Capital Gains Tax Calculator 2025
Estimate federal capital gains tax on stocks, real estate, or any asset. See short-term vs. long-term rates, NIIT, and your net proceeds.
2025 Long-Term Capital Gains Rates
| Rate | Single | Married Filing Jointly |
|---|---|---|
| 0% | Up to $47,025 | Up to $94,050 |
| 15% | $47,026–$518,900 | $94,051–$583,750 |
| 20% | Over $518,900 | Over $583,750 |
| +3.8% NIIT | MAGI over $200,000 | MAGI over $250,000 |
2025 rates per IRS Rev. Proc. 2024-40. Short-term gains (held ≤1 year) are taxed as ordinary income at 10%–37%. Federal only — state capital gains taxes vary.
Frequently Asked Questions
What are the 2025 long-term capital gains tax rates?
For 2025, long-term capital gains (assets held 1+ year) are taxed at 0%, 15%, or 20% based on taxable income. For single filers: 0% up to $47,025; 15% from $47,026–$518,900; 20% above $518,900. For married filing jointly: 0% up to $94,050; 15% from $94,051–$583,750; 20% above. High earners may also owe the 3.8% Net Investment Income Tax (NIIT), bringing the effective top rate to 23.8% (or 28.8% including state taxes in high-tax states). These are per IRS Rev. Proc. 2024-40.
What is the difference between short-term and long-term capital gains?
Short-term capital gains (assets held 1 year or less) are taxed as ordinary income — at your regular income tax bracket rate (10%–37%). Long-term capital gains (assets held more than 1 year) benefit from preferential rates of 0%, 15%, or 20%. This difference is significant: a $50,000 short-term gain for a $150,000-income single filer is taxed at 22%, while the same $50,000 long-term gain is taxed at just 15%. Holding an asset past the 1-year mark to qualify for LTCG rates is one of the most impactful tax strategies available.
What is the Net Investment Income Tax (NIIT)?
The NIIT is a 3.8% surtax on net investment income (capital gains, dividends, interest, rental income) for higher earners. It applies to the lesser of: (a) net investment income, or (b) the amount by which Modified Adjusted Gross Income (MAGI) exceeds the threshold: $200,000 single / $250,000 married filing jointly / $125,000 married filing separately. Example: Single filer with $250,000 MAGI (including $60,000 capital gain) owes NIIT on $50,000 (the amount above $200,000 threshold), = $1,900.
How can I reduce capital gains taxes legally?
Key strategies: (1) Hold assets 1+ year to qualify for long-term rates. (2) Tax-loss harvesting — sell losing investments to offset gains. (3) Invest in opportunity zones for gain deferral. (4) Gift appreciated assets to family members in lower tax brackets. (5) Use tax-advantaged accounts (401k, IRA) for high-growth assets. (6) Step-up in basis at death eliminates embedded gains for heirs. (7) Installment sales spread gain across multiple years. (8) 1031 exchange for real estate (defer gains by reinvesting in like-kind property).