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 costs, selling expenses, and other deductible outlays, from the sale price. The tool then applies the ordinary income rate tied to your total annual income. Because a property held under one year never qualifies for the friendlier long-term capital gains treatment, that ordinary rate is what governs the bill.

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.