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Capital Gains Calculator

Capital gains rates are designed to encourage long-term investing. Most people can get a significant advantage from holding stock investments for more than one year:

Tax BracketCapital Gain Tax Rate
Short Term Long Term
10% 10% 0%
15% 15%
25% 25% 15%
28% 28%
33% 33%
35% 35%
39.6% 39.6% 20%

Short term gains on stock investments are taxed at your regular tax rate; long term gains are taxed at 15% for most tax brackets, and zero for the lowest two.

Here is a simple capital gains calculator, to help you see what effects the current rates will have in your own life. (Before you use it for the first time, you may want to check out an example with numbers already filled in.)

Purchase Price: $
Sale Price: $
Your Federal Tax Bracket:     %
Time from Purchase to Sale: One Year
or Less
More than
One Year
Your State Tax Rate: % %
 
Federal Capital Gains Tax Rate:* % %
Total Tax Due: $ $
Net Sale After Tax: $ $
Advantage of Waiting:   %

*  These are the rates for 2013 and 2014. See the IRS for the ongoing saga.

Also see the government spending diagram for some context on taxes, deficits, and interest rates.

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Tax Changes for 2013 and 2014

- People with high incomes will be subject to a higher capital gains rate of 20%, plus an extra 3.8% Net Investment Income Tax (not shown here) as part of the new healthcare law.
 

 

 

 
Also See...

Roth IRA Limits
401(k) Calculator
Savings Calculator
Credit Card Calculator
Investment Return
Tax Cuts
 

 

 
Off Site...

IRS Publication 550

Schedule D Instructions