Estimate your federal capital gains tax on stock sales. Includes 2026 tax brackets for both short-term and long-term capital gains.
When you sell a stock for more than you paid, the profit is called a "capital gain" and it's subject to tax. The rate depends on two key factors: how long you held the stock and your total annual income.
Short-term gains (held less than 1 year) are taxed as ordinary income — the same rates as your salary. For most people, this means 22-32%.
Long-term gains (held 1+ year) get preferential rates: 0%, 15%, or 20% depending on income. This is a huge tax advantage — holding stocks for at least a year before selling can save you thousands in taxes.
For single filers: 0% on gains up to ~$47,000 income, 15% up to ~$492,000, and 20% above that. High earners may also owe a 3.8% Net Investment Income Tax (NIIT) surcharge.
If you have stocks at a loss, you can sell them to offset gains — a strategy called tax-loss harvesting. You can offset unlimited gains and deduct up to $3,000 in net losses against ordinary income each year.
You only owe tax when you sell. Unrealized gains (stocks you still hold that have gone up) are not taxed until you sell them. This is called "buy and hold" advantage.
This calculator shows federal taxes only. Most states also tax capital gains. Some states (like Florida, Texas, Nevada) have no state income tax, meaning no additional capital gains tax.
Qualified dividends are taxed at the same favorable long-term capital gains rates. Non-qualified (ordinary) dividends are taxed as regular income.
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