Capital Gains Tax Calculator (2026)

Not tax or legal advice. This calculator provides educational estimates; consult qualified tax counsel before transacting.

At $30M+ wealth, virtually every long-term gain hits the 20% federal bracket plus 3.8% NIIT — a combined 23.8% federal rate.¹ Add state tax and the number climbs fast: California residents face 37.1%, New York 34.7%, Massachusetts 32.8%. Texas and Florida residents pay the federal 23.8% and nothing more. This calculator shows your full stacked rate, the dollar cost of selling, and a comparison against key planning alternatives.

Why UHNW investors almost always pay 23.8% federal

The 20% long-term capital gains rate applies when taxable income exceeds $613,700 (MFJ) or $545,500 (single) in 2026.¹ Most UHNW investors have ordinary income — salaries, distributions, interest — well above those thresholds before adding a capital gain. So essentially every dollar of long-term gain sits in the 20% bracket.

The Net Investment Income Tax adds 3.8% on top. Unlike the LTCG brackets, the NIIT threshold — $250,000 MFJ, $200,000 single — has never been adjusted for inflation since it took effect in 2013.² For UHNW families, the full capital gain is subject to NIIT virtually without exception.

Short-term gains are taxed as ordinary income. For UHNW filers in the 37% bracket plus 3.8% NIIT, short-term gains cost 40.8% federal before state tax. The difference between selling at 12 months and 366 days can be the difference between 23.8% and 40.8% federal — a 17-percentage-point spread on a $5M gain equals $850,000.

State tax overlay — combined rates for a top-bracket UHNW investor

The $665,000 spread between California and Florida on a $5M gain is the reason many UHNW families moving out of California prioritize completing the domicile change before large liquidity events. Timing the sale after establishing Florida or Nevada domicile is one of the highest-value tax moves available. See the full domicile change guide →

Five strategies to reduce capital gains tax at UHNW scale

1. Tax-loss harvesting — offset gains dollar-for-dollar

Capital losses offset capital gains before any tax is owed. At $30M+ portfolio scale, a systematic direct indexing program can harvest $150K–$300K+ in losses in a normal year by selling individual securities below cost while maintaining market exposure. Losses first offset gains of the same character (short-term or long-term), then crossover to the other type. Excess losses carry forward indefinitely. Use the calculator above to see how harvested losses reduce your tax bill. Direct indexing and TLH at scale →

2. Donate appreciated assets to a DAF — avoid the gain entirely

If you contribute a long-term appreciated asset directly to a donor-advised fund, you deduct the full fair market value and owe zero capital gains tax. For a $5M position with $4M gain: you avoid $952K–$1.855M in tax (depending on state), and take a deduction worth another $700K+ in federal tax savings at the 37% bracket. The OBBBA imposed a 35% deduction cap for the top bracket and a 0.5% AGI floor for itemized charitable deductions — but for appreciated asset gifts, the math still heavily favors DAF over selling and donating cash. Charitable bunching and DAF strategy →

3. QOZ deferral — defer recognition and potentially exclude future gains

Under the OBBBA's extended Qualified Opportunity Zone program, you can defer capital gains by rolling them into a Qualified Opportunity Fund within 180 days of the sale. Invest for 5 years and receive a 10% basis step-up (reducing the deferred gain by 10%). Invest for 10+ years and all appreciation inside the QOF is excluded from income entirely. The 2026–2027 window for the rolling deferral feature creates urgency for investors with imminent gain recognition. QOZ deferral calculator →

4. Installment sale — spread recognition over time

Under IRC §453, a seller of a business or real estate can receive proceeds over multiple years and recognize gain only as payments are received. This can reduce the effective tax rate by keeping some gain in the 15% LTCG bracket or below the NIIT threshold — and delays the tax bill, preserving capital for compound growth. Note: §453A imposes an interest charge on installment obligations above $5M. Installment sale planning guide →

5. §1014 step-up at death — the "buy, borrow, die" strategy

Heirs who inherit appreciated assets receive a new cost basis equal to fair market value at date of death — eliminating the embedded capital gains tax entirely. A $5M stock position with $4M of gain that would cost $1.855M in tax in California costs the estate nothing in capital gains if held until death. The family borrows against the position in the interim using a pledged asset line (PAL) for liquidity. This is one of the most powerful tax strategies available to UHNW families — but it must be weighed against estate tax implications and the fact that borrowed amounts don't step up.