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US capital gains calculator (all states)
Washington has no broad state income tax but imposes a 7% state excise tax on long-term capital gains above $262,000 annually. Below the threshold, only federal rates apply on long-term gains; above it, Washington’s 7% applies to the excess long-term gain. Federal long-term rates remain 0%, 15%, or 20%; short-term gains are ordinary income federally (10%–37%). NIIT may add 3.8% for high earners. Holding period rules: under one year is short-term; one year or more is long-term for federal purposes.
2026-style federal + NIIT + flat state rate — educational only, not tax advice.
Short-term gains use ordinary federal brackets on top of your income. Long-term uses 0% / 15% / 20% bands stacked on taxable income.
Net proceeds after tax
$109,500
Sale price minus total tax (simplified).
Sale allocation (proportional to sale price)
| Income / situation | Federal rate | Washington state | Combined (illustrative) |
|---|---|---|---|
| LT gains below $262k (typical) | 0% / 15% / 20% | 0% | Federal only (+ NIIT) |
| LT gains above threshold | 0% / 15% / 20% | 7% (excise on excess) | Federal + WA excise (+ NIIT) |
| Short-term gains | 10%–37% | — | Ordinary federal (+ NIIT) |
The federal Section 121 exclusion allows up to $250,000 in capital gains on a primary residence for single filers and $500,000 for married filing jointly when you meet ownership and use tests (2 of the last 5 years). This is a federal rule; check how Washington conforms for state reporting.
| Income / scenario | Federal (LT) | Washington state | Combined (illustrative) |
|---|---|---|---|
| $150,000 (LT, under WA threshold) | 15% | 0% | ~15% |
| Large LT gain over $262k | 15–20% | 7% on excess | Federal + WA excise |
| $250,000+ MAGI + NIIT | 20% + 3.8% | If applicable | ~24%+ + excise |
Rental and investment property generally does not qualify for Section 121. Gains are subject to federal long-term or short-term treatment plus Washington’s rules (7% excise may apply to large long-term gains above the threshold). Federal depreciation recapture can be taxed at up to 25% on the recapture portion. Actual liability depends on basis, holding period, and other adjustments — this page is educational only.
| Item | Amount |
|---|---|
| Capital gain (LT) | $400,000 |
| Federal tax (15% example) | $60,000 |
| WA excise (if under threshold) | $0 |
| Total estimated tax | ~$60,000 |
| Effective rate on gain | ~15% |
Washington does not have a broad state income tax, but it levies a 7% state excise tax on long-term capital gains above an annual threshold — $262,000 for 2026-style figures for individuals. Gains at or below the threshold are not subject to this state excise. Federal long-term rates (0%, 15%, 20%) and short-term ordinary income treatment still apply.
Federal long-term capital gains (assets held more than one year) are taxed at 0%, 15%, or 20% depending on taxable income and filing status. Short-term gains (held under one year) are taxed as ordinary federal income at rates from 10% to 37%.
Short-term capital gains are taxed as ordinary income federally (10%–37%). Washington’s state excise generally applies to long-term capital gains above the statutory threshold, not short-term gains in the same way — confirm current Washington Department of Revenue guidance for your situation.
The federal Net Investment Income Tax (NIIT) is 3.8% on the lesser of net investment income or the amount by which modified adjusted gross income exceeds $200,000 for single filers or $250,000 for married filing jointly.
For individual filers, long-term capital gains in excess of $262,000 per year can be subject to Washington’s 7% excise on the amount above the threshold. Married couples and other filing situations may use different thresholds under state law — verify amounts for your filing status.
Short-term means you held the asset for less than one year before sale; long-term means a holding period of one year or more. Your holding period determines whether federal preferential long-term rates apply.
Educational estimates only. Not tax advice.