Capital Gains Tax Calculator
Estimate what a property sale really costs in tax for 2026 — the long-term capital-gains rate, depreciation recapture, the 3.8% surtax, and state tax, layer by layer.
Your numbers
Sale price, then commissions/closing costs you paid to sell.
What you paid, then capital improvements added over the years.
Cumulative depreciation claimed. This is recaptured at up to 25%.
Taxable income excluding this gain — sets your bracket and the 3.8% NIIT.
Most states tax the full gain as ordinary income. Use 0 for no-tax states.
Your estimate
| Component | Amount taxed | Tax |
|---|---|---|
| Depreciation recapture (up to 25%) | — | — |
| Long-term capital gain (0/15/20%) | — | — |
| Net investment income tax (3.8%) | — | — |
| State tax | — | — |
| Total | — |
A 1031 exchange — or a passive DST — can defer this entire bill, recapture and NIIT included. Talk to an advisor →
A property sale is taxed in four layers
The headline capital-gains rate is only one piece. This estimator builds the bill the way the IRS does — starting from your gain (amount realized minus your adjusted basis), then applying each layer that can sit on top of it.
- Depreciation recapture. The depreciation you claimed lowered your basis and is recaptured at sale — "unrecaptured Section 1250 gain," taxed at a federal rate of up to 25%.
- Long-term capital gain. The remaining appreciation is taxed at 0%, 15%, or 20% for 2026, stacked on top of your other income to find the rate.
- The 3.8% NIIT. Higher earners owe an extra 3.8% on the gain above the $200k single / $250k joint thresholds (frozen since 2013).
- State tax. Most states tax the full gain as ordinary income with no preferential rate.
About the 25% recapture rate
We apply the 25% maximum to the recapture layer. The true rate is your ordinary marginal rate capped at 25%, so at lower incomes your recapture tax may be less than shown — making this a conservative, worst-case estimate of that piece.
This tool is for general educational purposes only. It produces a simplified estimate, not tax advice, and omits many situational rules (stacking with other income, AMT, state-specific treatment, partial-year and like-kind nuances). Your actual tax depends on your full return. Always confirm with your CPA before acting.
Does this include depreciation recapture?
Yes. The portion of your gain attributable to depreciation is separated out and taxed at up to 25%, with the rest taxed at long-term capital-gains rates.
How is the 0/15/20% rate chosen?
Your long-term gain is stacked on top of your other taxable income, and the bracket thresholds for 2026 ($49,450/$98,900 for 0%; $545,500/$613,700 for 20%) determine how much is taxed at each rate.
What's MAGI for the NIIT?
We approximate it as your other income plus the full gain. The 3.8% applies to the lesser of your net investment income or the amount your MAGI exceeds the threshold.
Can I avoid all of this?
Often, yes — a 1031 exchange, a DST, or an Opportunity Zone investment can defer the entire amount, and holding until death can erase the deferred tax through a step-up in basis.