Capital gains tax calculator
Tax on an asset sale, with any long-hold discount applied and carried-forward losses taken into account.
Capital gains tax
Estimate$5,280.00
the 50% discount saved 5,840 — held 30 months
- Gross gain
- $33,000
- Taxable gain
- $16,500
- Effective rate on the gain
- 16%
| Proceeds | $85,000 |
|---|---|
| Cost base | -$52,000 |
| Gross gain | $33,000 |
| Carried-forward losses | $0.00 |
| 50% discount | -$16,500 |
| Taxable gain | $16,500 |
A $33,000 gain held over twelve months is discounted by 50% in Australia, halving the taxable amount to $16,500.
How this is calculated
How this is calculated
Losses first, then any discount
Carried-forward capital losses reduce the gross gain before a long-hold discount is applied. Applying the discount first understates the tax, and it is the most common ordering error in manual calculations.
taxable = (gain − losses) × (1 − discount)Holding period changes the answer sharply
Australia halves the taxable gain above twelve months of ownership. On a $33,000 gain at a 39% marginal rate, selling at month 13 rather than month 11 is worth about $6,400.
Cost base is more than the purchase price
Brokerage on both ends, transfer duty and capital improvements all lift the cost base and reduce the gain. Leaving out $2,000 of brokerage on a $33,000 gain costs about $390 in unnecessary tax.
Worked example: A $33,000 gain held for 30 months
| Sale price | $85,000 |
|---|---|
| Cost base | $52,000 |
| Gross gain | $33,000 |
|---|---|
| Taxable gain | Depends on the discount rules |
Discounts, holding periods and whether gains are taxed at a separate rate all differ by country. Pick a country above for the version that applies.
What this assumes
- The asset is not your main residence.
- You hold it as an individual.
- Cost base includes transaction costs.
- Full-year residency in the selected country.
Where this commonly goes wrong
- Holding-period tests usually run from contract date to contract date, not settlement, which can shift a sale across the line.
- Main-residence and business concessions can remove a gain entirely and are not modelled here.
- Capital losses generally offset capital gains only, never employment income, and usually carry forward indefinitely.
Questions
How is a capital gain taxed?
The gain is proceeds minus cost base. Some countries tax it at a separate flat rate; Australia adds the discounted gain to income and taxes it at your marginal rate, so the same sale costs different people very different amounts.
What is a long-hold discount?
A reduction in the taxable gain for assets held beyond a threshold — 50% above twelve months in Australia. It rewards holding and makes the sale date one of the most valuable decisions in the transaction.
Do I have to report a loss?
It is usually worth doing even with no gain to offset. Most systems let capital losses carry forward indefinitely, so a reported loss today reduces tax on a gain years later.
Related tools
Sources
General estimate based on published ATO rates for the the current period. Not tax advice, and it does not consider your objectives, financial situation or needs. Confirm your position with the ATO or a registered tax agent.
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