After-Tax Stock & Investment Income Calculator
Calculate net profit after capital gains tax, compare investment income vs salary, and plan dividend + portfolio income. Covers all 50 states + DC with short-term and long-term rates.
0 – 20%
Federal long-term CGT rate
$49,450
0% LTCG ceiling (single, 2026)
~$700 more
Holding 1yr on a $10K gain
All 50 states
State cap gains tax included
After-Tax Stock Calculator
US · All 50 states + DC
After-Tax Stock Profit
Enter buy/sell price and shares to see net profit after capital gains tax.
Holding period
Long-term (>1 yr) — lower 0–20% rates
Results
Net After-Tax Profit
$5,000
15%
$750
$4,250
Short-term gains are taxed at ordinary income rates (10–37%). Long-term gains (held >1 year) use these preferential brackets. Your gains "stack" on top of ordinary income.
| Federal rate | Single | Married Filing Jointly | Head of Household | Married Filing Separately |
|---|---|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 | Up to $66,200 | Up to $49,450 |
| 15% | $49,451 – $545,500 | $98,901 – $613,700 | $66,201 – $579,600 | $49,451 – $306,850 |
| 20% | Above $545,500 | Above $613,700 | Above $579,600 | Above $306,850 |
+ 3.8% NIIT on top
Single filers with MAGI above $200,000 and MFJ above $250,000 also owe the Net Investment Income Tax (3.8%), bringing the maximum effective federal rate to 23.8%. These NIIT thresholds are not inflation-indexed.
Year-over-year: 0% ceiling rising
| Filing | 2024 | 2025 | 2026 |
|---|---|---|---|
| Single | $47,025 | $48,350 | $49,450 |
| MFJ | $94,050 | $96,700 | $98,900 |
| HoH | $63,000 | $64,750 | $66,200 |
The same profit taxed as salary (short-term) vs long-term capital gains — assuming the 22% federal bracket with a 5% state tax. These are conservative estimates; no NIIT.
| Profit | Short-term 22% fed + 5% state | Long-term 15% fed + 5% state | You keep extra | Effective saving |
|---|---|---|---|---|
| $5,000 | $1,350 | $1,000 | $350 | 7 pp |
| $10,000 | $2,700 | $2,000 | $700 | 7 pp |
| $25,000 | $6,750 | $5,000 | $1,750 | 7 pp |
| $50,000 | $13,500 | $10,000 | $3,500 | 7 pp |
| $100,000 | $27,000 | $20,000 | $7,000 | 7 pp |
| $250,000 | $67,500 | $50,000 | $17,500 | 7 pp |
Note: The 7 percentage-point savings (22% → 15% federal) holds across the 15% LTCG bracket. High earners in the 32–37% ordinary income bracket who still qualify for 15% LTCG save 17–22 percentage points. Single filers under the $49,450 LTCG threshold pay 0% federal — potentially 27 points less than the same gain as short-term income. Use the calculator to model your exact bracket.
Two opposite strategies — both rooted in the same capital gains rules. Choose based on whether you have gains or losses, and your current year income.
Tax-Loss Harvesting
Best when you have unrealized losses that can offset gains
- Offset capital gains dollar-for-dollar — no limit
- Deduct up to $3,000/yr of excess losses against ordinary income ($1,500 MFS)
- Carry unused losses forward indefinitely
- Wash sale rule: 61-day window (30 days before + sale day + 30 days after). Cannot repurchase the "substantially identical" security — across all accounts including IRAs
- IRA wash sales permanently destroy the deduction (no basis adjustment in IRA)
- Crypto is NOT subject to wash sale rules in 2026 (classified as property, not security)
Capital Gains Harvesting
Best when you're in the 0% LTCG bracket in a low-income year
- Realize long-term gains at 0% federal tax (single income ≤$49,450; MFJ ≤$98,900 taxable)
- Immediately repurchase — no wash-sale restriction on gains
- Resets your cost basis to today's higher price, reducing future taxable gains
- Gains raise MAGI → may reduce ACA premium tax credits or trigger Medicare IRMAA (2 yrs later)
- State taxes still apply in most states — 0% is a federal-only benefit
- Ideal for: early retirees, sabbatical years, high-deduction years, part-year workers
| Your situation | Recommended strategy |
|---|---|
| Portfolio has unrealized losses + capital gains | Tax-loss harvest first |
| Low-income year (early retirement, gap year, leave of absence) | Gains harvest up to 0% bracket |
| High income year (big bonus, RSU cliff vest, business sale) | Tax-loss harvest + delay gains |
| Selling appreciated stock, want to give to charity | Donate shares directly (avoid CGT + get deduction) |
| Single filer, income $30K–$49K, long-term gains available | Gains harvest — 0% federal on all gains |
Disclaimer: This tool gives estimates only and is not tax or investment advice. Rates are for 2026; consult a tax professional or the IRS for your situation. High earners may also owe the 3.8% Net Investment Income Tax (NIIT) on investment income.
