What is the NIIT and who pays it?

The Net Investment Income Tax (NIIT) is an additional 3.8% tax on investment income for individuals with MAGI over $200,000 (single) or $250,000 (married filing jointly).

How can I reduce capital gains tax?

Strategies include holding investments over 1 year for lower rates, tax-loss harvesting, using tax-advantaged accounts, and timing sales in lower-income years.

Cost basis is your original investment in an asset, including purchase price and fees. Your capital gain or loss is calculated by subtracting cost basis from the sale price.

How do I avoid paying capital gains tax?

Legal strategies include: hold assets 1+ year for lower rates, offset gains with losses (tax-loss harvesting), maximize basis calculations, gift appreciated stock to charity, or hold until death for stepped-up basis. Qualified Opportunity Zone deferral also works: a gain from a sale on or after July 6, 2026 can be invested in a QOF on or after Jan 1, 2027, inside its 180-day window, and deferred under the new OZ 2.0 rules (Notice 2026-40); a 2026 QOF investment defers the gain only to Dec 31, 2026, when every pre-OBBB deferral is recognized.

How long do I need to hold stock to avoid short-term gains?

You must hold an asset for more than one year (at least one year and one day) to qualify for the lower long-term capital gains rates of 0%, 15%, or 20%.

What is the collectibles tax rate?

Long-term gains on collectibles (art, antiques, coins, precious metals, gems, stamps, wine) are taxed at a maximum rate of 28%, regardless of your income bracket. Short-term collectible gains are still taxed as ordinary income.

What is Section 1202 QSBS exclusion?

Qualified small business stock can exclude 50-100% of the gain. Stock acquired on or before July 4, 2025 must be held more than 5 years (100% if acquired after September 27, 2010; 75% or 50% for older stock); stock acquired after July 4, 2025 gets 50%, 75% or 100% once held at least 3, 4 or 5 years. The eligible gain is capped at the greater of $10M ($15M post-OBBB) or 10× your basis, and the part a 50% or 75% exclusion leaves taxable is taxed at up to 28%.

A wash sale occurs when you sell a security at a loss and repurchase the same or substantially identical security within 30 days before or after. The IRS disallows the loss deduction, but it gets added to your new cost basis — except when the replacement was bought in an IRA, where the loss is destroyed permanently (Rev. Rul. 2008-5). The IRS has never precisely defined 'substantially identical': identical securities and options on them are clearly covered, while same-index funds from different issuers are commonly treated as distinct by practitioners without IRS confirmation.

Capital Gains Tax Calculator

See what you'll actually keep after selling

Sold some stocks, crypto, or collectibles? Congrats on the gains! But before you celebrate, let's figure out what Uncle Sam gets. This calculator handles all asset types — including the 28% collectibles rate and Section 1202 QSBS exclusions.

Updated August 24, 2026Reviewed for 2025 & 2026 tax yearsIRS-sourcedReviewed by Adam Khale

What is the capital gains tax rate for 2025?

Long-term capital gains (assets held over 1 year) are taxed at 0%, 15%, or 20% based on your taxable income. Short-term gains (held one year or less) are taxed as ordinary income at rates up to 37%. Collectibles are taxed at a maximum rate of 28%.

0% rate: Taxable income up to $48,350 (single) / $96,700 (MFJ)
15% rate: $48,351-$533,400 (single) / $96,701-$600,050 (MFJ)
20% rate: Above $533,400 (single) / Above $600,050 (MFJ)
Net Investment Income Tax: Additional 3.8% above $200K (single)

Source:IRS Topic No. 409

The single biggest lever in capital-gains tax is the calendar. Sell on day 364: ordinary income rates, up to 37%. Sell on day 366: long-term rates, 0% / 15% / 20%. Same stock, same gain, two completely different bills. Brokerages don't warn you. Tax software calculates after the fact. The win is knowing before you click sell.

Real-world scenario

A $40,000 gain on a tech stock, married filer

A married couple sells a tech position with a $40,000 gain. Held 11 months: gain is taxed as ordinary income — at a 24% bracket, that's $9,600 federal. Held 13 months (long-term): same $40,000 gain falls into the 15% long-term bracket — $6,000 federal. Holding two extra months saved $3,600. Add a 0% LTCG bracket for joint filers under ~$96,700 taxable income, and some couples pay $0 federal on long-term gains entirely.

The part most people miss

Tax-loss harvesting only works if you avoid the wash-sale rule: you cannot buy the same security (or a 'substantially identical' one) within 30 days before OR after the loss sale. That 61-day window is what trips up most DIY investors. The IRS has never precisely defined 'substantially identical' — repurchasing the identical security or options on it is clearly covered, while two same-index funds from different issuers are commonly treated as distinct by practitioners without IRS confirmation. Swapping into a genuinely different index removes the question.

Meet Jennifer

"Jennifer sold her Tesla stock expecting a windfall — $15,000 in gains! What she didn't expect was the $3,400 tax bill, including the 3.8% NIIT she'd never heard of. A few weeks of patience would have turned her short-term gains into long-term gains and saved her over $1,000."

Tell Us About the Sale

We'll calculate your gain and the tax you'll owe.

Asset Type

Standard LTCG rates: 0%, 15%, or 20%

Sale Price

Cost Basis

Holding Period

Taxed at preferential long-term rates (0%, 15%, or 20%)

Filing Status

Tax Year

Inflation-adjusted

LTCG breakpoints update with tax year. NIIT thresholds (IRC §1411) are statutorily fixed and unchanged.

Other income before deductions (AGI, excluding this sale)

Your deduction (standard or itemized)

Tax Calculation

Sale Price$0

Cost Basis-$0

Capital Gain$0

Net Proceeds After Tax

2026 Capital Gains Tax Rates by Asset Type

Stocks, Bonds & Funds

• 0%: Up to $49,450
• 15%: $49,450 - $545,500
• 20%: Over $545,500

Collectibles

• 28% maximum rate (long-term)
• Ordinary rates (short-term)
• Art, antiques, coins, gems, metals

QSBS (Section 1202)

• Acquired Sept 28, 2010 – July 4, 2025: 100% if held more than 5 years
• Acquired Feb 18, 2009 – Sept 27, 2010: 75%; Aug 11, 1993 – Feb 17, 2009: 50% (held more than 5 years)
• Acquired after July 4, 2025: 50% / 75% / 100% at 3 / 4 / 5 years
• Non-excluded part of a 50% or 75% exclusion: up to 28%

NIIT Threshold: 3.8% on investment income when MAGI exceeds $200,000

This calculator provides estimates based on 2025 tax rates. Capital losses can offset gains and up to $3,000 of excess losses can offset ordinary income. QSBS exclusions are subject to eligibility requirements. Consult a tax professional for complex situations.