Free Capital Gains Tax Calculator

Estimate capital gains tax owed when selling a property, accounting for acquisition costs, improvements, and applicable exclusions.

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Total Estimated Tax

$0

Capital Gains Tax$0
Depreciation Recapture Tax$0
Total Gain$127,000
Taxable Gain (after exclusion)$0
Adjusted Cost Basis$390,000

Total Estimated Tax vs Long-Term Capital Gains Rate

Capital Gains Tax on Real Estate

When you sell property for more than your adjusted basis, you owe capital gains tax on the profit.

Adjusted Basis

Basis = Purchase Price + Capital Improvements - Depreciation Taken

Computing the Gain

Gain = (Sale Price - Selling Costs) - Adjusted Basis

Primary Residence Exclusion

If you lived in the home at least 2 of the last 5 years:

  • Single: Exclude up to $250,000 of gain
  • Married filing jointly: Exclude up to $500,000
  • Depreciation Recapture

    On investment properties, depreciation taken is recaptured at 25%, separate from the capital gains rate.

    Tax Rates

  • Short-term (held < 1 year): Ordinary income rates (up to 37%)
  • Long-term (held > 1 year): 0%, 15%, or 20% depending on income
  • Example Calculation

    Selling a primary residence for $550,000. Purchased at $350,000 with $40,000 in improvements. Selling costs $33,000. Single filer with $250,000 exclusion.

    1. 01Adjusted basis: $350,000 + $40,000 = $390,000
    2. 02Net sale proceeds: $550,000 - $33,000 = $517,000
    3. 03Total gain: $517,000 - $390,000 = $127,000
    4. 04Taxable gain after exclusion: $127,000 - $250,000 = $0 (fully excluded)
    5. 05Capital gains tax: $0
    6. 06Total tax owed: $0

    Frequently Asked Questions

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