Yes, capital gains are taxed based on a percentage. Per the IRS, "Net capital gains are taxed at different rates depending on overall taxable income, although some or all net capital gain may be taxed at 0%. For taxable years beginning in 2024, the tax rate on most net capital gain is no higher than 15% for most individuals.
A capital gains rate of 0% applies if your taxable income is less than or equal to:
- $47,025 for single and married filing separately;
- $94,050 for married filing jointly and qualifying surviving spouse; and
- $63,000 for head of household.
A capital gains rate of 15% applies if your taxable income is:
- more than $47,025 but less than or equal to $518,900 for single;
- more than $47,025 but less than or equal to $291,850 for married filing separately;
- more than $94,050 but less than or equal to $583,750 for married filing jointly and qualifying surviving spouse; and
- more than $63,000 but less than or equal to $551,350 for head of household.
However, a capital gains rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.
There are a few other exceptions where capital gains may be taxed at rates greater than 20%:
- The taxable part of a gain from selling section 1202 qualified small business stock is taxed at a maximum 28% rate.
- Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate.
- The portion of any unrecaptured section 1250 gain from selling section 1250 real property is taxed at a maximum 25% rate.
Note: Net short-term capital gains are subject to taxation as ordinary income at graduated tax rates."
See the link below for more information:
@wwwjulie
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
