Short-Term Capital Gains Tax Calculator 2026
Calculate your short-term capital gains tax for 2026. Assets held one year or less get taxed at ordinary income rates — from 10% all the way up to 37%. Know what you owe before you file.
Purchase Information
Sale Information
Tax Filing Information
Your income from other sources (excluding this gain)
What Are Short-Term Capital Gains?
A short-term capital gain is the profit you make from selling an asset you have held for one year or less. The IRS treats these gains as ordinary income, which means they get taxed at the same rates as your salary — not at the lower long-term rates most investors are hoping for.
10%–37%
Short-term rates (ordinary income brackets)
0%–20%
Long-term rates (preferential brackets)
How Short-Term Gains Get Taxed
When you sell a stock, a piece of real estate, or cryptocurrency that you have owned for one year or less, any profit you make is a short-term capital gain. The IRS does not give these gains any special treatment — they are simply added to your other taxable income and taxed at the ordinary income rates that apply to your bracket. For a lot of people, that means the gain gets taxed at 22% or 24%. For high earners, it can climb all the way to 37%.
Compare that to long-term capital gains, which max out at 20% for most taxpayers and can be as low as 0%. The gap between short-term and long-term rates is one of the biggest levers in your tax planning toolkit. Holding an investment for just one extra day can literally save you thousands of dollars.
What Counts as a Capital Asset
Almost everything you own for personal or investment purposes is a capital asset in the eyes of the IRS. That includes stocks, bonds, mutual funds, ETFs, real estate, cryptocurrency, collectibles, and even certain personal property. When you sell any of these for more than you paid, the profit is a capital gain — and if you held it for a year or less, it is a short-term one.
There are some exceptions. Inventory held for sale in a business, accounts receivable, and certain hedging transactions are not treated as capital assets. But for the vast majority of individual investors, everything in their portfolio qualifies.
The Holding Period: Why One Extra Day Matters
The holding period starts the day after you acquire the asset and ends on the day you sell it. If you buy a stock on January 1st and sell it on January 1st of the following year, you have held it for exactly 364 days — still short-term. You need to hold it until January 2nd (365 days) or later to cross into long-term territory. That single day can be the difference between paying 37% on the gain or 15%.
On a $100,000 gain, that one extra day of holding could save you $22,000 in federal tax alone. This is why experienced investors are obsessive about checking their purchase dates before selling. Our calculator above automatically determines your holding period — just enter your buy and sell dates.
The Real Cost of Short-Term Gains
For a high-income earner in the 37% federal bracket, a $100,000 short-term capital gain triggers roughly $37,000 in federal taxes. Add in state taxes and the 3.8% NIIT, and the total bill can easily exceed $50,000. The same $100,000 gain taxed as long-term would cost only $15,000 to $20,000 at the federal level — a difference that can change your entire financial year.
Who Ends Up Paying Short-Term Rates
Active traders, day traders, and crypto investors are the most common victims of short-term capital gains. They buy and sell frequently, rarely holding positions long enough to qualify for long-term treatment. Employees who sell stock options or RSUs shortly after vesting also get hit — the gains from selling those shares within a year of exercise are short-term.
Cryptocurrency traders are especially vulnerable because the wild price swings in crypto markets push people to trade in and out quickly. Each profitable trade within a year generates a short-term gain, and those gains add up fast across hundreds of trades. If you are an active crypto trader, check our crypto tax calculator to see what you might owe.
2026 Short-Term Capital Gains Tax Rates and Brackets
Short-term capital gains use the exact same brackets as ordinary income. The tables below show the 2026 federal income tax brackets broken out by filing status. Your short-term gains get stacked on top of your other income, so they are usually taxed at your highest marginal rate.
Single Filers
| Tax Rate | Taxable Income Range |
|---|---|
| 10% | $0 – $12,400 |
| 12% | $12,401 – $50,400 |
| 22% | $50,401 – $105,700 |
| 24% | $105,701 – $201,050 |
| 32% | $201,051 – $258,800 |
| 35% | $258,801 – $619,900 |
| 37% | Over $619,900 |
Married Filing Jointly
| Tax Rate | Taxable Income Range |
|---|---|
| 10% | $0 – $24,800 |
| 12% | $24,801 – $100,800 |
| 22% | $100,801 – $211,400 |
| 24% | $211,401 – $402,100 |
| 32% | $402,101 – $517,600 |
| 35% | $517,601 – $780,700 |
| 37% | Over $780,700 |
Married Filing Separately
| Tax Rate | Taxable Income Range |
|---|---|
| 10% | $0 – $12,400 |
| 12% | $12,401 – $50,400 |
| 22% | $50,401 – $105,700 |
| 24% | $105,701 – $201,050 |
| 32% | $201,051 – $258,800 |
| 35% | $258,801 – $390,350 |
| 37% | Over $390,350 |
Head of Household
| Tax Rate | Taxable Income Range |
|---|---|
| 10% | $0 – $17,700 |
| 12% | $17,701 – $67,900 |
| 22% | $67,901 – $150,600 |
| 24% | $150,601 – $238,200 |
| 32% | $238,201 – $474,200 |
| 35% | $474,201 – $619,900 |
| 37% | Over $619,900 |
Plus the 3.8% Net Investment Income Tax
High-income taxpayers may also owe the 3.8% NIIT on short-term capital gains. This applies when your modified adjusted gross income exceeds:
- $200,000 for Single
- $250,000 for Married Filing Jointly
- $125,000 for Married Filing Separately
- $200,000 for Head of Household
How to Calculate Short-Term Capital Gains Tax
Calculating your short-term capital gains is not complicated, but there are a few details that trip people up. Here is a step-by-step walkthrough of the entire process.
