How are capital gains taxed in 2023?

Below are the short-term capital gains tax rates for 2023, which are a bit different from those for 2022. While short-term capital gains are taxed at your ordinary income tax rate, long-term capital gains are taxed at special tax rates that are lower than those for short-term capital gains.

How are capital gains taxed?

Capital gains can be subject to either short-term tax rates or long-term tax rates. Short-term capital gains are taxed according to ordinary income tax brackets, which range from 10% to 37%. Long-term capital gains are taxed at 0%, 15%, or 20%. Some exceptions:

What is the tax rate for long-term capital gains?

Long-term capital gains are taxed at the rate of 0%, 15%, or 20%, depending on a combination of your taxable income and marital status. For single tax filers, you can benefit from the zero percent capital gains rate if you have an income below $41,675 in 2022.