Long Term & Short Term Capital Gains Tax Rate

Your capital gains tax rate will be figured out depending on the holding period and the type of investment asset. You will be taxed federally on your capital gains and may also be subject to being taxed by your state as well. This schedule displays the current long term and short term federal capital gains tax rates:

 

Long Term Capital Gain longer than one year… 5% for taxpayers in the 10% & 15% bracket, 15% if you are in the 25%, 28%, 33%, & 35% bracket

 

 

Short Term Capital Gain less than a year… Standard income tax rates up to 35%

 

 

Small Business Stock Gains at least five year… 28%

 

 

Real Estate longer than one year… 5% or 15% after any exclusion amount

 

 

Collectibles longer than one year… 28%

 

 

Collectibles longer than five years… 28%

 

Beginning in 2008 you will see a change if you are in the 10% or 15% tax bracket. To qualify for this new tax break your income must be below $32,550.00 if you are filing single and less than $65,100.00 if you are married. The new tax rate will be zero for long term capital gains and short term capital gains.

Long term capital gains are taxed at a lower rate than what your regular income will be taxed at. Depending on your income for that tax year you may be pushed in to a higher tax bracket if you received capital gains. This could result in a combination of rates for your income and capital gains.

Learn more about Long Term & Short Term Capital Gains Tax Rates

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