Determine Your Cost Basis
Your cost basis is what you paid for the asset plus any commissions, fees, and acquisition costs. For stocks, that means the purchase price per share times the number of shares, plus brokerage commissions. For real estate, include the purchase price, closing costs, and the cost of any capital improvements. If you reinvested dividends, each reinvestment adds to your basis.
Calculate Your Capital Gain or Loss
Subtract your cost basis from the sale price (minus any selling costs like brokerage commissions). If the result is positive, you have a gain. If it is negative, you have a loss. For example, if you bought stock for $50,000 and sold it six months later for $75,000, your short-term capital gain is $25,000.
Confirm the Holding Period
Count the days from the day after you acquired the asset to the day you sold it. If it is 365 days or less, the gain is short-term. If it is more than 365 days, it is long-term. Be careful here — holding an asset just one extra day can drop your tax rate from 37% to 15% or 20%. Use our calculator above to check your holding period automatically.
Apply the Ordinary Income Tax Brackets
Short-term gains are added on top of your other taxable income using the "stacking" rule. Your gain fills up the remaining space in your current bracket first, then spills into higher brackets. For example, if you have $80,000 in salary and a $50,000 short-term gain as a single filer, the first portion fills the 22% bracket and the rest is taxed at 24%.
Account for NIIT and State Taxes
If your MAGI exceeds the NIIT thresholds, add 3.8% on the lesser of your net investment income or the excess over the threshold. Then layer on your state capital gains tax. In California, the combined rate on short-term gains can exceed 50% for top earners. Check our state tax rates guide for your state's number.
Example: Single Filer With a Short-Term Stock Gain
By selling just a few months early, this taxpayer pays roughly $4,200 more in federal tax than if they had waited to qualify for long-term treatment. Use our main calculator to run your own numbers.
Short-Term vs Long-Term Capital Gains: Side by Side
The difference between short-term and long-term treatment is not subtle — it can change your tax bill by tens of thousands of dollars on the same gain. Here is how they compare.
| Feature | Short-Term | Long-Term |
|---|---|---|
| Holding Period | 1 year or less | More than 1 year |
| Tax Rates | 10% – 37% | 0% – 20% |
| Rate Basis | Ordinary income brackets | Preferential capital gains brackets |
| Stacking Rule | Stacked on top of other income | Taxed independently |
| NIIT Applies? | Yes (3.8%) | Yes (3.8%) |
| State Tax | Same as ordinary income | Same as ordinary income |
The Bottom Line: Hold When You Can
If you have a choice about when to sell, waiting until you cross the one-year mark is almost always the right move. The tax savings from converting a short-term gain into a long-term one can be enormous — especially for taxpayers in the 32% or 37% ordinary income brackets. Visit our long-term capital gains page for the full breakdown of preferential rates.
Who Pays Short-Term Capital Gains Tax?
Not all investors face short-term rates equally. Some types of traders and employees get hit much harder than others. Here are the groups that need to pay the most attention.
Crypto Traders
The volatile crypto market pushes traders to buy and sell within weeks or even days. Every profitable trade is a short-term gain, and across hundreds of trades the tax bill adds up fast. Crypto-to-crypto swaps are taxable too — the IRS does not care that you never touched dollars.
Day Traders
Day traders hold positions for minutes or hours, never long enough for long-term treatment. Their entire annual profit consists of short-term gains. While mark-to-market accounting is an option for qualifying traders, most end up paying ordinary rates on everything they earn.
Employee Stock Options and RSUs
When RSUs vest or you exercise non-qualified stock options, the bargain element is taxed as ordinary income right away. If you then sell the shares within a year of exercise, any additional gain is also short-term. Many employees sell immediately to diversify, locking in short-term treatment on the entire appreciation.
Active Stock Traders
Investors who frequently rebalance, chase momentum, or act on short-term market signals often sell positions before the one-year mark. Even a handful of profitable short-term stock trades can push your total tax liability up significantly compared to a buy-and-hold approach.
How to Reduce Your Short-Term Capital Gains Tax
You cannot always avoid short-term gains, but there are several strategies that can take a serious bite out of the tax bill. Here are the ones that actually work.
Hold Investments Longer Than One Year
This is the most obvious and most powerful strategy. By holding an investment for just one extra day past the one-year mark, you convert a short-term gain into a long-term one. On a $100,000 gain, a taxpayer in the 37% bracket would save $17,000 to $22,000 in federal taxes alone. If you do not need the cash right away, waiting is almost always worth it.
