Capital Gains Calculator

Capital gains rates are designed to encourage long-term investing. Most people can get a significant advantage from holding stock investments for more than one year:

2017

Tax Bracket Capital Gain Tax Rate Short Term Long Term 10% 10% 0% 15% 15% 25% 25% 15% 28% 28% 33% 33% 35% 35% 39.6% 39.6% 20% 2018 - 2019

Tax Bracket Capital Gain Tax Rate Short Term Long Term 10% 10% 0% 12% 12% 22% 22% 15% 24% 24% 32% 32% 35% 35% 37% 37% 20%

Short term gains on stock investments are taxed at your regular tax rate; long term gains are taxed at 15% for most tax brackets, and zero for the lowest two.

Here is a simple capital gains calculator, to help you see what effects the current rates will have in your own life. (Before you use it for the first time, you may want to check out an example with numbers already filled in.)

Purchase Price: $ Sale Price: $ Your Federal Tax Bracket: 37 35 32 24 22 12 10 % Time from Purchase to Sale: One Year

or Less More than

One Year Your State Tax Rate: % % Federal Capital Gains Tax Rate:* % % Total Tax Due: $ $ Net Sale After Tax: $ $ Advantage of Waiting: %

* These are the rates for 2018. See the IRS for the ongoing saga.

Also see the government spending diagram for some context on taxes, deficits, and interest rates.