What is the difference between short-term and long-term capital gains?

Short-term gains apply to assets held one year or less and are taxed at your ordinary income tax rate. Long-term gains apply to assets held more than one year and are taxed at lower rates of 0%, 15%, or 20% depending on your income and filing status.

How much capital gains tax will I owe?

Enter your purchase price, sale price, holding period, annual income, and filing status. The calculator computes your gain and applies either ordinary income brackets (short-term) or the 0/15/20% long-term rates to estimate your federal tax owed and after-tax profit.

Can I save money by holding an investment longer than a year?

Often yes. Because long-term rates are usually lower than ordinary income rates, holding an asset past the one-year mark can reduce the tax owed. The calculator shows a side-by-side comparison of selling now versus waiting for long-term treatment.

What is the Net Investment Income Tax?

The Net Investment Income Tax is an additional 3.8% tax on investment income for filers whose income exceeds $200,000 (single) or $250,000 (married filing jointly). The calculator adds this surtax when your income crosses the threshold.

Does this include state capital gains tax?

No. This calculator estimates federal capital gains tax only and does not include state taxes or every individual adjustment. Consult a CPA for figures specific to your situation and state.

Capital Gains Tax Calculator — Short Term vs Long Term Rates

Calculate how much tax you owe on investments, property and assets

Quick Answer

Short-term capital gains (assets held under 1 year) are taxed as ordinary income — up to 37%. Long-term capital gains (assets held over 1 year) are taxed at 0%, 15% or 20% depending on income. On a $50,000 gain a high earner pays $18,500 short-term versus $7,500 long-term — a $11,000 difference from holding one extra day.

Capital gains tax applies to profit from selling assets including stocks, real estate and cryptocurrency. The difference between short-term and long-term treatment creates a powerful incentive to hold investments for at least one year before selling. This calculator shows your exact tax liability for any gain amount under both short and long-term treatment.