Capital Gains Tax Guide
How this capital gains tax calculator works
This calculator estimates the federal tax that may apply when you sell an asset for more
than your adjusted basis. It can be used for planning around stocks, crypto, real estate,
business property, or other assets, but it does not replace official tax software or a tax professional.
Cost basis
Cost basis generally starts with what you paid for the asset. This calculator also lets
you add selling costs and capital improvements to estimate adjusted basis.
Short-term gains
Short-term gains are generally gains on assets held for one year or less and are estimated
using ordinary federal income tax brackets.
Long-term gains
Long-term gains are generally gains on assets held for more than one year and may qualify
for lower federal capital gains tax rates.
Capital gains tax FAQ
What is capital gains tax?
Capital gains tax is tax on profit from selling an asset for more than its adjusted basis.
The tax treatment can depend on the asset type, holding period, filing status, income, and losses.
What is the difference between short-term and long-term capital gains?
Short-term gains generally apply to assets held for one year or less. Long-term gains generally
apply to assets held for more than one year and may qualify for lower federal tax rates.
Does this calculator include state capital gains tax?
No. This calculator focuses on federal estimates. Some states tax capital gains as ordinary income,
while others may have different rules or no state income tax.
What is Net Investment Income Tax?
Net Investment Income Tax is an additional federal tax that may apply to certain investment income
when income is above specific thresholds. This calculator includes a simplified NIIT estimate.
Can I use this calculator for tax filing?
No. This calculator is for educational planning only. For filing, use official tax forms,
tax software, or a qualified tax professional.
Last updated: April 2026