Capital Gains Tax Calculator — Calculate Tax on Investment Profits — USA 2026
Calculate federal capital gains tax on stock sales real estate and other investments. Understand short-term vs long-term rates and available exemptions.
Capital gains tax in the US depends on how long you held the investment. Short-term gains on assets held less than one year are taxed at your ordinary income rate up to 37%. Long-term gains on assets held over one year are taxed at preferential rates of 0% 15% or 20% depending on your income. This significant rate difference is why tax-efficient investors hold investments for at least one year before selling.
How much capital gains tax on $100000 profit?
On $100000 long-term capital gains (held over 1 year) a single filer with $80000 salary would pay 15% = $15000 in federal capital gains tax. If the same profit were short-term the tax would be at your marginal income rate potentially 24-32% = $24000-$32000. Holding investments over one year saves $9000-$17000 in tax on this example.
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Capital Gains Tax Calculator (US)
How Tax Calculation Works
Income tax is calculated on your total taxable income after deducting eligible exemptions and deductions from your gross income. The tax is applied progressively — you pay a lower rate on initial income slabs and higher rates only on income that exceeds each threshold. This means moving into a "higher tax bracket" does not mean your entire income is taxed at the higher rate. Understanding marginal vs effective tax rate is crucial: your marginal rate applies only to the last rupee earned, while your effective rate is the average across all slabs.
Tax-Saving Strategies
Under the old regime, maximize deductions: Section 80C allows up to Rs 1.5 lakh through PPF, ELSS, EPF, and life insurance. Section 80D covers health insurance premiums up to Rs 25,000 (Rs 50,000 for senior citizens). Section 80CCD(1B) offers an additional Rs 50,000 deduction for NPS contributions. Home loan interest up to Rs 2 lakh is deductible under Section 24. Under the new regime, the Rs 75,000 standard deduction and lower slab rates may save you more if your total deductions are below Rs 3.75 lakh. Calculate under both regimes before choosing.
Key Information
| Parameter | Details |
|---|---|
| Short-Term Rate | Same as income tax (10% - 37%) |
| Long-Term Rate (0%) | Single filers up to $47025 |
| Long-Term Rate (15%) | $47026 - $518900 |
| Long-Term Rate (20%) | Above $518900 |
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Use Calculator NowFrequently Asked Questions
How much capital gains tax on $100000 profit?
On $100000 long-term capital gains (held over 1 year) a single filer with $80000 salary would pay 15% = $15000 in federal capital gains tax. If the same profit were short-term the tax would be at your marginal income rate potentially 24-32% = $24000-$32000. Holding investments over one year saves $9000-$17000 in tax on this example.
How to avoid capital gains tax legally?
Hold investments over one year for lower long-term rates. Use tax-loss harvesting to offset gains with losses. Invest through tax-advantaged accounts like 401k IRA or Roth IRA. Use the primary residence exclusion ($250K single / $500K married) for home sales. Donate appreciated stock to charity to avoid gains entirely and get a tax deduction.
What is the primary residence exclusion?
If you sell your primary home and have lived in it for at least 2 of the last 5 years you can exclude up to $250000 in capital gains ($500000 for married filing jointly) from federal taxes. This means most homeowners pay zero capital gains tax on their home sale. This exclusion can be used repeatedly every 2 years.
What are the US federal tax brackets?
The US uses seven progressive tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Your effective tax rate is the average across all brackets, which is always lower than your marginal rate. Standard deduction for 2026 is approximately $15,000 for single filers and $30,000 for married filing jointly.
How can I reduce my US tax bill legally?
Maximize 401(k) or IRA contributions to reduce taxable income. Contribute to an HSA if eligible. Claim the standard or itemized deduction — whichever is higher. Use tax-loss harvesting to offset capital gains. Consider qualified charitable contributions and education credits.
What is the difference between marginal and effective tax rate?
Your marginal rate is the tax on your last dollar earned. Your effective rate is total tax divided by total income — always lower. For example, at $100,000 income, your marginal rate might be 22% but your effective rate is only about 15% because lower brackets are taxed at 10% and 12%.
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Last updated: March 2026