Capital Gains Holding Period Calculator
The tax rate on a capital gain depends critically on how long you held the asset. If you held it for more than one year (more than 365 days), the gain is long-term and qualifies for preferential tax rates of 0%, 15%, or 20%. If you held it for one year or less, the gain is short-term and is taxed as ordinary income, which can reach 37%. This calculator determines your holding period in days and tells you whether your gain is short-term or long-term. Enter your purchase date and sale date, plus your cost basis and sale price, and the calculator computes days held, the gain or loss, and which tax category applies.
Holding period formula
Days held = sale date - purchase date (in days)
Long-term if days held > 365
Short-term if days held <= 365
Gain or loss = sale proceeds - cost basis
The IRS counts the holding period starting the day after acquisition and ending on the date of sale. More than one year means 366 days or more from the day after purchase.
Short-term vs long-term tax treatment
- Short-term gains are included in ordinary income and taxed at your marginal rate (up to 37% for 2025).
- Long-term gains are taxed at 0%, 15%, or 20% depending on your taxable income and filing status.
- Net Investment Income Tax (NIIT) of 3.8% may apply to gains for higher earners regardless of holding period.
- Capital losses can offset capital gains dollar for dollar; excess losses can offset up to $3,000 of ordinary income per year.
- Selling one day early can change a long-term gain to a short-term gain, significantly increasing your tax bill.
Frequently asked questions
When does a capital gain become long-term?
A capital gain is long-term if you held the asset for more than one year (more than 365 days). If you sold on day 366 or later after purchase, the gain qualifies for preferential long-term capital gains tax rates.
What are the 2025 long-term capital gains tax rates?
For 2025, long-term capital gains rates are 0%, 15%, or 20% depending on your taxable income and filing status. Short-term gains are taxed as ordinary income, which can be as high as 37%. See IRS Topic 409 for current rate tables.
Does the holding period include the purchase date?
The IRS holding period begins the day after the acquisition date and ends on the date of disposal, inclusive. This calculator counts days held as sale date minus purchase date, which equals the IRS holding period.
How does this apply to inherited assets?
Assets inherited from a decedent automatically receive long-term holding period treatment regardless of how long you actually held them. See IRS Publication 550 for inherited property rules.
What about wash sale rules and the holding period?
If a loss is disallowed under the wash sale rule, the disallowed period is added to the holding period of the replacement shares. This can affect whether a future gain on those shares is short-term or long-term.
Official sources
- IRS: Topic 409 - Capital Gains and Losses.
- IRS Publication 550: Investment Income and Expenses.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.