Long-term (lower rates)
Total Gain
$30,000
Type
Long-Term
Total Tax
$7,290
Net Gain
$22,710
What is the difference between long-term and short-term capital gains?
Assets held for more than 12 months qualify for long-term capital gains rates (0%, 15%, or 20% depending on income). Assets held for 12 months or less are taxed as short-term capital gains at your ordinary income tax rate (up to 37%). Long-term rates are significantly more favorable for most taxpayers.
What is the Net Investment Income Tax (NIIT)?
The NIIT is an additional 3.8% tax on investment income (including capital gains) for taxpayers with modified adjusted gross income above $200,000 (single) or $250,000 (married filing jointly). It applies to the lesser of your net investment income or the amount by which your MAGI exceeds the threshold.
How are capital gains taxed in 2025?
For 2025, long-term capital gains brackets for single filers are: 0% (taxable income up to $48,350), 15% ($48,350-$533,400), and 20% (over $533,400). Short-term gains are taxed as ordinary income at rates from 10% to 37%. The NIIT may add an additional 3.8% for high earners.
Do states tax capital gains differently?
Most states tax capital gains as ordinary income. However, nine states (AK, FL, NV, NH, SD, TN, TX, WA, WY) have no income tax. Washington state is an exception -- it imposes a 7% tax on capital gains exceeding $250,000 despite having no general income tax. Some states offer preferential rates for long-term gains.
IRS-Aligned: Uses 2025 long-term capital gains brackets, NIIT thresholds, and state tax codes. Does not account for losses, wash sales, or collectibles rates. Consult a tax advisor for complex situations.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- IRS Topic 409 — Capital Gains and Losses
- IRS Publication 550 — Investment Income and Expenses
- IRS Publication 544 — Sales and Other Dispositions of Assets
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.