Tax-Loss Harvesting
Sell losing investments to offset your short-term gains dollar for dollar. Short-term losses first offset short-term gains, which is the most valuable match because short-term gains are taxed at higher rates. If your losses exceed your gains, you can deduct up to $3,000 against ordinary income and carry the rest forward. Use our tax-loss harvesting calculator to see how much you can save.
Watch Out for the Wash Sale Rule
If you sell a security at a loss and buy a substantially identical one within 30 days before or after the sale, the IRS disallows the loss. The disallowed amount gets added to the basis of the new shares instead of giving you a deduction now. This is a common trap for investors who harvest losses in popular index funds or stocks they want to keep in their portfolio.
Use Retirement Accounts
Gains inside a 401(k), traditional IRA, or Roth IRA are either tax-deferred or tax-free. If you are an active trader, doing your trading inside a retirement account eliminates the short-term capital gains problem entirely. The downside is that your money is locked up until retirement age, but the tax savings can be enormous over time. Max out your contributions every year if you can.
Donate Appreciated Assets
If you were planning to sell a winning investment and donate the cash to charity, consider donating the shares directly instead. You avoid recognizing the capital gain entirely, and if you itemize deductions, you can deduct the full fair market value of the donated shares. This strategy works for both short-term and long-term gains, though the deduction rules differ slightly between the two.
Consider Installment Sales
If you are selling a large asset like real estate, you might be able to spread the gain across multiple tax years using an installment sale. Instead of receiving the full payment upfront, you take payments over time and recognize the gain proportionally each year. This can keep your income in a lower bracket for each year of the installment period. The rules are complex, so consult a tax professional before going this route.
Common Mistakes With Short-Term Capital Gains
These errors cost real money. Here are the ones we see most often, and how to avoid each one.
Selling One Day Too Early
Holding an asset for 364 days instead of 366 can cost you thousands. Always check your purchase date before selling. One extra day can drop your rate from 37% to 15%.
Forgetting to Track Cost Basis
If you cannot prove what you paid for an asset, the IRS may assume your basis is zero — meaning your entire sale proceeds are taxable gain. Keep records for every purchase.
Triggering Wash Sales
Selling a stock at a loss and buying it back within 30 days disallows the loss deduction. This happens more than you would think, especially with automated reinvestment plans.
Ignoring the Stacking Effect
Short-term gains sit on top of your other income. A $50,000 gain does not get taxed at one flat rate — it spans multiple brackets. Many people underestimate their actual tax bill.
Overlooking State Taxes
In high-tax states like California or New York, your combined federal-plus-state rate on short-term gains can exceed 50%. Always factor in state tax when deciding whether to sell.
Not Reporting Crypto-to-Crypto Trades
Swapping Bitcoin for Ethereum is a taxable event, even though you never cashed out to dollars. The IRS treats each trade as a sale of one asset and a purchase of another.
State Short-Term Capital Gains Tax
The federal tax is only part of the story. Most states also tax short-term capital gains as ordinary income, and in some states the extra layer can be brutal.
States With No Income Tax
If you live in Florida, Texas, Nevada, Wyoming, Washington, South Dakota, Alaska, Tennessee, or New Hampshire, you only owe the federal tax on short-term gains. These states have no personal income tax, which makes a huge difference — especially on large gains. A California resident with a $500,000 short-term gain could owe an extra $66,500 in state tax, while a Texas resident on the exact same gain owes zero state tax.
The Highest-Tax States
California tops the list with a 13.3% top rate on short-term gains (treated as ordinary income). New York reaches 10.9%, New Jersey 10.75%, and Minnesota 9.85%. When you combine the federal 37% rate, the 3.8% NIIT, and state tax, top earners in California can face an effective rate above 54% on short-term gains. That means more than half of your profit goes straight to the government. Check our state tax rates guide for the full breakdown.
Most States Follow Federal Rules
Most states that have an income tax use the same definition of short-term capital gains as the IRS. However, a few states have their own adjustments, deductions, or alternative calculations that can change your state-level tax slightly. Always check your specific state rules or work with a local CPA.
Short-Term Capital Gains Quick Reference
Short-Term Rate
10%–37%
Same as ordinary income brackets based on filing status
Holding Period
365 Days
One year or less is short-term; more than one year is long-term
NIIT Surcharge
+3.8%
Applies to high-income taxpayers above $200K/$250K MAGI
Long-Term Alternative
0%–20%
Hold longer than one year for preferential rates
Loss Deduction
$3,000/Year
Net capital losses deductible against ordinary income annually
Best Strategy
Hold 1+ Year
One extra day of holding can save 17-22% in taxes
Related Tax Calculators and Guides
Capital Gains Calculator
Complete calculator for both short-term and long-term gains
Long-Term Capital Gains Rates
Preferential rates of 0%, 15%, and 20% for assets held over 1 year
Stock Tax Calculator
Calculate capital gains tax on stock and ETF sales
Crypto Tax Calculator
Tax on Bitcoin, Ethereum, and other cryptocurrency gains
Tax-Loss Harvesting Guide
Offset gains by selling losing investments strategically
State Tax Rates
Capital gains tax rates by state for 2026