Capital Gains Tax on Short-Term Gain at 22%
Short-term capital gains are taxed as ordinary income; at a 22% rate, a $25,000 gain results in $5,500 in tax.
How to use this tool
- Enter your net sale proceeds (after selling costs).
- Enter your cost basis (purchase price plus buying costs and improvements).
- Enter your applicable capital-gains rate (e.g. 0%, 15%, or 20% for US long-term gains).
- Read your gain, tax, net gain, and net proceeds.
Short-term gains held under one year are taxed at your ordinary income rate — use this to see your tax on assets sold within 12 months.
Frequently asked questions
- What is the difference between long-term and short-term capital gains?
- Long-term gains come from assets held longer than the local threshold (one year in the US) and are usually taxed at preferential rates such as 0%, 15%, or 20%. Short-term gains (held a year or less in the US) are typically taxed at your ordinary income rate.
- How do I find my cost basis?
- Cost basis is generally what you paid for the asset plus purchase commissions and qualifying improvements. For reinvested dividends or inherited assets, special basis rules may apply.
- What happens if I sell at a loss?
- This calculator reports zero capital gains tax on a loss. In practice a capital loss may offset other capital gains and, subject to limits, reduce ordinary income or be carried to future years.