US Capital Gains Tax Calculator for 2026
Estimate the federal tax change from regular short-term or long-term capital gains, qualified-dividend stacking, capital losses and the 3.8% Net Investment Income Tax. Use Schedule D net totals or build one sale from proceeds, adjusted basis, selling costs and holding dates.
Last Updated: July 29, 2026Estimate your 2026 federal capital-gains tax
Enter taxable-income amounts after deductions. The tool compares federal regular income tax and NIIT before and after the supported capital result.
How to use the US Capital Gains Tax Calculator
This calculator estimates the change in 2026 federal tax caused by supported capital gains or losses. It does not multiply the whole gain by one headline rate. It places ordinary income, qualified dividends and regular long-term gain in the correct order, then compares tax before and after the capital result.
- Select your federal filing status for tax year 2026.
- Enter ordinary taxable income after deductions, but before qualified dividends and the capital amounts entered in this tool.
- Add qualified dividends separately because they share the preferential-rate bands with regular net long-term capital gain.
- Choose Schedule D net totals for a portfolio, or build one regular asset sale from proceeds, basis, costs and dates.
- Enter MAGI and net investment income before the capital result when the 3.8% NIIT may apply.
- Review the netting result, tax change, long-term rate allocation, loss limit and calculation steps.
Use taxable income, not salary or gross proceeds. The 0%, 15% and 20% capital-gain bands depend on total taxable income after deductions. If you only know gross income, first estimate taxable income with the US Income Tax Calculator.
What this 2026 calculator estimates
The main result is the incremental federal tax change, not the tax on all income. The calculator first computes federal regular income tax before the capital entries. It then repeats the computation after short-term gain, regular long-term gain or the allowable capital-loss deduction. NIIT is calculated separately and added to the regular-tax change.
This approach matters near a bracket boundary. A short-term gain can cross several ordinary brackets. A long-term gain can occupy more than one preferential band. Short-term gain can also push some qualified dividends or long-term gain into a higher band.
Capital gain and holding-period formulas
Basis is fact-specific. Purchase commissions, capital improvements, reinvested distributions, stock splits, gifts, inheritances, depreciation and prior deferrals can change it. The single-sale mode accepts a signed other-basis adjustment, but it does not decide whether an adjustment is legally allowed.
The holding period normally starts on the day after acquisition and includes the disposition date. One year or less is short term. More than one year is long term. The sale builder applies this date rule, including a February 29 anniversary adjustment.
| Feature | Short-term result | Regular long-term result |
|---|---|---|
| Holding period | One year or less | More than one year |
| Federal rate method | Progressive ordinary brackets | 0%, 15% and 20% bands, subject to the ordinary-tax comparison |
| Income interaction | Raises ordinary taxable income | Stacks above ordinary income and shares bands with qualified dividends |
| Loss character | Can offset short-term gain first, then long-term gain | Can offset long-term gain first, then short-term gain |
2026 long-term capital gains tax brackets
Revenue Procedure 2025-32 sets the 2026 maximum 0% and 15% rate amounts. Regular net long-term gain above the second threshold enters the 20% band. These are taxable-income ceilings, not gain-only allowances.
| Filing status | 0% band ends | 15% band ends | 20% applies above |
|---|---|---|---|
| Single | $49,450 | $545,500 | $545,500 |
| Married filing jointly / qualifying surviving spouse | $98,900 | $613,700 | $613,700 |
| Married filing separately | $49,450 | $306,850 | $306,850 |
| Head of household | $66,200 | $579,600 | $579,600 |
Qualified dividends use the same capacity. For example, if a single filer has $40,000 of ordinary taxable income and $5,000 of qualified dividends, only $4,450 remains in the 0% band before regular net long-term gain is added.
The official Qualified Dividends and Capital Gain Tax Worksheet also compares the preferential calculation with ordinary tax on total taxable income and uses the lower amount. The calculator performs that comparison. It prevents a small preferred-income amount from being taxed at 15% when the ordinary-rate calculation would be lower.
How short-term capital gains are taxed in 2026
Net short-term capital gain is ordinary taxable income. It does not receive a separate flat rate. The correct estimate calculates tax before and after the gain through the progressive brackets.
| Rate | Single | Married filing jointly | Head of household | Married filing separately |
|---|---|---|---|---|
| 10% | $0-$12,400 | $0-$24,800 | $0-$17,700 | $0-$12,400 |
| 12% | $12,400-$50,400 | $24,800-$100,800 | $17,700-$67,450 | $12,400-$50,400 |
| 22% | $50,400-$105,700 | $100,800-$211,400 | $67,450-$105,700 | $50,400-$105,700 |
| 24% | $105,700-$201,775 | $211,400-$403,550 | $105,700-$201,750 | $105,700-$201,775 |
| 32% | $201,775-$256,225 | $403,550-$512,450 | $201,750-$256,200 | $201,775-$256,225 |
| 35% | $256,225-$640,600 | $512,450-$768,700 | $256,200-$640,600 | $256,225-$384,350 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 | Over $384,350 |
A single filer with $75,000 of ordinary taxable income and a $10,000 net short-term gain stays inside the 22% band. The supported regular federal tax increase is $2,200 before NIIT. A gain that crosses a threshold is split across the affected ordinary brackets.
