Capital Gains on Inherited Stock Calculator
When you inherit stocks, the cost basis steps up to the value on the date of death — so only the appreciation after that date is taxable when you sell. This calculator shows your real taxable gain and the tax the step-up saves you.
How to use this calculator
- Enter original cost basis (what the owner paid).
- Enter value at date of death.
- Enter current value.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
The step-up rule resets the basis of inherited assets to their fair market value on the date of death. Sell today and only the growth since death is taxable; the appreciation that built up during the owner's lifetime escapes capital gains tax entirely. (The executor can also choose the alternate valuation date, six months later, when it lowers both the basis and the estate value.)
Frequently asked questions
Do I owe income tax on the inheritance itself?
No — inheritances are not taxable income to the recipient. The estate may owe federal estate tax above the $15M exemption, but that is the estate's liability, not yours.
Should I sell right after inheriting?
Often yes — with the stepped-up basis, selling immediately triggers little or no gain, and it removes concentrated single-stock risk. There is no holding period needed for long-term treatment on inherited assets.
Does the step-up apply to retirement accounts?
No — inherited IRAs and 401(k)s do not get a step-up; distributions are taxed as ordinary income under the inherited-account rules (10-year rule for most beneficiaries).
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.