What is the tax rate for capital gains?

The tax rate for capital gains in Washington state is determined by the type of gain and your filing status. If you are single or married filing separately, the rate is 10%. If you are married filing jointly or a qualifying widow or widower, the rate is zero for gains of up to $50,000; 7.8% for gains between $50,000 and $150,000; and 10% for gains over $150,000. For short-term capital gains (held for less than one year), the rate is the same as your regular income tax rate. For long-term capital gains (held for over one year), the rate is 0%, 15%, or 20%. If you are in the lowest income tax bracket, the long-term capital gains rate is 0%. If you are in the second income tax bracket, the long-term capital gains rate is 15%. If you are in any of the higher income tax brackets, the long-term capital gains rate is 20%. The exact rate that applies to you depends on your filing status and total household income. It is important to remember that the capital gains rate does not apply to all investments. When you are investing, make sure to research what tax rate applies to each type of investment. This will help you understand the true return on your investment.

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