Estimate your capital gains tax on stocks, real estate, and other investments. See the difference between short-term and long-term rates instantly.
Short-Term vs Long-Term Capital Gains
If you sell an asset you held for one year or less, the profit is taxed as ordinary income at your regular tax bracket — which can be as high as 37%. If you hold for more than one year, the profit qualifies for long-term capital gains rates of 0%, 15%, or 20% depending on your income. Holding longer almost always means paying less tax.
2025 Long-Term Capital Gains Rates
- 0% — Single filers earning up to $48,350, married up to $96,700
- 15% — Single filers up to $533,400, married up to $600,050
- 20% — Above those thresholds
How to Reduce Capital Gains Tax
- Hold assets for more than one year to qualify for long-term rates
- Harvest tax losses — sell losing investments to offset gains
- Contribute gains to a Roth IRA or 401k before selling
- Time large sales for years when your income is lower
- Consider Opportunity Zone investments for deferral
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