Find out how much tax your stock, ETF or crypto sale could create
Selling an investment for a profit does not mean the entire sale price is taxable. Your capital gain generally depends on your net proceeds and adjusted cost basis. The tax can also change significantly depending on how long you held the asset and your other income.
Use this 2026 capital gains calculator to estimate the federal tax impact of one sale. Enter purchase and sale dates, proceeds, basis, transaction costs, filing status and other income. You can also account for other capital gains and losses, qualified dividends, the 3.8% Net Investment Income Tax and an optional estimated state rate.
2026 capital gains tax calculator
Calculate the additional federal tax associated with an individual sale, compared with a scenario where that sale did not occur. The tool also considers other gains, losses and ordinary income you enter.
For gifts, inheritances, employee stock, options, short sales and some other transactions, special holding-period or basis rules may apply. The date test assumes an ordinary directly purchased asset.
2026 base federal standard deduction for single filers: $16,100.
Leave these at zero if you are estimating only one sale and have no other capital transactions or carryovers.
The state estimate uses a simple percentage of the sale’s positive gain before any state-specific exclusions or loss offsets. It is not a state income-tax return calculation.
All calculations run in your browser. The tool does not collect brokerage login details, tax identification numbers or transaction account IDs.
How do you calculate capital gains tax in 2026?
First, work out how much profit you made. Then determine whether the gain is short-term or long-term and apply the appropriate federal tax calculation, considering your other taxable income and losses.
Capital gain = gross sale proceeds − eligible selling expenses − adjusted cost basis.
1. Calculate the profit
Subtract eligible selling costs and adjusted purchase basis from total sale proceeds. The result is a gain if positive and a loss if negative.
2. Check ownership time
Assets generally held one year or less produce short-term gains. Assets held more than one year generally produce long-term gains.
3. Apply the tax rules
Short-term net gains use ordinary rates. Qualifying long-term net gains may receive 0%, 15% or 20%. Losses and NIIT can change the result.
There is no single universal capital gains tax rate. Two investors with the same $10,000 gain could owe different federal taxes because of filing status, income, holding period, losses and special tax provisions.
Example: $9,800 gain from selling stocks in 2026
Suppose you bought ordinary investment shares for $20,000 and sold them for $30,000, paying $200 in eligible selling expenses.
| Transaction detail | Amount |
|---|---|
| Gross selling price | $30,000 |
| Eligible selling expenses | −$200 |
| Net sale proceeds | $29,800 |
| Adjusted investment basis | −$20,000 |
| Realized capital gain | $9,800 |
Now assume you are single, have $70,000 of other ordinary income, take the $16,100 standard deduction, and have no other gains, losses, credits or investment income.
If the gain is long-term
Ordinary taxable income before the gain is $53,900. Because that amount already exceeds the single-filer 0% capital gains ceiling, the $9,800 qualifying long-term gain falls in the 15% band.
Estimated additional federal tax: $1,470.
If the gain is short-term
The $9,800 gain is added to ordinary taxable income. Under the 2026 single-filer brackets in this example, the incremental gain falls in the 22% marginal rate.
Estimated additional federal tax: $2,156.
This is why holding period matters, but the tax rate is only one factor. Market risk, investment goals and changes in the asset’s value may be more important than waiting solely for a lower tax rate.
Long-term capital gains tax rates for 2026
Qualifying long-term gains are taxed through preferential brackets. The applicable bracket depends on filing status and taxable income, including ordinary taxable income that uses the lower ranges first.
| Filing status | 0% taxable-income band | 15% taxable-income band | 20% taxable-income band |
|---|---|---|---|
| Single | Up to $49,450 | Over $49,450 through $545,500 | Over $545,500 |
| Married filing jointly | Up to $98,900 | Over $98,900 through $613,700 | Over $613,700 |
| Married filing separately | Up to $49,450 | Over $49,450 through $306,850 | Over $306,850 |
| Head of household | Up to $66,200 | Over $66,200 through $579,600 | Over $579,600 |
Short-term capital gains tax rates in 2026
Net short-term capital gains are generally taxed at ordinary federal income tax rates. For 2026, the ordinary marginal rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%.
| Ordinary tax rate | Single taxable income over | Married filing jointly taxable income over |
|---|---|---|
| 10% | $0 | $0 |
| 12% | $12,400 | $24,800 |
| 22% | $50,400 | $100,800 |
| 24% | $105,700 | $211,400 |
| 32% | $201,775 | $403,550 |
| 35% | $256,225 | $512,450 |
| 37% | $640,600 | $768,700 |
Short-term gain does not always mean paying 37% tax. That is the highest ordinary marginal bracket. Each applicable portion of taxable income is taxed within its corresponding bracket.
