than long-term gains.
In most countries, STCG is taxed at your ordinary income rate. For high earners, this can be 35-40% or more, compared to 15-20% for long-term gains.
Day traders and active investors need to carefully track STCG as frequent trading can create significant tax liabilities.
Understanding short-term capital gains (stcg) helps you make better investment decisions and plan for taxes. Use our capital gains calculator to see how it applies to your situation.
Profit from selling an asset held for one year or less. The holding period is measured from the day after purchase to the sale date.
As ordinary income at your regular tax bracket, ranging from 10% to 37% depending on your total taxable income.
Hold investments for over one year to qualify for lower long-term rates. Use tax-loss harvesting to offset gains with losses.
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