What is the difference between short-term and long-term capital gains?

Assets held for one year or less are subject to short-term capital gains taxed at ordinary income tax rates (10% to 37%). Assets held longer than one year qualify for favorable long-term rates (0%, 15%, or 20%).

How is capital gain calculated?

Capital gain equals the selling price minus your adjusted cost basis (original purchase price plus allowable fees and improvements).

USA Investment & Tax Tool

Capital Gains Tax Calculator 2026

Calculate federal tax on stocks, cryptocurrency, and real estate gains under current IRS rules.

Investment Parameters

Purchase Price (Cost Basis)$50,000

Selling Price$85,000

Holding Period

Other Annual Income

Filing Status

Tax Liability Summary

Total Net Profit After Tax

$29,750

Total Capital Gain:$35,000

Applicable Tax Rate:15%

Estimated Federal Tax:$5,250

IRS Topic No. 409 Capital Gains and Losses

Understanding Capital Gains Tax in the USA

Capital gains tax applies when you sell a capital asset—such as corporate stock, cryptocurrency, precious metals, or real estate—for more than you paid for it. Under current IRS guidelines, long-term capital gains receive substantial tax advantages over ordinary income.

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