Capital Gains Tax Calculator 2026

To exclude home-sale gain under Section 121 you normally must have owned and lived in the home for 2 of the last 5 years. Under IRC 121(d)(9), service members on qualified official extended duty can elect to suspend that 5-year test for up to 10 years, so time stationed elsewhere does not count against you. You still keep the full $250,000 single / $500,000 joint exclusion. The suspension plus the underlying 5-year period cannot exceed 15 years total.

You must be ordered to active duty either for an indefinite period or for a definite period of more than 90 days, and stationed at least 50 miles from the home or living in government quarters under orders. The election applies to one property at a time. It is most valuable when PCS orders moved you out before you could meet the 2-of-5-year use test - the suspension can turn a failing test into a full exclusion.

Long-term gains (assets held more than a year) are taxed at 0%, 15%, or 20% depending on your taxable income against the 2026 breakpoints, stacking on top of your ordinary income. Short-term gains (held a year or less) are taxed as ordinary income. The Net Investment Income Tax adds 3.8% on investment income once your modified AGI crosses the threshold ($200,000 single / $250,000 joint). The calculator applies all three, plus the Section 121 exclusion.