What determines your capital gains tax rate?
James Olson
Updated on March 11, 2026
The first step in how to calculate long-term capital gains tax is generally to find the difference between what you paid for your property and how much you sold it for—adjusting for commissions or fees. Depending on your income level, your capital gain will be taxed federally at either 0%, 15% or 20%.
Is capital gains tax 35%?
Short-Term Capital Gains Rates Tax rates for short-term gains are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Short-term gains are for assets held for one year or less – this includes short term stock holdings and short term collectibles.
What’s the current tax rate for capital gains?
The current long-term capital gains tax rates are 15%, 20% or 23.8% for higher income taxpayers. Assets other than stocks may have different rates for capital gains taxes. Short-term capital gains on stocks are taxed at the taxpayer’s ordinary income tax rate, which is often higher than the preferential long-term rate.
How are capital gains taxed in the UK?
Capital Gains Tax rates. You pay a different rate of tax on gains from residential property than you do on other assets. You do not usually pay tax when you sell your home. If you’re a higher or additional rate taxpayer you’ll pay: 28% on your gains from residential property. 20% on your gains from other chargeable assets.
How are capital gains taxed and what are the exceptions?
Capital gains taxes are progressive, similar to income taxes. 1. Rule exceptions. The capital gains tax rates in the tables above apply to most assets, but there are some noteworthy exceptions. Long-term capital gains on so-called “collectible assets” are generally taxed at 28%; these are things like coins, precious metals, antiques and fine art.
How are capital gains taxed in Illinois and Indiana?
Illinois taxes capital gains as income. The Illinois state income tax is a flat rate of 4.95%. Indiana taxes capital gains as income. The Indiana state income tax is a flat rate of 3.23%. Iowa taxes capital gains as income. Tax rates are the same for every filing status.
