How long you hold an asset before selling it dramatically changes your tax rate.
Short-term (held ≤1 year): taxed as ordinary income, at your regular tax bracket.
Long-term (held >1 year): taxed at preferential rates.
| Taxable Income | Rate |
|---|---|
| Up to $48,350 | 0% |
| $48,351 – $533,400 | 15% |
| Above $533,400 | 20% |
High earners (MAGI above $200,000 single / $250,000 MFJ) pay an additional 3.8% surtax on net investment income, including capital gains — on top of the standard capital gains rate.
Capital losses can offset capital gains dollar-for-dollar, plus up to $3,000 of ordinary income per year, with any excess carried forward to future years.
Calculate your exact capital gains tax.
Use the Capital Gains Tax Calculator →Special rules apply to collectibles (28% max rate) and qualified small business stock. Verify with a CPA for complex situations.