House Flip Tax Calculator
Calculate taxes on house flipping profits. See short-term vs long-term and dealer status impact.
Flip Profit
$32,000.00
Tax (STCG)
$7,169.50
Net Profit (Investor)
$24,830.50
Flip Profit Breakdown
| Sale Price | $300,000.00 |
| Purchase Price | - $200,000.00 |
| Rehab Costs | - $40,000.00 |
| Holding Costs | - $10,000.00 |
| Selling Costs | - $18,000.00 |
| Gross Profit | $32,000.00 |
Tax Breakdown
| Holding Period | 8 months (Short-Term) |
| Short-Term CG Tax (ordinary rates) | $7,169.50 |
| Effective Tax Rate | 22.4% |
| Net Profit After Tax (Investor) | $24,830.50 |
Dealer vs Investor Comparison
| Investor Status | |
| Capital Gains Tax | $7,169.50 |
| Self-Employment Tax | $0 |
| Net Profit | $24,830.50 |
| Effective Rate | 22.4% |
| Dealer Status | |
| Income Tax (ordinary rates) | $7,169.50 |
| Self-Employment Tax (15.3%) | $4,896.00 |
| Net Profit | $19,934.50 |
| Effective Rate | 37.7% |
Use the House Flip Tax Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
A House Flip Tax Calculator determines the tax liability on profits from buying, renovating, and selling real estate within a short timeframe. For 2026, house flipping profits are typically taxed as ordinary income rather than capital gains, with rates ranging from 10% to 37% depending on your tax bracket.
The calculator computes taxable profit by subtracting your total investment (purchase price plus renovation costs, selling expenses, and other deductible costs) from the sale price. It then applies the appropriate ordinary income tax rate based on your total annual income, as properties held for less than one year don't qualify for favorable long-term capital gains treatment.
Remember to track all legitimate business expenses including materials, contractor fees, permits, and utilities during renovation. A common mistake is forgetting to include selling costs like realtor commissions, closing costs, and staging expenses, which can significantly reduce your taxable profit. Consider consulting a tax professional as house flipping may also subject you to self-employment taxes.
Calculating Tax on a $45,000 House Flip Profit
- 1 Purchase a property for $180,000, invest $35,000 in renovations and improvements, and incur $8,000 in selling expenses (realtor fees, closing costs, staging).
- 2 Sell the renovated property for $268,000 after 8 months, then calculate gross profit: $268,000 - $180,000 = $88,000 gross profit from the sale.
- 3 Subtract all deductible expenses from gross profit: $88,000 - $35,000 (renovations) - $8,000 (selling costs) = $45,000 taxable profit.
- 4 Apply ordinary income tax rate of 24% (assuming this bracket): $45,000 × 0.24 = $10,800 in federal taxes owed on the house flip profit, plus potential state taxes and self-employment tax.
Source: IRS — Forms, Instructions & Publications · Last updated: April 2026
Frequently Asked Questions
How are house flipping profits taxed?
What is the difference between investor and dealer status?
Can I do a 1031 exchange on a house flip?
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