• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The College Investor

Student Loans, Investing, Building Wealth

  • About
  • Podcast
  • Research
  • Contact
  • Save For College
      • How To Start

      • How To Save For College
      • How To Pay For College
      • What Is the Average Cost of College?
      • What Is A 529 Plan and Where to Open One in Your State
      • How Much Should You Have In A 529 Plan By Age
      • How To Use A 529 Plan For Private Elementary And High School
      • What Are Qualified Expenses For A 529 Plan (And What Doesn’t Count)?
      • The Best Brokers To Open A 529 Plan
      • Tools + Accounts

      • 529 Plans: The Ultimate College Savings Plan
      • 529 Plan Contribution Limits
      • Prepaid Tuition Plans | What To Know
      • Understanding And Using 529A ABLE Accounts
      • Using A Roth IRA To Save And Pay For College
      • FAFSA Deadlines for Financial Aid
      • CollegeBacker Review
      • Upromise Review
      • UNest Review
      • Other Options

      • Student Loan And Financial Aid Programs By State
      • The Guide To Military And VA Education Benefits
      • How To Fill Out The FAFSA
      • How To Find College Scholarships
      • The Best College Scholarship Search Websites
      • How To Find Grants To Pay For College
      • Pell Grants: What They Are And How To Qualify
      • Understanding Federal Work-Study
      • How To Use A 529 Plan If Your Child Doesn’t Go To College
  • Student Loans
      • Borrowing

        • How Student Loans Work
        • How To Apply For A Student Loan
        • Best Student Loans And Rates In February 2023
        • 10 Best Private Student Loans Of February 2023
        • Best Student Loans To Pay For Graduate School
        • Best Student Loans To Pay For Medical School
        • Parent Loans To Pay For College
        • No-Cosigner Student Loan Options
        • Guide To Income Sharing Agreements (ISAs)
        • Best International Student Loans
      • Get Out Of Debt

        • Best Student Loan Refinance Companies In February 2023
        • Best Student Loan Repayment Plans
        • Best Student Loan Refinancing Bonuses And Promotional Offers Of February 2023
        • Student Loan Forgiveness Programs (The Complete List)
        • The Full List Of Student Loan Forgiveness Programs By State
        • Public Service Loan Forgiveness (PSLF)
        • Top Student Loan Scams
        • Average Student Loan Monthly Payment
        • Average Student Loan Debt By Year
      • Reviews

        • Credible Review
        • Splash Review
        • Ascent Review
        • Citizens Bank Review
        • Commonbond Review
        • Earnest Review
        • ELFI Review
        • Laurel Road Review
        • LendKey Review
        • SoFi Review
  • Investing
      • How To Start

        • How To Start Investing in High School
        • How To Start Investing In College
        • How To Start Investing In Your Twenties For 22 – 29 Year Olds
        • How To Start Investing In Your 30s For 30 – 39 Year Olds
        • How To Start Investing With $100 Or Less
        • How To Give Kids The Gift Of Stock
        • What Is Dividend Growth Investing
        • IRA Rollover Chart
      • Tools + Accounts

        • Best Online Stock Brokers
        • The Best Traditional And Roth IRA Accounts
        • The Best Robo-Advisors
        • The Best Investing Apps
        • The Best Places to Trade Options
        • The Best Places To Open A Health Savings Account
        • The Best Solo 401k Providers
        • The Best Self-Directed IRA Providers Of 2023
        • Best Cryptocurrency Exchanges
      • Reviews

        • Vanguard Review
        • Fidelity Review 2023
        • M1 Finance Review
        • TD Ameritrade Review 2023
        • Charles Schwab Review
        • Robinhood Review
        • Webull Review
        • Betterment Review 2023
        • Wealthfront Review
  • Earn More Money
      • Extra Income

        • 20 Best Side Hustles You Can Start Earning With In 2023
        • 53 Side Hustle Ideas To Make Money Fast
        • 100 Ways To Make Money In College
        • 80 Ways To Make Money From Home In 2023
        • 5 Quick Money Making Ideas (That Take Less Than 1 Hour)
        • 10 Interesting Ways You Can Make Money Driving
        • High-Paying Side Gigs That Earn $1,000 or More Per Month
        • The 10 Best Money-Making Apps
        • Paid Surveys: Earn Money For Giving Your Opinion Online
        • 10 Crazy Ways To Make $10,000 You’ve Never Heard Of
      • Build Wealth

