House Flip Tax Calculator

Profit from buying, fixing, and quickly reselling a property gets taxed differently than most people expect. For 2026, flip profits are generally treated as ordinary income rather than capital gains, which means they fall into the standard brackets running from 10% to 37% depending on where your total income lands.

Taxable profit comes from subtracting your full investment, the purchase price plus renovation, holding and selling costs, from the sale price. If you held the property under 12 months, the tool stacks that profit on top of your other taxable income and taxes it at the 2026 ordinary brackets for your filing status, so part of it can land in a higher bracket than the rest of your income. At 12 months or more it applies the 0%, 15% and 20% long-term rates instead; the law's test is more than one year, so a sale on the one-year anniversary is still short-term.

Keeping records of every legitimate business expense, from materials and contractor fees to permits and utilities during the renovation, directly lowers what you owe. The expenses most often overlooked are on the sale side, realtor commissions, closing costs, and staging, all of which trim taxable profit once counted. Flipping can also trigger self-employment taxes, so a tax professional is worth consulting before you file.