2026 federal standard deductions
| Filing status | Base standard deduction |
|---|---|
| Single | $16,100 |
| Married filing jointly | $32,200 |
| Married filing separately | $16,100 |
| Head of household | $24,150 |
Source: IRS Revenue Procedure 2025-32. The calculator does not automatically determine additional deductions for qualifying age, blindness or other special tax provisions.
Short-term vs. long-term capital gains: how to tell the difference
For most ordinary purchased investments, the holding period begins the day after acquisition and runs through the disposition date.
Short-term capital gain
Generally applies when you hold a capital asset for one year or less before disposing of it.
The net gain is usually taxed at ordinary federal income tax rates, after applicable capital-loss netting.
Long-term capital gain
Generally applies when you hold the asset for more than one year before disposing of it.
Qualifying net gains may be taxed at preferential 0%, 15% or 20% rates.
Example: the one-year anniversary rule
If you purchased stock on March 10, 2025 and sold it on March 10, 2026, that generally is not a more-than-one-year holding period. Selling on March 11, 2026 generally satisfies the more-than-one-year rule for an ordinary directly purchased investment.
How to calculate adjusted cost basis and taxable investment profit
Cost basis is the amount used to determine gain or loss when an asset is sold. For an ordinary purchased security, basis generally starts with purchase cost plus eligible acquisition expenses.
Basis may need adjustment for corporate actions, returns of capital, reinvested distributions, applicable wash-sale adjustments and other tax events.
| Item | Typical treatment |
|---|---|
| Purchase price | Usually included in original basis. |
| Qualifying purchase commissions | Generally increase basis when not already included. |
| Eligible sale transaction costs | Generally reduce net proceeds. |
| Return-of-capital distribution | May reduce adjusted basis. |
| Reinvested taxable fund distributions | May increase basis when properly reflected in purchased shares. |
| Wash-sale basis adjustment | May increase basis of replacement securities when an earlier loss is disallowed. |
| Inherited asset | May receive a special basis determination rather than original purchase cost. |
Which shares did you sell?
If you purchased the same stock in multiple lots at different prices, you may need to identify the specific shares sold. When proper specific identification is unavailable, first-in, first-out rules may apply. Certain eligible mutual funds have additional average-basis options.
Review your broker’s transaction confirmation and Form 1099-B basis reporting. Do not assume a portfolio’s average acquisition price is automatically the tax basis for the shares sold.
IRS Topic 703 — Basis of Assets explains the general rules and exceptions.
Can capital losses reduce your 2026 capital gains tax?
Qualifying capital losses can offset capital gains. The IRS requires short-term and long-term amounts to be grouped and netted under Schedule D rules.
- Combine short-term results. Add short-term gains and subtract qualifying short-term losses and eligible short-term loss carryovers.
- Combine long-term results. Add long-term gains and subtract qualifying long-term losses and long-term loss carryovers.
- Net the categories. If one category is positive and the other negative, offset them against each other.
- Apply the ordinary-income loss limit. If total capital losses still exceed gains, eligible individuals may generally deduct up to $3,000 of net capital losses against ordinary income, or $1,500 if married filing separately.
- Determine carryover. Unused eligible losses may carry forward. Use the actual Schedule D Capital Loss Carryover Worksheet to determine the remaining short-term and long-term components.
$8,000 gain
If you also have an eligible $3,000 capital loss, basic netting could reduce your net gain to $5,000.
$5,000 net loss
A qualifying single filer may generally use up to $3,000 against other income, subject to the applicable rules.
Unused capital loss
The excess loss may carry forward. Carryover type and amount require the IRS worksheet, not merely subtracting the annual limit.
Losses from selling personal-use items, such as furniture or a personal car, generally are not deductible. The personal-use option in this calculator excludes the selected sale’s loss from capital-loss tax calculations.
Official reference: IRS Schedule D instructions.
When does the 3.8% Net Investment Income Tax apply?
The Net Investment Income Tax, or NIIT, can apply to qualifying investment income when modified adjusted gross income exceeds a filing-status threshold.
| Filing status | NIIT MAGI threshold |
|---|---|
| Single | $200,000 |
| Married filing jointly | $250,000 |
| Married filing separately | $125,000 |
| Head of household | $200,000 |
The NIIT is generally 3.8% of the lesser of net investment income or the amount by which modified adjusted gross income exceeds the relevant threshold.
3.8% × the smaller of qualifying net investment income or MAGI above the NIIT threshold.
Example of the 3.8% additional tax
Assume a single taxpayer has $210,000 of modified adjusted gross income and $30,000 of qualifying net investment income.
