What Is This Calculator?

Selling an asset for more than you paid? The IRS wants a cut. This calculator figures out exactly how much tax you owe based on your profit, how long you held the asset, and your income bracket. In 2026, long-term capital gains rates remain at 0%, 15%, or 20% depending on your taxable income — but short-term gains (assets held 12 months or less) get taxed at your ordinary income rate, which can be as high as 37%.

Key Takeaways

The Formula

Subtract what you paid (plus any commissions or fees) from what you sold it for. That profit gets multiplied by whichever tax rate applies to your situation.

Why This Matters — Real-World Application

Say you bought 100 shares of Apple at $150 in March 2024 and sold them at $200 in May 2026. That is $5,000 in profit over 14 months, which qualifies for the lower rate. If your taxable income is $95,000, you fall in the 15% bracket and owe $750. But if you had sold after just 10 months, the IRS taxes that $5,000 at your ordinary income rate — potentially $1,850 if you are in the 37% bracket. That 14-month hold saved you over $1,100.

Practical Example

Key Factors That Affect Your Results

• How long you held the asset (over 12 months gets the lower rate)
• Your total taxable income for the year
• What you originally paid (your cost basis)
• Any commissions or fees from the sale

Tips for Using This Calculator

• 1Track your exact purchase price including commissions — even a $10 fee increases your cost basis and reduces your taxable gain.
• 2If you are near a bracket threshold, consider waiting until January to sell. Crossing from $518,900 into $518,001 in taxable income can drop your rate from 20% to 15% on a large gain.
• 3Losses offset gains. If you sold one stock for a $3,000 gain and another for a $1,000 loss, you only pay tax on $2,000 of net profit.

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Sources & References