For 2023, the capital gains tax rates depend on the type of asset sold and the taxpayers income level. Long-term capital gains tax rates apply to assets held for more than a year, while short-term capital gains tax rates apply to assets held for less than a year. The capital gains tax rates for long-term gains in 2023 are 0%, 15%, and 20%, depending on the taxpayers income level. The following table shows the long-term capital gains tax rates for 2023 based on taxable income:
| Tax-filing status | 0% tax rate | 15% tax rate | 20% tax rate |
|---|---|---|---|
| Single | $0 to $44,625 | $44,626 to $492,300 | Over $492,300 |
| Married filing jointly | $0 to $89,250 | $89,251 to $553,850 | Over $553,850 |
| Married filing separately | $0 to $44,625 | $44,626 to $276,900 | Over $276,900 |
| Head of household | $0 to $59,750 | $59,751 to $523,050 | Over $523,050 |
It is important to note that high earners may also be subject to a 3.8% net investment income tax, which could bring the maximum tax rate for long-term capital gains to as much as 23.8% .