Capital loss netting and the annual deduction
Federal capital-loss rules preserve short-term and long-term character before the two sides are combined. The calculator follows a simplified four-step sequence:
- Subtract the entered short-term loss carryover from current net short-term gain or loss.
- Subtract the entered long-term loss carryover from current regular net long-term gain or loss.
- Offset opposing short-term and long-term results.
- If the final total is a loss, apply the annual limit and check how much can be absorbed before taxable income would fall below zero.
For example, a $7,000 final net capital loss generally produces a $3,000 current-year deduction and an estimated $4,000 remainder for most filing statuses with enough taxable income. Married filing separately generally uses a $1,500 annual limit and leaves $5,500. If taxable income is lower than the annual deduction, the IRS worksheet can restore the unabsorbed part to the carryover. The calculator uses the entered baseline taxable income for this combined estimate. Use the official Capital Loss Carryover Worksheet to preserve exact short-term and long-term character and confirm the amount.
A loss on a main home or other personal-use property is not deductible. When the single-sale mode is set to personal use, the calculator removes that loss from the tax computation and displays a warning.
How the 3.8% Net Investment Income Tax works
NIIT is separate from the 0%, 15% and 20% rates. It equals 3.8% of the lesser of net investment income or modified adjusted gross income above the filing-status threshold.
| Filing status | NIIT MAGI threshold | Indexed each year? |
|---|---|---|
| Single | $200,000 | No |
| Head of household | $200,000 | No |
| Married filing jointly / qualifying surviving spouse | $250,000 | No |
| Married filing separately | $125,000 | No |
Taxable capital gain normally increases both MAGI and net investment income, but exceptions exist. Gain excluded under the main-home rule is generally excluded from both taxable gain and NIIT. Gain from a nonpassive trade or business, properly allocable deductions and Form 8960 adjustments can leave a taxable result outside NII. Select "adjust MAGI only" when you have independently confirmed that treatment; the calculator will still test whether the higher MAGI exposes existing NII to the surtax.
Main-home sales and the Section 121 exclusion
A qualifying taxpayer may exclude up to $250,000 of gain from a main-home sale. A qualifying joint return may exclude up to $500,000, but filing status alone does not create eligibility. Ownership, use, prior-exclusion, spouse and timing tests apply. Partial exclusions may apply for certain work, health or unforeseen circumstances.
The sale builder therefore asks you to enter a verified exclusion amount instead of granting one automatically. It subtracts that amount only from a positive raw gain. It also blocks an exclusion larger than the computed gain. Depreciation allowed or allowable after May 6, 1997 and gain allocated to nonqualified use can remain taxable even when other gain is excluded.
The result does not calculate mortgage payoff, settlement cash, replacement-home cost or Section 1031 deferral. A mortgage changes cash proceeds but generally does not change the gain formula by itself.
Special gains this calculator does not automate
Some transactions need the Schedule D Tax Worksheet, the Unrecaptured Section 1250 Gain Worksheet or another specialized form. Do not place these amounts in the regular long-term field:
- Collectibles and taxable Section 1202 gain: these can enter a maximum 28% rate group. The rate is not always a flat 28%.
- Unrecaptured Section 1250 gain: the depreciation-related part of qualifying real-property gain can face a maximum 25% rate.
- Depreciation recapture: Sections 1245, 1250 and 1231 can convert part of a business-property result to ordinary income.
- Qualified small business stock: Section 1202 eligibility, acquisition date, holding period, issuer limits and excluded percentages require a separate review.
- Wash sales, options and contracts: basis adjustments, straddles, Section 1256 treatment and trader elections are outside this model.
- Inherited or gifted assets: stepped-up or carryover basis and special holding-period rules can make the sale builder unsuitable. Enter a verified Schedule D net amount instead.
- Installment sales and Opportunity Zones: recognition timing and deferral rules are not represented by one annual amount.
State and local taxes are also excluded. A state may tax the same gain at ordinary rates, offer an exclusion or impose no individual income tax. Calculate the state result under the rules for the relevant residency and source jurisdictions.
