How Much Capital Gains Tax Do I Pay on $350,000?

If you're looking at a $350,000 capital gain — whether from selling an inherited house, stock, or another asset — here's a real, numbers-based breakdown of what that could cost you, from Real Time Home Buyers Metro Detroit. (These figures are for a long-term gain, meaning the asset was held more than a year — which inherited property automatically qualifies for, regardless of how long you personally owned it.)

Federal Tax on a $350,000 Gain

For 2026, long-term capital gains are taxed at 0%, 15%, or 20%, depending on your total taxable income. Assuming this $350,000 gain is your main source of income for the year (a common scenario for many home sales):

Single filer: The first roughly $49,450 of taxable income falls in the 0% bracket, and the remainder up to $545,500 falls in the 15% bracket. Since $350,000 is well under that upper threshold, most of the gain would be taxed at 15% — landing your federal capital gains tax somewhere in the neighborhood of $45,000–$50,000, depending on your exact income mix.

Married filing jointly: The 0% bracket goes up to about $98,900, with the 15% bracket applying up to $613,700. A $350,000 gain would similarly fall mostly within the 15% bracket, resulting in a comparable federal tax bill.

A note on the Net Investment Income Tax (NIIT): If your total income (including the gain) pushes your modified adjusted gross income above $200,000 (single) or $250,000 (married filing jointly), an additional 3.8% surtax applies on top of the capital gains rate — which can add real money on a gain this size.

Michigan's Piece of the Pie

Michigan doesn't have a separate capital gains tax — instead, it taxes capital gains as ordinary income at the state's flat rate of 4.25%. On a $350,000 gain, that works out to roughly $14,875 in Michigan state tax, on top of whatever federal tax applies.

Putting It Together

Combining federal (mostly at 15%) and Michigan's flat 4.25%, a $350,000 long-term capital gain could realistically result in a combined tax bill somewhere in the range of $60,000–$65,000 for many filers — though the exact number depends heavily on your other income, filing status, and whether NIIT applies.

Why This Number Might Be Smaller Than You Think for Inherited Property

If this $350,000 is the gain from selling an inherited house, remember that the "gain" is only the appreciation above the stepped-up basis — not the full sale price. Many heirs who sell reasonably soon after inheriting end up with a much smaller taxable gain than the home's total value, which means a much smaller version of the math above.

If you've inherited a property and want help thinking through the numbers before you sell, Real Time Home Buyers Metro Detroit is happy to talk through your specific situation and connect you with the right next steps. Call us at 248-509-5398.

This article is for general informational purposes only and isn't tax or legal advice. Tax brackets, rates, and thresholds can change, and your actual liability depends on your full financial picture. Please consult a CPA or tax professional for numbers specific to you.