Capital Gains Tax on $400,000
Your tax depends on holding period and income. Long-term CGT ranges from $68,066 to $81,755 depending on your income level.
CGT on $400,000 by Holding Period & Income
Asset Sale Details
Calculate capital gains tax for 2025
Long-term gains taxed at preferential rates (0%, 15%, or 20%)
Determines your capital gains tax bracket
Capital Gains Tax
Long-term • 15.0% effective rate
Capital Gains Tax Due
$6,750
2025 Capital Gains Tax Rates
Long-Term Rates (held 1+ year)
Up to $47,025 (single)
$47,025 - $518,900 (single)
Over $518,900 (single)
Short-Term & Additional Taxes
Taxed as ordinary income (your marginal tax rate)
Income over $200,000 (single) / $250,000 (married)
$250,000 single / $500,000 married
Capital gains "stack" on top of ordinary income. Your tax rate depends on your total taxable income. State taxes may also apply depending on your state of residence.
Long-Term CGT on $400,000
If you held the asset for more than one year, you qualify for preferential long-term rates. On a $400,000 gain, you'd pay $68,066 at 0% rate (low income), $71,400 at 15% rate (middle income), or $81,755 at 20% + NIIT (high income).
Short-Term CGT on $400,000
Assets held one year or less are taxed at ordinary income rates (10-37%). On $400,000, you'd pay approximately $99,400 at the 22% bracket. Consider holding assets longer than one year to save on taxes.
Reduce Your CGT Bill
- • Hold assets longer than one year for preferential rates
- • Offset gains with capital losses from other investments
- • Use primary residence exclusion ($250k single / $500k married)
- • Contribute to tax-advantaged accounts (401k, IRA) to lower income
- • Consider tax-loss harvesting at year-end