The MAGI excess is $10,000. The smaller of $30,000 and $10,000 is $10,000, making the illustrative NIIT $380.
NIIT is separate from the usual capital gains tax. A qualifying gain can therefore be subject to both the 15% or 20% capital gains rate and an additional 3.8% tax.
Official reference: IRS Net Investment Income Tax guidance.
Stocks, crypto, real estate and collectibles: what changes?
Stocks and ETFs
Sales in taxable accounts generally produce capital gains or losses. Check acquisition dates, purchase lots, adjusted basis, transaction costs and applicable wash sales.
Cryptocurrency
Crypto held as a capital asset for investment can generate a gain or loss when sold, exchanged or otherwise disposed of. Some crypto receipts are ordinary income rather than gains from sale.
Main home sales
Eligible homeowners may be able to exclude up to $250,000 of gain, or $500,000 for qualifying joint filers, subject to ownership, use and other requirements.
Collectibles
Long-term gains from qualifying collectibles such as artwork or certain coins may be subject to a maximum 28% federal rate rather than the usual 20% maximum preferential rate.
Investment real estate
A sale may involve adjusted basis, selling expenses, depreciation recapture, unrecaptured Section 1250 gain, suspended losses and other special calculations.
Tax-advantaged retirement accounts
Buying and selling assets inside an eligible IRA or qualified retirement account generally does not create a separate current-year taxable capital gain like a taxable brokerage sale.
Does selling crypto trigger a tax?
Disposition of cryptocurrency held for investment can be a taxable event. This may include selling for dollars, exchanging one digital asset for another or spending crypto, depending on the transaction and applicable rules.
For 2026 transactions, Form 1099-DA reporting and basis information may be relevant. Receiving a form is not the only condition that determines whether a gain must be reported.
IRS Digital Assets guidance explains reporting and basis responsibilities.
How to report capital gains and losses to the IRS
For calendar-year 2026 dispositions, taxpayers generally report applicable gains and losses on the federal return filed in 2027. The forms below are official filing resources, not a requirement to use any third-party intermediary.
- Collect your brokerage and sale records. Download transaction confirmations, cost-basis history, available Form 1099-B or Form 1099-DA statements, and documentation for any property transactions. Reconcile the records with your own transaction history.
- Calculate each asset’s adjusted basis. Review acquisition cost, eligible purchase fees, reinvested transactions, stock splits and basis adjustments. Refer to IRS Topic 703 for general basis rules.
- Identify short-term and long-term dispositions. Use purchase and sale dates for ordinary investments, and review IRS Topic 409 for holding periods and capital gain classifications.
- Prepare applicable Form 8949 information. Review the IRS Form 8949 instructions. Report relevant proceeds, basis, transaction dates and required adjustment codes. Certain transactions can be reported directly on Schedule D if they meet applicable rules.
- Complete Schedule D. Use Schedule D (Form 1040) to combine short-term and long-term results and apply allowable losses and carryovers.
- Calculate preferential capital gains rates. Use the qualified dividends and capital gain tax worksheet or Schedule D Tax Worksheet, as appropriate under the applicable Form 1040 instructions.
- Check whether NIIT applies. If your investment income and MAGI require it, review Form 8960 for the additional 3.8% tax.
- Review estimated tax obligations. If selling investments creates tax not covered by withholding, check IRS Publication 505 for estimated payments, timing and potential underpayment rules.
- File your completed federal return. Visit IRS filing options, choose an appropriate authorized filing method, and retain supporting gain/loss records with your tax documentation.
Do states tax capital gains differently?
Yes. State taxation of investment gains varies. Some states generally include capital gains in taxable income, some use different treatment for particular gains or deductions, and some do not impose a broad individual income tax.
The rate entered in this calculator is a rough planning assumption. It does not automatically account for state-specific tax brackets, exclusions, federal conformity adjustments, capital-loss treatment or residency rules.
How to improve your state estimate
- Identify the state or states where you are a tax resident for the year.
- Review the state revenue agency’s capital gains and income-tax treatment.
- Determine whether your investment gain is included in that state’s taxable income.
- Check whether a state-specific deduction, exclusion or adjustment applies.
- Use the estimated marginal rate only as a rough approximation if no detailed state-specific calculation is available.
If your main goal is a precise state tax amount, use the relevant state tax return instructions rather than applying a single percentage to gross investment profits.
