📊 Capital Gains Tax Calculator
Calculate your capital gains tax liability when selling real estate. Estimate your profit, tax owed, and net proceeds after all deductions and exemptions.
🏠 Purchase Information
💰 Sale Information
⚙️ Tax Settings
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About Capital Gains Tax Calculator
This capital gains tax calculator helps you estimate the tax liability when selling real estate property. Calculate your profit, applicable tax rates based on holding period, available exemptions, and final net proceeds after federal and state taxes.
Key Features
- Complete Cost Basis Calculation: Includes purchase price, closing costs, and capital improvements to determine your true investment.
- Holding Period Tax Rates: Automatically applies short-term (ordinary income) or long-term (preferential) capital gains rates based on ownership duration.
- Primary Residence Exemption: Calculates the $250,000/$500,000 exclusion for qualifying primary residences.
- Depreciation Recapture: Accounts for depreciation recapture tax on rental properties at 25% rate.
- State Tax Integration: Includes state-level capital gains taxes in total liability calculation.
- Net Proceeds Estimate: Shows your final take-home amount after all taxes.
Common Use Cases
- Home Sale Planning: Estimate tax liability before listing your primary residence.
- Investment Property Analysis: Calculate returns on rental property sales including depreciation recapture.
- Tax Planning: Determine optimal timing for sale to minimize tax burden.
- 1031 Exchange Evaluation: Compare tax deferral benefits with outright sale.
- Downsizing Decisions: Understand tax implications when selling expensive homes.
How to Use the Tool
- Purchase Information: Enter original purchase price, date, closing costs, and any capital improvements made.
- Sale Details: Input the sale price, expected date, selling costs (agent commission, fees), and depreciation if applicable.
- Tax Settings: Select your filing status, property type, income tax bracket, and state tax rate.
- Calculate: Get instant breakdown of gain, tax owed, and net proceeds.
- Optimize: Adjust timing or improvements to see impact on taxes.
Tips & Best Practices
- Document Capital Improvements: Keep receipts for renovations, additions, and major repairs - they reduce your taxable gain.
- Timing Matters: Holding property over 1 year qualifies for lower long-term capital gains rates (0%, 15%, or 20% vs ordinary income rates).
- Primary Residence Benefit: Live in the home 2 out of last 5 years to qualify for $250K/$500K exemption.
- Rental Property Considerations: Depreciation taken must be recaptured at 25% tax rate regardless of holding period.
- Selling Costs Are Deductible: Real estate commissions, title fees, legal costs, and transfer taxes reduce your gain.
Privacy & Security
All calculations are performed entirely in your browser. No data is transmitted to any server. Your financial information remains completely private and is never stored, tracked, or shared.
💡 Understanding Capital Gains Tax
Short-Term vs Long-Term: Properties held ≤1 year are taxed at ordinary income rates (10-37%). Properties held >1 year qualify for preferential long-term rates (0%, 15%, or 20% based on income).
Primary Residence Exemption: If you lived in the home 2 of the last 5 years, you can exclude $250,000 (single) or $500,000 (married) of gain from taxes. This is a powerful benefit for homeowners.
Cost Basis: Your basis includes purchase price + buying costs + capital improvements. Regular maintenance doesn't count - only improvements that add value or extend property life.
Depreciation Recapture: Rental properties allow depreciation deductions, but you must "recapture" them at 25% when selling, even if your capital gains rate is lower.
State Taxes: Most states tax capital gains as ordinary income. Some states like California have high rates (13.3%), while others like Texas and Florida have none.
Note: This calculator provides estimates based on 2024-2025 tax rules. Actual tax liability depends on your complete tax situation, including other income, deductions, and phase-outs. Always consult a tax professional for personalized advice.