Capital Gains Tax Calculator
Compare short-term vs long-term capital gains tax. See how holding an investment for over 12 months can cut your tax bill.
Capital Gain
$30,000
Long-Term Tax
$6,000
Net Profit
$24,000
By holding for 12+ months, you saved $2,133 compared to short-term ordinary income rates.
Tax Comparison
Frequently Asked Questions
What is the difference between short-term and long-term capital gains?
Short-term capital gains apply to assets held for less than 12 months and are taxed at your ordinary income tax rate (10%–37%). Long-term capital gains apply to assets held 12+ months and are taxed at preferential rates: 0%, 15%, or 20%, depending on your income level.
How can I minimize capital gains taxes?
Hold investments for at least 12 months to qualify for long-term rates. Use tax-loss harvesting to offset gains with losses. Consider holding investments in tax-advantaged accounts (IRA, 401(k)). Donate appreciated securities to charity to avoid capital gains entirely.
Does my state tax capital gains?
Most states tax capital gains as ordinary income at their regular state income tax rates. A few states (TX, FL, WA, NV, SD, WY, AK, TN, NH) have no state income tax and therefore do not tax capital gains at the state level.
This calculator is for educational purposes only. Tax rates shown are estimates. Consult a tax professional for personalized advice. State taxes vary by jurisdiction.