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Capital Gains Calculator

Calculate your capital gains tax liability on investment sales. This capital gains calculator helps you estimate federal and state taxes, including NIIT, on your investment gains.

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Transaction Details

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Tax Information

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Tax Summary

Capital Gain$0
Holding Period0 days (Short-term)
Federal Tax$0
State Tax$0
Total Tax$0
Effective Tax Rate0.00%
Net Proceeds$0

Understanding Capital Gains Taxes

Short-term vs Long-term

Assets held for one year or less generate short-term capital gains, taxed at ordinary income rates (10-37%). Assets held longer than one year qualify for preferential long-term rates (0%, 15%, or 20%), potentially saving thousands.

Long-term Capital Gains Rates

The 2024 long-term rates are 0% (low income), 15% (middle income), and 20% (high income). Your rate depends on both your filing status and taxable income, making tax planning crucial for larger gains.

Net Investment Income Tax (NIIT)

High earners pay an additional 3.8% NIIT on investment income. This applies when modified adjusted gross income exceeds $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately).

Tax-Loss Harvesting

Capital losses offset capital gains dollar-for-dollar. You can also deduct up to $3,000 in net losses against ordinary income annually. Excess losses carry forward indefinitely, making strategic loss harvesting valuable.

State Taxes

Most states tax capital gains as ordinary income. Nine states have no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming), while California tops out at 13.3%.

Timing Strategies

Waiting just one extra day can dramatically reduce your tax bill. Consider your holding period carefully, especially near the one-year mark. Also consider spreading sales across tax years to manage income levels and avoid NIIT.

Note: This capital gains calculator uses 2024 federal tax brackets and rates. State tax calculations are estimates based on your entered rate. Actual tax liability may vary based on additional factors like deductions, other income, and specific state rules. Consult a tax professional for personalized advice.

Disclaimer: This calculator is for educational and illustrative purposes only. Results are estimates and may not reflect actual outcomes. Investing Point does not guarantee the accuracy of these calculations and is not responsible for any decisions made based on this tool.

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