Capital Gains Tax Calculator: Estimate Tax on Property Sale
Estimate your federal tax liability when selling investment property. This calculator breaks down both capital gains tax and depreciation recapture so you know your actual net proceeds before listing.
Final sale price net of selling costs (commissions, escrow, transfer tax).
What you originally paid for the property — your starting cost basis.
Major upgrades over time (roof, HVAC, kitchen rebuild). Adds to your cost basis, reduces taxable gain.
Total depreciation deductions taken since placed in service. Reduces basis AND triggers recapture tax on sale.
Federal LTCG rate based on your income bracket: 0%, 15%, or 20%. Held >1 year = LTCG; <1 year = your ordinary rate.
Sale price minus adjusted basis. The starting figure for your tax calculation.
How is Capital Gains Tax Calculator helpful?
Most hosts guess their numbers. Pros use data. This tool helps you make unemotional, data-driven decisions about your property portfolio, ensuring every dollar you invest yields a measurable return.
Accuracy
Based on real-time market data from 50+ cities.
Speed
Get answers in seconds, not hours of spreadsheet work.
Confidence
Bank-grade formulas used by institutional investors.
How the Capital Gains Tax Calculator Works
This calculator breaks down your estimate using key inputs. Each one refines the output.
Sale Price
Net sale price after selling costs
Using gross price instead of net (minus commissions and closing costs) inflates your calculated gain by 7-10%.
Accumulated Depreciation
Total depreciation deductions claimed since purchase
Every dollar of depreciation reduces your basis AND triggers 25% recapture tax at sale—the IRS wants those deductions back.
Capital Improvements
Major upgrades added to cost basis
A $30,000 roof replacement at 15% LTCG rate saves $4,500 in taxes, but only if you include it in your basis.
Model Your 1031 Exchange Scenarios
See how deferring your capital gains tax through a 1031 exchange could compound into six figures of additional wealth over your next holding period.
No credit card required
Frequently Asked Questions
What's the difference between capital gains tax and depreciation recapture?+
Capital gains tax applies to appreciation above your adjusted basis at your LTCG rate (0%, 15%, or 20%). Depreciation recapture taxes all depreciation you've claimed at a flat 25% rate regardless of income. You pay both at sale.
Why does depreciation recapture exist?+
You've been deducting depreciation every year to reduce taxable rental income. The IRS wants that tax benefit back when you sell. On a property held 15 years, recapture alone can exceed $40,000 before any appreciation is taxed.
Does this calculator include state taxes?+
No, this estimates federal taxes only. California adds up to 13.3%, New York up to 10.9%, and most states tax gains as ordinary income. Your actual liability could be 30-50% higher in high-tax states.
What if I forgot to claim depreciation in past years?+
The IRS taxes you on depreciation 'allowed or allowable'—meaning you're subject to recapture as if you had claimed it, even if your returns missed years. Your tax preparer should have been claiming it all along.
How do I find my accumulated depreciation?+
Check your past tax returns (Form 4562) or depreciation schedules from your accountant. For residential rentals, annual depreciation is roughly building value divided by 27.5 years times years held.
Should I use gross or net sale price?+
Always net. Subtract agent commissions (typically 5-6%), escrow fees, and transfer taxes from your expected contract price. These selling costs are deductible for capital gains purposes.