Capital Gains Tax Calculator 2026
Calculate your 2026 federal and state capital gains tax — short-term, long-term, NIIT surcharge for stocks, real estate, and crypto.
2026 Capital Gains Tax Rates Explained
The IRS taxes capital gains differently based on how long you held the asset. Long-term capital gains (assets held more than 12 months) are taxed at preferential rates of 0%, 15%, or 20% based on your taxable income. Short-term capital gains (held 12 months or less) are taxed as ordinary income — at your marginal income tax bracket, which ranges from 10% to 37% in 2026.
The 2026 long-term capital gains rate thresholds (IRS Rev. Proc. 2025-61): 0% for single filers with income up to $48,350 and married filing jointly up to $96,700. 15% applies to most middle-income earners. 20% applies to single filers above $533,400 and MFJ above $600,050. High-income earners (MAGI above $200K single / $250K joint) also owe an additional 3.8% Net Investment Income Tax (NIIT) on investment gains.
State Capital Gains Taxes (2026)
Most states tax capital gains as ordinary income at the same rate as wages. California applies its top rate of 13.3% with no preferential treatment for long-term gains — the highest in the nation. Nine states have no income tax: Texas, Florida, Nevada, Washington, Wyoming, South Dakota, Alaska, Tennessee, and New Hampshire (dividends only). A handful of states like Colorado (4.4%) and Arizona (4.5%) offer relatively low rates. The combined federal + state burden matters significantly for relocation decisions and asset timing.
Capital Gains Tax Planning Strategies
Several legal strategies reduce capital gains tax exposure. Tax-loss harvesting: sell losing positions to offset gains dollar-for-dollar. Losses above gains offset up to $3,000 of ordinary income per year, with excess carried forward. Hold period optimization: wait past 12 months to flip short-term (ordinary rate) to long-term preferential rate — a difference of 10–20+ percentage points. Income timing: if your income fluctuates, realizing gains in a lower-income year can mean paying 0% instead of 15% or 20%. 1031 exchange: real estate investors can defer capital gains indefinitely by rolling proceeds into a like-kind property within IRS deadlines.