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How much is capital gains tax in 2024?

The long-term capital gains tax rates for 2024 are 0%, 15% and 20%. The short-term tax rates range from 0% to 37%. Is the capital gains tax 15% or 20%? If you sell your asset after owning it for more than a year, your tax rate will be 0%, 15% or 20%. The rate depends on your filing status and income level. How do I avoid capital gains tax?

Do you qualify for 0% capital gains tax in 2023?

For 2023, you may qualify for the 0% long-term capital gains rate with taxable income of $44,625 or less for single filers and $89,250 or less for married couples filing jointly. The rates use “taxable income,” calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

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.

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