        • 40 Passive Income Ideas You Can Use To Build Wealth In 2023
        • 3 Ways To Make $50,000 Per Year Without Working With Passive Income
        • How To Become A Real Estate Investor With Just $500
        • 15 Best Online Business Ideas
        • Residual Income: 7 Super Smart Ways to Build It
        • The Most Common Multiple Income Streams
        • How To Become A Real Estate Mogul With Only $10,000
      • Reviews

        • Fundrise Review
        • RealtyMogul Review
        • FarmTogether Review
        • AcreTrader Review
        • Swagbucks Review
        • Survey Junkie Review
        • TopCashback Review
        • DoorDash Review
  • Personal Finance
      • Banking

        • 10 Best High Yield Savings Accounts Of February 2023
        • 10 Best Money Market Accounts Of February 2023
        • 10 Best Free Checking Accounts In February 2023
        • Best Bank CD Rates Of February 2023
        • 10 Best Business Checking Accounts In February 2023
        • Best Online Banks Of February 2023
        • Best Credit Unions Nationwide Of February 2023
        • Best College Student Checking Accounts Of February 2023
      • Insurance

        • Best Life Insurance Companies
        • Renters Insurance
        • Car Insurance
        • Pet Insurance
        • Umbrella Insurance
        • Disability Insurance
        • Tuition Insurance
        • Travel Insurance
      • Credit Tools

        • Best Budgeting Apps
        • Cash Advance Apps
        • How To Get A Free Credit Score Report
        • Best Credit Monitoring Services For 2023
        • Debt Settlement: Inside The Secret World
        • Credit Repair Explained: Should You Pay For Help?
        • Best Personal Loan Companies And Lenders
        • Online Loan Companies To Borrow From Home
      • Tax

        • Best Tax Software
        • Free Tax Software
        • IRS Tax Refund Calendar
        • Common IRS Questions and Errors
        • Federal Tax Brackets
        • Capital Gains Tax Brackets
        • 401k Contribution Limits
        • IRA Contribution Limits
        • HSA Contribution Limits
  • Forum
  • Search
Home » Taxes » Annual Tax Guide » Capital Gains Tax Brackets For 2022 And 2023

Capital Gains Tax Brackets For 2022 And 2023

Updated: December 14, 2022 By Robert Farrington

Tweet
Share154
Share
Pin62
Email
Print

At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners. This doesn’t influence our evaluations or reviews. Our opinions are our own. Any investing information provided on this page is for educational purposes only. The College Investor does not offer investment advisor or brokerage services, nor does it recommend buying or selling particular stocks, securities, or other investments. Learn more here.Advertiser Disclosure

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We're proud of our content and guidance, and the information we provide is objective, independent, and free.

But we do have to make money to pay our team and keep this website running! Our partners compensate us. TheCollegeInvestor.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The College Investor does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with).

For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. TheCollegeInvestor.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website. All products and services are presented without warranty.

capital gains tax brackets for 2022 and 2023

There are two capital gains tax categories with different tax brackets - short term and long term. 

Long term investments pay less in taxes - these are investments that you typically hold for longer than one year.

Short term investments are taxed at your regular income rate.

Let's break down what the capital gains tax brackets look like, the income cut-offs, and more below. You can see how these compare to the regular Federal tax brackets here.

Table of Contents
What Are Capital Gains?
2023 Capital Gains Tax Brackets
2022 Capital Gains Tax Brackets
Prior Years Capital Gains Tax Brackets And Rates
Calculating Capital Gains and Losses
How to Reduce Your Taxes

What Are Capital Gains?

When you sell a stock for a profit, you realize a capital gain. Basically, when most assets are sold for a profit, a capital gain is generated. Profits or gains are taxable. How much you’ll pay depends on a number of factors, including the current tax brackets, which change periodically.

Personal assets and investments are called capital assets. This includes your home, car, investments, recreational vehicle, and more. IRS Topic Number 409 covers these items in more detail. A capital gain or capital loss is based on the difference between the asset sale price and your adjusted basis, which is referenced in IRS Publication 551.

2023 Capital Gains Tax Brackets

There are two main categories for capital gains: short- and long-term. Short-term capital gains are taxed at your ordinary income tax rate. Long-term capital gains are taxed at only three rates: 0%, 15%, and 20%.

