What is the capital gains tax rate for 2023?

Long-term capital gains tax rates are 0%, 15% or 20%, depending on your taxable income and filing status. Here is the long-term capital gains tax rate for 2023: Short-term capital gains are taxed as ordinary income. Here are the tax rates for each filing status according to income for 2023: The IRS may adjust the capital gains tax rate each year.

Will 2023 be a 0% tax bracket?

“It’s going to be pretty significant,” said Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida. With higher standard deductions and income thresholds for capital gains, it’s more likely you’ll fall into the 0% bracket in 2023, Lucas said.

How does inflation affect capital gains tax in 2023?

Inflation adjustments boosted the long-term capital gains tax brackets for 2023, which apply to investments owned for more than one year. This means it takes more income to reach the 15% or 20% brackets and you may owe 0% capital gains taxes for 2023, depending on your income.