Short-Term vs Long-Term Capital Gains: Why It Matters
When you sell stocks or other investments for a profit, the IRS treats that gain differently depending on how long you held the asset. Short-term capital gains apply to assets held one year or less. They are taxed at your ordinary income tax rates—the same brackets that apply to your salary, bonus, and interest income. That means federal rates from 10% up to 37%, plus state income tax where it applies.
Long-term capital gains apply to assets held more than one year. The federal government taxes these at preferential rates: 0%, 15%, or 20% depending on your taxable income. Most states that impose an income tax also tax long-term gains, but at the same rate as other income—there is no separate state “long-term” rate. The result: holding for more than a year usually means a lower tax bill and a higher after-tax profit. Use the calculator above to toggle short-term vs long-term and see the difference for your numbers.
Federal vs State Capital Gains Taxes
Federal capital gains tax is either at your ordinary bracket (short-term) or at 0%, 15%, or 20% (long-term). Your state may add more. States that have an income tax generally treat capital gains as taxable income, so your state rate (flat or top marginal rate) applies. Select your state in the calculator above to include state tax in your after-tax stock profit and in the capital gains vs salary comparison.
Washington state note: Washington has no general income tax but enacted a 7% capital gains tax on long-term gains exceeding approximately $278,000 (2025 threshold, indexed annually), with a 9.9% rate on gains over $1 million. The calculator does not model this threshold; if you are a Washington resident with large capital gains, add roughly 7% to your federal tax for gains above the threshold.
Capital Gains Tax by State
Whether you owe state tax on stock profits depends on where you live. The following lists match the calculator: choose your state in the tool to see your exact after-tax result.
No state tax on capital gains
These states do not levy a general income tax on wages or capital gains: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Wyoming. New Hampshire eliminated its dividend and interest tax in 2025 and now has no state income tax.
Washington has no general income tax but does levy a 7% capital gains tax on long-term gains exceeding ~$278,000 (2025 threshold, indexed annually), with a 9.9% rate on gains over $1 million.
States that tax capital gains as income
In these states, capital gains are taxed as ordinary income (same rate as wages): Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Virginia, West Virginia, Wisconsin. Rates and brackets vary; use the calculator and select your state for an estimate.
Why Capital Gains Tax Differs From Salary Tax
Salary, wages, bonuses, and short-term investment gains are all ordinary income. They push you through the same federal brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) and are subject to FICA on wages and to state tax. Long-term capital gains (and qualified dividends) are given preferential federal rates to encourage long-term investing. So the same dollar amount can produce very different take-home amounts: taxed as salary at 22% federal plus 5% state, you keep less than if that same profit were taxed as long-term gain at 15% federal plus 5% state. The “Capital Gains vs Salary Comparison” tool above lets you enter a profit amount and see the take-home difference side by side. High earners (single over $200k, joint over $250k) may also owe the Net Investment Income Tax (NIIT) of 3.8% on investment income such as capital gains and dividends; this calculator does not include NIIT.
Example: $10,000 Stock Sale Scenario
Suppose you sell shares for a $10,000 profit. If that gain is short-term and you are in the 22% federal bracket in a state with 5% income tax, you would owe about $2,200 federal plus $500 state (27% combined), leaving about $7,300 after tax. If the same $10,000 is long-term and you are in the 15% long-term bracket with the same 5% state, you would owe about $1,500 federal plus $500 state (20% combined), leaving about $8,000 after tax—roughly $700 more in your pocket just from the holding period. Use the after-tax stock profit calculator with your own buy/sell price, shares, and state to get your exact numbers.