Remember, this isn't for the tax return you file in 2023, but rather, any gains you incur from January 1, 2023 to December 31, 2023. You'll file this tax return in 2024.

The actual rates didn't change for this year, but the income brackets did adjust significantly due to rising inflation.

Short-Term Capital Gains Rates

Tax rates for short-term gains are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

Short-term gains are for assets held for one year or less - this includes short term stock holdings and short term collectibles and crypto.

2023 Short Term Capital Gains Tax Brackets

Long-Term Capital Gains Rates

Just like short-term gains, there are four filing categories: single, married and filing jointly, head of household, and married and filing separately. The amount of taxes paid is based on income.

The brackets adjusted upwards for 2023 due to rising inflation.

Long-term gains are those on assets held for over a year. Below, the percentage of taxes paid are listed on the left with the corresponding income on the right.

2023 Long Term Capital Gains Tax Brackets

Learn More About The 2023 Capital Gains Tax Brackets

Here is a chart for the 2023 Short Term capital gains tax brackets:

2023 Short Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

10%

$0 - $11,000

$0 - $22,000

$0 - $15,700

12%

$11,001 - $44,725

$22,001 - $89,450

$15,701 - $59,850

22%

$44,726 - $95,375

$89,451 - $190,750

$59,851 - $95,350

24%

$95,376 - $182,100

$190,751 - $364,200

$95,351 - $182,100

32%

$182,101 - $231,250

$364,201 - $462,500

$182,101 - $231,250

35%

$231,251 - $578,125

$462,501 - $693,750

$231,251 - $578,100

37%

$578,126+

$693,751+

$578,101+

Here is a chart for the 2023 Long Term capital gains tax brackets:

2023 Long Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

0%

$0 - $44,625

$0 - $89,250

$0 - $59,750

15%

$44,625 - $492,300

$89,251 - $553,850

$59,751 - $523,750

20%

$492,301+

$553,851+

$523,751+

Net Investment Income Tax (Medicare Tax)

The Net Investment Income Tax (NIIT) or Medicare Tax applies at a rate of 3.8% to certain net investment income of individuals, estates and trusts that have income above the statutory threshold amounts.

In general, investment income includes, but is not limited to: interest, dividends, capital gains, rental and royalty income, non-qualified annuities, income from businesses involved in trading of financial instruments or commodities and businesses that are passive activities to the taxpayer

Individuals will owe the tax if they have Net Investment Income and also have modified adjusted gross income over the following thresholds:

2023 Net Investment Income Tax

Filing Status

AGI Threshold Amount

Single

$200,000

Married Filing Jointly

$250,000

Married Filing Separately

$125,000

Head Of Household

$200,000

Qualifying Widower with Dependent Child

$250,000

Collectible Long Term Capital Gains Rate

Collectibles held over one year are always taxed at 28%. 

Collectibles include gold and silver, art work, rare coins, antiques, and more.

2022 Capital Gains Tax Brackets

There are two main categories for capital gains: short- and long-term. Short-term capital gains are taxed at your ordinary income tax rate. Long-term capital gains are taxed at only three rates: 0%, 15%, and 20%.

Remember, this isn't for the tax return you file in 2022, but rather, any gains you incur from January 1, 2022 to December 31, 2022 - and you file that tax return in January 2023.

The actual rates didn't change, but the income brackets did adjust slightly.

Short-Term Capital Gains Rates

Tax rates for short-term gains are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

Short-term gains are for assets held for one year or less - this includes short term stock holdings and short term collectibles and crypto.

2022 Short Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

10%

$0 - $10,275

$0 - $20,550

$0 - $14,650

12%

$10,276 - $41,775

$20,551 - $83,550

$14,651 - $55,900

22%

$41,776 - $89,075

$83,551 - $178,150

$55,901 - $89,050

24%

$89,076 - $170,050

$178,151 - $340,100

$89,051 - $170,050

32%

$170,051 - $215,950

$340,101 - $431,900

$170,051 - $215,950

35%

$215,951 - $539,900

$431,901 - $647,850

$215,951 - $539,900

37%

$539,901+

$647,851+

$539,901+

Long-Term Capital Gains Rates

Just like short-term gains, there are four filing categories: single, married and filing jointly, head of household, and married and filing separately. The amount of taxes paid is based on income.

The brackets adjusted slightly upwards for 2022.

Long-term gains are those on assets held for over a year. Below, the percentage of taxes paid are listed on the left with the corresponding income on the right.

