When you sell investments, capital gains taxes apply. Learn the difference between short-term and long-term rates and strategies to minimize them.

Understanding Capital Gains Taxes

What Are Capital Gains?

Capital gains are profits from selling capital assets like stocks, bonds, or real estate.

Short-Term vs. Long-Term

Short-Term Capital Gains

Assets held one year or less
Taxed as ordinary income (up to 37%)

Long-Term Capital Gains

Assets held more than one year
Taxed at preferential rates: 0%, 15%, or 20%

2025 Long-Term Capital Gains Rates

| Filing Status | 0% | 15% | 20% | |---|---|---|---| | Single | Up to $48,350 | $48,351–$533,400 | Over $533,400 | | MFJ | Up to $96,700 | $96,701–$600,050 | Over $600,050 |

Net Investment Income Tax (NIIT)

High earners may also owe an additional 3.8% NIIT on investment income.

Tax-Loss Harvesting

Offset gains by selling losing investments to reduce your tax liability.

Gifting Appreciated Assets

Gifting appreciated assets to charity avoids capital gains tax and provides a charitable deduction.

Sold investments this year? Our team can help you minimize your capital gains tax.

Understanding Capital Gains Taxes