How much tax on stock capital gain?

Question

How much % tax should I pay for long term and short term stock capital gain?


I heard the % is lower for long term gains....

Answer 1

Short term cap gains are treated as ordinary income, so the rate will depend on your total income including the capital gains. Long term capital gains on stocks are 5% or 15%, again depending on your total income. If your tax rate would be 15% or under if the special rates didn't exist, then you'd pay 5% on the long term capital gains, otherwise you'd pay 15%

Answer 2

That all depends if you are an individual or a corporation.

For regular corporations, there is no difference in rates.

Under current tax law, the long-term capital gains rate is 15% (with the exception of income in the first brackets which is taxed at 5%).

Short-term gains are considered ordinary income and taxed at your marginal rate.

Answer 3

ST: Your marginal rate.

LT: Variable. 15% for most taxpayers but can be as low as 5% if your marginal rate is already 15% or lower or has high as 28% if your marginal rate is 35%.