Why your actual capital gains tax might differ from the calculator
| Problem | Possible cause | What to check |
|---|---|---|
| Estimated tax seems too high | Wrong purchase basis, omitted capital losses or omitted deduction. | Brokerage lot records, Schedule D and eligibility for deductions. |
| Estimated tax seems too low | Other investment income, NIIT, special-rate assets or federal income omitted. | Household income, Form 8960 and special tax worksheets. |
| Broker shows a different gain | Different tax lot, reinvested dividends, commissions or basis adjustments. | 1099-B, transaction history and adjusted basis records. |
| Short-term tax is unexpectedly high | Short-term net gains are taxed through ordinary income tax brackets. | 2026 federal ordinary taxable income and applicable marginal brackets. |
| Long-term gains do not qualify for 0% | Ordinary taxable income and other preferred income use up available 0% band. | Full taxable income, not just gross gain. |
| Capital loss gives little tax benefit | Loss deduction limits, offsetting gains, wash sales or personal-use restrictions. | Schedule D, wash-sale rules and allowable carryovers. |
| Home sale estimate is inaccurate | Home exclusion, improvements, selling costs and depreciation may apply. | IRS Publication 523 and Form 8949 instructions. |
| Crypto tax differs from exchange statement | Transfers, lot identification, basis data or unsupported third-party transaction history. | Wallet and exchange records and IRS digital-asset guidance. |
Capital Gains Tax Calculator 2026: 10 FAQs
1. What are the federal capital gains tax rates in 2026?
Qualifying long-term capital gains generally use 0%, 15% and 20% federal rates, based on filing status and taxable income. Net short-term capital gains are generally taxed at ordinary income rates ranging from 10% to 37%. Special gains and the 3.8% NIIT may follow additional rules.
2. How do I calculate capital gains tax on stocks?
Subtract eligible selling costs and adjusted purchase basis from sale proceeds to determine your gain. Identify whether the shares were held one year or less or more than one year. Then consider your income, other capital gains and losses, deductions, filing status and applicable tax rates.
3. What is the difference between short-term and long-term capital gains?
For ordinary capital assets, short-term gains arise from assets held one year or less and generally receive ordinary income tax rates. Long-term gains arise from assets held more than one year and may qualify for preferential federal tax rates.
4. Can I pay 0% federal tax on long-term capital gains in 2026?
Yes. Qualifying long-term gains may fall in the 0% federal band if the applicable taxable-income limits allow it. For 2026, the ceiling is $49,450 for single filers and $98,900 for married joint filers. Ordinary income and other eligible gains can use the available taxable-income range.
5. Does selling cryptocurrency create capital gains tax?
Crypto held as an investment capital asset can create a capital gain or loss when sold or exchanged. The tax classification depends on holding period, basis and transaction details. Crypto received as payment or through certain activities may instead produce ordinary income.
6. Can investment losses offset capital gains tax?
Eligible capital losses can generally offset capital gains under Schedule D netting rules. If total eligible capital losses exceed gains, up to $3,000 may generally offset ordinary income, or $1,500 for married filing separately, with unused allowable losses potentially carried forward.
7. Do I owe capital gains tax if I sell stocks but do not withdraw the money?
A taxable stock sale can generate a realized gain even if the proceeds remain in your brokerage account or are reinvested. Simply holding shares that increased in value generally does not create a realized capital gain. Tax-advantaged accounts can have different rules.
8. Does the 3.8% Net Investment Income Tax apply to capital gains?
It can. NIIT generally applies at 3.8% of the smaller of qualifying net investment income or MAGI above the relevant threshold. For many individual filers, the thresholds are $200,000 for single or head of household and $250,000 for married filing jointly.
9. Is capital gains tax calculated on the total selling price?
Generally no. For an ordinary taxable investment sale, gain is calculated using net sale proceeds minus adjusted cost basis. Eligible transaction expenses and basis adjustments can change the taxable profit. Special types of property may require additional calculations.
10. When do I report capital gains from a 2026 sale to the IRS?
For most calendar-year individual taxpayers, capital gains and losses realized during 2026 are reported on the 2026 federal income tax return generally filed in 2027. Applicable transactions may be reported on Form 8949 and Schedule D, and Form 8960 may be required for NIIT.
2026 capital gains tax rules and IRS resources
These sources explain the calculations, definitions and filing steps used in this guide.
- IRS Revenue Procedure 2025-32: Official 2026 capital gains brackets and federal tax adjustments.
- IRS Topic 409: Capital gains, losses, holding periods and rate exceptions.
- IRS Topic 703: Asset basis and basis adjustments.
- IRS Schedule D: Capital gains and losses filing.
- IRS Form 8949: Sales and other dispositions of capital assets.
- IRS Publication 550: Investment income, expenses and wash-sale rules.
- IRS Form 8960: Net Investment Income Tax calculation.
- IRS Publication 523: Selling your home and gain exclusions.
- IRS Digital Assets: Cryptocurrency and digital-asset tax reporting.
- IRS Publication 505: Withholding and estimated tax payments.