Tax rate on long term capital gain

[HelenaC]

See the screenshots below and find your filing status to see your long term capital gains rate.

Those in the 10% and 15% brackets pay no tax on long-term capital gains. You can be in highest ordinary income tax bracket — 39.6% — and still pay no more than 20% in long-term capital gains taxes.

Some investors may also owe the net investment income tax, an additional 3.8% that applies to whichever is smaller: your net investment income or the amount by which your modified adjusted gross income exceeds the amounts listed below. For more on this, check out the IRS’ explanation and this Q&A. Here are the income thresholds that might make investors subject to this additional tax:

• Single or head of household: $200,000.
• Married filing jointly: $250,000.
• Married filing separately: $125,000.

Related Information:

• Where do I enter a capital gain or loss?
• What is a capital asset?
• What is the definition of cost basis?
• What is a capital loss carryover?