Capital Gains Tax Calculator 2026
Calculate your capital gains tax — short-term & long-term rates, federal + state, with 2026 brackets. Updated June 2026.
2026 Long-Term Capital Gains Tax Brackets
| Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 0% | Up to $47,025 | Up to $94,050 | Up to $63,000 |
| 15% | $47,026 – $518,900 | $94,051 – $583,750 | $63,001 – $551,350 |
| 20% | Over $518,900 | Over $583,750 | Over $551,350 |
3.8% Net Investment Income Tax (NIIT) applies if your modified AGI exceeds $250K (MFJ) or $200K (single/HOH). This is on top of the capital gains rate.
Short-Term vs Long-Term Capital Gains
- Short-term (<1 year): Taxed as ordinary income at your marginal rate (10%-37%). Highest bracket: 37% on gains.
- Long-term (1+ year): Taxed at preferential rates: 0%, 15%, or 20%. Holding just 1 day longer than 365 days can save you 17-37% in taxes.
Example: A single filer earning $40,000 who sells stock with a $20,000 gain held for 10 months pays $3,600 at 18% ordinary rate. If held 13 months: $0 tax at 0% long-term rate. Holding period matters!
Strategies to Minimize Capital Gains Tax
- Tax-loss harvesting: Sell losing investments to offset up to $3,000/year in ordinary income. Unused losses carry forward indefinitely.
- Hold 1+ year: The simplest strategy — long-term rates are 0-20% vs. 10-37% for short-term.
- Home sale exclusion: $250K (single) or $500K (married) tax-free if you lived in the home 2 of 5 years.
- Donate appreciated stock: Deduct the fair market value (not just your cost basis) and pay zero capital gains tax.
- Use retirement accounts: Gains in 401(k), IRA, and HSA accounts are tax-deferred or tax-free.
- Installment sale: Spread gains across multiple years by selling on an installment basis.
- Charitable remainder trust: Defer capital gains while donating to charity — best for highly appreciated assets.
What Counts as a Capital Gain?
- Stocks & ETFs: Sale of individual stocks, mutual funds, and exchange-traded funds
- Real estate: Sale of investment property (rental homes, land, commercial). Primary residence uses the $250K/$500K exclusion.
- Cryptocurrency: Sale of Bitcoin, Ethereum, and other crypto — taxed as capital gains. Mining/staking income is ordinary income.
- Collectibles: Art, coins, stamps taxed at 28% max long-term rate (higher than standard 20%)
- Small business stock (Section 1202): Up to $10M or 10x basis excluded if held 5+ years in a qualified small business
State Capital Gains Tax Rates
Most states tax capital gains as ordinary income. Rates range from 0% (states with no income tax) to 13.3% (California). A few states offer partial exemptions or lower rates for capital gains.
- No tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
- Highest: California (13.3%), New York (10.9%), New Jersey (10.75%), Oregon (9.9%), Minnesota (9.85%)
- Lowest (with tax): North Dakota (2.5%), Pennsylvania (3.07%), Indiana (3.05%), Arizona (2.5%)
Frequently Asked Questions
What is the capital gains tax rate for 2026?
Long-term capital gains rates are 0%, 15%, or 20% depending on your taxable income. Short-term gains are taxed at ordinary income rates (10%-37%). Most middle-income earners pay 15% on long-term gains.
Do I pay capital gains on my primary home?
No, if you qualify for the exclusion: $250,000 (single) or $500,000 (married) tax-free gain if you owned and lived in the home 2 of the last 5 years. You can use this exclusion once every 2 years.
How do I report capital gains on my tax return?
Use IRS Form 8949 to report individual sales, then transfer totals to Schedule D. Your broker's 1099-B provides sale details. Tax software (TurboTax, H&R Block) handles this automatically.