Example: Dividend Income Taxation
Dividend income can be taxed as qualified (long-term capital gains rates: 0%, 15%, or 20%) or non-qualified (ordinary income rates). For a simple estimate, the dividend calculator on this page assumes ordinary income treatment so you see a conservative after-tax result. If you have $100,000 invested and receive a 3.5% dividend yield, that is $3,500 per year. At a 22% federal bracket and 5% state, tax would be about $945, for a net annual dividend of about $2,555. Qualified dividends would often be taxed at 15% federal (plus state), increasing your net. Check your broker statements and tax forms for how your dividends are classified.
Related Tools for Your Paycheck and Investments
To see how salary and withholdings affect your take-home pay, use our paycheck calculator for federal and state tax by state. For retirement contributions and employer match, try the 401(k) calculator. To estimate tax on a bonus or supplemental pay, use the bonus tax calculator. If you receive RSUs or other equity, the RSU calculator helps with vesting and tax. For a broader view of investment gains across countries and asset types, see our capital gains tax calculator.
Qualified vs. Non-Qualified Dividends: 2026 Tax Rates and the 61-Day Holding Rule
Not all dividends are taxed the same way. Qualified dividends are taxed at the same preferential rates as long-term capital gains — 0%, 15%, or 20% in 2026. Non-qualified (ordinary) dividends are taxed as ordinary income at your marginal rate — up to 37% federal. The difference is substantial: a $10,000 dividend is worth $8,500 after tax at 15% but only $6,300 at 37%.
2026 qualified dividend rate thresholds (IRS Rev. Proc. 2025-32, same as long-term capital gains):
| Federal rate | Single filer taxable income | Married filing jointly | On a $10K dividend |
|---|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 | Keep $10,000 |
| 15% | $49,451–$545,500 | $98,901–$613,700 | Keep $8,500 |
| 20% | Over $545,500 | Over $613,700 | Keep $8,000 (+ 3.8% NIIT may apply) |
| Ordinary rate | Non-qualified: taxed at your marginal bracket (10–37%) | Keep $6,300–$9,000 | |
To be qualified, the dividend must be from a US corporation or qualifying foreign corporation, and you must hold the stock for at least 61 days out of the 121-day window that begins 60 days before the ex-dividend date. (Preferred stock requires 91 days in a 181-day window.) Hedged positions do not count toward the holding period.
Common non-qualifying dividend sources: REITs (required to distribute most income as ordinary dividends), MLPs (partnerships), money market mutual funds, certain foreign dividends not covered by a US tax treaty, and dividends on shares held for fewer than 61 days. Most broad-based US index fund and ETF dividends (e.g., S&P 500 index funds) are predominantly qualified. Check your annual Form 1099-DIV: box 1a shows total dividends; box 1b shows the qualified portion.
RSU Vesting: The Two-Stage Tax Hit — Ordinary Income at Vest, Capital Gains at Sale
Restricted Stock Units (RSUs) are one of the most common forms of equity compensation — and one of the most misunderstood at tax time. Unlike stock options, RSUs have no purchase required: when they vest, the shares are yours. But vesting is itself a taxable event.
Stage 1 — At vesting: The fair market value (FMV) of the vested shares on the vest date is treated as ordinary income — added to your W-2, taxed at your marginal rate, and subject to FICA. Your employer withholds federal tax at the IRS supplemental wage rate of 22% (or 37% if cumulative supplemental pay exceeds $1 million in 2026). FICA applies: 6.2% Social Security on wages up to the $176,100 Social Security wage base (2026), plus 1.45% Medicare (no cap). If your marginal federal rate is 32%, 35%, or 37%, the 22% withholding leaves a significant underpayment — plan for a large tax bill at filing or make estimated tax payments.
| Scenario | Same-day sale | Hold <1 yr after vest | Hold 1+ yr after vest |
|---|---|---|---|
| Tax on vest FMV | Ordinary income | Ordinary income | Ordinary income |
| Tax on post-vest gain | None (sold at FMV) | Short-term CGT (ordinary rate) | Long-term CGT (0–20%) |
| Market risk taken | None | Up to 1 year | 1+ year |
| Best for | Concentrated position risk; simplest | Short-term income need or low confidence in stock | Strong conviction in employer stock + time horizon |
Stage 2 — At sale: Any appreciation above the vest FMV is a capital gain. If sold within 1 year of vesting, it is a short-term gain (ordinary rates). If held for more than 1 year from the vest date, it qualifies for long-term rates (0–20%). The RSU calculator at /rsu-tax-calculator models both stages with all 50 state rates.