2022 Long Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

0%

$0 - $41,675

$0 - $83,350

$0 - $55,800

15%

$40,676 - $459,750

$83,351 - $517,200

$55,801 - $488,500

20%

$459,751+

$517,201+

$488,501+

Net Investment Income Tax (Medicare Tax)

The Net Investment Income Tax (NIIT) or Medicare Tax applies at a rate of 3.8% to certain net investment income of individuals, estates and trusts that have income above the statutory threshold amounts.

In general, investment income includes, but is not limited to: interest, dividends, capital gains, rental and royalty income, non-qualified annuities, income from businesses involved in trading of financial instruments or commodities and businesses that are passive activities to the taxpayer

Individuals will owe the tax if they have Net Investment Income and also have modified adjusted gross income over the following thresholds:

2022 Net Investment Income Tax

Filing Status

AGI Threshold Amount

Single

$200,000

Married Filing Jointly

$250,000

Married Filing Separately

$125,000

Head Of Household

$200,000

Qualifying Widower with Dependent Child

$250,000

Collectible Long Term Capital Gains Rate

Collectibles held over one year are always taxed at 28%. 

Collectibles include gold and silver, art work, rare coins, antiques, and more.

Prior Years Capital Gains Tax Brackets And Rates

Are you looking for capital gains tax brackets for prior years? Check out the drop down list below, find your year, and you can see the brackets:

2021 Capital Gains Tax Brackets

Here are the 2021 capital gains tax brackets. The rates didn't change from 2020, but the income brackets did adjust slightly.

Here are the short term capital gains brackets:

2021 Short Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

10%

$0 - $9,950

$0 - $19,900

$0 - $14,200

12%

$9,951 - $40,525

$19,901 - $81,050

$14,201 - $54,200

22%

$40,526 - $86,375

$81,051 - $172,750

$54,201 - $86,350

24%

$86,376 - $164,925

$172,751 - $329,850

$86,351 - $164,900

32%

$164,926 - $209,425

$329,851 - $418,850

$164,901 - $209,400

35%

$209,426 - $523,600

$418,851 - $628,300

$209,401 - $523,600

37%

$523,601+

$628,301+

$523,601+

Here are the long term capital gains tax brackets:

2021 Long Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

0%

$0 - $40,400

$0 - $80,800

$0 - $54,100

15%

$40,401 - $445,850

$80,801 - $501,600

$54,101 - $473,750

20%

$445,851+

$501,601+

$473,751+

2020 Capital Gains Tax Brackets

Here are the 2020 capital gains tax rates. The actual rates didn't change this year, but the income brackets did adjust slightly.

Here are the short term capital gains tax rates:         

2020 Short Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

10%

$0 - $9,875

$0 - $19,750

$0 - $14,100

12%

$9,876 - $40,125

$19,751 - $80,250

$14,101 - $53,700

22%

$40,126 - $85,525

$80,251 - $171,050

$53,701 - $85,500

24%

$85,526 - $163,300

$171,051 - $326,600

$85,501 - $163,300

32%

$163,301 - $207,350

$326,601 - $414,700

$163,301 - $207,350

35%

$207,351 - $518,400

$414,701 - $622,050

$207,351 - $518,400

37%

$518,401+

$622,051+

$518,401+

Here are the long term capital gains rates and brackets:

2020 Long Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

0%

$0 - $40,000

$0 - $80,000

$0 - $53,600

15%

$40,001 - $441,450

$80,001 - $496,600

$53,601 - $469,050

20%

$441,451+

$496,601+

$469,051+

2019 Capital Gains Tax Brackets

Here are the 2019 capital gains tax rates.

Here are the short term capital gains tax brackets:

2019 Short Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

10%

$0 - $9,700

$0 - $19,400

$0 - $13,850

12%

$9,701 - $39,475

$19,401 - $78,950

$13,851 - $52,850

22%

$39,476 - $84,200

$78,951 - $168,400

$52,851 - $84,200

24%

$84,201 - $160,725

$168,401 - $321,450

$84,201 - $160,700

32%

$160,726 - $204,100

$321,451 - $408,200

$160,701 - $204,100

35%

$204,101 - $510,300

$408,201 - $612,350

$204,101 - $510,300

37%

$510,301+

$612,351+

$510,301+

Here are the 2019 long term capital gains tax brackets:

2019 Long Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

0%

$0 - $39,375

$0 - $78,750

$0 - $52,750

15%

$39,376 - $434,550

$78,751 - $488,850

$52,751 - $461,700

20%

$434,551+

$488,851+

$461,701+

Calculating Capital Gains and Losses

While you can have a capital gain from the profitable sale of an asset, you can also have a capital loss from the sale of an asset below your purchase price or adjusted basis.

