GLOSSARY · TAX & ESTATE
Long-term capital gains rate
The lower federal rates of 0%, 15% and 20% that apply to gains on assets held for more than one year and to qualified dividends. The rate depends on total taxable income, with the gains counted on top of ordinary income. Gains on assets held one year or less are taxed as ordinary income.
Also called: capital gains tax, qualified dividends, 0% capital gains bracket
COMPUTE IT WITH YOUR NUMBERS
LEARN IT PROPERLY
CHAPTER · TAX PLANNING FUNDAMENTALS · FOUNDATIONSHow Each Type of Income Is TaxedCHAPTER · TAXES, MONEY BACK HOME AND REPORTING · STRATEGIESRent, Interest and Gains from Home, and the Foreign Tax CreditRELATED TERMS
SOURCES
- Topic no. 409, Capital gains and losses. Internal Revenue Service.
- Rev. Proc. 2025-32, section 4.03. Internal Revenue Service.