Short-Term Capital Gains Tax Calculator
Held for a year or less? Short-term gains are taxed as ordinary income at rates up to 37%. This calculator shows exactly how much you owe — and what you'd save by waiting.
About this tool
Short-term capital gains are taxed at the same rates as wages — from 10% to 37%. This calculator computes the exact tax using the stacked-bracket method and shows how much you'd save by holding longer.
How to use it
Quick steps to get the most out of this utility.
- 1
Enter sale details and dates
Calculator auto-identifies the holding period as short-term.
- 2
Enter your ordinary income
Short-term gains stack on top — total income determines bracket.
- 3
Set state tax rate
50-state preset or manual entry.
- 4
See tax and savings
Current tax vs what it would be if you waited past 365 days.
Short-Term Gains vs. Long-Term: The True Cost of Impatience
Selling within a year locks in ordinary income tax rates. Waiting one more day past 365 days switches you to preferential long-term rates. For a taxpayer in the 24% ordinary bracket, a $20,000 short-term gain costs $4,800 in federal tax (plus state). The same gain at long-term 15% costs $3,000 — a $1,800 difference on this one sale. Over a lifetime of investing, the discipline of waiting for long-term treatment is one of the highest-value behaviors an investor can adopt.
Frequently asked questions
Is there anything I can do to reduce short-term capital gains tax?+
Yes: (1) Wait to cross 365 days (if the position is still desirable). (2) Use capital losses from other positions to offset the gain (tax-loss harvesting). (3) If the gain is in a retirement account, it's not taxable until withdrawal. (4) Gift appreciated assets to family members in lower brackets. (5) Donate appreciated securities to charity — you avoid the gain entirely and get the deduction.
Do short-term gains trigger NIIT?+
Yes. The 3.8% Net Investment Income Tax applies regardless of whether the gain is short-term or long-term. It applies to the lesser of your net investment income or the amount by which your MAGI exceeds $200,000 (single) or $250,000 (MFJ). Both short and long-term gains count as net investment income.
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More views of the same calculator
Open main calculator →Same underlying engine, written for different use cases. Pick the angle that matches your situation.