$
Held more than a year
$
Held a year or less
$
Salary and so on, a year
More options· Losses, dividends, local tax
$
$
$
Taxed like long-term gains
Tax on your gains in 2026
$4,781
23.9% of your $20,000 gain
- You keep
- $15,219
- Long-term rate
- 15% federal
- Short-term rate
- 22% federal
- Federal tax on long-term gains$3,000
- California tax$1,781
What this means
Long-term gains sit on top of your other income, so the federal rate depends on your total taxable income. Yours are taxed $20,000 at 15%.
California taxes capital gains like other income: $1,781 more state tax.
Tax on your gains
| Federal tax on long-term gains | $3,000.00 |
| California tax | $1,780.74 |
| Total | $4,780.74 |
| Short-term gain, after losses | $0 |
| Long-term gain, after losses | $20,000 |
Federal long-term rates for 2026
| Taxable income | Rate | Your gains |
|---|---|---|
| Up to $49,450 | 0% | $0 |
| Up to $545,500 | 15% | $20,000 |
| Above that | 20% | $0 |
Taxable income is your income after the $16,100 standard deduction. Above $200,000 of income, a 3.8% net investment income tax is added.
Assumptions in this estimate
- Uses 2026 federal and state tax rules, with the standard deduction and no tax credits.
- Short-term gains are taxed like wages; long-term gains and qualified dividends at 0%, 15% or 20%, depending on your taxable income.
- The 3.8% net investment income tax counts only these gains and dividends as investment income.
- Not included: collectibles (taxed at up to 28%), depreciation on property (up to 25%), the exclusion on selling your home, and the alternative minimum tax.