Capital Gains Tax Calculator

Federal estimates for tax year 2025: short-term gains taxed as ordinary income, long-term gains at preferential 0% / 15% / 20% rates stacked after ordinary taxable income.

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Does not include the 3.8% NIIT, AMT, or state capital gains tax.

Estimated federal income tax

$18,024

On ordinary income

$14,274

On long-term gains

$3,750

Total taxable income

$113,000

Effective rate (all income)

14.1%

Ordinary income bracket slices

RateTaxable in sliceTax
10%$11,925$1,193
12%$36,550$4,386
22%$39,525$8,696

Long-term gain is stacked after ordinary taxable income for 0% / 15% / 20% rates (2025 IRS thresholds).

Methodology

Ordinary taxable income is computed after the standard deduction (or your custom deduction) from wages, other ordinary income, and short-term capital gains. Long-term gains are reduced by any remaining standard deduction and then taxed at 0%, 15%, or 20% based on where those dollars fall on the IRS rate schedule for your filing status.

Brackets for ordinary income match IRS Rev. Proc. 2024-40. Long-term thresholds follow IRS-published 2025 tables summarized in IRS Topic 409 & Rev. Proc. 2024-40 (2025 tax year).

Frequently Asked Questions

How are short-term capital gains taxed?+
Gains on assets held one year or less are taxed as ordinary income. This calculator adds them to wages and other ordinary income, then applies the same federal brackets used for salary.
How are long-term capital gains taxed?+
For 2025, net long-term gains are generally taxed at 0%, 15%, or 20% depending on your taxable income, with rates stacking after ordinary taxable income (see IRS Topic 409). Thresholds in this tool match IRS Topic 409 & Rev. Proc. 2024-40 (2025 tax year).
Why might my real tax be higher?+
High earners may owe the 3.8% Net Investment Income Tax (not modeled here). States may tax capital gains separately. AMT can also change results.
Does this handle loss carryforwards or qualified dividends?+
No. It assumes net positive gains. Qualified dividends use a similar worksheet in real life but are not split out here.
Disclaimer: Simplified federal model only — not tax or investment advice.

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