How are short-term capital gains taxed?

Short-term capital gains are typically taxed at your federal income tax rate, which is higher than the long-term capital gains tax rate. Short-term capital gains may also be subject to state and local taxes at income rates and not receive potential beneficial treatments like long-term capital gains.

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.

How are capital gains taxed in 2022?

While short-term capital gains are taxed at your ordinary income tax rate, long-term capital gains are taxed at special tax rates that are lower than those for short-term capital gains. Below are the long-term capital gains tax rates for 2022. Below are the long-term capital gains tax rates for 2023. How are capital gains taxes calculated?