Real Estate Capital Gain Tax Calculator

Real estate capital gain tax calculator is a financial calculator to calculate the capital gain tax liability when selling real estate, whether it's an investment property or your personal home.

Refinance Rates Mortgage Rates HELOC Rates

Capital Gains Tax on Real Estate
Filing Status Single

Married Filing Jointly

Married Filing Seperately

Head of Household
Gross Income (annually) $
Deduction Standard Deduction

Itemized Deduction $
Property Sale Price $
Closing Cost When Sell Property $
Home Improvement Cost $
Depreciation Taken $
Property Purchase Price $
Closing Cost When Purchase Property $
Holding Period More than a Year (Long Term)

Less than a Year (Short Term)
Capital Gains Tax
Capital Gains Tax
Capital Gains
Federal Tax on Income
Net Investment Income Tax

Capital Gains Tax Rate 2025

Filing Status 0% Rate 15% Rate 20% Rate
Single Up to $48,350 $48,351 – $533,400 Over $533,400
Married filing jointly Up to $96,700 $96,701 – $600,050 Over $600,050
Married filing separately Up to $48,350 $48,351 – $300,000 Over $300,000
Head of household Up to $64,750 $64,751 – $566,700 Over $566,700

Federal Income Tax Rate 2025

Tax Rate Single Filers Married Filing Jointly
10% $0 - $11,925 $0 - $23,850
12% $11,926 - $48,475 $23,851 - $96,950
22% $48,476 - $103,350 $96,951 - $206,700
24% $103,351 - $197,300 $206,701 - $394,600
32% $197,301 - $250,525 $394,601 - $501,050
35% $250,526 - $626,350 $501,051 - $751,600
37% $626,351+ $751,601+
Tax Rate Married Filing Separately Head of Household
10% Up to $11,000 Up to $15,700
12% $11,001 - $44,725 $15,701 - $59,850
22% $44,726 - $95,375 $59,851 - $95,350
24% $95,376 - $182,100 $95,351 - $182,100
32% $182,101 - $231,250 $182,101 - $231,250
35% $231,251 - $346,875 $231,251 - $578,100
37% Over $346,875 Over $578,100

Standard Deduction 2025

Filing Status Standard Deduction
Single $15,000
Married Filing Jointly $30,000
Married Filing Separately $15,000
Head of Household $22,500

Real Estate Capital Gains Tax Overview

A real estate capital gains tax calculator helps determine the taxes owed to the IRS when selling a property. Note that state and local governments may impose additional taxes on your capital gains. Primary Residence Exclusions When selling your primary residence, you may qualify for significant tax exclusions:

  • $250,000 for single filers
  • $500,000 for married couples filing jointly

Short-Term vs. Long-Term Holdings

  • Short-term (held ≤1 year): Taxed as ordinary income (maximum 37%)
  • Long-term (held >1 year): Subject to capital tax rates (maximum 20%)

Key Tax Benefits

  • Capital gains are not subject to Social Security or Medicare taxes
  • Standard deduction applies:
    • $15,000 for single filers
    • $30,000 for married couples filing jointly

Tax Saving Strategy Holding a properties for more than one year qualifies you for lower long-term capital gains tax rates, which can result in substantial tax savings compared to short-term holdings.

How to Calculate Real Estate Capital Gains Tax

Calculating real estate capital gains tax depends on your annual gross income, which determines your tax bracket for capital gains and the profit from your property sale. The taxable amount is calculated by factoring in various closing costs from both the purchase and sale of the property, which may either increase or decrease your final tax liability. Deductible Closing Costs The following expenses can be added to your property's cost basis, reducing your capital gains:

  • Title insurance fees
  • Recording fees
  • Transfer taxes
  • Survey fees
  • Attorney fees (directly related to the purchase)
  • Mortgage origination fees
  • Real estate agent commissions (both buying and selling)

Home Improvements & Depreciation

  • Home improvement costs can also be deducted from your profit.
  • However, if you've claimed depreciation (common in rental properties), the total depreciation taken will be recaptured and added back to your capital gains as taxable income.

Note: You may claim either the standard deduction or itemized deductions on your tax return. These deductions are separate from any adjustments made to the capital gains itself. Capital Gains Tax Example:

  • Filing Status: Single
  • Gross Pay (annually): $85,000
  • Deduction: Standard Deduction ($15,000)
  • Property Sale Price: $850,000
  • Closing Cost When Selling Property: $25,000
  • Home Improvement Cost: $20,000
  • Depreciation Taken: $0
  • Property Purchase Price: $500,000
  • Closing Cost When Purchasing Property: $35,000
  • Holding Period: More than a Year (Long-Term)

Long term Capital Gains Tax Calculation:

Adjusted Profit: $850,000 - $500,000 - $25,000 - $35,000 - $20,000 = $270,000

Taxable Income: $85,000 - $15,000 = $70,000

Entire capital gains taxed at 15%: $270,000 × 15% = $40,500

Short Term Capital Gains Tax Calculation:

  • Ordinary Income: $70,000
  • Short-Term Capital Gains (Real Estate): $270,000
  • Total Taxable Income: $340,000
  • Ordinary Income Tax($70,000):
    • 10% on first $11,925 = $1,192.50
    • 12% on next $36,550 = $4,386
    • 22% on remaining $21,525 = $4,735.50
    • Subtotal: $10,314
  • Short-Term Capital Gains Tax ($270,000):
    • 22% on $33,350 ($54,875 - $21,525) = $7,337
    • 24% on $93,950 = $22,548
    • 32% on $53,225 = $17,032
    • 35% on $89,475 = $31,316.25
    • Subtotal: $78,233.25

Tax Savings Comparison

By holding long-term: $78,233.25 - $40,500 = $37,733.25 savings

Net Investment Income Tax (NIIT)

The NIIT is an additional 3.8% tax applied on top of regular capital gains taxes.

Applies if both:

  1. You have investment income (including capital gains)
  2. Your Modified Adjusted Gross Income (MAGI) exceeds:
    • $200,000 (Single)
    • $250,000 (Married Joint)
    • $125,000 (Married Separate)

Example 1

Regular Income: $80,000

Capital Gains: $300,000

Threshold Amount: $200,000

Calculation:

$80,000 + $300,000 - $200,000 = $180,000 (subject to NIIT)

NIIT: $180,000 × 3.8% = $6,840

Example 2

Regular Income: $300,000

Capital Gains: $200,000

Analysis:

The total income ($500,000) exceeds the threshold by $300,000.

However, NIIT only applies to the lesser of:

  • The amount over the threshold ($300,000) or
  • Net investment income ($200,000).

Since the investment income is lower, NIIT applies only to $200,000.

Calculation:

$200,000 × 3.8% = $7,600

Your ordinary income alone won’t trigger the Net Investment Income Tax (NIIT) unless, when combined with investment income, it exceeds the IRS threshold.

Sales Tax Calculator | Terms | Privacy | Disclaimer | Contact

©2025 Sales Tax Calculator