How do I calculate capital gains tax on a home sale?

Estimate the amount realized from the sale, subtract adjusted basis, apply any eligible home-sale exclusion, then apply long-term or short-term capital gains rules plus any NIIT or state tax assumptions.

What is the 2026 primary residence capital gains exclusion?

If you meet IRS ownership and use tests, you may be able to exclude up to $250,000 of gain, or up to $500,000 for many married couples filing jointly. Depreciation after May 6, 1997 generally cannot be excluded.

Are short-term capital gains taxed differently?

Yes. Short-term capital gains on assets held one year or less are generally taxed as ordinary income, while most long-term capital gains use 0%, 15%, or 20% federal rates.

Capital gains tax calculator

Capital Gains Tax Calculator 2026

Estimate federal capital gains tax for a home sale, rental property, stock sale, or other asset sale using 2026 IRS threshold assumptions.

Last reviewed: September 22, 2026

Built for sale-of-property estimatesStart with sale price, basis, selling costs, improvements, holding period, filing status, and possible primary residence exclusion.

2026 federal estimate

Capital gains tax calculator

Estimate US federal capital gains tax for a home, rental property, stock, or other asset sale. The default scenario is a primary residence sale.

Sale price$Purchase price / cost basis$Selling costs$Improvements added to basis$Depreciation taken$Taxable income before sale$Filing statusHolding periodEstimated state tax rate Apply primary residence exclusion if eligible

Breakdown

Amount realized$608,000.00

Adjusted basis$425,000.00

Capital gains tax$0.00

NIIT estimate$0.00

Amount realized equals sale price minus selling costs. Adjusted basis equals purchase price plus improvements minus depreciation taken.

How capital gains tax is estimated

The calculator starts with amount realized, subtracts adjusted basis, applies any eligible home-sale exclusion, and then estimates federal tax using long-term or short-term capital gains treatment.

Real estate capital gains

For a home or property sale, selling costs and capital improvements can reduce the gain. Rental or business use can add depreciation recapture, which this calculator separates as a planning estimate.

Long-term vs short-term

Most assets held more than one year use long-term capital gains rates. Assets held one year or less are generally taxed as ordinary income, so the estimate uses 2026 ordinary income brackets for short-term gains.

NIIT and state tax

Higher-income taxpayers may owe the 3.8% Net Investment Income Tax. State capital gains treatment varies, so the state field is an optional rate-based estimate rather than a state-specific legal conclusion.

Formula used by this calculator

Taxable gain = sale price - selling costs - adjusted basis - eligible home-sale exclusion

Adjusted basis is estimated as purchase price plus improvements minus depreciation taken. This simplified model does not handle installment sales, like-kind exchanges, collectible gains, qualified small business stock, AMT, passive-activity rules, or every state-specific rule.

Frequently asked questions

Can I exclude gain from selling my main home?

Possibly. IRS rules may allow an exclusion up to $250,000, or up to $500,000 for many married couples filing jointly, if ownership and use tests are met. The calculator only applies the exclusion when you turn that setting on.

Does this calculate rental property depreciation recapture?

It provides a simplified unrecaptured depreciation estimate by taxing depreciation taken at up to 25%. Rental real estate can involve more rules, so use it as a planning estimate.

Is this the same as a final tax return?

No. Final capital gains tax can depend on your complete return, losses, carryovers, depreciation history, forms, state rules, and filing facts. Use official IRS guidance or a tax professional for filing decisions.

Official references

This calculator cites official IRS pages for core rules and uses 2026 inflation-adjusted thresholds from IRS Revenue Procedure 2025-32 as published in Internal Revenue Bulletin 2025-45.

IRS Topic 409: capital gains and losses IRS Topic 701: sale of your home IRS Publication 523: Selling Your Home IRS Net Investment Income Tax IRS Revenue Procedure 2025-32

Important limits

This calculator provides estimates only. It does not decide your final tax liability, filing position, eligibility for a home-sale exclusion, depreciation treatment, state tax, or reporting forms. Capital gains rules can vary by asset type, holding period, filing facts, losses, carryovers, and state law.