TaxTools

Capital Gains Tax Calculator

See exactly how much of your gain goes to tax, and what you'll actually walk away with.

Sale proceeds

Cost basis

Applicable tax rate

Short-term gains are usually taxed at ordinary income rates; long-term gains at lower preferential rates — enter whichever applies to you.

Tax owed

$3,000

Capital gain: $20,000
Net proceeds after tax: $47,000

What you entered

Sale proceeds: $50,000Cost basis: $30,000Tax rate: 15%

1
Capital gain
$50,000.00 sale proceeds − $30,000.00 cost basis= $20,000.00
2
Tax owed on the gain
$20,000.00 × 15%= $3,000.00
3
Net proceeds after tax
$50,000.00 − $3,000.00= $47,000.00

Result

Tax owed: $3,000

Selling for $50,000 against a $30,000 cost basis produces a $20,000 gain — at 15%, that's $3,000 in tax, leaving $47,000 net.

Capital gains tax on an asset bought for $10,000

Each row sells an asset with a $10,000 cost basis at the proceeds shown. Tax applies to the gain, not the sale price. The 0% column is the long-term rate many lower-income US filers pay.

Sale proceeds	Gain	Tax at 0%	At 15%	At 20%	At 24%	Net at 15%
$12,000	$2,000	$0	$300	$400	$480	$11,700
$15,000	$5,000	$0	$750	$1,000	$1,200	$14,250
$20,000	$10,000	$0	$1,500	$2,000	$2,400	$18,500
$30,000	$20,000	$0	$3,000	$4,000	$4,800	$27,000
$50,000	$40,000	$0	$6,000	$8,000	$9,600	$44,000

Which rate applies depends on how long you held the asset and on your income. In the US, assets held over a year qualify for long-term rates of 0, 15 or 20 percent, while anything held a year or less is taxed as ordinary income, which is why the 24% column is included - it stands in for a short-term rate. Holding one extra day past the year mark can therefore change the bill substantially. Your cost basis should include purchase commissions and any qualifying improvements, and losses elsewhere may offset gains. Rules, rates and thresholds differ by country and change over time, so this is illustrative, not tax advice - confirm your position with a qualified adviser.

Short-term vs. long-term rates

Assets held over a year usually qualify for lower long-term capital gains rates; assets held a year or less are typically taxed at your ordinary income rate. Enter whichever rate applies to your specific holding period and bracket.

Cost basis matters

Cost basis isn't always just the purchase price — it can include reinvested dividends, brokerage fees, or improvements (for real estate). A higher cost basis means a smaller taxable gain.

Strategies to reduce capital gains tax

Tax-loss harvesting: sell losing investments to offset gains (up to $3,000 net loss deductible per year, rest carries forward). Hold over 1 year for long-term rates. Use tax-advantaged accounts (IRA, 401k) where gains aren't taxed until withdrawal. Donate appreciated assets to charity — you get a deduction at fair market value and pay zero capital gains tax.

Frequently asked questions

How much is capital gains tax?

Long-term (held >1 year): 0% for income under ~$44K (single), 15% for $44K-$492K, 20% above $492K (2024 brackets). Short-term (held ≤1 year): taxed at your ordinary income rate (10-37%). State taxes add another 0-13% depending on where you live.

How do I calculate capital gains?

Capital Gain = Sale Price − Cost Basis. Cost basis includes the original purchase price plus any transaction fees, reinvested dividends, or improvements. Example: bought stock for $5,000 + $10 fee, sold for $8,000 − $10 fee. Gain = $7,990 − $5,010 = $2,980.

Do I pay capital gains tax on my home?

You can exclude up to $250,000 of gain ($500,000 for married filing jointly) if you owned and lived in the home for at least 2 of the last 5 years. A home bought for $200,000 and sold for $400,000 has a $200,000 gain — fully excludable for a single filer. Gains above the exclusion are taxed at capital gains rates.