Capital Gains Tax

Short-term capital gains (assets held one year or less) are taxed as ordinary income, up to 37% at the top federal bracket. Long-term capital gains (held more than one year) are taxed at preferential rates of 0%, 15%, or 20% depending on income. For 2024, single filers pay 0% on long-term gains up to about $47,000 of taxable income, 15% up to about $518,000, and 20% above that. High earners also owe the 3.8% Net Investment Income Tax (NIIT). State capital gains tax stacks on top; California taxes them as regular income up to 13.3%.