Calculate your capital gains tax liability instantly with our free, accurate calculator. Get results based on 2025 tax rates with support for primary residence exemptions and state taxes.
Calculate your tax liability on property sales with 2025 tax rates
Follow these simple steps to understand your tax liability
Input your original purchase price, date, and any purchase costs like closing fees and inspection costs.
Include major renovations and improvements that add value to your property, such as kitchen remodels or new roofing.
Enter your sale price, date, and selling costs including realtor commissions and marketing expenses. Learn what costs to include.
Provide your annual income, filing status, property type, and state to calculate accurate tax rates.
Instantly see your capital gains, tax liability, net profit, and detailed breakdown of the calculations.
Use these estimates to plan, but always consult with a qualified tax professional for your specific situation.
Accurate, comprehensive, and completely free
Uses 2025 federal tax rates and includes all state taxes for precise calculations. View complete 2025 tax rate tables.
Automatically applies $250K/$500K exemptions for primary residence sales. Learn how to qualify.
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Built following IRS Publication 523 (Sale of Home) and Publication 544 (Sales and Dispositions) guidelines
Updated with latest federal capital gains brackets and NIIT thresholds for accurate calculations
Calculation engine validated against multiple real-world scenarios and edge cases
Designed as a planning tool - always consult qualified tax professionals for official advice
Expert insights and strategies to optimize your real estate tax planning
Essential 2025 tax law changes including bonus depreciation phase-out and TCJA sunset provisions. Stay ahead with our comprehensive analysis.
Master the $250K/$500K capital gains exemption for primary residences. Requirements, strategies, and planning tips.
Professional-grade tax strategies for serious real estate investors. Minimize taxes and maximize returns.
Real-world example of strategic primary residence conversion resulting in massive tax savings.
Common questions about capital gains tax on property sales
Capital gains tax is a tax on the profit you make when selling an asset (like real estate) for more than you paid for it. The tax applies to the "gain" - the difference between your sale price and your cost basis. Learn more in our complete guide.
Capital gains tax is calculated as: (Sale Price - Cost Basis - Selling Expenses) × Tax Rate. Your cost basis includes the original purchase price plus improvements, and the tax rate depends on how long you owned the property.
Short-term gains (property held ≤1 year) are taxed at ordinary income rates (10%-37%). Long-term gains (held >1 year) get preferential rates of 0%, 15%, or 20%. See our detailed comparison and 2025 tax rate tables.
Your cost basis includes the original purchase price, closing costs, and major improvements that add value to the property (like kitchen remodels, new roofing, etc.). Get our complete cost basis calculation guide with examples.
If the property was your primary residence for at least 2 of the last 5 years, you can exclude $250,000 of gains (single) or $500,000 (married filing jointly). Read our detailed primary residence exemption guide.
The exclusion applies once every two years and covers gains up to the limit. If you're married filing jointly, you can exclude $500,000. If you're single or married filing separately, the limit is $250,000. Any gains above this amount are subject to capital gains tax.
A 1031 like-kind exchange allows you to defer capital gains taxes by reinvesting the proceeds from a property sale into a similar property within specific timeframes. Use our 1031 exchange calculator to see potential savings.
Strategies include: using the primary residence exemption, holding property for >1 year for lower long-term rates, timing sales to stay in lower tax brackets, utilizing 1031 exchanges, and properly documenting all improvements to increase cost basis.
You can deduct selling expenses like real estate commissions, legal fees, title insurance, and advertising costs. These reduce your taxable gain. However, you cannot deduct expenses for improvements made more than 90 days after the sale.
It depends on your state. Some states have no capital gains tax (like Florida and Texas), while others tax capital gains as regular income. Check our state-by-state tax rate guide for specific rates.
Capital gains must be reported on your tax return for the year in which the sale occurred. If you owe taxes, you may need to make quarterly estimated payments to avoid penalties. The annual tax filing deadline is typically April 15th.
You'll need Form 8949 to report the sale details and Schedule D to calculate the gain or loss. If you qualify for the primary residence exclusion, you may also need Form 2119. For 1031 exchanges, use Form 8824.
Yes! Capital losses from other investments can offset capital gains, reducing your tax liability. If losses exceed gains, you can deduct up to $3,000 per year against ordinary income, with remaining losses carried forward to future years.
Inherited property receives a "stepped-up basis" equal to its fair market value at the time of inheritance. This means you only pay capital gains tax on appreciation that occurs after you inherit the property, not on the original owner's gains.
If you claimed depreciation on rental property, you must "recapture" that depreciation when you sell. Depreciation recapture is taxed at a maximum rate of 25%, even if your capital gains rate is lower. Calculate depreciation recapture.
NIIT is an additional 3.8% tax on investment income for high earners with modified adjusted gross income over $200,000 (single) or $250,000 (married filing jointly). This applies to rental property and investment property capital gains.
Our calculator uses current IRS tax rates and standard calculations for estimation purposes. However, tax situations can be complex - always consult with a qualified tax professional for your specific situation and consider factors like depreciation recapture and state taxes.