Figuring Your Capital Gains Tax Rate Schedule

The capital gains tax rate schedule is based on the type of asset that had a gain and the holding period for the gain. Long-term capital gains are lower than short-term capital gains. A long-term capital gain is considered any gain that is for a period longer than 12 months. A short-term capital gain is for those items with a gain of less than 12 months.

Determining Capital Gains Rate

A taxpayer’s marginal tax rate determines the capital gains rate that is payable. This information is available on IRS.gov and can also be found in a good tax preparation software program. An example of the capital gains tax rate is as follows:

Capital Gains Tax Rates

10 percent marginal income tax rate, 0 percent long-term capital gain rate, 10 percent short-term capital gain rate; 15 percent marginal income tax rate, 0 percent long-term capital gain rate, 15 percent short-term capital gain rate; 25 percent marginal income tax rate, 15 percent long-term capital gain rate, 25 percent short-term capital gain rate; 28 percent marginal income tax rate, 15 percent long-term capital gain rate, 28 percent short-term capital gain rate; 33 percent marginal income tax rate, 15 percent long-term capital gain rate, 33 percent short-term capital gain rate; 35 percent marginal income tax rate, 15 percent long-term capital gain rate, 35 percent short-term capital gain rate.

 

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