Held 1 year or less · 2026 tax year
Short-Term Capital Gains Tax Calculator
For assets held a year or less, your gain is taxed at your ordinary income rate — see the federal tax, the 3.8% NIIT, and any state tax.
Short answer
Short-term gains — on assets held one year or less— get no discount: they're taxed at your ordinary income rate (10%–37%), just like salary. That's why holding a year and a day to reach the long-term 0/15/20% rate can slash the bill. The calculator is preset to short-term below.
Your after-tax gain
$6,337.00
$3,663.00 total tax · 36.6% effective · short-term
- Capital gain
- $10,000
- Federal tax (ordinary rate)
- −$2,333.00
- Net Investment Income Tax (3.8%)
- −$0.00
- State tax
- −$1,330.00
- Total tax
- −$3,663.00
- ⚠ Short-term gains are taxed as ordinary income — holding for more than a year would qualify this for the lower long-term rates.
Frequently asked questions
How are short-term capital gains taxed in 2026?+
Short-term gains — on assets held one year or less — get no special rate. They're added to your other income and taxed at your ordinary marginal rate, which ranges from 10% to 37% for 2026. So a short-term gain can be taxed nearly twice as heavily as the same long-term gain, which tops out at 20%. High earners also owe the 3.8% NIIT, and most states tax it too.
What counts as a short-term holding period?+
One year or less. The clock starts the day after you acquire the asset and runs through the day you sell. If you hold for exactly one year (to the anniversary date), it's still short-term — you need to hold a year and a day to reach the long-term rates. Waiting past that mark is often the single biggest tax saver on a sale.
Why is my short-term gain taxed so much more?+
Because it's treated as ordinary income, like your salary — so it's taxed at your marginal rate (up to 37%) rather than the capped 0/15/20% long-term rate. The tax code rewards longer holding periods. If you're close to the one-year mark, the difference between selling now and waiting a few more weeks can be thousands of dollars.
Can I lower my short-term capital gains tax?+
A few ways: hold past the one-year mark to get long-term treatment, harvest capital losses to offset the gain, or realize the gain in a lower-income year. Losses offset gains dollar-for-dollar, then up to $3,000 of ordinary income per year. This calculator shows the tax at your ordinary rate so you can compare against waiting for the long-term rate.
Held it more than a year? Use the long-term capital gains calculator, or compare all capital gains tax rates.
This is an estimate, not tax advice, using projected 2026 ordinary brackets. Your actual tax can differ with deductions and other income. Consult a tax professional before relying on it.