At most major online brokers, the cost to sell stock is $0 in commission, but the true cost of selling stock almost always includes tiny regulatory fees on every trade and, more importantly, capital gains tax on any profit. For a long-term holding sold at a gain, expect to pay 0%, 15%, or 20% federal tax on the profit, plus a possible 3.8% surtax if you’re a high earner, plus state tax in most states. Short-term gains cost far more because they’re taxed as ordinary income.
The fees are pennies. The taxes are the real number to plan around.
What Your Broker Charges
Fidelity, Schwab, Vanguard, and most other online brokers eliminated per-trade commissions on U.S. stocks and ETFs several years ago. Selling 100 shares or 10,000 shares costs the same at the commission line: nothing. These firms make money mainly on interest earned on customer cash and through payment for order flow.
Payment for order flow is worth understanding because it can create a cost you never see on a statement. When you place a sell order, your broker may route it to a wholesale market maker that pays the broker to execute it. Research from Wharton has shown that brokers receiving higher payments per share tend to deliver less price improvement to customers. The difference on any single trade is fractions of a penny per share, but it adds up if you sell often.
Full-service firms operate differently. Edward Jones charges commissions ranging from 0.75% to 5.75% on trades in its commission-based accounts, depending on the investment and amount.1Edward Jones. Financial Advisor Costs and Fees Raymond James advisory accounts use asset-based fees starting at 2.25% annually for portfolios under one million dollars and declining as assets grow.2Raymond James. Schedule of Services and Costs In a wrap-fee account, the cost of selling is bundled into the annual fee, so there’s no separate line item per trade.
Regulatory Fees on Every Sale
Two small fees appear on every U.S. stock sale, even at commission-free brokers. No firm can waive them.
The SEC Section 31 fee funds the Securities and Exchange Commission under 15 U.S.C. ยง 78ee.3Office of the Law Revision Counsel. 15 USC 78ee – Transaction Fees As of April 4, 2026, the rate is $20.60 per million dollars of sale proceeds.4U.S. Securities and Exchange Commission. Section 31 Transaction Fee Rate Advisory for Fiscal Year 2026 On a $10,000 sale, that’s about two cents.
FINRA’s Trading Activity Fee is $0.000195 per share sold, capped at $9.79 per trade.5FINRA. Fee Adjustment Schedule Selling 500 shares costs about ten cents. The cap only bites if you’re selling more than roughly 50,000 shares in a single order.
If you own American Depositary Receipts, the depositary bank may also deduct a custodial fee. The SEC says these typically run $0.01 to $0.05 per ADR, so 1,000 ADRs might cost $10 to $50.6SEC.gov. Investor Bulletin – American Depositary Receipts
Capital Gains Tax Is the Real Cost
When you sell for more than you paid, the IRS taxes the profit. How much depends primarily on how long you held the shares.
Short-Term Gains (Held One Year or Less)
Sell within a year of buying, and the gain is taxed at your ordinary income rate.7Internal Revenue Service. Topic No. 409, Capital Gains and Losses For 2026, that ranges from 10% to 37% depending on your total taxable income.8Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 A single filer with $200,000 in taxable income who sells for a $10,000 short-term gain owes $3,200 on that gain in the 32% bracket. Every fee described earlier combined comes to a few dollars. The tax is the cost.
Long-Term Gains (Held More Than One Year)
Hold for more than a year and the gain qualifies for long-term rates. For 2026:
- 0% on taxable income up to $49,450 (single) or $98,900 (married filing jointly)
- 15% on taxable income from $49,451 to $545,500 (single) or $98,901 to $613,700 (joint)
- 20% on taxable income above $545,500 (single) or $613,700 (joint)
Most middle-income sellers land at 15%. That same $10,000 profit costs $1,500 long-term instead of $3,200 short-term.7Internal Revenue Service. Topic No. 409, Capital Gains and Losses Waiting past the one-year mark is one of the cheapest tax moves available.
