Interactive Tools
Capital Gains Tax Calculator
Free capital gains tax calculator: estimate federal and state capital gains tax, including NIIT, for Texas and all 50 states, and see Texas's built-in advantage.
Capital Gains Details
Enter your capital gains information to estimate your total tax liability.
Your Capital Gain Breakdown
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$0
Total Capital Gain
Your Estimated Tax
Federal Rate Applied
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Federal Tax
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NIIT (3.8%)
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State Tax
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Total Estimated Tax
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Disclaimer: This calculator provides estimates only. State tax rates shown are approximate top marginal rates and may not reflect your actual state tax liability. Short-term gains are taxed as ordinary income at federal rates. Strategies involve risk, including possible loss of principal, and may not be suitable for all investors. Consult your tax advisor for personalized advice.
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Frequently Asked Questions
Common Questions
How is capital gains tax calculated?
Long-term capital gains (assets held more than one year) are taxed at federal rates of 0%, 15%, or 20% depending on your taxable income and filing status. Short-term gains are taxed as ordinary income. High earners may also owe the 3.8% Net Investment Income Tax (NIIT), plus any applicable state tax. This calculator estimates all of these based on the figures you enter.
Does Texas have a state capital gains tax?
No. Texas has no state income tax, which means no state tax on capital gains. An investor with the same gain in a high-tax state like California could owe over 13% in additional state tax. This is a meaningful advantage for Texas residents.
What is the Net Investment Income Tax (NIIT)?
The NIIT is a 3.8% federal surtax on net investment income for individuals with modified adjusted gross income above $200,000 (single) or $250,000 (married filing jointly). It applies on top of ordinary capital gains rates and is a common surprise for higher-income investors.