US Capital Gains Tax (CGT) Estimator

Calculate the difference in tax liability between Short-Term and Long-Term stock holdings.

Tax Profile

Filing Status

Total Capital Gain ($)

Estimated Taxable Income ($)

Excluding this gain

Estimates based on 2024 Federal Tax brackets. Does not include state taxes, Net Investment Income Tax (NIIT), or standard deductions.

Holding Period Impact

Potential Tax Savings: $700

Short-Term (≤1 Yr)

$2,200

Eff. Rate: 22.0%

Long-Term (>1 Yr)

$1,500

Eff. Rate: 15.0%

Tax Comparison Breakdown

Strategy

Optimization

Ordinary Bracket

Taxed as Income

Your gain is added to your yearly salary and taxed at standard rates.

Preferential Rate

Reduced Liability

Assets held over 1 year qualify for 0/15/20% flat tax rates.

Tax Strategy Tip

Harvest losses to offset gains

How are Capital Gains Taxed in the USA?

The IRS treats profits from stock sales differently depending on how long you held the asset before selling. Understanding these rules can save you thousands in taxes.

1. Short-Term Capital Gains (STCG)

If you hold a stock for one year or less, any profit is considered a short-term capital gain. These gains are added to your regular taxable income and taxed at your ordinary income tax rates, which range from 10% to 37%.

2. Long-Term Capital Gains (LTCG)

If you hold a stock for more than one year, you qualify for preferential long-term capital gains tax rates. For the 2024 tax year, these rates are:

0% if your taxable income is below $47,025 (Single) or $94,050 (Married Joint).
15% for most middle-income earners.
20% if your income exceeds $518,900 (Single) or $583,750 (Married Joint).

3. Net Investment Income Tax (NIIT)

High-income earners (Single with MAGI over $200k, Married over $250k) may be subject to an additional 3.8% tax on investment income, known as the NIIT.

Optimization Tip: Tax-Loss Harvesting

You can use capital losses to offset your capital gains. If your total losses exceed your total gains, you can use up to $3,000 of excess loss to offset your ordinary income each year.

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