What is the capital gains tax?

The capital gains tax is a tax that is assessed on the profits made from the sale of investments. In Virginia, the capital gains tax is imposed on the sale of stocks, bonds, mutual funds, and other investments, as well as on the sale of real estate property. The capital gains rate imposed in Virginia is dependent on the individual income of the taxpayer. Taxpayers with an adjusted gross income (AGI) of $17,000 or less are exempt from paying the capital gains tax. Taxpayers with an AGI of $17,001 to $116,000 may be liable for a 4% capital gains tax rate, while taxpayers with an AGI of more than $116,001 may be liable for a 5.75% capital gains tax rate. Additionally, taxpayers may qualify for certain exemptions or deductions to lower their capital gains tax rate, such as the long-term capital gains tax rate. The long-term capital gains tax rate is typically lower than the regular capital gains tax rate and applies to the sale of assets that have been held for longer than a year. It is important to note that capital gains are subject to both federal and state taxes, and the capital gains tax rate can vary from state to state.

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What is the capital gains tax?

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