Capital Gains Tax Calculator 2026
This calculator estimates your 2026 federal capital gains tax on the sale of investments. Long-term capital gains (assets held more than one year) are taxed at preferential rates: 0%, 15%, or 20%, depending on your taxable income and filing status. Short-term capital gains (assets held one year or less) are taxed as ordinary income at your marginal bracket rate (10% to 37%). Enter your capital gain amount, ordinary income (wages and other non-capital-gain income), holding period, and filing status. The calculator determines your applicable capital gains rate, accounts for the interaction with ordinary income (capital gains stack on top of ordinary income for rate determination), and applies the additional Net Investment Income Tax (NIIT) of 3.8% if your modified adjusted gross income exceeds the threshold (200,000 for single, 250,000 for married filing jointly). For high earners, the combined federal top rate on long-term capital gains reaches 23.8% (20% plus 3.8% NIIT) before state taxes. The tool provides a complete tax estimate and net proceeds after all applicable federal taxes, useful for evaluating investment sales, retirement account withdrawals, and understanding the effective tax impact on investment income.
Long-term capital gains are taxed at 0%, 15%, or 20% for 2026, depending on your taxable income and filing status. Short-term gains are taxed as ordinary income (10% to 37%). An additional 3.8% Net Investment Income Tax may apply if your modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly). Enter your figures below for an exact estimate.
How capital gains tax works in 2026
A capital gain arises when you sell an asset for more than its cost basis. The federal tax treatment depends on how long you held the asset. Gains on assets held for more than one year are long-term and taxed at preferential rates. Gains on assets held one year or less are short-term and added to your ordinary income.
long-term CGT = gain x applicable LT rate (0%, 15%, or 20%)
short-term CGT = gain taxed as ordinary income at graduated rates
NIIT = 3.8% x lesser of (net investment income, MAGI - threshold)
net proceeds = gain - CGT - NIIT
Your long-term rate is determined by where your total taxable income (ordinary income plus the gain) falls within the capital gains brackets. Ordinary income fills the lower brackets first; the gain is then layered on top.
2026 long-term capital gains rate thresholds
Taxable income limits below are for the long-term capital gains brackets. Income above the 0% ceiling but at or below the 15% ceiling is taxed at 15%; income above the 15% ceiling is taxed at 20%.
| Filing status | 0% up to | 15% up to | 20% above |
|---|---|---|---|
| Single | $49,450 | $545,500 | $545,500 |
| Married filing jointly | $98,900 | $613,700 | $613,700 |
| Head of household | $66,200 | $579,600 | $579,600 |
| Married filing separately | $49,450 | $306,850 | $306,850 |
Source: IRS Rev. Proc. 2025-32 (tax year 2026 inflation adjustments), verified 11 July 2026.
Worked example: long-term gain, single filer
Suppose you are a single filer with $60,000 in ordinary income and a $50,000 long-term capital gain in 2026. Total taxable income (before deductions) is $110,000.
- The 0% bracket ceiling for single filers is $49,450. Your $60,000 ordinary income already exceeds this, so none of the gain falls in the 0% band.
- The 15% bracket ceiling is $545,500. All $50,000 of the gain falls between $60,000 and $545,500, so the entire gain is taxed at 15%.
- Capital gains tax = $50,000 x 15% = $7,500.
- NIIT test: MAGI is $110,000, below the $200,000 single threshold, so no NIIT applies.
- Net proceeds after tax = $50,000 - $7,500 = $42,500.
Net Investment Income Tax (NIIT) explained
The NIIT is an additional 3.8% tax imposed by Internal Revenue Code section 1411. It applies to the lesser of your net investment income (NII) or the amount by which your modified adjusted gross income (MAGI) exceeds the applicable threshold.
| Filing status | MAGI threshold |
|---|---|
| Single / head of household | $200,000 |
| Married filing jointly | $250,000 |
| Married filing separately | $125,000 |
Capital gains count as NII. If your MAGI is $230,000 as a single filer with $50,000 in capital gains, the NIIT base is the lesser of $50,000 (NII) or $30,000 (MAGI excess over $200,000), so you pay 3.8% on $30,000 = $1,140.
Source: IRS Topic 559, verified 11 July 2026.
Why the same gain can be taxed three different ways
The single number most people miss here is that your capital gains rate is not fixed by the size of the gain, it is set by where the gain lands once it is stacked on top of everything else you earn. A $50,000 long-term gain can be taxed at 0%, 15%, or 20% depending entirely on your other income. A retired couple with $40,000 of taxable income can realize roughly $58,900 of long-term gains and still owe nothing, because their total taxable income stays under the 2026 married-filing-jointly 0% ceiling of $98,900. The identical gain for a high earner is taxed at 20% and can draw the extra 3.8% surcharge on top.
That surcharge, the Net Investment Income Tax, is the second trap. Its thresholds ($200,000 single, $250,000 joint) were written into law in 2013 and have never been indexed for inflation, so each year of wage growth pulls more sellers across the line. A large one-time sale, an inherited property, or a business exit can lift your income over the mark for a single year and add 3.8% to the last dollars of the gain even when you are nowhere near wealthy in a normal year.
One caution on precision: the applicable bracket is based on taxable income, meaning income after your standard deduction ($16,100 single, $32,200 joint for 2026), not gross pay. If your income sits just above a rate boundary, subtracting the deduction can drop part of the gain into a lower band than a quick estimate suggests.
Capital gains tax: frequently asked questions
What is the long-term capital gains tax rate for 2026?
For 2026 there are three long-term capital gains rates: 0%, 15%, and 20%. Which rate applies depends on your taxable income and filing status. Single filers with taxable income up to $49,450 pay 0%; income between $49,450 and $545,500 is taxed at 15%; above $545,500 the rate is 20%. Married filing jointly thresholds are $98,900 and $613,700.
How are short-term capital gains taxed in 2026?
Short-term capital gains (assets held one year or less) are treated as ordinary income and taxed at the same graduated rates that apply to wages and salary, ranging from 10% to 37% depending on your total taxable income.
What is the Net Investment Income Tax (NIIT)?
The NIIT is an additional 3.8% tax on the lesser of your net investment income or the amount by which your modified adjusted gross income (MAGI) exceeds a threshold. For 2026 the threshold is $200,000 for single filers and head of household, $250,000 for married filing jointly, and $125,000 for married filing separately. Capital gains count as net investment income.
What counts as a long-term vs. short-term capital gain?
If you hold an asset for more than one year before selling it, the resulting gain is long-term. If you hold it for one year or less the gain is short-term. The holding period begins the day after you acquire the asset and ends on the day you dispose of it.
Do capital gains affect my ordinary income tax bracket?
Long-term capital gains are not added to your ordinary income for purposes of determining your ordinary income tax rate. However, capital gains do stack on top of ordinary income when determining which capital gains rate bracket applies. The calculator accounts for this by using your ordinary income as the starting point for bracket placement.
Official sources
- Capital gains rates and holding period rules: IRS Topic 409 (Capital Gains and Losses), verified 11 July 2026.
- Net Investment Income Tax thresholds and rules: IRS Topic 559, verified 11 July 2026.
- 2026 federal income tax brackets (used for short-term gains): IRS federal income tax rates and brackets, verified 11 July 2026.
- 2026 long-term capital gains and bracket thresholds: IRS Rev. Proc. 2025-32 (tax year 2026 inflation adjustments), verified 11 July 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 11 July 2026. See our methodology. General information, not financial or tax advice.