Is capital gains tax 15% or 20%?

What’s the Capital Gains Tax Rate in 2024?

If you’ve sold an investment like stocks, real estate, or a business and made a profit, you might owe capital gains tax. But the rate you pay isn’t one-size-fits-all—it depends on how long you held the asset and your income level.

For assets held more than a year—what’s known as long-term capital gains—the tax rate in 2024 is actually tiered based on your taxable income. If you're a single filer, here's how it breaks down:

You won’t pay any capital gains tax at all if your total taxable income is $49,450 or less. That’s right—0%. This makes strategic tax planning worthwhile, especially for those in lower tax brackets.

Earn between $49,451 and $545,500, and your long-term capital gains are taxed at 15%. This rate catches most middle- to upper-middle-income earners and has been a sweet spot for investors managing their tax burden.

Once your income climbs above $545,500 (still for single filers), the rate bumps up to 20%. That top tier is designed to apply to high-income individuals, and in some cases, additional taxes like the Net Investment Income Tax (3.8%) may also apply.

Married couples filing jointly, heads of household, and other filing statuses have different thresholds, but the structure is similar: 0%, 15%, or 20%, depending on income.

So, to answer the original question: capital gains tax isn’t flat. It’s either 0%, 15%, or 20%—and for most people, it’s not 15% across the board. Your income and filing status determine where you land. Planning around these brackets can make a real difference when tax season rolls around.