2026 Tax Year · Teddy Accounting Services PLLC
2026 Federal Tax Estimate Calculator
Estimate the federal income tax and self-employment tax you may owe (or get back) when you file your 2026 return. Enter your expected totals for the full year — results update as you type. Washington has no state income tax, so this covers your federal return only. How capital gains and dividends are taxed ↓
Estimated balance due
$0
Enter your income to see your estimate.
Total 2026 tax
$0
Effective rate
0.0%
Marginal bracket
10%
Taxable income
$0
How capital gains and qualified dividends are taxed
The calculator taxes investment income the same way your Form 1040 does (the IRS “Qualified Dividends and Capital Gain Tax Worksheet”). Here is how it works.
1. Short-term vs. long-term
- Short-term gains (assets held 1 year or less) are taxed as ordinary income at your regular rate of 10%–37%.
- Long-term gains (assets held more than 1 year) and qualified dividends get lower rates of 0%, 15% or 20%.
- Qualified dividends are dividends from U.S. or qualifying foreign companies on stock you held more than 60 days around the ex-dividend date. They appear in box 1b of Form 1099-DIV. Other dividends and interest are taxed as ordinary income.
2. 2026 long-term capital gain rates (based on taxable income)
| Filing status | 0% rate | 15% rate | 20% rate |
|---|---|---|---|
| Single | Up to $49,450 | $49,451 – $545,500 | Over $545,500 |
| Married filing jointly / Qualifying surviving spouse | Up to $98,900 | $98,901 – $613,700 | Over $613,700 |
| Married filing separately | Up to $49,450 | $49,451 – $306,850 | Over $306,850 |
| Head of household | Up to $66,200 | $66,201 – $579,600 | Over $579,600 |
3. How the calculation works (“stacking”)
- Figure your taxable income (all income minus adjustments and deductions).
- Split it into two layers: ordinary income (wages, business income, interest, short-term gains, etc.) and long-term gains plus qualified dividends.
- Ordinary income is taxed first using the regular brackets.
- Long-term gains and qualified dividends are stacked on top of ordinary income. The part that falls below the 0% threshold is tax-free, the part between the 0% and 15% thresholds is taxed at 15%, and anything above the 15% threshold is taxed at 20%.
Example — Single filer, $60,000 wages and $30,000 long-term gain
| Total income ($60,000 + $30,000) | $90,000 |
| Less 2026 standard deduction | −$16,100 |
| Taxable income | $73,900 |
| Ordinary layer: $73,900 − $30,000 gain = $43,900 → regular brackets | $5,020 |
| Gain from $43,900 up to $49,450 = $5,550 at 0% | $0 |
| Remaining gain $24,450 at 15% | $3,668 |
| Total federal income tax | $8,688 |
If the $30,000 had been a short-term gain, all $73,900 would be taxed at regular rates for $10,970 — about $2,280 more.
4. Other rules to know
- Losses: Capital losses first offset capital gains. If you have a net loss, up to $3,000 ($1,500 married filing separately) reduces other income each year, and the rest carries forward to future years.
- Net investment income tax: An extra 3.8% applies to investment income when modified AGI is over $200,000 (single / head of household), $250,000 (married filing jointly) or $125,000 (married filing separately). The calculator includes it.
- Special rates: Gains on collectibles (up to 28%), unrecaptured depreciation on real estate (up to 25%), and home-sale exclusions are not included in this calculator.
- Washington State: Washington has no income tax, but large long-term capital gains may be subject to Washington’s capital gains excise tax (7%, with an additional 2.9% on gains over $1 million) after the state’s annual deduction. Real estate is generally exempt. This calculator does not include it — contact us if you expect a large gain.
Your results panel shows how much of your income was taxed at regular rates and how much at 0%, 15% and 20%.
Important: This calculator provides a general estimate for planning purposes only, using 2026 federal tax rates, brackets and deductions published by the IRS (Rev. Proc. 2025-32) and the One Big Beautiful Bill Act. It does not account for every situation — for example the AMT, the earned income credit, education and energy credits, the tips and overtime deductions, passive activity rules, or business entity (S corporation / partnership) planning — and the qualified business income deduction is simplified. Results are not tax advice and are not a substitute for a prepared return. Please contact Teddy Accounting Services PLLC to review your specific situation. Information you enter stays in your browser and is not saved or sent to us.