How much tax do you pay on capital gains?

It imposes an additional 3.8% tax on your investment income, including your capital gains, if your modified adjusted gross income (MAGI) is greater than: Most individuals figure their tax (or have pros do it for them) using software that automatically makes the computations. You can also use a capital gains calculator to get a rough idea.

Are capital gains taxable?

Net capital gains are taxed at different rates depending on overall taxable income, although some or all net capital gain may be taxed at 0%. For taxable years beginning in 2023, the tax rate on most net capital gain is no higher than 15% for most individuals. A capital gains rate of 0% applies if your taxable income is less than or equal to:

What is a capital gains tax?

A capital gains tax is a tax imposed on the sale of an asset. The long-term capital gains tax rates for the 2023 and 2024 tax years are 0%, 15%, or 20% of the profit, depending on the income of the filer. Capital gains taxes are due only after an investment is sold.