The long-term capital gains tax rate is 0%, 15%, or 20%, depending on your taxable income and filing status. The tax rate on most net capital gain is no higher than 15% for most individuals. The long-term capital gains tax applies to assets held for more than a year, while short-term capital gains tax applies to assets held for a year or less. The tax rate for short-term capital gains is the same as the ordinary income tax rate, which ranges from 10% to 37% depending on your income and filing status. The long-term capital gains tax rates are adjusted annually for inflation. The following table provides an overview of the long-term capital gains tax rates that will apply to long-term gains based on taxable income for the 2023 tax year:
| 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 $246,150 | Over $246,150 |
| Head of household | $0 to $67,050 | $67,051 to $469,050 | Over $469,050 |
It is important to note that these rates are subject to change based on tax policy changes made by the government.
