What is the tax rate for capital gains?

In Virginia, the tax rate for capital gains is determined by the federal government. Capital gains refer to the profits made from selling assets such as stocks, bonds or other investments. Capital gains are generally taxed as regular income, with the rate based on your annual income and filing status. For the 2019 tax year, the federal tax rate for capital gains is 0%, 15%, or 20%, depending on the taxpayer’s income. If a taxpayer’s taxable income is below the top of the 10% or 12% tax brackets, then the taxpayer’s capital gains are taxed at 0%. Taxpayers with taxable income between the top of the 10% or 12% tax brackets and the top of the 22% tax bracket, receive a 15% tax rate. Taxpayers with taxable income over the top of the 22% tax bracket have a 20% tax rate on their capital gains. In addition to federal taxes, Virginia also taxes capital gains. The state-level tax rate can be as high as 5.75%. For 2020, Virginia has a 4.15% tax rate for taxpayers with taxable income above $12,000. Taxpayers with taxable income below $12,000 will pay a 2% tax rate for capital gains. In summary, the tax rate for capital gains in Virginia depends on the taxpayer’s federal and state income tax brackets. The federal tax rate for capital gains ranges from 0% to 20%, while the state rate in Virginia can range from 2% to 5.75%.

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