How much tax do you pay on capital gains?

The 15% rate applies to people with taxable incomes above these limits and up to $583,750 for joint filers, $551,350 for head-of-household filers, $492,300 for single filers, and $291,850 for married couples filing separate returns. If your taxable income is above the 15% bracket, you will pay tax on your capital gains at 20%.

What is capital gains tax?

A capital gains tax is a levy placed on profits from the sale of an asset, whether its a physical asset — like a house, car or boat — or intangible assets — like stocks, bonds, mutual funds and cryptocurrency.

How do I calculate capital gains tax?

You can calculate capital gains taxes using IRS forms. To calculate and report sales that resulted in capital gains or losses, start with IRS Form 8949. Record each sale, and calculate your hold time, basis, and gain or loss. Next, figure your net capital gains using Schedule D of IRS Form 1040.