How is capital gains tax on stocks calculated?

Capital Gains Tax = (Sell Price − Buy Price) × Shares × Tax Rate. Transaction fees can reduce your taxable gain. If you hold for more than 1 year, the preferential long-term rate applies (0%, 15% or 20% federally in the US). If you hold for 1 year or less, the gain is taxed as ordinary income at your marginal rate.

What is the capital gains tax rate in the US for 2024?

For 2024, US long-term capital gains rates are: 0% for single filers with taxable income up to $47,025; 15% for income between $47,025 and $518,900; and 20% above $518,900. Married filing jointly thresholds are $94,050 and $583,750. High-income investors may also owe an additional 3.8% Net Investment Income Tax (NIIT). Short-term gains are taxed at ordinary income rates (10% to 37%).

Does holding a stock for more than 1 year reduce tax?

Yes. In the US, holding a stock for more than 12 months qualifies the gain for the long-term capital gains rate (0%, 15% or 20%), which is significantly lower than the short-term rate (your ordinary income tax bracket, up to 37%). The Tax Optimizer tab calculates exactly how much tax you save by holding to the long-term rate.

What is tax-loss harvesting?

Tax-loss harvesting is the strategy of selling investments that have declined in value to realize a capital loss, which offsets capital gains from profitable trades dollar-for-dollar. For example, if you have $10,000 in capital gains and $3,000 in realized losses, you only pay tax on $7,000. The Tax Optimizer tab calculates the after-tax benefit of offsetting your gain with any realized losses from the current year.

Which countries have no capital gains tax on stocks?

As of 2024, countries with no capital gains tax on stocks for private investors include Hong Kong, Singapore, New Zealand (generally for non-traders), and Switzerland (for private capital assets). The Global Compare tab shows after-tax profit for 12 major countries side by side, ranked from most to least tax-efficient.

What is the Net Investment Income Tax (NIIT)?

The NIIT is an additional 3.8% federal tax on investment income — including capital gains — for higher-income US taxpayers. It applies to single filers with modified adjusted gross income above $200,000 and married filing jointly above $250,000. The US Tax Brackets tab automatically adds NIIT when applicable based on your income and filing status.

Is this tax calculator free?

Yes. The Tax on Stock Profit Calculator Pro on StockToolHub is completely free with no registration or account required. This calculator is for estimation purposes only and does not constitute tax advice.

Tax on Stock Profit Calculator Pro — Capital Gains Tax

Trade Details

Buy Price

Sell Price

Number of Shares

Tax Settings

Holding Period

Tax Rate

State / Local Tax

Transaction Fees

Commissions reduce your taxable gain

After-Tax Net Profit

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Enter trade details to calculate

Gross Profit

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Taxable Gain

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Federal Tax

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State Tax

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Total Tax

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Effective Tax Rate

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Profit Breakdown — After Tax

What each tab calculates

Quick Tax

Calculate tax on any stock gain using your own custom federal and state rates. Supports short-term and long-term holding periods and deducts transaction fees from the taxable gain.

US Tax Brackets

Automatically applies the correct 2024 US federal capital gains bracket (0%, 15%, 20%) based on your filing status and total income, plus the 3.8% Net Investment Income Tax for high earners.

Global Compare

Compare capital gains tax across 12 major countries including the US, UK, Australia, Canada, Germany, Singapore and more — side by side with after-tax profit for each country.

Tax Optimizer

Compare three strategies — sell now (short-term), hold to long-term, and offset with harvested losses — to find which approach keeps the most profit in your pocket.

Tax on Stock Profit Pro

What each tab calculates

Quick Tax

US Tax Brackets

Global Compare

Tax Optimizer