U.S. Virgin Islands capital gains tax calculator
The Virgin Islands mirrors the U.S. tax code: a gain on an asset held more than a year pays 0%, 15% or 20% depending on your taxable income, a shorter holding pays ordinary rates, and the 3.8% net investment income tax rides net gains. The return is the mirrored Form 1040, filed with the V.I. Bureau of Internal Revenue.
Work out the tax on a share, crypto, unlisted or property disposal from your dates and costs. Enter sales by hand or import your exchange CSVs, and the calculator splits multi-parcel sales under FIFO, tests each parcel against the one-year edge, applies the section 121 main-home exclusion and its two-year count, and shows the arithmetic behind the final figure. Everything stays in your browser.
Rates current as of 2026-09-30, from IRS Rev. Proc. 25-32 applied through the mirror system (the BIR’s Tax Structure Booklet and 48 U.S.C. 1397).
Current rules
The rates behind the number
The long-term 0/15/20 breakpoints by year (taxable income where the 0% and 15% bands end, single)
| Tax year | 0% band ends | 15% band ends | Short-term gains | Net investment income tax |
|---|---|---|---|---|
| 2021 | $40,400 | $445,850 | Ordinary rates | 3.8% over $200,000 |
| 2022 | $41,675 | $459,750 | Ordinary rates | 3.8% over $200,000 |
| 2023 | $44,625 | $492,300 | Ordinary rates | 3.8% over $200,000 |
| 2024 | $47,025 | $518,900 | Ordinary rates | 3.8% over $200,000 |
| 2025 | $48,350 | $533,400 | Ordinary rates | 3.8% over $200,000 |
| 2026 | $49,450 | $545,500 | Ordinary rates | 3.8% over $200,000 |
| 2027 (planning) | $49,450 | $545,500 | Ordinary rates | 3.8% over $200,000 |
Rules and exemptions
| Rule | Value |
|---|---|
| Long-term gains (held more than one year) | 0%, 15% or 20% by taxable income, stacked over ordinary income |
| Short-term gains (held one year or less) | Ordinary income rates, 10% to 37% |
| Married filing jointly breakpoints (2026) | 0% to $98,900, 15% to $613,700, 20% above |
| Net investment income tax | 3.8% of the lesser of net investment income or income over $250,000 joint / $200,000 others ($125,000 married filing separately), by mirror |
| Capital losses | Net gains without limit; a net loss deducts up to $3,000 ($1,500 married filing separately) against ordinary income, the rest carries forward indefinitely |
| Main home (section 121) | $250,000 of gain excluded ($500,000 joint), owned and used 2 of the last 5 years, once every 2 years |
| Wash sales (section 1091) | A loss on stock or securities repurchased within 30 days is disallowed and adds to the replacement basis |
| Not computed here | The 25% unrecaptured section 1250 rate, the 28% collectibles and section 1202 maxima, EDC/EIS benefit elections |
Rates as of 2026-09-30; each table links back to the authority page above. The breakpoints are the IRS inflation-adjusted amounts each year’s revenue procedure sets, applied in the territory through the mirror; 2027 uses the 2026 amounts.
Questions
U.S. Virgin Islands capital gains questions
How much is capital gains tax in the U.S. Virgin Islands?
The Virgin Islands taxes its residents under the mirror system: the U.S. Internal Revenue Code applies with 'Virgin Islands' substituted for 'United States', so the rates are the American ones, paid to the V.I. Bureau of Internal Revenue instead of the IRS. A gain on an asset held more than one year is taxed 0%, 15% or 20% depending on your taxable income; a gain on an asset held one year or less is ordinary income at 10% to 37%; and the 3.8% net investment income tax applies by mirror once income passes $200,000 ($250,000 married filing jointly).
Do I file with the IRS or with the BIR?
A bona fide resident of the Virgin Islands files the mirrored Form 1040 with the V.I. Bureau of Internal Revenue by 15 April, with every payment going to the territory: the BIR's own releases state that filing with the IRS instead is a violation of the law. If any of your income comes from outside the territory, attach BIR Form 1040INFO.
Do losses reduce the tax?
Capital losses offset capital gains without limit. A net capital loss deducts at most $3,000 ($1,500 married filing separately) against ordinary income each year, and the rest carries forward indefinitely with no time limit.
What is the mirror system?
The Virgin Islands taxes its residents under the mirror system: the income-tax laws of the United States apply in the Virgin Islands with 'Virgin Islands' substituted for 'United States' (48 U.S.C. 1397), and the V.I. Bureau of Internal Revenue states that the IRC, the Treasury Regulations and IRS Revenue Rulings and Revenue Procedures are 'generally applicable in the Virgin Islands' (BIR Tax Structure Booklet, bir.vi.gov). A bona fide resident files the mirrored Form 1040 with the BIR, due 15 April.
What are the long-term capital gains rates?
Long-term capital gains (a capital asset held more than one year, IRC 1222(3)) are taxed 0/15/20 by taxable income. The breakpoints for 2026 are the section 1(j)(5) maximum zero-rate and maximum 15% amounts of Rev. Proc. 25-32: single 49,450/545,500, joint 98,900/613,700, separate 49,450/306,850, head of household 66,200/579,600. The gain stacks on top of ordinary taxable income plus net short-term gain (Schedule D Tax Worksheet order).
What is the top rate?
The 20% top rate is statutory (IRC 1(h)(1)(D)); IRS Topic 409 states 'a capital gains rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate'.
How are short-term gains taxed?
Net short-term capital gains (held one year or less) are taxed 'as ordinary income at graduated tax rates' (IRS Topic 409); they fill the ordinary brackets, not the 0/15/20 schedule.
When is a gain long-term?
The holding-period edge is strict: 'if you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term', counting 'from the day after the day you acquired the asset up to and including the day you disposed of it' (IRS Topic 409). A sale on the exact first anniversary is short-term.
How do capital losses carry forward?
Capital losses net capital gains without limit; a net capital loss deducts at most $3,000 ($1,500 married filing separately) against ordinary income (IRC 1211(b)) and the excess carries forward to later years without a time limit (IRC 1212(b)).
Does the net investment income tax apply in the Virgin Islands?
The 3.8% net investment income tax applies through the mirror: IRC 1411 is part of the mirrored code (BIR Tax Structure Booklet), and IRS Publication 570 (2025) says the NIIT 'generally does not directly apply' to bona fide USVI residents (they owe no U.S. federal return) and tells them to seek 'guidance on the possible mirrored application of the NIIT in these jurisdictions' from their territorial tax department. It charges 3.8% of the lesser of net investment income or the excess of modified adjusted gross income over $250,000 joint / $125,000 separate / $200,000 otherwise (IRC 1411(b)).
What is the wash-sale rule?
Wash sales (IRC 1091): a loss on stock or securities is disallowed where substantially identical stock or securities were bought within the 30 days before or after the sale; the disallowed loss adds to the basis of the replacement shares. The statute's words cover stock or securities, not other property.
Is there a main-home exclusion?
The main-home exclusion (IRC 121) applies through the mirror: $250,000 of gain excluded ($500,000 on a joint return) on a principal residence owned and used two of the last five years, once every two years.
What does this calculator not compute?
Not modelled, flagged in the calculator's copy: the 25% rate on unrecaptured section 1250 gain, the 28% maximum on collectibles and section 1202 qualified small business stock, and EDC/EIS benefit elections (up to 90% reductions that are individual programs, not rates).