When you’re feeling tired, try one of these five drinks.
Try one of the drinks like berry smoothie, lemon water, beet juice, green tea, or hot chocolate to boost your energy levels.
Unbranded – Lifestyle
Capital gains tax is payable to the government on profits earned from selling assets such as homes or stocks.
Here’s what you need to know about capital gains taxes, including 2025 tax rates and the difference between short-term and long-term gains.
What is capital gains tax?
Let’s get started. What is capital gain?
Capital gain refers to the profit earned by acquiring an asset at one price and selling it at a higher price. This does not refer to paper profits, i.e., the profits you would make if you bought a stock and its value increased.
This is a very simple concept, but as with everything related to tax law, many nuances can complicate it.
Comparison of long-term and short-term capital gains
Short-term capital gains tax is levied on gains on investments that are held for one year or less and then sold. It will be taxed at the same rate as your income. Check your IRS tax brackets to determine how much tax you pay on each portion of your income.
Long-term capital gains tax applies to investments that are held for more than one year before being sold for a profit. They are generally taxed at lower rates than short-term profits. You can expect to pay up to 20% in taxes on your 2025 tax return.
What is subject to capital gains tax?
Capital gains tax is not limited to the stock market. Anything considered a “capital asset” – any investment that has the potential to increase in value and generate a profit – is subject to tax.
Capital gains tax applies to:
- real estate
- bond
- Mutual funds (but usually not ETFs)
- NFT/Cryptocurrency
- Jewelry/coin collection
What is the capital gains tax rate in 2025?
The amount you are taxed on capital gains depends on how long you held a particular capital asset (whether it was a long-term gain or a short-term gain) and your income (which tax bracket you fall into). The higher your income, the more capital gains tax you will have to pay.
For short-term gains, you can follow the usual income tax guide to find out how much you pay on your gains. Long-term capital gains tax rates remain at 0%, 15%, or 20% for the 2025 tax year.
The rate is 0% if:
- Unmarried individuals filing separately with taxable income of $49,450 or less.
- Married couples filing jointly with taxable income of $98,900 or less.
- Married individuals with taxable income of $49,450 or less file separately.
- Heads of households with taxable income of $66,200 or less.
The tax rate is 15% if:
- Unmarried individuals reporting taxable income between $49,451 and $545,500.
- Married couples filing jointly with taxable income between $98,901 and $613,700.
- Married filing separately with taxable income between $49,451 and $306,850.
- Heads of households with taxable income between $66,201 and $579,600.
Tax rate is 20%
- A person whose taxable income exceeds the 15% threshold for that category.
