Long Term & Short Term Capital Gains Tax Rate

 
Your capital gains tax rate will be determined depending on the holding period and the type of investment asset. You will be taxed federally on your capital gains and may also be subject to being taxed by your state as well.

This schedule displays the current long term and short term federal capital gains tax rates:

Long Term Capital Gains Tax

  • 0% for taxpayers in the 10% & 15% tax bracket
  • 15% if you are in the 25%, 28%, 33%, & 35% tax bracket
  • Real Estate longer than one year 5% or 15% after any exclusion amount
  • Collectibles longer than one year... 28%
  • Collectibles longer than five years... 28%
  • Small Business Stock Gains at least five year... 28%
For some in the low bracket tax category, the long term capital gains tax rate may be zero, but this is subject to qualifying. As always, tax can be tricky and subject to a few stipulations.

Short Term Capital Gains Tax

  • Standard income tax rates up to 35%
Short term capital gains are taxed on the investor's ordinary income tax rate. Short term capital gains are held by the investor for less than one year.

Long term capital gains are taxed at a lower rate than what your regular income will be taxed at. Depending on your income for that tax year you may be pushed in to a higher tax bracket if you received capital gains. This could result in a combination of rates for your income and capital gains.

How TurboTax Can Help

Remember, when you file with TurboTax Online, they’ll ask you simple questions about your situation and recommend the filing status, credits and deductions that will get you the biggest tax refund.If you would like to see how much your tax refund will be, they also have a free tax refund calculator available.

TurboTax also has more articles in their support section to help you understand everything about long term capital gains tax rates and short term capital gains tax rates.