Capital Gains Tax Calculator 2025
Calculate your capital gains tax on stocks, real estate, or other investments using 2025 rates.
Capital Gain / Loss
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Tax Rate Applied
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Estimated Tax Owed
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Net Proceeds (after tax)
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Understanding Capital Gains Tax
Capital gains tax applies when you sell an asset for more than you paid for it. The tax rate depends primarily on two factors: how long you held the asset and your overall taxable income. Understanding these rules can help you make smarter decisions about when to sell investments and how to minimize your tax burden through strategic timing.
Short-Term vs. Long-Term Rates
Assets held for less than one year before selling generate short-term capital gains, which are taxed at your ordinary income tax rate (10% to 37% in 2025). Assets held for one year or longer qualify for long-term capital gains rates, which are significantly lower: 0%, 15%, or 20% depending on your taxable income and filing status. For single filers in 2025, the 0% rate applies to taxable income up to $48,350, 15% applies up to $533,400, and 20% applies above that threshold.
Net Investment Income Tax and Losses
High earners may also owe the 3.8% Net Investment Income Tax (NIIT) on capital gains when their modified adjusted gross income exceeds $200,000 for single filers or $250,000 for married filing jointly. On the flip side, if you sell at a loss, you can use capital losses to offset capital gains and deduct up to $3,000 per year against ordinary income. Unused losses carry forward indefinitely, making tax-loss harvesting a valuable strategy. Be mindful of the wash sale rule, which disallows a loss deduction if you repurchase a substantially identical security within 30 days.
Disclaimer: This calculator is for informational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional for decisions specific to your situation.
Frequently Asked Questions
What is the difference between short-term and long-term capital gains?
Short-term gains (assets held less than one year) are taxed as ordinary income at rates from 10% to 37%. Long-term gains (assets held one year or longer) are taxed at preferential rates of 0%, 15%, or 20% depending on your income.
What is the Net Investment Income Tax (NIIT)?
The NIIT is an additional 3.8% tax on net investment income for individuals with MAGI above $200,000 (single) or $250,000 (married filing jointly). It applies to the lesser of net investment income or the excess above the threshold.
What is the wash sale rule?
The wash sale rule prevents claiming a capital loss deduction if you buy a substantially identical security within 30 days before or after the sale. The disallowed loss is added to the cost basis of the replacement shares.
How much capital loss can I deduct?
Capital losses first offset capital gains. Net losses can offset up to $3,000 per year against ordinary income ($1,500 if married filing separately). Unused losses carry forward indefinitely to future tax years.