Calculate your estimated tax liability on investment sales.
Single
Married Filing Jointly
Head of Household
Married Filing Separately
Short Term (Less than 1 year)
Long Term (1 year or more)
Total Capital Gain:$0.00
Tax Type:–
Applicable Tax Rate (Est.):0%
Estimated Tax Owed:$0.00
Net Profit (After Tax):$0.00
* This calculator provides estimates based on 2024 tax brackets. It assumes standard deductions are already accounted for in your taxable income input. It does not account for the Net Investment Income Tax (NIIT) of 3.8% for high earners or state taxes. Consult a CPA for official tax advice.
Understanding Capital Gains Tax
Capital gains tax is a levy on the profit realized from the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals, and property. The tax is not triggered until the asset is sold, regardless of how long the shares were held or how much they increased in value.
Cost Basis and Realized Gains
Your Cost Basis is essentially what you paid for the asset, including commissions and fees. Your Capital Gain is calculated by subtracting your cost basis from the final Sale Price. If the result is positive, it is a taxable gain. If negative, it is a capital loss, which can be used to offset other gains.
Short-Term vs. Long-Term Holding Periods
The length of time you hold an asset significantly impacts your tax rate:
Short-Term: Assets held for one year or less. These are taxed as ordinary income, meaning they are added to your regular wages and taxed at your marginal income tax rate (ranging from 10% to 37%).
Long-Term: Assets held for more than one year. These benefit from preferential tax rates of 0%, 15%, or 20%, depending on your income level.
2024 Long-Term Capital Gains Tax Rates
For the 2024 tax year, the income thresholds for long-term capital gains rates are as follows:
Rate
Single
Married Filing Jointly
Head of Household
0%
$0 to $47,025
$0 to $94,050
$0 to $63,000
15%
$47,026 to $518,900
$94,051 to $583,750
$63,001 to $551,350
20%
Over $518,900
Over $583,750
Over $551,350
How to Minimize Your Tax Liability
There are several strategies investors use to reduce their capital gains tax burden:
Hold for over a year: Waiting until the 1-year mark passes converts the gain from short-term to long-term, often cutting the tax rate significantly.
Tax-Loss Harvesting: You can sell assets that are currently at a loss to offset the gains realized from other assets.
Use Tax-Advantaged Accounts: Investments in 401(k)s or IRAs grow tax-deferred or tax-free, meaning you don't pay capital gains taxes on trades made within the account.
function calculateCapitalGains() {
// 1. Get Input Values
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value);
var salePrice = parseFloat(document.getElementById('salePrice').value);
var annualIncome = parseFloat(document.getElementById('annualIncome').value);
var filingStatus = document.getElementById('filingStatus').value;
var holdingPeriod = document.getElementById('holdingPeriod').value;
// 2. Validate Inputs
if (isNaN(purchasePrice) || isNaN(salePrice) || isNaN(annualIncome)) {
alert("Please enter valid numbers for prices and income.");
return;
}
// 3. Calculate Gain
var gain = salePrice – purchasePrice;
var displayGain = document.getElementById('displayGain');
var displayTaxType = document.getElementById('displayTaxType');
var displayTaxRate = document.getElementById('displayTaxRate');
var displayTaxAmount = document.getElementById('displayTaxAmount');
var displayNetProfit = document.getElementById('displayNetProfit');
var resultsArea = document.getElementById('resultsArea');
// Show results area
resultsArea.style.display = 'block';
// Handle Loss or Zero Gain
if (gain <= 0) {
displayGain.innerHTML = formatCurrency(gain);
displayGain.style.color = "#d9534f"; // Red for loss
displayTaxType.innerHTML = "Capital Loss";
displayTaxRate.innerHTML = "0%";
displayTaxAmount.innerHTML = "$0.00";
displayNetProfit.innerHTML = formatCurrency(gain); // Loss is the net result
displayNetProfit.style.color = "#d9534f";
return;
}
displayGain.style.color = "#28a745"; // Green for gain
displayGain.innerHTML = formatCurrency(gain);
var taxRate = 0;
var taxTypeLabel = "";
// 4. Calculate Tax Rate Logic
if (holdingPeriod === "short") {
taxTypeLabel = "Short Term (Ordinary Income)";
// Estimate based on 2024 Ordinary Income Brackets (Simplified Marginal Rate)
// Total taxable income = Regular Income + The Gain
var totalTaxable = annualIncome + gain;
taxRate = getOrdinaryIncomeRate(totalTaxable, filingStatus);
} else {
taxTypeLabel = "Long Term (Capital Gains Rate)";
// Long term rate depends on taxable income
// Usually, the gain sits 'on top' of regular income.
// We check the bracket based on Total Taxable Income (Income + Gain)
var totalTaxable = annualIncome + gain;
taxRate = getLongTermRate(totalTaxable, filingStatus);
}
// 5. Calculate Tax Amount
var taxAmount = gain * taxRate;
var netProfit = gain – taxAmount;
// 6. Update UI
displayTaxType.innerHTML = taxTypeLabel;
displayTaxRate.innerHTML = (taxRate * 100).toFixed(1) + "%";
displayTaxAmount.innerHTML = formatCurrency(taxAmount);
displayNetProfit.innerHTML = formatCurrency(netProfit);
displayNetProfit.style.color = "#28a745";
}
// Helper to format currency
function formatCurrency(num) {
return "$" + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
// 2024 Long Term Capital Gains Brackets
function getLongTermRate(income, status) {
if (status === "single") {
if (income <= 47025) return 0.0;
if (income <= 518900) return 0.15;
return 0.20;
} else if (status === "married_joint") {
if (income <= 94050) return 0.0;
if (income <= 583750) return 0.15;
return 0.20;
} else if (status === "head_household") {
if (income <= 63000) return 0.0;
if (income <= 551350) return 0.15;
return 0.20;
} else if (status === "married_separate") {
// Typically half of joint
if (income <= 47025) return 0.0;
if (income <= 291850) return 0.15; // Approx for married separate
return 0.20;
}
return 0.15; // Fallback
}
// 2024 Ordinary Income Brackets (Simplified Marginal Rate)
function getOrdinaryIncomeRate(income, status) {
// This returns the marginal bracket the income falls into.
// It does not calculate the progressive tax on the specific chunk,
// but estimates the rate applied to the gain at the top.
if (status === "single") {
if (income <= 11600) return 0.10;
if (income <= 47150) return 0.12;
if (income <= 100525) return 0.22;
if (income <= 191950) return 0.24;
if (income <= 243725) return 0.32;
if (income <= 609350) return 0.35;
return 0.37;
} else if (status === "married_joint") {
if (income <= 23200) return 0.10;
if (income <= 94300) return 0.12;
if (income <= 201050) return 0.22;
if (income <= 383900) return 0.24;
if (income <= 487450) return 0.32;
if (income <= 731200) return 0.35;
return 0.37;
} else if (status === "head_household") {
if (income <= 16550) return 0.10;
if (income <= 63100) return 0.12;
if (income <= 100500) return 0.22;
if (income <= 191950) return 0.24;
if (income <= 243700) return 0.32;
if (income <= 609350) return 0.35;
return 0.37;
} else if (status === "married_separate") {
if (income <= 11600) return 0.10;
if (income <= 47150) return 0.12;
if (income <= 100525) return 0.22;
if (income <= 191950) return 0.24;
if (income <= 243725) return 0.32;
if (income <= 365600) return 0.35;
return 0.37;
}
return 0.22; // Fallback
}