Capital Gains Tax Calculator 2024
Calculate your capital gains tax on investments, stocks, real estate, and other assets. Our calculator handles both short-term and long-term capital gains with current 2024 tax rates.
How Capital Gains Tax is Calculated
Capital Gains Calculation Formula
Then apply the appropriate tax rate based on holding period and income
Determine Cost Basis
Original purchase price plus any improvements, fees, or commissions. For stocks, include brokerage fees.
Calculate Gain or Loss
Subtract cost basis from sale price. Positive = gain (taxable), Negative = loss (may be deductible).
Determine Holding Period
Count from day after purchase to sale date. More than 1 year = long-term, 1 year or less = short-term.
Apply Tax Rate
Use ordinary income rates for short-term gains, preferential rates for long-term gains.
2024 Long-Term Capital Gains Tax Rates
| Tax Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 0% | $0 - $47,025 | $0 - $94,050 | $0 - $63,000 |
| 15% | $47,026 - $518,900 | $94,051 - $583,750 | $63,001 - $551,350 |
| 20% | $518,901+ | $583,751+ | $551,351+ |
Additional Considerations: High-income earners may also owe the 3.8% Net Investment Income Tax (NIIT) on capital gains. Short-term gains are taxed at ordinary income rates (10%-37%).
Understanding Capital Gains Tax
Capital gains tax is levied on the profit from selling an asset that has increased in value. The tax rate depends on how long you held the asset and your overall income level. Understanding these rules is crucial for investment planning and tax optimization strategies.
Short-Term Capital Gains
- • Holding Period: 1 year or less
- • Tax Rate: Same as ordinary income
- • Rate Range: 10% to 37% (2024)
- • Assets: Stocks, bonds, real estate, etc.
- • Strategy: Consider holding longer for better rates
Long-Term Capital Gains
- • Holding Period: More than 1 year
- • Tax Rate: Preferential rates
- • Rate Range: 0%, 15%, or 20% (2024)
- • Benefits: Significantly lower than ordinary income
- • Strategy: Hold investments for over 1 year when possible
Long-Term Capital Gains (Held > 1 Year)
Single filers with taxable income up to $47,025
Married filing jointly: $0 - $94,050
Single filers in the middle income range
Married filing jointly: $94,051 - $583,750
Single filers with high income
Married filing jointly: $583,751+
Short-Term Capital Gains (Held ≤ 1 Year)
Taxed as Ordinary Income
Short-term capital gains are taxed at your regular income tax rates, which can be as high as 37% for high earners.
Additional Taxes on Capital Gains
High-income earners may be subject to additional taxes on their investment gains.
Net Investment Income Tax (NIIT)
Additional tax on investment income
Applies when MAGI exceeds:
- • Single: $200,000
- • Married filing jointly: $250,000
- • Married filing separately: $125,000
State Capital Gains Tax
Most states tax capital gains as ordinary income at their regular income tax rates.
Exceptions: States with no income tax (like Florida, Texas, Nevada) don't tax capital gains.
High-tax states to consider:
- • California: Up to 13.3%
- • New York: Up to 10.9%
- • New Jersey: Up to 10.75%
- • Hawaii: Up to 11%
Capital Gains Tax Strategies
Hold for 1+ Years
Wait at least one year and one day to qualify for lower long-term capital gains rates instead of ordinary income rates.
Tax-Loss Harvesting
Sell losing investments to offset gains. You can deduct up to $3,000 in net losses against ordinary income annually.
Use Retirement Accounts
Hold investments in IRAs or 401(k)s to defer or eliminate capital gains taxes entirely.
Capital Gains Tax FAQ
What's the difference between short-term and long-term capital gains?
Short-term gains (assets held ≤ 1 year) are taxed as ordinary income at rates up to 37%. Long-term gains (assets held > 1 year) get preferential rates of 0%, 15%, or 20%.
Do I pay capital gains tax on my primary residence?
You can exclude up to $250,000 ($500,000 if married) of gain on your primary residence if you lived there for 2 of the last 5 years before selling.
How do I calculate my cost basis?
Your cost basis is typically what you paid for the asset plus any improvements or fees. For inherited assets, you get a "stepped-up basis" equal to the fair market value at the time of inheritance.