Capital Gains Tax Calculator
Tax owed, after tax proceeds, and kept share from gain, holding term, and rate.
What it does
Capital gains tax prices the profit on sold assets: hold over a year and the 0, 15, or 20% long term rates apply by income, sell sooner and ordinary brackets take the short term gain. The one year line is the whole game.
The tool above takes the gain with holding term and rate. It returns federal tax with after tax proceeds and the kept share beside them.
The default of $10,000 long at 15% pays $1,500.00 and keeps $8,500.00 (85.0%). The same $5,000 short at a 22% bracket pays $1,100.00 and keeps $3,900.00.
The brackets follow IRS capital gains guidance with the investment income publication matching each threshold. Both tax long term gains at 0, 15, or 20% by taxable income and short term gains as ordinary income.
How to use
- Enter the gain: proceeds minus basis.
- Pick long (over a year) or short term.
- Pick the long term rate by income, or enter the ordinary bracket.
- Read federal tax first for the bill.
- Read after tax for what the sale really nets.
Formula
- gain
- Sale price minus cost basis.
- 1 year
- Holding line splitting short from long.
- 0/15/20
- Long term rates by taxable income band.
State tax, the 3.8% net investment surtax at high incomes, and loss offsets sit outside. Collectibles and some real estate gains carry special higher caps instead.
Worked example
Example: $10,000 long term at 15%
Defaults: gain 10000, long term, 15%.
- Tax: 10,000 x 15% = $1,500.00.
- After tax: 10,000 - 1,500 = $8,500.00.
- Kept: 8,500 / 10,000 = 85.0%.
- Short twin: at 22% the same gain would pay $2,200.
- Tool shows $1,500.00, $8,500.00, 85.0 % kept.
Reference table
| Treatment | Tax | After tax |
|---|---|---|
| Long at 0% | $0.00 | $10,000.00 |
| Long at 15% | $1,500.00 | $8,500.00 |
| Long at 20% | $2,000.00 | $8,000.00 |
| Short at 22% | $2,200.00 | $7,800.00 |
Limits
- Federal only; states tax gains on their own schedules.
- Surtax, collectibles, and depreciation recapture excluded.
- Loss harvesting and carryovers need Schedule D proper.
- Brackets move yearly: confirm the current thresholds.
Common mistakes
- Taxing the whole proceeds instead of the gain.
- Claiming long term a week early.
- Forgetting state tax on top of federal.
- Ignoring the surtax at high incomes.
- Selling without checking loss offsets first.
Try it yourself
Quick checks. Answers sit tucked under each question.
$5,000 short at 22%?
$1,100.00 tax, $3,900.00 kept (78.0%).
$20,000 long at 0%?
$0.00 tax: full $20,000.00 kept.
Where is the one year line?
Over a year is long; a year or less is short, counted day after purchase to sale day.
Questions
What are capital gains tax rates?
Long term 0, 15, or 20% by income; short term at ordinary brackets.
How long is long term?
Over one year from day after purchase through sale day.
Do losses help?
Yes. Losses offset gains first, then up to $3,000 of ordinary income yearly, carrying the rest forward.
What about my state?
Separate bill. Most states tax gains as ordinary income on their own tables.
Which rate am I?
Most taxpayers land at 15%; lower incomes qualify for 0%, top incomes pay 20%.
Are dividends the same?
Qualified dividends use the same 0/15/20 ladder; ordinary dividends use brackets.