As an example, say you buy and sell stock in the same year up to November. Your trading has netted $10,000 in profits. These profits are classified as short-term gains because they’re less than a year old. Then in December of the same year, you sell more stock for a loss of $3,000. Your capital gain is reduced to $7,000.

A different investor buys and sells some stock during a year and manages to lose $5,000. This investor has a capital loss of $5,000 but can only declare $3,000 ($1,500 if married filing separately) for the current year. What happens to the remaining $2,000?

The $2,000 capital loss in the previous example is carried over to the next year. It can be applied as a capital loss. Using another example, our investor has a capital gain of $10,000 in the next year. They can offset this gain and reduce their taxes by the amount carried over from the previous year: $2,000. Their new capital gain is then $8,000.

With capital gains, your capital gain is stacked on top of other ordinary income before the bracket and rate is calculated. This does leave some planning opportunity to try and minimize the taxes paid, but given the 0% bracket is relatively low, it likely means your gains will extend into other brackets.

While at the marginal level, capital gains are flat taxed - in practice, your gain can be subject to different tax rates depending on the amount of the gain. You can see this in the tax brackets section above. If you are single and make a $45,000 capital gain on top of your $40,000 in ordinary income, your long-term capital gains tax bracket is 15%. You will then pay $6,750 ($45,000 x 0.15) in taxes on this gain.

However, if you're single, and have no other income other than your $45,000 capital gain, your first $40,000 would be in the 0% bracket, and the remaining $5,000 would be taxed at 15%.

How to Reduce Your Taxes

Nobody likes paying taxes and everyone is looking for ways to reduce them. There are a few ways that you can reduce your capital gains taxes.

Keeping Investments for at Least a Year

If you hold investments for at least a year before selling, you’ll be able to take advantage of long-term gains.

Use a Robo-Advisor

Robo-advisors have become very popular. While they haven’t yet replaced financial advisors, for most people, they can help save on taxes.

Robo-advisors use a method called tax-loss harvesting. By selling losers, gains on winners are offset. Of course, you can perform tax-loss harvesting manually. However, robo-advisors make this task easy through the use of automation.

It seems there is nowhere to hide from taxes. But arming yourself with knowledge about capital gains taxes can help you save money. We’ve already seen a few practical tips. Your accountant is likely to have more. Ask your accountant questions throughout the year so you can set yourself up for maximizing capital gains tax reductions.

Robert Farrington
Robert Farrington

Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.

He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.

He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.

Capital Gains Tax Brackets For 2022 And 2023

Editor: Claire Tak

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.
Subscribe
Connect with
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of

I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree

71 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Primary Sidebar

Tax Resources

Featured Tax Reviews

>  H&R Block (recommended)
>  TurboTax (recommended)
>  Cash App Taxes
>  TaxSlayer
>  TaxAct
>  FreeTaxUSA

Tax Software

  • Best Tax Software 2023
  • Free Tax Software 2023
  • Best Crypto And NFT Tax Software For 2022

Tax Brackets

  • Federal Tax Income Brackets
  • Capital Gains Tax Brackets

More on Taxes

  • When To Expect My Tax Refund? The IRS Tax Refund Calendar 2023
  • Common IRS Where’s My Refund Questions and Errors
  • IRS Where’s My Refund Reference Codes
  • TurboTax, H&R Block, TaxAct, And TaxSlayer Pricing Comparison
  • The Best Tax Software For Student Loan Borrowers
  • How To Find The Best Tax Software For Students And Recent Grads
  • The Most Common Tax Deductions
  • Stopping Tax Offsets Due To Student Loan Debt
  • Tax Resource And Help Center

Footer

Who We Are

The College Investor is an independent, advertising-supported financial media publisher, focusing on news, product reviews, and comparisons.

Connect

  • Contact Us
  • Advertise
  • Press & Media

About

  • About
  • Our Team
  • Podcast
  • Editorial Guidelines
  • How We Make Money
  • Archives

Social

Copyright © 2023 · The College Investor · Privacy Policy ·Terms of Service · DO NOT Sell My Personal Information

wpDiscuz