Useful next calculations
Rates and sources, 2026
2026 federal long-term capital gains rate thresholds (0% and 15% maximum amounts) and ordinary income brackets for short-term gains, from the IRS annual inflation-adjustment revenue procedure. Net investment income tax thresholds are not re-checked here.
| Band or figure | Rate |
|---|---|
| 0% up to (single) | $49,450 |
| 15% up to (single) | $545,500 |
| 0% up to (MFJ / HOH) | $98,900 / $66,200 |
| 15% up to (MFJ / HOH) | $613,700 / $579,600 |
Source: IRS — annual inflation adjustments for 2026 (revenue procedure). Source checked for 2026.
When to use this calculator
- Before accepting a pay change, bonus or contribution arrangement.
- When you want a simple take-home or conversion estimate before payroll or filing.
- When you need to convert between hourly, monthly and annual pay.
- When you want to compare two pay scenarios using the same assumptions.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Capital Gain ($) | $50,000 |
| Holding Period | Short-term (held ≤ 1 year) |
| Filing Status | Single |
| Other Taxable Income ($) | $0 |
For those figures the calculator returns:
- Federal CGT: $5,752.00
- NIIT (3.8%): $0.00
- State tax: $0.00
- Total tax: $5,752.00
- Effective rate: 11.50%
- Net proceeds: $44,248.00
How to read your results
State Tax
Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result.
Total Tax
Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result.
Effective Rate
The effective rate lets you compare options on a like-for-like basis rather than being misled by different compounding periods or fee structures.
Method & assumptions
This calculator applies the 2026 federal capital gains schedule. Short-term gains are taxed as ordinary income — federal tax is estimated by computing the marginal bracket difference between your other income alone and your other income plus the gain. Long-term gains use the preferential 0%, 15%, and 20% tiers based on taxable income and filing status. The 3.8% Net Investment Income Tax applies to long-term gains when modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly), per ACA rules.
State tax is applied as a flat rate on the full gain — enter your state’s effective rate for a blended estimate. The calculator does not model AMT, depreciation recapture on real property (25%), or collectibles (28%). The effective rate is total tax divided by the reported gain. Results are estimates only; consult a CPA or enrolled agent before filing.
Common mistakes
- Using an assumption that is not supported by a current local quote, bill, statement or official source.
- Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- Mixing monthly and annual inputs without converting them consistently.
- Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.