The 3.8% Net Investment Income Tax
Higher earners owe an extra 3.8% surtax on investment income under IRC Section 1411. It kicks in when modified adjusted gross income exceeds $200,000 (single) or $250,000 (joint), and those thresholds are not indexed for inflation.9Internal Revenue Service. Questions and Answers on the Net Investment Income Tax
The 3.8% applies to the lesser of your net investment income or the amount your MAGI exceeds the threshold. A single filer with $250,000 MAGI and $30,000 in capital gains pays the surtax on the full $30,000, adding $1,140 on top of the regular capital gains tax. At the highest bracket, the combined federal rate on long-term gains reaches 23.8%.9Internal Revenue Service. Questions and Answers on the Net Investment Income Tax
State Tax
Most states tax capital gains as ordinary income. Roughly nine states charge no income tax on investment gains; the highest-tax states are above 13%. For top earners in a high-tax state, the combined federal and state bite on a long-term gain can exceed 35%. Check your state rate before you sell.
Which Shares You Sell Changes the Bill
If you bought the same stock at different times and prices, the cost basis method decides which lots the IRS treats as sold, and that changes your gain.
The default at most brokers is first in, first out. Your oldest shares go first, and because they’re often the cheapest, FIFO tends to produce the biggest taxable gain.10Internal Revenue Service. Publication 551 – Basis of Assets
Specific identification lets you designate exactly which shares to sell. Choosing your highest-cost lots minimizes the gain. You need to identify the shares at or before the trade and get broker confirmation. On a large sale of long-accumulated shares, the difference between FIFO and specific ID can be thousands in tax. Most brokers let you change the default in account settings before you place the order.
Average cost is available only for mutual funds, not individual stocks. Once elected for a fund, it applies to all future sales from that fund.
Selling at a Loss
Losses offset gains dollar for dollar. If your losses exceed your gains for the year, you can deduct up to $3,000 of the remainder against ordinary income ($1,500 if married filing separately), and any leftover carries forward to future years indefinitely.7Internal Revenue Service. Topic No. 409, Capital Gains and Losses
The trap is the wash sale rule. Sell a stock at a loss and buy the same or a substantially identical security within 30 days before or after the sale, and the IRS disallows the loss.11Office of the Law Revision Counsel. 26 USC 1091 – Loss From Wash Sales of Stock or Securities The 30 days run both ways, creating a 61-day window around the sale. The rule crosses calendar years, so a loss sale on December 20 and a repurchase on January 10 still counts as a wash.
The disallowed loss isn’t destroyed. It’s added to the cost basis of the replacement shares, and the original holding period tacks on. But the immediate tax benefit disappears for the year, which defeats the point of harvesting the loss.
Extra Costs for Mutual Fund Sales
Mutual funds can carry costs stocks don’t. A back-end load, or contingent deferred sales charge, is assessed on redemption. A common schedule starts at 5% in year one and drops about one percentage point per year until it hits zero.12U.S. Securities and Exchange Commission. Contingent Deferred Sales Load
A separate redemption fee of up to 2% can apply if you sell shortly after buying. SEC rules allow funds to charge it on shares redeemed within seven calendar days of purchase, and some fund boards set longer windows.13U.S. Securities and Exchange Commission. Mutual Fund Redemption Fees – Final Rule The fee goes back into the fund, not to the fund company. Some fund families also charge exchange fees when you move between funds in the same group. All of these are listed in the prospectus fee table.14U.S. Securities and Exchange Commission. Mutual Fund and ETF Fees and Expenses – Investor Bulletin
If You’re Moving Brokers
Selling as part of a broker switch usually costs $50 to $125 in ACATS transfer fees. Morgan Stanley charges $95 to $125 per account depending on the type.15Morgan Stanley Wealth Management. Schedule of Miscellaneous Account and Service Fees Many receiving brokers reimburse this if you transfer above a certain asset threshold, so ask before you initiate.
Some brokers still charge inactivity fees of $50 to $200 per year, which can eat into balances after you sell most of your holdings. Check the account agreement before liquidating.
Set Aside Cash for Estimated Tax
A large sale mid-year can create an estimated tax obligation. If you expect to owe at least $1,000 after withholding and credits, quarterly estimated payments are generally required to avoid a penalty. The safe harbor is paying at least 90% of your current-year tax or 100% of your prior-year tax (110% if your prior-year AGI was over $150,000).16Internal Revenue Service. Estimated Tax Selling $200,000 of stock in June and waiting until April to pay will almost certainly trigger a penalty. Move the tax money aside the same day you sell.