How are short-term capital gains taxed?

Short-term capital gains (assets held 1 year or less) are taxed as ordinary income at your marginal tax rate, which ranges from 10% to 37% depending on your total taxable income.

What is the Net Investment Income Tax (NIIT)?

The Net Investment Income Tax is an additional 3.8% tax on investment income for individuals with modified adjusted gross income above $200,000 (single) or $250,000 (married filing jointly).

Can I offset capital gains with losses?

Yes, you can use capital losses to offset capital gains dollar-for-dollar. If your losses exceed your gains, you can deduct up to $3,000 ($1,500 if married filing separately) against ordinary income per year. Remaining losses carry forward indefinitely.

What is the wash sale rule?

The wash sale rule prevents you from claiming a tax loss if you buy the same or substantially identical security within 30 days before or after the sale. The disallowed loss is added to the cost basis of the replacement shares.

Do I have to pay state capital gains tax?

Most states tax capital gains as ordinary income. Rates vary widely—California taxes up to 13.3%, while states like Texas, Florida, Washington, and Nevada have no state income tax on capital gains.

Capital Gains Tax Calculator US

Calculate federal capital gains tax on stock sales. Short-term gains taxed at ordinary income rates. Long-term gains at 0%, 15%, or 20% based on your income.

Calculate Your Tax

Buy Date

Sell Date

Cost Basis ($)

Sale Proceeds ($)

Shares Quantity

Estimated Tax Rate (%)

Check brackets below for exact rate.

What this calculator does

Calculates capital gain from your stock sale
Applies short-term (10-37%) or long-term (0%, 15%, 20%) rates
Factors in your income bracket for accurate tax estimate
Shows net profit after federal tax

How to Use

Enter cost basis

Total amount paid including any commissions

Enter sale proceeds

Amount received from selling shares

Add number of shares

Quantity of shares sold in this transaction

Select holding period

Over 1 year = long-term, under = short-term

Choose income bracket

Determines your applicable tax rate

View results

See gain, federal tax, and net profit

Example

You bought 50 shares of Apple (AAPL) at $150 per share in January 2023. You sold them at $200 per share in March 2025 (held for over 2 years). Your taxable income puts you in the 15% long-term capital gains bracket.

Cost Basis (50 × $150)$7,500

Sale Proceeds (50 × $200)$10,000

Capital Gain$2,500

Long-Term Rate (15%)15%

Federal Tax-$375

Net Profit$2,125

Since you held the shares for more than 1 year, this qualifies for the lower long-term rate. State taxes may apply depending on where you live.

US Capital Gains Tax Rates (2024)

Long-Term Capital Gains (held > 1 year)

Tax Rate	Single Filers	Married Filing Jointly
0%	Up to $47,025	Up to $94,050
15%	$47,026 – $518,900	$94,051 – $583,750
20%	Over $518,900	Over $583,750

Short-Term Capital Gains (held ≤ 1 year)

Taxed as ordinary income at your marginal tax rate:

Tax Rate	Single Filers	Married Filing Jointly
10%	Up to $11,600	Up to $23,200
12%	$11,601 – $47,150	$23,201 – $94,300
22%	$47,151 – $100,525	$94,301 – $201,050
24%	$100,526 – $191,950	$201,051 – $383,900
32%	$191,951 – $243,725	$383,901 – $487,450
35%	$243,726 – $609,350	$487,451 – $731,200
37%	Over $609,350	Over $731,200

Note: High earners may also owe 3.8% Net Investment Income Tax (NIIT) on capital gains.

Frequently Asked Questions

Long-term capital gains (assets held over 1 year) are taxed at 0%, 15%, or 20% depending on your taxable income. For 2024, single filers pay 0% up to $47,025, 15% from $47,026 to $518,900, and 20% above $518,900.

Key Terms

Cost Basis

The original purchase price of an asset plus any commissions or fees. Used to calculate capital gain or loss.

Long-Term Gain

Profit from selling an asset held for more than one year. Taxed at preferential rates of 0%, 15%, or 20%.

Short-Term Gain

Profit from selling an asset held for one year or less. Taxed as ordinary income at your marginal rate.

NIIT

Net Investment Income Tax. An additional 3.8% tax on investment income for high earners.

Wash Sale

Selling a security at a loss and buying the same security within 30 days. The loss is disallowed for tax purposes.

Tax-Loss Harvesting

Selling losing investments to offset gains and reduce tax liability. Must avoid wash sale rules.