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Interactive guide · Tax & Refunds

How to Calculate Capital Gains Tax

Short-term vs long-term treatment, including the net investment income surtax.

Open as a plain tool
The formula

How this number is built

tax = (proceeds − basis − losses) × rate + surtax + state tax
Step by step

Calculating it yourself

Step 1

Work out the true cost basis including commissions and reinvested dividends.

Step 2

Confirm the holding period from trade dates, not settlement dates.

Step 3

Add other income, since the long-term rate brackets stack on top of it.

Step 4

Offset with realised losses, which reduce the taxable gain directly.

Step 5

Check whether the net investment income surtax applies at your income level.

Questions

What people ask next

Can losses offset ordinary income?

A limited amount each year, with the remainder carried forward to future years.

What about a home sale?

A primary residence has its own exclusion rules that this calculator does not model.

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