What is a 15% capital gains rate?

A capital gains rate of 15% applies if your taxable income is: more than $59,750 but less than or equal to $523,050 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.

What is a capital gains tax?

A capital gains tax is a tax imposed on the sale of an asset. The long-term capital gains tax rates for the 2023 and 2024 tax years are 0%, 15%, or 20% of the profit, depending on the income of the filer. Capital gains taxes are due only after an investment is sold.

How much tax do you pay on capital gains?

The current rates are 0%, 15%, or 20%, depending on the taxpayer's tax bracket for that year. Most taxpayers pay a higher rate on their income than on any long-term capital gains they may have realized.