What is the tax rate for capital gains?

In California, the tax rate for capital gains is determined by a variety of factors, including the amount of capital gain, the type of asset, the taxpayer’s filing status, and the tax rate that applies to the taxpayer’s income. Generally, capital gains are taxed at either the short-term capital gains rate or the long-term capital gains rate. The short-term capital gains rate applies if you have owned the asset for one year or less. This rate is equal to your regular income tax rate, which may range from 1% to 13.3%. The long-term capital gains rate applies if you have owned the asset for more than one year. This rate is 0%, 15%, or 20%, depending on your filing status and taxable income. If you file single and your taxable income is $39,375 or less, the long-term capital gains rate is 0%. For taxable income over $39,375 but less than $434,550, the long-term capital gains rate is 15%. If your taxable income is more than $434,550 then the long-term capital gains rate is 20%. If you are married and filing jointly, the long-term capital gains rate is 0% for taxable income of up to $78,750. The rate is 15% for taxable income over $78,750 but less than $488,850. Taxable income over $488,850 is charged the 20% rate. It is important to remember that California also imposes an additional tax on capital gains at the rate of 13.3%. This applies if your total taxable income exceeds $1 million. The tax rate for capital gains can be complicated and it is always a good idea to consult an experienced tax professional to make sure your capital gains are reported correctly and your taxes are paid in full.

Related FAQs

What is a tax return status report?
What do I need to know about filing taxes for a deceased person?
How can I minimize my tax liability?
What is the tax rate for long-term capital gains?
What is the tax rate for corporations?
Are there any tax advantages for filing a joint return?
Are there any tax breaks for college tuition?
What is a tax evasion?
What deductions can I take?
How much money can I expect to get back in a tax refund?

What is the tax rate for capital gains?

Related FAQs

Related Blog Posts