Capital Gains are the profits you earn when you sell an investment.
Short term capital gains are when you held the investment for less than a year before selling.
Long term capital gains are from selling investments that you held for longer than a year.
Short term gains are taxed at your regular income tax rate while long term gains are taxed at a lower rate.
2022 Long-Term Capital Gains Tax Rates
| Tax filing status | 0% rate | 15% rate | 20% rate |
|---|---|---|---|
| Single | Taxable income of up to $41,675 | $41,676 to $459,750 | Over $459,750 |
| Married filing jointly | Taxable income of up to $83,350 | $83,351 to $517,200 | Over $517,200 |
| Married filing separately | Taxable income of up to $41,675 | $41,676 to $459,750 | Over $459,750 |
| Head of household | Taxable income of up to $55,800 | $55,801 to $488,500 | Over $488,500 |