The capital gains tax rates in the United States vary depending on several factors, including the type of asset sold and the individual’s tax bracket.
For individuals:
- Long-term capital gains (held for more than a year) are taxed at a rate of 0%, 15%, or 20%, depending on their taxable income.
- Short-term capital gains (held for one year or less) are taxed at the individual’s ordinary income tax rate, which can be as high as 37%.
For corporations:
- The tax rate on long-term capital gains is generally 20%.
- Short-term capital gains are taxed at the corporate tax rate, which is 21%.
It’s important to note that these tax rates are subject to change and may be different based on your location and current tax laws.
