Capital Gains Tax on $1,000,000 (Short-Term, 2025)
2025 IRS data — updated for current tax year
Gain Amount
$1,000,000
Short-Term Rate
20.00%
Tax Owed
$200,000
Net Proceeds
$800,000
Key Facts
- Short-term gains (assets held 12 months or less) are taxed as ordinary income — at this amount, the effective rate is 32.15%.
- At $1,000,000 in capital gains, a single filer with no other income pays $321,470, keeping $678,530.
- The same gain held over a year would qualify for long-term rates — saving $121,470.
- Married filing jointly filers stay at the 0% rate until gains exceed $94,050 in 2025.
$1,000,000 Short-Term Gain — All Filing Statuses
| Filing Status | Rate | Tax Owed | Net Proceeds |
|---|---|---|---|
| Single | 32.15% | $321,470 | $678,530 |
| Married Filing Jointly | 28.30% | $282,963 | $717,038 |
| Married Filing Separately | 32.65% | $326,481 | $673,519 |
| Head of Household | 31.70% | $316,957 | $683,043 |
Long-Term vs Short-Term Comparison ($1,000,000)
| Type | Tax Owed | Net Proceeds | Savings |
|---|---|---|---|
| Long-Term (>12 months) | $200,000 | $800,000 | $121,470 |
| Short-Term (≤12 months) | $321,470 | $678,530 | — |