Capital Gains Tax Rates Methodology (2026)
This page describes how we estimate federal tax on capital gains for 2026 tools and content, including the difference between short-term and long-term gains.
Inputs
- Filing status
- Other taxable income (ordinary)
- Gain amount
- Holding period (short vs long)
Short-term gains
Short-term gains are treated as ordinary taxable income. Our estimate adds the gain to ordinary taxable income and applies the progressive bracket logic used in federal income tax calculations.
Long-term gains (stacking)
Long-term gains use separate federal rate bands. To estimate which portion of a gain falls into each band, we assume gains “stack” on top of ordinary taxable income. That means your other income can push parts of your long-term gain into higher bands.
What’s excluded
- State capital gains taxes
- NIIT and other surtaxes unless a page explicitly includes them
- AMT interactions and special-case rules unless stated