PFCHow to use this calculator
Selling an investment can create a taxable gain or a loss. This calculator estimates the additional U.S. federal tax from one ordinary investment sale in tax year 2026, based on your filing status, holding period, and income before the sale.
- Select your filing status and whether the investment was held for more than one year.
- Enter the sale proceeds, adjusted cost basis, and selling fees.
- Enter ordinary taxable income and MAGI before the sale. Include any unused deductions or other net investment income that apply to this model.
Illustrative example
The default single-filer example sells an investment for $50,000.00 with $30,000.00 cost basis and $60,000.00 ordinary taxable income before the sale. For a long-term gain, estimated additional federal tax is $3,000.00 under the remaining displayed assumptions.
These example values are for explanation. They are not current market quotes or personalized recommendations.
Calculation method
Gain equals sale proceeds minus selling fees minus adjusted cost basis. Positive taxable gains are placed above ordinary taxable income and taxed across the applicable brackets. The additional net investment income tax is calculated as the difference between the modeled NIIT before and after the sale.
Assumptions and limitations
2026 U.S. federal estimate for a single ordinary investment sale. Positive gains, less any unused deductions entered, are stacked above ordinary taxable income. Long-term gains use 0%, 15%, and 20% brackets; short-term gains use ordinary brackets. The additional NIIT is the difference in 3.8% net investment income tax before and after the sale, using your MAGI and other net investment income. It can include tax newly triggered on that other investment income. Assumes deductions stay unchanged and no other capital gains or qualified dividends. Excludes state/local taxes, AMT, credits, loss netting/carryovers, collectibles, real-estate exclusions, depreciation recapture, and other special rates. Losses show no estimated tax benefit. This is not a complete tax return.
Sources
2026 capital gains tax calculator FAQs
Choose a question to read the answer, then try your own numbers in the free calculator.
How is capital gains tax calculated?
The calculator subtracts adjusted cost basis and selling fees from sale proceeds. It stacks the positive taxable gain above the entered ordinary taxable income and applies the modeled 2026 federal rates. It also estimates the change in net investment income tax using your separate MAGI and other investment-income inputs.
What is the difference between short-term and long-term capital gains?
For an ordinary investment sale, a holding period of more than one year generally produces a long-term gain; one year or less is short term. Short-term gains generally use ordinary income rates, while most long-term gains use preferential rates. Special asset rules are outside this calculator.
Is taxable income the same as salary?
No. The input is ordinary taxable income after deductions, before this sale. MAGI is a separate input used for NIIT. The calculator does not derive either figure from gross salary.
Are all gains taxed at one rate?
No. A gain can cross multiple brackets. The breakdown shows the gain allocated to each regular federal rate.
Does it calculate tax benefits from losses?
No. A loss is displayed, but loss netting, carryovers, and deductions require information outside this single-sale calculator.
PFC provides mathematical planning estimates. Tax and retirement rules in these tools are for 2026 and do not update automatically. Check the cited sources and the terms that apply to your situation.