The 0% Long-Term Capital Gains Bracket in 2026: How to Realize Stock Gains Tax-Free
One of the most powerful — and underused — strategies for stock investors is deliberately realizing long-term gains in years when taxable income falls below the 0% federal LTCG threshold. In 2026, that threshold is $49,450 for single filers and $98,900 for married filing jointly (taxable income, after deductions). Any long-term capital gains realized within that threshold are completely tax-free at the federal level.
| Filing status | 2026 standard deduction | Ordinary income | Room for 0% LTCG |
|---|---|---|---|
| Single — early retiree example | $16,100 | $32,000 gross → $15,900 taxable | $33,550 at 0% |
| Single — gap year example | $16,100 | $20,000 gross → $3,900 taxable | $45,550 at 0% |
| MFJ — early retirement couple | $32,200 | $60,000 gross → $27,800 taxable | $71,100 at 0% |
This strategy — sometimes called capital gains harvesting (the opposite of tax-loss harvesting) — lets you sell appreciated positions, reset your cost basis to the higher current price, and pay zero federal tax on the gain. You can immediately repurchase the same stock (unlike tax-loss harvesting, there is no wash-sale equivalent for gains). This is particularly powerful for:
- Early retirees (ages 40–65) in Roth conversion or low-income years
- Sabbatical or gap-year employees with significantly reduced income
- High-deduction years (large charitable contributions, solo 401(k) maxing, business losses)
- Part-year workers who only worked for part of the tax year
Important caveats: (1) Most states still tax capital gains at ordinary income rates — the 0% rate is federal only. (2) Realizing gains increases your Modified Adjusted Gross Income (MAGI), which can reduce ACA marketplace premium tax credits for those receiving subsidies. (3) For taxpayers over 65 enrolled in Medicare, a MAGI increase in year Y may trigger Medicare Part B and Part D IRMAA surcharges in year Y+2. Model your full tax picture before harvesting. Source: IRS Rev. Proc. 2025-32.
The after-tax profit, dividend income, and portfolio figures above are computed from your inputs using flat marginal rates — not a live IRS or state feed. Stock sale tax uses gross profit × federal rate (ordinary income for short-term, preferential LTCG rate for long-term) plus state tax at the selected state's top marginal rate. Salary vs capital gains, dividend after tax, and portfolio-for-income tabs each use the same state lookup. Below are the formulas, order of operations, and worked examples you can verify by hand.
Core formulas
| Metric | Formula |
|---|---|
| Gross profit (stock sale) | (Sell price − Buy price) × Shares |
| Federal tax (short-term) | Gross profit × Federal ordinary bracket % ÷ 100 |
| Federal tax (long-term) | Gross profit × Long-term rate (0%, 15%, or 20%) ÷ 100 |
| State tax | Gross profit × State rate % ÷ 100 |
| Total tax | Federal tax + State tax |
| Net profit | Gross profit − Total tax |
| Effective return % | (Net profit ÷ Cost basis) × 100, where cost basis = Buy price × Shares |
| Gross annual dividend | Investment × Dividend yield % ÷ 100 |
| Required portfolio | Target annual income ÷ (Expected return % ÷ 100) |
Order of operations
Calculate gross profit
Gross profit = (Sell − Buy) × SharesOnly positive gains are taxed. If you sell at a loss, gross profit is zero and no tax is shown.
Select federal rate
Short-term → ordinary bracket; Long-term → 0% / 15% / 20% LTCG rateShort-term gains use the federal ordinary income bracket you select (10%–37%). Long-term gains use the preferential LTCG rate you select, independent of the ordinary bracket.
Look up state tax rate
State tax = Gross profit × State top marginal rate ÷ 100Uses each state's top marginal income tax rate from our US_STATES data. States with no income tax return 0%. Washington's separate capital gains excise tax is not modelled.
Compute net profit and effective return
Net = Gross − Federal − State; Effective return = Net ÷ Cost basis × 100Effective return shows your after-tax gain as a percentage of what you originally invested.
Salary vs capital gains comparison
Tax as salary = Profit × (Federal bracket + State rate); Tax as LTCG = Profit × (LTCG rate + State rate)Applies the same profit amount under two tax treatments to show the dollar difference in take-home.
Dividend after tax
Gross dividend = Investment × Yield%; Tax = Gross × (Federal + State)%; Net monthly = Net annual ÷ 12Dividends are taxed as ordinary income (non-qualified treatment). Qualified dividends at LTCG rates are not modelled in this tab.
