Capital Gains Tax Calculator

Long-term capital gains (held over 1 year) rates for 2025: 0% if taxable income under $47,025 (single) or $94,050 (MFJ); 15% for most taxpayers; 20% for high earners. Short-term gains are taxed as ordinary income at your marginal tax bracket (10-37%).

More than one year (at least 366 days). If you sell on day 365 or sooner, the gain is short-term and taxed at ordinary income rates — which can be dramatically higher. For someone in the 22% bracket, waiting one more day can cut the tax rate from 22% to 15%.

Cost basis is your original purchase price plus any commissions, fees, or improvements. For inherited assets, basis is usually the fair market value at the date of death (stepped-up basis). For gifted assets, it depends on whether the recipient sells at a gain or loss.

Yes. Capital losses directly offset capital gains, dollar for dollar. If losses exceed gains, you can deduct up to $3,000 against ordinary income per year. Remaining losses carry forward indefinitely. This is called tax-loss harvesting when done strategically.

Yes! If you owned and lived in your home for at least 2 of the past 5 years, you can exclude up to $250,000 in gains (single) or $500,000 (married) from capital gains tax. This exclusion applies once every 2 years. Most primary home sales are tax-free because of this rule.