Capital Gains Tax on Sale of Rental Property Calculator (2026)
Capital gains on a rental property are taxed at the long-term rates of 0%, 15%, or 20% if held over a year, plus the 3.8% NIIT for high earners. A $100,000 long-term gain at $80,000 income is about $15,000.00 federally. Add your basis, exclusion, and state below.
What is the 2026 long-term capital gains rate?
It is 0%, 15%, or 20% depending on your taxable income. Most middle-income sellers land in the 15% band.
How much tax on a $100,000 long-term gain?
About $15,000.00 federally for a single filer at $80,000 income — roughly 15% of the gain.
What is the 3.8% NIIT?
An extra 3.8% on investment income once MAGI tops $200,000 (single) or $250,000 (married).
What is depreciation recapture?
Depreciation taken on a rental is recaptured at up to 25% when you sell, on top of the capital gains tax.
How much is capital gains tax in 2026?
Long-term gains are taxed at 0%, 15%, or 20% by taxable income; short-term gains use ordinary rates. High earners add a 3.8% NIIT. The calculator above applies the verified 2026 figures to your numbers.
The long-term rate is far lower than the short-term rate for most people. That is why holding period and timing matter so much when you sell.
What are the 2026 long-term capital gains brackets?
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 0% | up to $49,450 | up to $98,900 | up to $66,200 |
| 15% | to $545,500 | to $613,700 | to $579,600 |
| 20% | above $545,500 | above $613,700 | above $579,600 |
How does depreciation recapture affect the tax?
Depreciation you claimed on the rental is recaptured at up to 25% when you sell, separately from the long-term capital gains tax on the appreciation. A 1031 exchange can defer both.
How do you calculate your capital gain step by step?
- Find your cost basis: purchase price plus improvements and buying costs.
- Subtract the basis and selling costs from the sale price to get the gain.
- Apply any exclusion, then check the holding period (over a year is long-term).
- Stack the gain on your income for the 0/15/20 split, then add NIIT and state tax.
Who owes the 3.8% Net Investment Income Tax?
Sellers whose MAGI tops $200,000 (single) or $250,000 (married) owe 3.8% on investment income, including this gain. The thresholds are fixed, so more sellers cross them each year. The calculator adds it automatically.