Calculate your estimated long-term capital gains tax liability.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Your Estimated Long-Term Capital Gains Tax:
$0.00
Understanding Long-Term Capital Gains Tax
Long-term capital gains tax is levied on the profit you make from selling an asset that you've held for more than one year. This is distinct from short-term capital gains, which are taxed at your ordinary income tax rate and apply to assets held for one year or less.
How Long-Term Capital Gains Are Taxed
The U.S. tax system offers preferential tax rates for long-term capital gains, generally resulting in lower taxes compared to ordinary income. The specific tax rate you'll pay depends on your overall taxable income and your filing status. For 2023 and 2024, the primary long-term capital gains tax rates are:
0%: For taxpayers in the lowest income tax brackets.
15%: For most taxpayers.
20%: For taxpayers in the highest income tax brackets.
Key Definitions:
Asset Purchase Price (Cost Basis): This is typically what you paid for the asset, including any commissions or fees.
Asset Sale Price: The amount you received when you sold the asset, minus any selling expenses.
Capital Gain: The profit realized from selling an asset. Calculated as: Sale Price – Cost Basis.
Taxable Income: Your Adjusted Gross Income (AGI) minus deductions. This is the income on which your regular income tax is calculated and also determines your capital gains tax rate.
Filing Status: Your tax-filing status (Single, Married Filing Jointly, etc.) affects the income thresholds for tax brackets.
How the Calculator Works:
This calculator first determines your capital gain by subtracting the asset's cost basis from its sale price. Then, it estimates which long-term capital gains tax bracket (0%, 15%, or 20%) you fall into based on your provided taxable income and filing status. Finally, it applies the corresponding tax rate to your capital gain to estimate your tax liability.
Note: These tax brackets are for federal taxes and are subject to change annually by the IRS. They do not include state capital gains taxes, which vary by state and may be taxed as ordinary income or at a separate rate.
Example Scenario:
Let's say you purchased 100 shares of a stock for $50 per share (Cost Basis = $5,000) and later sold them for $150 per share (Sale Price = $15,000). You held the stock for over a year, so it's a long-term capital gain. Your total taxable income for the year is $80,000, and you are filing as Single.
Capital Gain = $15,000 (Sale Price) – $5,000 (Cost Basis) = $10,000
Based on 2023/2024 tax brackets for a single filer with $80,000 in taxable income, this gain would likely fall into the 15% tax bracket.
This calculator provides an estimate. Consult with a qualified tax professional for personalized advice.
function calculateCapitalGainsTax() {
var assetCostBasis = parseFloat(document.getElementById("assetCostBasis").value);
var assetSalePrice = parseFloat(document.getElementById("assetSalePrice").value);
var incomeLevel = parseFloat(document.getElementById("incomeLevel").value);
var filingStatus = document.getElementById("filingStatus").value;
var taxRate = 0;
var taxBracketInfo = "";
// Input validation
if (isNaN(assetCostBasis) || isNaN(assetSalePrice) || isNaN(incomeLevel) || assetCostBasis < 0 || assetSalePrice < 0 || incomeLevel < 0) {
document.getElementById("capitalGainsTaxResult").innerText = "Please enter valid positive numbers.";
document.getElementById("taxBracketInfo").innerText = "";
return;
}
var capitalGain = assetSalePrice – assetCostBasis;
if (capitalGain <= 0) {
document.getElementById("capitalGainsTaxResult").innerText = "$0.00";
document.getElementById("taxBracketInfo").innerText = "No capital gain realized.";
return;
}
// Long-Term Capital Gains Tax Brackets (Example for 2023/2024 – these can change)
// These are approximate thresholds and simplified for the calculator.
// Actual thresholds depend on precise AGI and specific tax year.
var zeroPercentThreshold_Single = 44625;
var fifteenPercentThreshold_Single = 44626;
var twentyPercentThreshold_Single = 492300;
var zeroPercentThreshold_MFJ = 89250;
var fifteenPercentThreshold_MFJ = 89251;
var twentyPercentThreshold_MFJ = 553850;
var zeroPercentThreshold_MFS = 44625;
var fifteenPercentThreshold_MFS = 44626;
var twentyPercentThreshold_MFS = 276925;
var zeroPercentThreshold_HH = 59750;
var fifteenPercentThreshold_HH = 59751;
var twentyPercentThreshold_HH = 523600;
// Determine tax rate based on filing status and income level
if (filingStatus === "single") {
if (incomeLevel <= zeroPercentThreshold_Single) {
taxRate = 0.00;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 0%.";
} else if (incomeLevel 0% threshold
taxRate = 0.15;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 15%.";
} else if (incomeLevel <= twentyPercentThreshold_Single) {
taxRate = 0.15;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 15%.";
} else {
taxRate = 0.20;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 20%.";
}
} else if (filingStatus === "married_jointly") {
if (incomeLevel <= zeroPercentThreshold_MFJ) {
taxRate = 0.00;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 0%.";
} else if (incomeLevel <= fifteenPercentThreshold_MFJ) {
taxRate = 0.15;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 15%.";
} else if (incomeLevel <= twentyPercentThreshold_MFJ) {
taxRate = 0.15;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 15%.";
} else {
taxRate = 0.20;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 20%.";
}
} else if (filingStatus === "married_separately") {
if (incomeLevel <= zeroPercentThreshold_MFS) {
taxRate = 0.00;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 0%.";
} else if (incomeLevel <= fifteenPercentThreshold_MFS) {
taxRate = 0.15;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 15%.";
} else if (incomeLevel <= twentyPercentThreshold_MFS) {
taxRate = 0.15;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 15%.";
} else {
taxRate = 0.20;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 20%.";
}
} else if (filingStatus === "head_of_household") {
if (incomeLevel <= zeroPercentThreshold_HH) {
taxRate = 0.00;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 0%.";
} else if (incomeLevel <= fifteenPercentThreshold_HH) {
taxRate = 0.15;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 15%.";
} else if (incomeLevel <= twentyPercentThreshold_HH) {
taxRate = 0.15;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 15%.";
} else {
taxRate = 0.20;
taxBracketInfo = "Based on your income, your long-term capital gains are taxed at 20%.";
}
}
var capitalGainsTax = capitalGain * taxRate;
document.getElementById("capitalGainsTaxResult").innerText = "$" + capitalGainsTax.toFixed(2);
document.getElementById("taxBracketInfo").innerText = taxBracketInfo;
}