What is the tax rate for capital gains?

In California, the tax rate for capital gains depends on the individual’s filing status and their total taxable income for the year. Generally, capital gains are taxed at the same rate as ordinary income, meaning that the rate might range from 1% to 13.3%. Individuals filing as single, head of household, or married filing separately would be subject to a 1% rate for taxable income up to $8,549. For incomes between $8,549 and $20,327, the tax rate is 3%. Those filing as married filing jointly, or qualifying widow(er) with a dependent child would be subject to the same rates, but their taxable income must be doubled to $17,099 to $40,654. For those with incomes between $20,328 and $241,201 (or $40,656 and $482,401 for married filing jointly, or qualifying widow(er) with a dependent child) the rate is 9.3%. For incomes higher than that, the rate increases to a maximum of 13.3%. Tax laws in California are subject to change, so it is important for individuals to stay informed about any changes. Additionally, individuals should consult with a tax specialist or a qualified tax attorney to ensure that they are fully compliant with California tax law.

Related FAQs

How do I know if I qualify for the Earned Income Tax Credit?
How do I claim my dependents on my taxes?
What are the tax incentives for buying a home?
What are the penalties for not filing taxes?
How does the IRS know my income?
What constitutes a tax shelter?
What is a tax haven?
How do I determine my filing status?
What is a tax return?
What is the tax rate for corporations?

What is the tax rate for capital gains?

Related FAQs

Related Blog Posts