Income Thresholds for 2024 The boundaries for these tax brackets are adjusted annually for inflation, and they differ based on your filing status. The 15% rate applies to single filers with income between $47,026 and $518,900, and for married couples filing jointly, the range is between $94,051 and $693,750.
Long Term Capital Gains Tax Rate Comparison Across Income Thresholds
You cannot simply look at the sale price of an asset; you must factor in your base cost, known as the basis, which includes purchase price and related fees. If your income is low enough, you may pay 0% on the gain.
The exact rate you fall into depends on your taxable income for the year. Because the rates are income-based, taxpayers can sometimes manage their realized gains to stay within a favorable bracket.
Long Term Capital Gains Tax Rate Comparison Across Income Thresholds
8% tax that applies to the lesser of your net investment income or the amount your modified adjusted gross income exceeds the threshold. For example, selling assets in years when your income is lower can help you take advantage of the 0% rate.
More About Tax rate on long term capital gain
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More perspective on Tax rate on long term capital gain can make the topic easier to follow by connecting earlier points with a few simple takeaways.
