What Are The Capital Gains Tax Rates?
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.
- 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%.
- 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.