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Capital Gains Tax Rates

Long-Term and Short-Term Capital Gains Tax Rates

By William Perez, About.com

Capital gains tax rates are determined by the type of investment asset and the holding period.

In additional to the federal capital gains tax rates, your capital gains will also be subject to state income taxes. Most states do not have separate capital gains tax rates. Instead, most state will tax your capital gains as ordinary income subject to the state income taxes rates.

Capital Gains Tax Rates

Type of Capital Asset Holding Period Tax Rate
Short-term capital gains (STCG) One year or less Ordinary income tax rates up to 35%
Long-term capital gains (LTCG) More than one year 5% for taxpayers in the 10% and 15% tax brackets
15% for taxpayers in the 25%, 28%, 33%, and 35% tax brackets
Collectibles One year or less STCG tax rates up to 35%
Collectibles More than one year 28%
Small Business Stock Gains (Section 1202) More than five years 28% on the gain not excluded
Real Estate Main Home One year or less STCG
More than one year LTCG taxed at 5% or 15% after any exclusion amount
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