📈 Capital Gains Tax Calculator

Capital Gains Tax Calculator - How CGT Works in the US, UK, India, Australia & Canada

Capital gains tax is one of the most important taxes for investors to understand - and also one of the most frequently misunderstood. The rate you pay, when you pay it, and how much of your gain is actually taxable differs significantly across countries, asset types, and holding periods. Getting this wrong can cost thousands; getting it right can save thousands through strategic timing and planning.

US Capital Gains Tax 2025 - Short-Term vs Long-Term

The United States has one of the most significant tax advantages for long-term investing in the world - but only if you hold assets for more than 12 months. Sell before 12 months and your gain is taxed as ordinary income at your marginal rate (up to 37%). Hold for more than 12 months and you qualify for the preferential long-term rates.

The 2025 long-term capital gains thresholds for a single filer are: 0% on gains if total taxable income stays at or below $48,350; 15% for income between $48,350 and $533,400; and 20% above $533,400. For married filing jointly, the 0% bracket extends to $96,700. Additionally, high-income investors face the 3.8% Net Investment Income Tax (NIIT) on investment income - including capital gains - when modified AGI exceeds $200,000 (single) or $250,000 (married), pushing the maximum effective rate to 23.8%.

UK Capital Gains Tax 2025-26 - Rates and Annual Exemption

The UK's CGT system does not distinguish between short-term and long-term gains - what matters is your income tax band and whether the asset is residential property or something else.

India Capital Gains Tax - Budget 2024 Changes

India's 2024 Union Budget introduced the most significant changes to capital gains tax in years, effective from 23 July 2024. Understanding the before/after is important for investors tracking older positions.

• Equity LTCG rate: Raised from 10% to 12.5%. Applies to listed equity shares and equity-oriented mutual funds held for more than 12 months.
• Equity STCG rate: Raised from 15% to 20%. Applies to equity assets held 12 months or less.
• LTCG annual exemption: Raised from ₹1,00,000 to ₹1,25,000 per year - partially offsetting the rate increase.
• Indexation removed: The indexation benefit (adjusting purchase price for inflation) has been removed for all assets sold after 23 July 2024, including real estate. This significantly increases the taxable gain for long-held properties.
• Real estate LTCG: Now taxed at 12.5% without indexation for properties bought after July 2024. Properties purchased before this date have transitional provisions.

Australia CGT - How the 50% Discount Works

Australia does not have a separate capital gains tax - instead, capital gains are included in your assessable income and taxed at your marginal income tax rate. However, the 50% CGT discount for assets held at least 12 months is one of the most generous provisions in any tax system.

The mechanics: if you sell an asset held for 12 months or more, only half the capital gain is added to your income. The other half is permanently excluded. The included half is then taxed at your normal marginal rate. At a 32.5% marginal rate, a $20,000 long-term gain costs you $3,250 in tax - an effective CGT rate of 16.25%. The same gain held less than 12 months would cost $6,500 at the same marginal rate.

Australia's main residence exemption fully exempts gains on your primary home if it has been your principal residence throughout the entire ownership period and is not income-producing.

Canada Capital Gains - The New Two-Tier Inclusion Rate

Canada does not have a separate CGT rate. Instead, a portion of the capital gain - called the "inclusion rate" - is added to taxable income and taxed at the individual's marginal income tax rate. From June 25, 2024, a two-tier inclusion rate applies:

• First $250,000 of annual gains: 50% inclusion rate - half the gain is taxable (unchanged from before)
• Gains above $250,000 per year: 2/3 (66.67%) inclusion rate - two thirds of the gain is taxable (new, higher rate)

The $250,000 threshold is a per-person annual limit - not per transaction. For a person with a combined marginal rate of 50%, a $300,000 capital gain would result in: first $250,000 × 50% × 50% marginal = $62,500 tax; next $50,000 × 66.67% × 50% = $16,667 tax; total tax = $79,167. The effective CGT rate on the full gain would be approximately 26.4%. Canada's principal residence is exempt from CGT.

Tax-Loss Harvesting - Using Losses to Reduce Your CGT

In most countries, capital losses can be used to reduce capital gains. Selling losing investments to offset gains is called tax-loss harvesting, and it's one of the most effective legal strategies for reducing CGT:

• US: Capital losses offset capital gains dollar for dollar. Excess losses can offset up to $3,000 of ordinary income per year, with any remainder carried forward indefinitely.
• UK: Capital losses in the same tax year reduce your gains before the £3,000 annual exemption is applied. Losses can be carried forward to future years (must be reported to HMRC even if no gain in the loss year).
• India: Short-term capital losses can offset both STCG and LTCG. Long-term capital losses can only offset LTCG. Both can be carried forward for 8 years.
• Australia: Capital losses can only offset capital gains - they cannot reduce other income. Unapplied losses are carried forward indefinitely.
• Canada: Capital losses can only offset capital gains. Net capital losses can be carried back 3 years or forward indefinitely.