Capital Gains Tax Calculator 2025 – Short‑Term vs Long‑Term

Introduction

Capital gains are taxed differently depending on your holding period and income. This guide shows the 2025 thresholds, how to estimate taxes on sales, and tactics to reduce the bill legally.

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Short‑Term vs Long‑Term

• Short‑term: held ≤1 year; taxed at ordinary income rates
• Long‑term: held >1 year; 0%/15%/20% brackets depending on taxable income

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Steps to Estimate

1. Determine cost basis and sale proceeds
2. Classify as short‑ or long‑term
3. Add gains/losses to your ordinary income
4. Apply the appropriate tax rates

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Strategies

• Tax‑loss harvest to offset gains
• Hold to reach long‑term rates where feasible
• Use charitable donations of appreciated stock
• Mind NIIT (3.8%) at higher incomes (if applicable)

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Special Cases

• Wash sale rule: disallows losses if you repurchase substantially identical securities within 30 days before/after the sale
• Qualified dividends: taxed at long‑term rates when qualified; otherwise at ordinary rates
• Primary home exclusion: up to $250k/$500k gain exclusion for qualifying sales

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Examples (Illustrative)

• $10,000 long‑term gain, MFJ middle bracket → 15% ≈ $1,500
• $5,000 short‑term gain at 24% marginal → ≈ $1,200

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Related Tools

• Tax Bracket Calculator 2025: /calculator
• Take‑Home Pay Calculator 2025: /calculator
• Roth vs Traditional 401(k) Calculator 2025: /calculator

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CTA: Plan Your Sale

Estimate taxes before you sell, explore loss‑harvesting opportunities, and export a planning checklist.

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FAQ

Q: Do state taxes apply to capital gains?
A: Usually yes, at ordinary or separate state capital gains rates depending on the state.

Q: Can losses offset ordinary income?
A: Up to $3,000 net capital loss can offset ordinary income annually; excess carries forward.

Q: How are crypto gains taxed?
A: Generally like other capital assets; maintain detailed records for basis and holding period.