Capital Gains Tax Calculator 2026
Calculate exact federal capital gains tax owed on an investment sale for 2026 — short-term, long-term, plus 3.8% Net Investment Income Tax where applicable.
2026 Long-Term Capital Gains Brackets
| Filing Status | 0% Bracket | 15% Bracket | 20% Bracket |
|---|---|---|---|
| Single | $0-$48,350 | $48,351-$533,400 | $533,401+ |
| MFJ | $0-$96,700 | $96,701-$600,050 | $600,051+ |
| HoH | $0-$64,750 | $64,751-$566,700 | $566,701+ |
| MFS | $0-$48,350 | $48,351-$300,025 | $300,026+ |
The 0% bracket is one of the most underused tax provisions in the US Code. A married couple with $96,700 of total taxable income (including the long-term gain) pays $0 federal on the gain. Strategic gain harvesting in low-income years can save tens of thousands. Source: IRS Rev. Proc. 2024-40. Last updated: May 2026.
Short-Term vs Long-Term — The 366-Day Rule
Short-term capital gains apply to assets held for one year or less — taxed at your ordinary income bracket (10%-37%). Long-term applies to assets held MORE THAN one year — taxed at the preferential 0%/15%/20% rates. The IRS holding period starts the day AFTER acquisition and ends the day of sale. Hold 365 days = short-term. Hold 366 days = long-term. The difference for high earners is the gap between 37% and 20% — significant.
Net Investment Income Tax (NIIT) — The 3.8% Surcharge
High-earning households pay an additional 3.8% Net Investment Income Tax (Section 1411) on the lesser of (1) total investment income (interest, dividends, capital gains, rental income), or (2) AGI over the threshold ($200K single, $250K MFJ, $200K HoH). This is on TOP of regular capital gains tax. A high earner selling stock for $100K gain effectively pays 23.8% federal (20% LT cap gains + 3.8% NIIT). Source: IRS Section 1411.
Strategies to Reduce Capital Gains Tax
(1) Tax-loss harvesting: sell losing positions to offset gains, up to $3,000 of net loss against ordinary income annually. (2) Hold for long-term rates: wait until 366 days held. (3) Time the sale to a low-income year: retirement, sabbatical, or year between jobs. (4) Donate appreciated stock: 100% deduction at fair value, ZERO capital gains tax — best charitable giving move. (5) Step-up basis at death: heirs inherit at fair-market value, all prior gains forgiven. (6) 1031 exchange (real estate): defer indefinitely by exchanging into like-kind property. (7) QOZ investment: defer + potentially exclude gains via Qualified Opportunity Zones.
Capital Gains Tax 2026 Calculator: State Tax Add-Ons You Can't Ignore
The federal 0%/15%/20% ladder is only half the story — most states tax long-term gains as ordinary income, and that adds 4-13.3% on top. Per the Tax Foundation state capital gains data, the highest 2026 combined rates hit California 13.3% + 20% federal = 33.3%, New York 10.9% + 20% = 30.9%, and New Jersey 10.75% + 20% = 30.75%. The nine no-income-tax states (TX, FL, WA state — but WA now has a 7% cap-gains excise tax above $270K per WA DoR, NV, TN, SD, AK, WY, NH) stay at the 20% federal ceiling. Add the 3.8% NIIT on top for high earners and the highest-combined rate can exceed 37% — a $100,000 long-term gain in California nets only $63,000 after all layered taxes. Run the calculator, then subtract your state's marginal rate from the net to see the true after-tax number.
Last updated 2026-07-01. Sources: IRS Topic 409 Capital Gains, IRS Rev. Proc. 2024-40, Tax Foundation state cap-gains data, WA DoR capital gains tax.
Frequently Asked Questions
What is the 2026 long-term capital gains tax rate?
Federal long-term capital gains rates for 2026: 0% if total taxable income is below $48,350 single / $96,700 MFJ / $64,750 HoH. 15% if income is between those thresholds and $533,400 single / $600,050 MFJ. 20% above that. High earners also pay an additional 3.8% NIIT on investment income above $200K single / $250K MFJ.
Do I pay capital gains tax on my primary residence?
Yes, but with a major exclusion: the Section 121 home sale exclusion exempts up to $250,000 of gain for single filers and $500,000 for MFJ on a primary residence owned and lived in for 2 of the last 5 years. Gains above the exclusion are taxed at long-term capital gains rates.
What is the wash sale rule?
If you sell a security at a loss and buy a 'substantially identical' security within 30 days before or after the sale, the loss is disallowed for tax purposes. Instead, the loss is added to the cost basis of the new shares. The rule prevents harvesting losses while maintaining the position. Note: it does NOT currently apply to cryptocurrency (this may change).
Is cryptocurrency subject to capital gains tax?
Yes. The IRS treats cryptocurrency as property \u2014 every sale, trade, or use to purchase goods triggers a taxable event. Hold less than one year = short-term (ordinary income rates). Hold more than one year = long-term capital gains rates. The wash sale rule does NOT currently apply to crypto, allowing tax-loss harvesting without the 30-day waiting period.
Can I offset capital gains with capital losses?
Yes. Net capital losses can offset capital gains dollar-for-dollar. Any excess loss can offset up to $3,000 of ordinary income per year ($1,500 if MFS). Unused losses carry forward indefinitely to future years until exhausted. This is the basis of tax-loss harvesting strategies.
What is the 3.8% NIIT and when does it apply?
The Net Investment Income Tax (Section 1411) is an additional 3.8% federal tax on investment income (interest, dividends, capital gains, rental income) for high earners. It applies when modified AGI exceeds $200,000 single / $250,000 MFJ / $200,000 HoH / $125,000 MFS. NIIT applies to the LESSER of (a) total investment income, or (b) AGI over threshold.
How much is the capital gains tax on $100,000 stock profit in 2026?
For a single filer in the 15% long-term bracket (income $48K-$533K), federal cap-gains tax on a $100,000 profit is $15,000. Add 3.8% NIIT if AGI is over $200K = +$3,800 = $18,800 federal. State tax layers on top: California 13.3% = +$13,300 (total $32,100); Texas/Florida $0 (total $18,800); New York 10.9% = +$10,900. Run the calculator, then multiply the profit by your state marginal rate to get the true out-of-pocket cost.
Do I owe capital gains tax if I only made $30,000 in salary?
Often no. The 0% long-term cap-gains bracket runs up to $48,350 taxable income for single filers in 2026 and $96,700 MFJ. If your $30,000 salary plus the long-term gain still keeps total taxable income under those thresholds, federal capital gains tax is $0. This is the tax-gain harvesting strategy: intentionally realize long-term gains in low-income years to reset cost basis at zero federal cost. State tax still applies in most states.