Capital gains stacking
Formula
Long-term gains sit above ordinary taxable income, filling available 0%, then 15%, then 20% capital-gain bands.
Enter ordinary taxable income before the gain—not gross income—and the net taxable gain.
The optional NIIT estimate is simplified. State taxes, loss carryovers, collectibles, depreciation recapture and home-sale exclusions are outside this calculator.
Assumptions and limits
- Federal individual tax
- Net long-term gain is eligible for preferential rates
- Ordinary taxable income is entered after deductions
- No special 25% or 28% gain category
Planning estimate, not tax advice
Tax law depends on facts this tool cannot collect. Do not use the result as the sole basis for filing, withholding or payment decisions.
Frequently asked questions
Why does ordinary income affect my capital gains rate?
Preferential gain bands are shared with ordinary taxable income. Ordinary income fills the lower space before long-term gains are stacked on top.
How are short-term gains taxed?
Short-term gains are generally taxed at ordinary federal income-tax rates.