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Estimate your federal tax on long-term capital gains and qualified dividends using the same stacking logic as the IRS Qualified Dividends and Capital Gain Tax Worksheet, plus the 3.8% Net Investment Income Tax (NIIT) — tax year 2025 (returns filed in 2026), shown line by line so you can see exactly how the numbers are built.
2025 ordinary income tax brackets, capital gain rate breakpoints, and standard deduction amounts: Rev. Proc. 2024-40. NIIT: IRC §1411 and Form 8960 instructions (the $200,000 / $250,000 / $125,000 MAGI thresholds are fixed by statute and are not inflation-adjusted). Worksheet mechanics: Qualified Dividends and Capital Gain Tax Worksheet, 2025 Form 1040 instructions. Verify current figures against the official IRS Rev. Proc. and instructions before filing, as amounts are subject to IRS correction or later legislation.
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The real IRS worksheet's last step takes the smaller of the worksheet result or the tax on all your taxable income computed as if it were entirely ordinary income. In virtually all real cases the worksheet result is smaller (that's the point of the preferential rates), but this final check is a safety net built into the official form, so this calculator replicates it.
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This tool provides a simplified, educational estimate for planning purposes only. It is not tax advice, is not a guarantee of your actual tax liability, and does not constitute a completed Form 1040, Schedule D, or Form 8960. It does not account for: state or local income tax; the Alternative Minimum Tax; the Qualified Business Income (§199A) deduction; the 28% rate on collectibles gain or unrecaptured §1250 gain (capped at 25%); the investment interest expense adjustment (Form 4952); phase-outs of other credits or deductions caused by additional income; underpayment penalties or estimated-tax requirements; or any amounts specific to trusts and estates. The MAGI auto-estimate (when left blank) is a rough proxy only and ignores itemized deductions, above-the-line addbacks (such as the foreign earned income exclusion), and other MAGI adjustments — enter your actual MAGI whenever possible. Figures are based on 2025 amounts published in Rev. Proc. 2024-40 and are subject to correction. Always confirm results with a qualified preparer before filing or making financial decisions based on this estimate.