The capital gains tax rate: Short vs. long

At this point, you may know Official website you have a gain (or a loss). But you may also be wondering how much is capital gains tax? Well, that will depend on if it’s a short- or long-term capital gain. Here, we’ll outline the differences.

Short-term capital gain tax
Short-term capital gains are gains that apply to assets or property you held for one year or less. They are subject to ordinary income tax rates meaning they’re taxed federally at either 10%, 12%, 22%, 24%, 32%, 35%, or 37%.

Long-term capital gains tax
Long-term capital gains apply to assets that you held for over one year and are taxed differently. The federal tax rate for your long-term capital gains depends on where your taxable income falls in relation to three cut-off points, as outlined in the tables below.