Asset Details
Tax Breakdown on Gain
| Tax Rate | Bracket Range | Gain in Bracket | Tax Owed |
|---|
Your capital gain is added to your regular income to determine which tax brackets it falls into. The table above shows how your gain is distributed across the applicable tax brackets.
Understanding Capital Gains Tax
When you sell an asset—such as stocks, cryptocurrencies, or real estate—for more than you paid for it, the profit is known as a capital gain. The US government taxes this profit, but the rate you pay depends heavily on how long you owned the asset before selling it.
Short-Term vs. Long-Term Capital Gains
The holding period of your asset determines the tax brackets used:
- Short-Term Capital Gains: If you hold an asset for one year or less before selling, the profits are considered short-term gains. These are taxed at your ordinary income tax rates (which range from 10% to 37% for 2024).
- Long-Term Capital Gains: If you hold an asset for more than one year, you benefit from lower long-term capital gains tax rates (0%, 15%, or 20% for 2024).
How Your Income Affects Your Capital Gains Rate
Your capital gains are "stacked" on top of your ordinary income. This means your regular annual income dictates your starting tax bracket for your capital gains.
For example, if you are a Single filer earning $40,000 a year in ordinary income, you fall into the 0% long-term capital gains bracket (which goes up to $47,025 for 2024). If you have a $10,000 long-term capital gain, the first $7,025 is taxed at 0%, and the remaining $2,975 spills over into the 15% bracket.
Using This Calculator
Our calculator automatically segments your capital gain into the correct 2024 tax brackets. Enter your purchase and sale prices, select your holding period, and provide your estimated annual income. The calculator will detail exactly how much tax you owe on your profit and what your final take-home amount will be.
Note: This tool provides federal estimates only. It does not include state capital gains taxes or the Net Investment Income Tax (NIIT).