Professional-grade calculator for capital gains taxes, dividend taxes, wash sales, futures (60/40), and metals (28%) with real-time IRS-compliant calculations
ETF taxation follows the same principles as individual securities but with structural advantages. Unlike mutual funds, ETF creation/redemption mechanisms typically minimize capital gains distributions[citation:7]. However, when you sell ETF shares, you trigger a taxable event based on:
Capital Gain/Loss = (Sale Price × Shares) − (Purchase Price × Shares) − Wash Sale Adjustments
Tax = Capital Gain × Applicable Rate + Dividend Tax + NIIT (if applicable)
Follow the 60/40 rule: 60% of gains taxed at long-term rates (even for short-term holdings), 40% at short-term rates[citation:7]. These ETFs use Form 6781 for annual mark-to-market accounting.
Classified as "collectibles" with a maximum 28% long-term capital gains rate[citation:7]. Short-term gains taxed as ordinary income. Applies to physically-backed gold, silver, platinum, and palladium ETFs.
Taxed as ordinary income regardless of holding period, using the "Section 988" rules for foreign currency transactions[citation:7]. No preferential long-term rates apply.
The wash sale rule disallows claiming a loss if you purchase "substantially identical" securities 30 days before or after the sale[citation:7]. The disallowed loss is added to the cost basis of the new position, deferring the tax benefit.
Scenario: 200 shares of Technology ETF purchased at $100, sold at $150 after 400 days (long-term), with $400 qualified dividends, $250,000 taxable income.
Calculation: ($150−$100) × 200 = $10,000 capital gain × 15% LTCG rate = $1,500 + ($400 × 15% = $60) + NIIT 3.8% × $10,400 = $395.20
Total Tax: $1,500 + $60 + $395.20 = $1,955.20
Futures ETFs follow the "60/40 rule" where 60% of gains are taxed at long-term capital gains rates (currently 0%, 15%, or 20%) and 40% at short-term ordinary income rates, regardless of your actual holding period[citation:7]. This blended rate typically results in lower taxes than pure short-term gains but higher than pure long-term gains for most investors.
The wash sale rule prohibits claiming a loss if you purchase substantially identical securities 30 days before or after the sale[citation:7]. This calculator adjusts your cost basis upward by the disallowed loss amount, reducing your taxable gain (or increasing your loss) when you eventually sell the replacement shares.
The NIIT applies to single filers with MAGI over $200,000 and joint filers over $250,000 (2026 thresholds). It applies to investment income including capital gains, dividends, interest, and rental income. The calculator automatically applies this 3.8% tax when your taxable income exceeds these thresholds.
The IRS classifies gold, silver, platinum, and palladium as "collectibles" under Section 408(m)[citation:7]. Collectibles have a maximum long-term capital gains rate of 28% instead of the standard 20%, even for physically-backed ETFs. Short-term gains are taxed as ordinary income at your marginal rate.
Qualified dividends (from most U.S. corporations) are taxed at long-term capital gains rates (0%, 15%, or 20%), while ordinary dividends (from REITs, money markets, or certain foreign companies) are taxed at ordinary income rates[citation:7]. ETFs issue Form 1099-DIV specifying these amounts. Most stock ETF dividends qualify for preferential rates.
This professional version focuses on federal tax calculations. State tax rates vary significantly (0% to 13.3%), and some states don't conform to federal capital gains rules. For comprehensive state-level calculations, use our State Tax Calculator.
This calculator provides professional-grade estimates based on current 2026 tax laws. However, actual tax liability may vary based on deductions, credits, AMT, state taxes, and other factors. Always consult with a tax professional before filing. Use our Tax Professional Directory for personalized advice.
Professional Disclaimer: This ETF Tax Calculator provides estimates based on 2026 IRS regulations and should not be considered tax advice. Calculations assume standard tax situations and don't account for all deductions, credits, or alternative minimum tax. Tax laws change frequently—verify with IRS publications or a qualified tax professional. Past performance doesn't guarantee future tax outcomes.