Tax Rates for Capital Gains

 

Long term (held for more than 12 months) capital gains are taxed at a maximum tax rate of:

  • 20% if you are in a 28% or higher tax bracket
  • 10% if you are in a 15% taxt bracket. You will pay only 10% on your capital gains until your taxable income reaches the 28% tax bracket, and you will pay 20% on any portion of your capital gains that would normally be taxed at 28%

See Summer 98 Newsletter, page 2, for 1999's tax brackets.
See also Capital Gain Examples, for additional information regarding tax brackets.

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