Capital Gains Tax Rate Calculator
When you sell an investment for more than you paid, the profit is a capital gain. The federal tax rate depends on how long you held the asset and your taxable income. Short-term gains (held 12 months or less) are taxed at your ordinary income tax rate. Long-term gains (held more than 12 months) qualify for preferential rates of 0%, 15%, or 20%. Enter your capital gain, holding period, estimated taxable income, and filing status to see your estimated federal capital gains tax.
2025 federal capital gains tax rates
Short-term gains: taxed at ordinary income marginal rate
Long-term gains 0% threshold: $48,350 (single) / $96,700 (MFJ) / $64,750 (HOH)
Long-term gains 15% threshold: $533,400 (single) / $600,050 (MFJ) / $566,700 (HOH)
Long-term gains 20%: above 15% threshold
NIIT: 3.8% on gains when MAGI exceeds $200,000 (single) / $250,000 (MFJ)
Source: IRS Rev. Proc. 2024-40
The applicable long-term rate is determined by your total income including the capital gain. If the gain pushes your income across a bracket threshold, the portion above the threshold is taxed at the higher rate.
Tax planning strategies
- Tax-loss harvesting: offset gains by selling losing positions in the same tax year.
- Hold investments longer than 12 months to qualify for lower long-term rates.
- In lower-income years, realize long-term gains to take advantage of the 0% rate.
- Use tax-advantaged accounts (IRA, 401k, HSA) to avoid capital gains tax entirely on those holdings.
- Donate appreciated assets to charity instead of selling: you avoid the capital gains and may claim a deduction for the full market value.
Capital gains tax: frequently asked questions
What is the difference between short-term and long-term capital gains tax?
Short-term capital gains (assets held 12 months or less) are taxed as ordinary income at your marginal tax rate. Long-term capital gains (assets held more than 12 months) are taxed at preferential rates of 0%, 15%, or 20% depending on your taxable income.
What is the Net Investment Income Tax (NIIT)?
High earners also pay a 3.8% Net Investment Income Tax (NIIT) on the lesser of their net investment income or the amount their modified adjusted gross income exceeds the threshold ($200,000 for single filers, $250,000 for married filing jointly in 2024). This is in addition to regular capital gains tax.
What are the 2025 long-term capital gains tax brackets?
For 2025, the 0% rate applies to taxable income up to $48,350 (single) or $96,700 (married filing jointly). The 15% rate applies up to $533,400 (single) or $600,050 (married). Income above those thresholds is taxed at 20%. Source: IRS Revenue Procedure 2024-40.
Can I offset capital gains with capital losses?
Yes. Capital losses offset capital gains of the same type first (short-term losses against short-term gains, long-term against long-term). Net losses can then offset the other type. If you have a net capital loss, you can deduct up to $3,000 per year against ordinary income, with the remainder carried forward.
Do I have to pay state capital gains tax as well?
Most US states tax capital gains as ordinary income, but some states have lower rates or no income tax. States like Florida, Texas, Nevada, and Washington have no state income tax. California taxes all capital gains as ordinary income with no preferential rate. This calculator shows federal tax only.
Official sources
- IRS Topic No. 409: Capital Gains and Losses.
- IRS Revenue Procedure 2024-40: 2025 Tax Inflation Adjustments.
- IRS Schedule D instructions: Capital Gains and Losses.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.