Is there a different tax rate on capital gains based on the change in value?

Question

I know there are different tax rates based on how long you hold onto a stock. Is there a similar rule based on the % change in value? For example, if your stock goes up 10% vs 50%.

Answer 1

No, there is no rule based on the % change in value. What the rules are is for long-term capital gains the tax rate for those gains is a maximum of 15%, and for those in the 10% or 15% tax bracket the capital gains tax rate is 5%. Capital gains on collectibles is subject to a maximum rate of 28%, and unrecaptured Section 1250 gain is subject to a maximum rate of 25%.

Answer 2

The tax is not computed as you describe, but the effect on your taxes may look like that is what is happening.

Long-term capital gains are taxed at 5% or 15%. The amount of tax depends on your total income. If your income other than capital gains would qualify you for a 5% tax on long-term capital gains, but you have a large enough amount of long-term capital gains, you can be bumped into the 15% bracket on the capital gains.

Answer 3

The tax rate is the same no matter how much the gain is.