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Capital Gains Tax Calculator

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Capital gains amount

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Taxable capital gains

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Capital gains tax amount

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Net Remaining Capital Gains

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How to use the Capital Gains Tax calculator

To use the Capital Gains Tax calculator, you’ll need to enter some details about your asset.

Capital Gains Tax is applied against investment property, Shares, Gold, Cryptocurrency, essentially all assets.

These are explained below:

  • Purchase Price — How much you purchased the asset for.
  • Length of Ownership — Whether you have owned the asset for less than 12 months or longer than 12 months.
  • Sold Price — How much you have sold the asset for.
  • Current Taxable Income — Your current taxable income. This will help determine the tax rate at which the capital gain on your asset will be taxed. It's important to note that any capital gains amount will be added to your current income before calculating the tax rate — i.e. a capital gains amount could force you into a higher tax bracket.
  • Total Costs of Purchasing, Owning and Selling the Asset — This is the amount you have personally invested into the asset before sale. For example, if your asset is a property, this may include marketing for sale or renovations, which will be used to calculate your final capital gains amount.

Once you have entered the details about the asset and your income, you can click Calculate to see how much you will need to pay in Capital Gains Tax.

Capital Gains Tax Example Calculation

For this example we’ll look at how Capital Gains Tax works if you own shares. You’ve bought shares and have they have increased in value. You are now selling your shares and need to calculate your CGT. Capital Gains Tax is calculated at either 100% of the capital gains amount or 50% of the capital gains amount, depending on the length of time you have owned the asset.

If you hold the shares for less than 12 months

You will pay tax on the full amount of profit. This is the amount you have made on top of your initial investment (earnings). Every dollar you have made in earnings will be taxed at your individual income tax rate.

For example:

  • Your salary is $100,000 per year
  • Your income tax bracket is 37% — ($90,001 – $180,000)
  • You make a $10,000 capital gain on shares you own for less than 12 months
  • You sell the shares and 100% of the $10,000 capital gain is taxed at 37%
  • You will pay a CGT amount of $3,700 on the shares
  • You are left with $6,300 from the capital gain on your shares

If you hold the shares for more than 12 months

If you own the shares for longer than 12 months, the ATO (Australian Tax Office) gives you a 50% discount on your capital gains tax. This means that you only pay tax on 50% of your earnings from the asset.

For example:

  • Your salary is $100,000 per year
  • Your income tax bracket is 37% — ($90,001 – $180,000)
  • You make a $10,000 capital gain on shares you own for more than 12 months
  • You sell the shares and 50% of the $10,000 capital gain is taxed at 37%
  • You will pay a CGT amount of $1,850 on the shares
  • You are left with $8,150 from the capital gain on your shares

If you want to quickly calculate the amount of tax you’ll have to pay any asset, you can use our free Capital Gains Tax calculator.

Example of capital gains tax on shares

Annual Salary$100,000
Length of share ownershipMore than 12 months
Capital gain on shares sold$10,000
CGT on sale$1,850

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Other Money.com.au Calculators

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Capital Gains Tax Calculator FAQs

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What is Capital Gains Tax?

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A capital gain or loss is the amount of money you make or lose on the sale of an asset. The capital difference is how much you purchase the asset for versus how much you sell it for.

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How much do I have to pay for CGT?

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The amount of CGT you will pay on your shares can vary depending on how long you have held the investment. If you own the asset for less than 12 months, you will have to pay 100% of the capital gain at your income tax rate. If you own the asset for longer than 12 months, you will pay 50% of the capital gain. Capital gains are taxed at the same rate as taxable income — i.e. if you earn $40,000 (32.5% tax bracket) per year and make a capital gain of $60,000, you will pay income tax for $100,000 (37% income tax) and your capital gains will be taxed at 37%.

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Do I need to pay CGT on shares?

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The quickest way to determine if you need to pay CGT on your shares is to see if your shares have made money over the time since you bought them. If you are selling shares at a price below what you paid for them, you have made a loss and you do not need to worry about capital gains tax. If the price of your shares has risen since buying and you are now selling; you will have to pay CGT.

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What assets are exempt from Capital Gains Tax?

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Any asset you have purchased or acquired since Capital Gains Tax was first introduced (20 September 1985) will be subject to Capital Gains Tax, with some exceptions for personal-use assets such as the family home or your personal vehicle.

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