How are capital losses handled?

Capital losses can offset capital gains dollar-for-dollar. If your losses exceed your gains, you can deduct up to $3,000 per year against ordinary income. Excess losses carry forward to future tax years indefinitely.

What is cost basis and how does it affect capital gains?

Cost basis is the original purchase price of an asset plus any improvements or acquisition costs. A higher cost basis reduces your capital gain, which lowers your tax liability. Common additions to cost basis include broker commissions, transfer fees, and capital improvements for real estate.

Capital Gains Tax Calculator

MiniWebtool’s Capital Gains Tax Calculator estimates 2026 U.S. federal tax on an asset sale. Purchase and sale amounts, improvements, holding period, income, and filing status determine the comparison of short- and long-term treatment and possible NIIT.

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Help me understand MiniWebtool's Capital Gains Tax Calculator: https://miniwebtool.com/capital-gains-tax-calculator/. What can I use it for, what inputs or settings do I need, and how do I use it and understand the output? Walk me through one simple example. Use this page as your source and answer in English.

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Capital Gains Tax CalculatorTry it now — free ▼

$5,000 long-term gain at $75,000 income: $750 tax, $4,250 kept

Enter the purchase and sale prices, your income, holding period and filing status.

📊 Quick Examples — click to auto-fill:

💵 Investment Details

Purchase Price (Cost Basis)

Sale Price (Proceeds)

Improvements / Selling Expenses (optional)

Annual Taxable Income (excl. this gain)

📋 Tax Filing Details

Holding Period

Filing Status

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About Capital Gains Tax Calculator

Understanding Capital Gains Tax

Capital gains tax is a federal tax on the profit you make when selling an investment or asset for more than you paid. The tax rate depends on how long you held the asset (holding period) and your total taxable income.

At a Glance

Capital Gains Tax Calculator estimates 2026 U.S. federal tax on the sale of an asset. It compares short-term and long-term treatment and includes the 3.8% Net Investment Income Tax where it applies.

Capital Gains Tax Calculator: features at a glance
Feature	What you get	Good for
Sale inputs	Enter purchase price (cost basis), sale price, improvements or selling expenses, annual taxable income, holding period and filing status.	Estimating tax on a stock, property or crypto sale
Holding period	Long-term means held over 1 year, taxed at 0%, 15% or 20%. Short-term means 1 year or less, taxed at ordinary rates of 10% to 37%.	Seeing what the length of ownership changes
Filing statuses	Single, Married Filing Jointly, Married Filing Separately and Head of Household.	Filers in any of the four statuses
2026 brackets	The 0% long-term rate applies up to $49,450 for single filers, $98,900 for married filing jointly and $66,200 for head of household.	Checking which long-term rate your income falls into
NIIT	Adds the 3.8% Net Investment Income Tax above income thresholds of $200,000 (single or head of household), $250,000 (joint) and $125,000 (separate).	Higher earners with large investment income
Presets and losses	Buttons load a stock sale, real estate sale, short-term crypto sale or high-income investor example, and a section covers capital loss tax benefits.	Trying common scenarios or sales at a loss

Short-Term vs Long-Term Capital Gains

The IRS classifies capital gains into two categories based on how long you owned the asset before selling:

Short-Term Capital Gains — Assets held for one year or less are taxed at your ordinary income tax rate, which ranges from 10% to 37% depending on your tax bracket.
Long-Term Capital Gains — Assets held for more than one year qualify for preferential tax rates of 0%, 15%, or 20%, based on your taxable income and filing status.

2026 Long-Term Capital Gains Tax Rates

Capital Gains Tax Calculator: 2026 Long-Term Capital Gains Tax Rates
Tax Rate	Single	Married Filing Jointly	Head of Household
0%	Up to $49,450	Up to $98,900	Up to $66,200
15%	$49,451 – $545,500	$98,901 – $613,700	$66,201 – $579,600
20%	Over $545,500	Over $613,700	Over $579,600

Net Investment Income Tax (NIIT)

High-income taxpayers may also owe an additional 3.8% Net Investment Income Tax (NIIT) on the lesser of their net investment income or the amount by which their modified adjusted gross income (MAGI) exceeds the threshold:

$200,000 — Single or Head of Household
$250,000 — Married Filing Jointly
$125,000 — Married Filing Separately

What Counts as Cost Basis?

Cost basis is the original purchase price of your investment plus certain additional costs:

Purchase price paid for the asset
Broker commissions and transaction fees
Capital improvements (for real estate)
Closing costs when buying property
Transfer taxes and recording fees

A higher cost basis reduces your capital gain and lowers your tax liability.

Capital Loss Rules

If you sell an asset for less than your cost basis, you have a capital loss. Capital losses can:

Offset capital gains dollar-for-dollar
Deduct up to $3,000 per year against ordinary income ($1,500 if married filing separately)
Carry forward unused losses to future tax years indefinitely

Tax-Saving Strategies

Hold assets for over one year to qualify for the lower long-term capital gains rates.
Tax-loss harvesting — Sell losing investments to offset gains from winners.
Use tax-advantaged accounts — Invest through 401(k)s, IRAs, or Roth IRAs where gains grow tax-free or tax-deferred.
Qualified Opportunity Zones — Reinvest large gains into QOZ funds to defer and potentially reduce taxes.
Charitable giving — Donate appreciated assets to avoid capital gains tax and receive a deduction.

Frequently Asked Questions

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

Short-term capital gains apply to assets held for one year or less and are taxed at ordinary income tax rates (10%-37%). Long-term capital gains apply to assets held for more than one year and receive preferential rates of 0%, 15%, or 20% depending on your income level. Holding investments longer can save you significantly on taxes.

What is the Net Investment Income Tax (NIIT)? ▼

The NIIT is an additional 3.8% tax on investment income (including capital gains, dividends, interest, and rental income) for individuals with modified adjusted gross income exceeding $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately). It applies to the lesser of your net investment income or the excess of MAGI over the threshold.

Do I owe capital gains tax on cryptocurrency? ▼

Yes. The IRS treats cryptocurrency as property. When you sell, trade, or spend crypto, it triggers a taxable event. The same short-term and long-term capital gains rules apply based on how long you held the crypto before the transaction.

How do I handle capital losses? ▼

Capital losses first offset capital gains of the same type (short-term losses offset short-term gains, long-term losses offset long-term gains). Remaining losses offset gains of the other type. If losses still exceed gains, you can deduct up to $3,000 per year against ordinary income. Any excess carries forward to future years.

Can I qualify for the 0% capital gains rate? ▼

Yes. For 2026, single filers with total taxable income (including the gain) up to $49,450 and married filing jointly up to $98,900 can qualify for the 0% long-term capital gains rate. This only applies to long-term gains — you must have held the asset for more than one year.

⚠ Disclaimer: This calculator provides estimates for informational purposes only based on 2026 federal capital gains tax rates. It does not account for state taxes, the Net Investment Income Tax (NIIT) on all income types, wash sale rules, or other complex tax situations. Please consult a qualified tax professional or CPA for guidance specific to your situation.

Reference this content, page, or tool as:

"Capital Gains Tax Calculator" at https://MiniWebtool.com/capital-gains-tax-calculator/ from MiniWebtool, https://MiniWebtool.com/

by miniwebtool team. Updated: Feb 27, 2026

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