Q. If I make a gain from selling stocks the only tax I need to pay the long term capital gain rate?
A. Yes, assuming you owned the stock for more than 1 year. But the LTCG rate varies depending on your other income. Some LTCG may be tax at 0% and some at either 15%, 20% or 23.8%.
You do not pay social security and medicare tax on capital gains, long or short; only income tax, and only at the special rate (if long term).
If you owned it less than 1 year, a short term capital gain (LTCG) is taxed as ordinary income (no special rate). Capital losses (either short or long term) are first used to reduce any other capital gains. Any excess loss can be deducted against ordinary income, but not more than $3000. Any excess is carried forward to next year.
Try this tool https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1. Enter your regular income first to see the regular tax. Then add the sale to see the effect.
Enter the difference between the sale price and what you paid for it originally as a long term capital gain (LTCG).
State income tax is separate and in addition to the federal tax. Although some states do have a special capital gains rate, most tax gains (long or short) as ordinary income