Worked 2026 capital gains tax example
Assume a single filer has $40,000 of ordinary taxable income, no qualified dividends and a $20,000 regular net long-term capital gain. MAGI remains below the NIIT threshold.
| Step | Calculation | Result |
|---|---|---|
| 2026 zero-rate room | $49,450 - $40,000 | $9,450 at 0% |
| Remaining long-term gain | $20,000 - $9,450 | $10,550 at 15% |
| Regular federal tax on gain | $10,550 x 15% | $1,582.50 |
| NIIT | MAGI below $200,000 | $0 |
| Estimated after-tax gain | $20,000 - $1,582.50 | $18,417.50 |
The displayed calculator rounds currency to the nearest dollar while retaining cents in its internal calculation. A filed return follows the rounding rules in the applicable IRS forms and tax software.
Records and checks before filing
Keep Form 1099-B, broker basis records, trade confirmations, Form 8949 adjustments, Schedule K-1 statements, improvement invoices, closing disclosures and documents supporting any exclusion or deferral. Reconcile covered and noncovered basis instead of assuming every broker figure is complete.
Review these points when the estimate differs from tax software:
- Qualified dividends were entered separately and also included in MAGI and NII where applicable.
- Short-term and long-term carryovers match the prior return worksheets.
- Wash-sale adjustments and disallowed personal losses were handled before net totals were entered.
- The ordinary taxable-income input excludes the capital entries but already reflects deductions.
- Collectibles, depreciation recapture and special-rate items were not mixed into regular LTCG.
- NIIT inputs use MAGI and net investment income, not taxable income alone.
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Frequently asked questions
What are the 2026 long-term capital gains tax rates?
Regular net long-term capital gain generally uses 0%, 15% and 20% bands. The applicable portion depends on filing status, ordinary taxable income, qualified dividends and total taxable income. Special 25% and 28% maximum-rate groups use separate rules.
How does the 0% capital gains tax rate work?
The 0% range is part of total taxable-income stacking. Ordinary taxable income and qualified dividends use capacity before regular net long-term gain. It is not a separate tax-free allowance added on top of the threshold.
Are short-term capital gains taxed at a flat rate?
No. Net short-term gain is taxed through the progressive ordinary brackets. This calculator compares ordinary tax before and after the gain, so a gain crossing a bracket is split correctly.
Does this calculator include the 3.8% NIIT?
Yes. It estimates incremental NIIT from filing status, MAGI before the capital result and net investment income before the result. NIIT is 3.8% of the lesser of NII or MAGI above the applicable threshold.
How much capital loss can reduce other income?
A final net capital loss can generally reduce other income by up to $3,000 per year, or $1,500 for married filing separately. If taxable income is too low to absorb the full amount, the IRS worksheet can restore the unabsorbed part to the carryover.
Do qualified dividends affect the capital gains rate?
Yes. Qualified dividends share the same preferential band capacity as regular net long-term capital gain. Entering them separately prevents the calculator from overstating the remaining 0% or 15% room.
Does the calculator include the home-sale exclusion?
The single-sale mode lets you enter an exclusion amount already verified under Section 121. It does not grant $250,000 or $500,000 automatically because ownership, use, spouse, timing, depreciation and nonqualified-use rules matter.
Does the result include state capital gains tax?
No. It estimates supported federal regular income tax and NIIT only. State and local treatment depends on residency, source, asset type and the law of each jurisdiction.
Can I use this calculator for collectibles or rental-property recapture?
No. Collectibles, taxable Section 1202 gain, unrecaptured Section 1250 gain and ordinary depreciation recapture require special worksheets. Do not place those amounts in the regular long-term field.
Is this estimate accurate enough to file a tax return?
No. It is an educational planning estimate for supported 2026 federal cases. File with complete Forms 8949 and Schedule D, current IRS instructions, qualified tax software or professional advice suited to your facts.
Official sources
- IRS Revenue Procedure 2025-32: 2026 ordinary and maximum capital-gain rate amounts
- IRS Topic 409: capital gains, holding periods, netting and capital losses
- IRS Schedule D instructions and capital-loss carryover worksheets
- IRS Publication 550: investment income, gains and losses
- IRS Net Investment Income Tax guide
- IRS Form 8960 instructions
- IRS Topic 701: sale of a main home and Section 121 exclusion
Disclaimer: This calculator and guide provide general educational information, not tax, legal, accounting or investment advice. It does not prepare Forms 8949, Schedule D or Form 8960. Tax treatment depends on complete transaction records, basis, holding period, elections, losses, exclusions, residency and current guidance. Verify official IRS instructions or consult a qualified tax professional before filing, selling an asset or making an estimated-tax payment.