Are capital gains taxed only on the amount they they exceed the taxable threshold?

[lancevonb]

E.G. Assume all work and other income from married filing jointly taxes is 60 K. Income threshold for capital gains 15% bracket is 78k. If we sold stock with net earnings of 25k that would put our total income at 85k. Do we only pay the 15% cap gains tax on 7K above the bracket threshold or do we pay 15% on all the 25K. For ease assume no tax deductions.

[tagteam]

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@lancevonb wrote:
Do we only pay the 15% cap gains tax on 7K above the bracket threshold or do we pay 15% on all the 25K. For ease assume no tax deductions.

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Yes, 15% on just the amount that exceeds that bracket threshold (in your hypo around $7k) until, obviously, you get to the next threshold (which is 20%).