Capital Gains Tax Rate

The tax rate applied to long-term capital gains when selling the property.

Example Result

Sample Data

15.00%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Capital Gains Tax Rate Formula

User Input (%)

User Input (%)

15.00%

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%)

Why 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).