Capital Gains Tax
Capital Gains Tax Calculator 2026
How this works
Long-term gains (held more than a year) stack on top of your ordinary income and are taxed at 0%, 15%, or 20% by 2026 breakpoint.
Short-term gains (a year or less) are taxed as ordinary income. NIIT adds 3.8% over the MAGI threshold.
Home sale: Section 121 can exclude up to $250,000 of gain ($500,000 joint) if you owned and lived in the home for 2 of the last 5 years.
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What this covers. A 2026 federal estimate for long-term (0/15/20%) and short-term gains, the 3.8% Net Investment Income Tax, and the Section 121 primary-home-sale exclusion (up to $250,000 single / $500,000 joint, 2-of-5-year ownership and use test). It does not include state taxes, the collectibles 28% rate, unrecaptured Section 1250 depreciation recapture, the AMT, or QBI. Figures are verified against IRS Publication 523, Topic No. 409, and IRS Rev. Proc. 2025-32. This is an estimate, not tax advice.
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Frequently asked questions
Common questions. Your exact number comes from the calculator above; every answer cites the official source.
How are long-term gains taxed in 2026, and what is NIIT?⌄
Long-term gains (assets held more than a year) are taxed at 0%, 15%, or 20% depending on your taxable income against the 2026 breakpoints, stacking on top of your ordinary income. Short-term gains (held a year or less) are taxed as ordinary income. The Net Investment Income Tax adds 3.8% on investment income once your modified AGI crosses the threshold ($200,000 single / $250,000 joint). The calculator applies all of this for you.
Source: IRS Topic No. 409 / Rev. Proc. 2025-32
How does the Section 121 home-sale exclusion work?⌄
When you sell your main home, Section 121 lets you exclude up to $250,000 of gain ($500,000 married filing jointly) if you owned and lived in the home for at least 2 of the last 5 years. Only gain above the exclusion is taxed, and that excess is taxed as a capital gain. The calculator includes a home-sale toggle so you can apply the exclusion to your gain.
Source: IRS Pub. 523
How do I lower the tax on a gain?⌄
The biggest levers are your holding period and your basis. Holding more than a year moves a gain from ordinary rates to the lower long-term rates. A higher basis (purchase price plus improvements and certain costs) shrinks the taxable gain. Realizing gains in a lower-income year can land you in the 0% or 15% bracket. The calculator shows the rate that applies to your situation.
Source: IRS Topic No. 409 / Pub. 550