Estimate your exact federal and Ohio investment taxes for 2026.
Understanding preferential tax stacking, holding durations, and IRS wash-sale guidelines.
Ohio taxes capital gains as ordinary income with progressive state rates. Top marginal state rate: 3.5%. Top rate applies to taxable net income.
The IRS heavily rewards holding stocks. If you sell a stock after holding it for less than a year, it is a Short-Term gain and taxed at your normal income bracket. If you hold it for over a year, it is a Long-Term gain and taxed at a preferential flat rate (usually 15%).
If your stock market losses exceed your gains for the year, the IRS only allows you to deduct a maximum of $3,000 against your normal W-2 income. Any remaining losses must be 'carried forward' to future tax years.