Calculate Capital Gains Tax on Investments
Calculate federal capital gains tax on stocks, crypto, and real estate. Short-term vs long-term rates by income.
Short-Term vs Long-Term Capital Gains
Short-term (held under 1 year): Taxed as ordinary income — 10% to 37% depending on your tax bracket. Long-term (held over 1 year): Preferential rates — 0%, 15%, or 20%. For most investors, long-term gains are taxed at 15%. The difference is enormous: a $15,000 gain taxed at 24% (short-term) = $3,600 in tax. The same gain taxed at 15% (long-term) = $2,250. Holding one day longer can save $1,350.
Strategies to Reduce Capital Gains Tax
Hold for 1+ year: The single most effective strategy. Tax-loss harvesting: Sell losing investments to offset gains. Use tax-advantaged accounts: Gains inside 401k/IRA are not taxed until withdrawal. Gift appreciated assets: Gifting stocks to family in lower brackets can reduce the tax rate. Qualified Opportunity Zones: Reinvesting gains in designated zones can defer and reduce capital gains tax.
The 0% long-term capital gains rate is one of the most powerful tax benefits available. Single filers with taxable income under $47,025 pay ZERO federal tax on long-term gains. A retired couple with $94,050 or less in taxable income can sell stocks completely tax-free. Strategic income management can save tens of thousands.
