@Username1992 thank you for the question.
Capital gains taxes are divided into two big groups, short-term and long-term, depending on how long you’ve held the asset.
Here are the differences:
- Short-term capital gains tax is a tax applied to profits from selling an asset you’ve held for less than a year. Short-term capital gains taxes are paid at the same rate as you’d pay on your ordinary income, such as wages from a job.
See this:
There are seven tax brackets for the 2023 tax year, ranging from 10% to 37%. Your tax bracket, also known as your marginal tax rate, is the tax rate (bracket) that your last taxable dollar falls into and depends on your total taxable income. Here are the 2023 tax brackets for taxes due April 15, 2024:
|
Tax Rate
|
Single
|
Head of Household
|
Married Filing Jointly
|
Married Filing Separately
|
|
10%
|
Up to $11,000
|
Up to $15,700
|
Up to $22,000
|
Up to $11,000
|
|
12%
|
$11,001 - $44,725
|
$15,701 - $59,850
|
$22,001 - $89,450
|
$11,001 - $44,725
|
|
22%
|
$44,726 - $95,375
|
$59,851 - $95,350
|
$89,451 - $190,750
|
$44,726 - $95,375
|
|
24%
|
$95,376 - $182,100
|
$95,351 - $182,100
|
$190,751 - $364,200
|
$95,376 - $182,100
|
|
32%
|
$182,101 - $231,250
|
$182,101 - $231,250
|
$364,201 - $462,500
|
$182,101 - $231,250
|
|
35%
|
$231,251 - $578,125
|
$231,251 - $578,100
|
$462,501 - $647,850
|
$231,251 - $346,875
|
|
37%
|
$578,126 and Up
|
$578,101 and Up
|
$693,750 and Up
|
$346,875 and Up
|
- Long-term capital gains tax is a tax applied to assets held for more than a year. The long-term capital gains tax rates are 0 percent, 15 percent, and 20 percent, depending on your income. These rates are typically much lower than the ordinary income tax rates.
Long-term capital gains tax rates for the 2023 tax year
|
FILING STATUS
|
0% RATE
|
15% RATE
|
20% RATE
|
|
|
|
|
|
|
Single
|
Up to $44,625
|
$44,626 – $492,300
|
Over $492,300
|
|
Married filing jointly
|
Up to $89,250
|
$89,251 – $553,850
|
Over $553,850
|
|
Married filing separately
|
Up to $44,625
|
$44,626 – $276,900
|
Over $276,900
|
|
Head of household
|
Up to $59,750
|
$59,751 – $523,050
|
Over $523,050
|
Be well and safe.
All the best,
Marc T.
TurboTax Live Select Time Tax Expert
26 Plus Years of Experience Helping Clients
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