Capital Gains Tax Calculator

Short-term capital gains apply to investments held less than one year and are taxed at your ordinary income tax rate (up to 37%). Long-term capital gains apply to investments held one year or longer and are taxed at preferential rates of 0%, 15%, or 20% depending on your taxable income and filing status.

The NIIT is an additional 3.8% tax on investment income (including capital gains) for high earners. It applies when your modified adjusted gross income exceeds $200,000 for single filers, $250,000 for married filing jointly, or $125,000 for married filing separately. The tax applies to the lesser of your net investment income or the amount your MAGI exceeds the threshold.

Tax-loss harvesting involves selling investments at a loss to offset capital gains. Losses first offset gains dollar-for-dollar. If your losses exceed your gains, you can deduct up to $3,000 per year ($1,500 if married filing separately) against ordinary income. Remaining losses carry forward to future tax years indefinitely.

Long-term capital gains are taxed after your ordinary income fills up the lower brackets. For example, if you're single with $47,025 in taxable ordinary income, that fills the 0% capital gains bracket entirely. Your capital gains would then start in the 15% bracket. This is why higher ordinary income pushes your gains into higher capital gains tax brackets.