Capital gains tax in the US depends on how long you held the asset before selling it.
Short-term capital gains (assets held less than one year) are taxed at your ordinary income tax rate — the same as your salary. For most people, this means 22% or 24%.
Long-term capital gains (assets held one year or longer) receive preferential tax rates: 0%, 15% or 20%, depending on your taxable income.
For single filers in 2025: 0% on taxable income up to $48,350, 15% on income from $48,351 to $533,400, and 20% on income above $533,400.
For married filing jointly: 0% up to $96,700, 15% from $96,701 to $600,050, and 20% above $600,050.
The 0% rate is one of the most powerful tax benefits available. If your total taxable income (including the gain) is below the threshold, you pay zero federal tax on your long-term gains. A married couple with $80,000 in ordinary income and $15,000 in long-term gains would pay 0% on the entire gain.
High earners also pay the 3.8% Net Investment Income Tax (NIIT) on investment income above $200,000 for single filers or $250,000 for married filing jointly. This makes the effective top rate 23.8%.
Tax-loss harvesting is a common strategy to offset gains. If you sell a stock at a $10,000 loss and another at a $15,000 gain, you only pay tax on $5,000 of net gains. You can also deduct up to $3,000 of net capital losses against ordinary income.
Use our capital gains tax calculator to see your exact tax on any investment gain.