Computational modeling of concrete poses two main types of challenges. The first is the mathematical description of local response for such a heterogeneous material under all stress states, and the second is the stability and efficiency of the numerical implementation in finite element codes. The paper at hand presents a comprehensive approach addressing both issues. Adopting the microplane theory, a combined plasticity---damage model is formulated and regularized by an implicit gradient enhancement. The plasticity part introduces a new microplane smooth 3-surface cap yield function, which provides a stable numerical solution within an implicit finite element algorithm. The damage part utilizes a split, which can describe the transition of loading between tension and compression. Regularization of the model by the implicit gradient approach eliminates the mesh sensitivity and numerical instabilities. Identification methods for model parameters are proposed and several numerical examples of plain and reinforced concrete are carried out for illustration.