Capital Gains Tax Calculator 2022-2023 (2024)

advisor
Taxes

Advertiser Disclosure

Kemberley WashingtonCertified Public Accountant

Kemberley Washington is a tax journalist and provides consumer-friendly tax tips for individuals and businesses. Her work goes beyond tax articles. She has been instrumental in tax product reviews and online tax calculators to help individuals make informed tax decisions. Her work has been featured in Yahoo Finance, Bankrate.com, SmartAsset, Black Enterprise, New Orleans Agenda, and more. She frequently appears on NBC's WDSU news broadcast.

Kemberley Washington

Kemberley WashingtonCertified Public Accountant

Certified Public Accountant

Compare the best tax software of 2024

See our picks

Looking For A Financial Advisor?

Get In Touch With A Pre-screened Financial Advisor In 3 Minutes

Frequently Asked Questions (FAQs) About Capital Gains Tax

What are capital gains and losses?

A capital gain occurs when your capital asset, such as real estate, stocks, or bonds increases in value, whereas a capital loss occurs when the asset decreases in value. The gain or loss is taxable when the capital asset is sold.

What is the difference between short-term and long-term capital gain tax rates?

A short-term capital gain is the result of selling a capital asset you held in your possession for one year or less. Long-term capital gains are capital assets held for more than a year. Typically, you pay a higher tax rate on short-term capital holdings versus long-term ones.

Depending on how long you hold your capital asset determines the amount of tax you will pay. Short-term capital assets are taxed at your ordinary income tax rate up to 37% for 2022-2023 tax filing. Long-term assets are subject to capital gain tax rates, which are lower. When filing 2022 taxes, the top capital gain tax rate is 20%.

How do you treat capital loss tax on your tax return?

For tax purposes, your capital loss is treated differently than your capital gains. If you sell a capital asset at a loss, which typically means your selling price is less than its cost when you got the asset, you can claim a loss up to $3,000 ($1,500 if married separately) on your tax return. The amount reduces your taxable income and reduces the amount you may owe in taxes. If your loss exceeds these limits, you may carry it forward to later tax years.

How to report capital gains or losses on your tax return

You should report your capital gains or losses on Schedule D of your Form 1040 and transfer the reportable amount to Line 13 of your Form 1040.

Was this article helpful?

Send feedback to the editorial team

Thank You for your feedback!

Something went wrong. Please try again later.

Buying Guides For Taxes

Best Tax Software
Best Crypto Tax Software
Best Tax Software For The Self-Employed
Best Tax Software For Small Business
Best Tax Apps
Best Tax Relief Services

Tax Calculators

Income Tax Calculator
Paycheck Calculator
Self-Employment Tax Calculator
Tax Bracket Calculator
Cryptocurrency Tax Calculator

Top Tax Software Reviews

TurboTax Review
Jackson Hewitt Review
Cash App Taxes Review
TaxSlayer Review
EY TaxChat Review
TaxAct Review

More from

8 Last-Minute Tax Filing TipsBy E. Napoletano

Time Is Running Out To Claim Your 2020 Recovery Rebate Tax CreditBy Kemberley Washington

2023-2024 Tax Brackets And Federal Income Tax RatesBy Kemberley Washington

Tax Deductions And Credits You Can Claim For Tuition And FeesBy Kemberley Washington

4 Reasons To File Your Taxes EarlyBy Logan Allec, CPA

The Solar Tax Credit: What It Is And How To Claim ItBy Kemberley Washington

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

Kemberley Washington

Certified Public Accountant

The Forbes Advisor editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. This compensation comes from two main sources. First, we provide paid placements to advertisers to present their offers. The compensation we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market. Second, we also include links to advertisers’ offers in some of our articles; these “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor. While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. Here is a list of our partners who offer products that we have affiliate links for.