Capital Gains Tax Rate
The tax rate applied to long-term capital gains when selling the property.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
See Your Own Properties
With the Rental Property Calculator, you can run this calculation against your own rental properties using your real numbers.
40-Year Projection Chart
Subscribe to explore how capital gains tax rate evolves over a 480-month holding period.
View PricingCapital Gains Tax Rate Formula
User Input (%)
Where to Find This Value
Here's where you can find the value for Capital Gains Tax Rate:
CPA / Accountant
Your accountant determines your capital gains rate based on income and filing status
IRS Publication 523
IRS Publication 523 covers tax on the sale of real property (0%, 15%, or 20%)
Calculations That Use Capital Gains Tax Rate
Platform Distribution
Unlock Platform Benchmarks
See the average, median, and where your property ranks among other investors on the platform.
Unlock Rental Property CalculatorWhy It Matters
Capital gains tax significantly affects your net sale proceeds and total return. On a $100,000 gain, a 15% rate costs $15,000 in taxes. Strategies to minimize capital gains include 1031 exchanges (tax-deferred), installment sales, opportunity zones, and holding until death (stepped-up basis). Always factor in capital gains when projecting returns from a future sale.
Detailed Explanation
Capital Gains Tax Rate is the tax rate on the profit from selling a property held longer than one year. Most investors pay 15% federal long-term capital gains tax, though rates can be 0%, 15%, or 20% depending on income level. State capital gains taxes may also apply. Capital gains tax is assessed on the sale price minus the adjusted cost basis (original cost + improvements - accumulated depreciation).
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Accumulated Depreciation
UTotal depreciation deducted over the actual ownership period, based on the purchase date.
Depreciation
1Annual straight-line depreciation deduction for the building.
Depreciation as Percent of Income
2Annual depreciation as a percentage of effective gross income.
Tax Savings From Depreciation
2Dollar amount saved in taxes due to depreciation deduction.
Cash Flow from Depreciation™
2Additional effective cash flow generated by depreciation tax savings.
Effective Tax Rate
WEstimated income tax as a percentage of NOI.
Run This Calculation on Your Property
Get instant results for all 207 calculations by entering your property details into the Rental Property Calculator.
View Pricing