Long-Term Capital Gains Calculator 2025 β 0% / 15% / 20%
Calculate long-term capital gains tax at preferential 0%, 15%, or 20% rates. Shows exactly how gains stack on your ordinary income and which rate applies.
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W-2, business income, etc. (before deductions) $
Taxed at same LTCG rates LTCG rate: calculating...
$0
LTCG Tax Owed
0%
Effective LTCG Rate
$0
Net After-Tax Gain
$0
Room in 0% Bracket
LTCG Rate Calculation Breakdown
How to Use This Long-Term Capital Gains Calculator
Enter your long-term capital gain (the profit from selling assets held more than one year) and your ordinary income (wages, business income, etc. before deductions). The calculator stacks your LTCG on top of your ordinary taxable income to determine which rate applies to each portion.
It also shows how much room remains in the 0% bracket β this is valuable for tax planning (capital gain harvesting).
The Formula
Ordinary Taxable Income = Ordinary Income β Standard Deduction
LTCG in 0% bracket = Max(0, 0% threshold β Ordinary Taxable Income)
LTCG in 15% bracket = Min(gain β 0% amount, 15% threshold β Ordinary Taxable Income)
LTCG in 20% bracket = Remaining gain above 20% threshold
LTCG Tax = (Gain in 15% bucket Γ 15%) + (Gain in 20% bucket Γ 20%)
LTCG in 0% bracket = Max(0, 0% threshold β Ordinary Taxable Income)
LTCG in 15% bracket = Min(gain β 0% amount, 15% threshold β Ordinary Taxable Income)
LTCG in 20% bracket = Remaining gain above 20% threshold
LTCG Tax = (Gain in 15% bucket Γ 15%) + (Gain in 20% bucket Γ 20%)
Example
Pat, single, $60K ordinary income, $40K LTCG in 2025:
Ordinary taxable income: $60,000 β $15,000 = $45,000
0% bracket fills from $45,000 to $48,350 β $3,350 of gains at 0%
Remaining $36,650 in 15% bracket (below $533,400)
LTCG tax: $3,350 Γ 0% + $36,650 Γ 15% = $5,498
Ordinary taxable income: $60,000 β $15,000 = $45,000
0% bracket fills from $45,000 to $48,350 β $3,350 of gains at 0%
Remaining $36,650 in 15% bracket (below $533,400)
LTCG tax: $3,350 Γ 0% + $36,650 Γ 15% = $5,498
Extended
LTCG Bracket Visualizer
Visual breakdown showing how your gains stack on ordinary income across the 0%, 15%, and 20% brackets
Visual stacking diagram showing your ordinary income and LTCG against the 0%, 15%, and 20% threshold lines.
| LTCG Bracket | Threshold | Gain in Bracket | Rate | Tax |
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Tax Planning Tip: If you have room in the 0% bracket, consider harvesting gains up to that threshold each year β you pay $0 federal tax on those gains while resetting your cost basis higher.
Frequently Asked Questions
What qualifies as a long-term capital gain?
A long-term capital gain arises when you sell a capital asset that you held for more than one year. The holding period starts the day after you acquire the asset and includes the day you sell it. Assets held exactly one year (365 days) are still short-term β you need more than one year to qualify for long-term rates.
What are the 2025 LTCG tax thresholds?
For 2025: Single β 0% up to $48,350 taxable income; 15% from $48,350 to $533,400; 20% above $533,400. Married Filing Jointly β 0% up to $96,700; 15% up to $600,050; 20% above. Head of Household β 0% up to $64,750; 15% up to $566,700; 20% above. These are based on total taxable income including the capital gains.
How are LTCG rates stacked on top of ordinary income?
Long-term capital gains are added on top of your ordinary taxable income to determine the rate. For example, if your ordinary taxable income is $40,000 and you have $20,000 in LTCG, the first $8,350 of LTCG fills the 0% bracket (up to $48,350), and the remaining $11,650 is taxed at 15%. The stacking approach ensures you always pay the lower LTCG rate first.
Do qualified dividends use the same rates as LTCG?
Yes. Qualified dividends are taxed at the same preferential 0%, 15%, and 20% rates as long-term capital gains. They are also "stacked" on top of ordinary income when determining the applicable rate. Ordinary (non-qualified) dividends are taxed as regular income at your marginal rate.
Can I avoid LTCG tax by staying in the 0% bracket?
Yes, this is a legitimate tax planning strategy called "capital gain harvesting." If your total taxable income (ordinary + LTCG) stays below the 0% threshold, you pay no federal tax on long-term gains. For 2025, a single filer with $48,350 or less in total taxable income owes 0% on long-term gains. You could sell appreciated assets and "reset" your cost basis tax-free.