Portfolio for target income
Required portfolio = (Monthly income × 12) ÷ (Return % ÷ 100)Inverse of the return formula — how much capital you need to generate a target monthly draw at a given yield or total return.
Worked example 1 — Long-term stock sale — $100 → $150, 100 shares, 15% LTCG, no state tax
| Field | Value |
|---|---|
| Buy price | $100 |
| Sell price | $150 |
| Shares | 100 |
| Cost basis | $10,000 |
| Gross profit | $5,000 |
| Federal tax (15% LTCG) | $750 |
| State tax | $0 |
| Net profit | $4,250 |
| Effective return | 42.5% |
($150 − $100) × 100 = $5,000
$5,000 × 15% = $750 federal tax
$5,000 − $750 = $4,250 net profit
$4,250 ÷ $10,000 = 42.5% effective return
Worked example 2 — Short-term stock sale — same trade, 22% ordinary income, no state tax
| Field | Value |
|---|---|
| Buy price | $100 |
| Sell price | $150 |
| Shares | 100 |
| Cost basis | $10,000 |
| Gross profit | $5,000 |
| Federal tax (22% ordinary) | $1,100 |
| State tax | $0 |
| Net profit | $3,900 |
| Effective return | 39.0% |
($150 − $100) × 100 = $5,000
$5,000 × 22% = $1,100 federal tax
$5,000 − $1,100 = $3,900 net profit
$3,900 ÷ $10,000 = 39.0% effective return
Worked example 3 — $10,000 profit — salary (22% + 5% AL) vs long-term cap gains (15% + 5% AL)
| Field | Value |
|---|---|
| Profit amount | $10,000 |
| Federal bracket (salary) | 22% |
| Long-term cap gains rate | 15% |
| State (Alabama) | 5% |
| Tax as salary | $2,700 |
| Take-home as salary | $7,300 |
| Tax as capital gains | $2,000 |
| Take-home as capital gains | $8,000 |
| Difference | $700 |
$10,000 × (22% + 5%) = $2,700 tax → $7,300 take-home
$10,000 × (15% + 5%) = $2,000 tax → $8,000 take-home
Difference: $700 more as capital gains
Worked example 4 — $100,000 portfolio at 3.5% yield — 22% federal + 5% Alabama
| Field | Value |
|---|---|
| Investment | $100,000 |
| Dividend yield | 3.5% |
| Federal bracket | 22% |
| State (Alabama) | 5% |
| Gross annual dividend | $3,500 |
| Federal tax | $770 |
| State tax | $175 |
| Total tax | $945 |
| Net annual dividend | $2,555.00 |
| Net monthly dividend | $212.92 |
$100,000 × 3.5% = $3,500 gross annual dividend
$3,500 × (22% + 5%) = $945 total tax
$3,500 − $945 = $2,555.00/yr ($212.92/mo)
Worked example 5 — $3,000/month target income at 5% expected return
| Field | Value |
|---|---|
| Target monthly income | $3,000 |
| Expected return | 5% |
| Target annual income | $36,000 |
| Required portfolio | $720,000 |
($3,000 × 12) ÷ 5% = $720,000 required portfolio
Rates and constants used
| Item | Value |
|---|---|
| Federal ordinary brackets | 10%, 12%, 22%, 24%, 32%, 35%, 37% |
| Long-term cap gains rates | 0%, 15%, 20% |
| 0% LTCG threshold (single, 2026) | Taxable income ≤ $49,450 |
| 15% LTCG threshold (single, 2026) | $49,451 – $545,500 |
| Default LTCG rate in calculator | 15% |
| Default federal bracket | 22% |
| Alabama state rate (example) | 5% |
| D.C. state rate | 10.75% |
| NIIT surcharge (not included) | 3.8% |
Official sources
Frequently Asked Questions
References & official sources
Tax rates and rules in this calculator are based on the following official sources. Use them for authoritative guidance and current-year updates.
- IRS Topic 409 – Capital Gains and Losses
- IRS Topic 404 – Dividends
- IRS – Net Investment Income Tax (NIIT)
- IRS – Federal Income Tax Rates and Brackets
- IRS Publication 544 – Sales and Other Dispositions of Assets
- State income and capital gains tax: see your state’s department of revenue or tax agency (e.g. California FTB, New York State Tax).