Use our free capital gains calculator to estimate your capital gains tax liability for 2026. This calculator can help you estimate how much additional taxes you will pay in 2026 due to capital gains. This version of the calculator is based on 2026 capital gains tax brackets.
To use the calculator, you need to get some good estimates of your earnings for the year, along with your taxable income from other sources. You can take the sum of all your gains of one type (short or long-term) and see what your tax liability might be.
What you need to know for the capital gains tax calculator
In order to calculate your estimated capital gains tax, you need to know a few things:
Estimated profit
When you sell a stock or other asset for a profit, you make a capital gain. Essentially, when most assets are sold for a profit, a capital gain is made. Profits or gains are subject to tax.
Personal assets and investments are called capital assets. This includes your home, car, investments, recreational vehicle, and more. IRS Topic No. 409 Covers these elements in more detail. The capital gain or capital loss is based on the difference between the selling price of the assets and the adjusted basis, which is indicated in IRS Publication 551.
In simple terms, assuming this equation is positive: Total value sold – total value paid = capital gain.
Estimated taxable income
The amount you pay in taxes depends on your income. In this calculator, you need to provide an estimate of your other taxable income, Does not include capital gains. These may be things like your salary or wages, your business income, etc.
Type of capital gain
Capital gains come in two flavors: short-term and long-term. The amount of tax you pay depends on the flavor.
Short-term capital gains are profits earned on investments that you have owned for less than one year.
Long-term capital gains are profits earned on investments that you have owned for more than one year.
Long-term interest rates are much better than short-term interest rates.
Tax filing status
Finally, we need to know your tax filing status so we can know which tax tables to use.
What are capital gains tax rates?
Capital gains tax rates are set by Congress, and the IRS adjusts the brackets for inflation each year. There are long-term and short-term rates.
The current capital gains brackets and short-term gain rates are as follows:
Here are the current rates for long-term gains:
What about state taxes?
Your state may also impose income taxes on your gains. While some states have capital gains tax rates, others simply include your gains in your gross income and treat them as a single source of income.
If you live in a state that has an income tax, make sure you also plan accordingly for your state’s tax burden from your gains.
In states like California, the top tax bracket is 13.5% if your income is over $1,000,000. If you have short-term capital gains, that could make your tax rate 50.5% (37% + 13.5%).
Additional factors to consider
The biggest change in capital gains taxes is the move from short-term gains to long-term gains. If you can wait until you get past the one-year mark, there can be a significant saving in the amount of taxes you pay on your capital gains.
Check the calculator above for estimates. This should not be a substitute for real tax advice. Talk to a tax professional if you need help with tax planning.
