Perhaps you made a huge profile from some investment or your asset trade was top charts. Congratulation on your big win, but you don’t need to be too over-excited about the huge profit. This is because, there are certain factors that might want to cut off your gains, too. If your made use of a taxable account for an investment in which you made a huge profit, then you can have a capital gain and therefore requires you to pay tax for it. Find out the Capital Gain Tax Rate on this page.
The capital gain tax that you need to pay is governed by your total income and also how long you have held on to those assets. For instance, for investors with a long-term capital gain, this indicates that you have held onto those assets for more than a year. This means you might need to pay either 0%, 15%, or 20% for the 2022 tax year.
What is Capital Gains Tax?
The profit you made on your investment that includes shares of a stock, or real estate is considered to be capital gains taxes. In other words, you can simply refer to “Capital Gains Tax” as a type of tax made from the profits of investors from sales of assets such as stocks, real estate, businesses, and other kinds of investment in non-tax advantage account or taxable account.
When you can acquire assets and sell it for more than what you bought them for, the U.S government looks at the profit made from the sale as taxable income.
The capital gains tax depends on how long the asset was held before selling. There are two types of capital gain which include short-term capital gain tax and long-term capital gains tax. If an asset is held for a year or less it’s called short-term capital gains, while if an asset is held for over a year, it is known as long-term capital gains.
What is Capital gain tax rate long term?
Capital gain tax rate long-term or long-term capital gains tax is a tax on profits made from an investment that includes sales of assets held for more than a year. According to reports, the long-term capital gain tax rate is 0%, 15%, or 20% but it all depends on your taxable income.
What is Capital Gain Tax Rate Short Term?
Short-term capital gains tax or Capital Gain tax rate short term is a tax on profits made from an investment that includes sales of assets held for just a year or less. The short-term capital gains tax rate is calculated by your ordinary tax rate – your tax bracket.
2021 capital gains tax rates
| Tax-filing status | Single | Married, filing jointly | Married, filing separately | Head of household |
| 0% | $0 to $40,400 | $0 to $80,800 | $0 to $40,400 | $0 to $54,100 |
| 15% | $40,401 to $445,850 | $80,801 to $501,600 | $40,401 to $250,800 | $54,101 to $473,750 |
| 20% | $445,851 or more | $501,601 or more | $250,801 or more | $473,751 or more |
2022 capital gains tax rates
| Tax-filing status | Single | Married, filing jointly | Married, filing separately | Head of household |
| 0% | $0 to $41,675 | $0 to $83,350 | $0 to $41,675 | $0 to $55,800 |
| 15% | $41,676 to $459,750 | $83,351 to $517,200 | $41,676 to $258,600 | $55,801 to $488,500 |
| 20% | $459,751 or more | $517,201 or more | $258,601 or more | $488,501 or more |
Keep in mind the following data concerning the short-term capital gains and long-term capital gains are in accordance with federal income tax brackets.
Capital gain tax rate calculator
The 2022 capital gain tax rate calculator is a tool used in calculating and estimating your after-tax investment gains. Aside from the U.S. government in calculating your tax investment gains, you can also use powerful tools like NerdWallet to estimate your capital gain tax. There are certain factors used in calculating your capital gains.
How to calculate the capital gain tax rate
In calculating the Capital gain tax rate, there are certain factors that apply to calculating the capital gains taxes. Here are the following factors in estimating your capital gains taxes:
- Your investments include stocks or bonds, real estate, cars, and other profitable items applied by Capital gain taxes.
- The profit you make from the sale of the investment is identified as your capital gain. While the profit your loss is identified as your capital loss.
- It’s possible for you to use investment losses in other offset gains.
There are others information needed to calculate your 2022 capital gains. Simple use the NerdWallet Capital Gain Calculator so as to estimate your tax investment gains.