Educational purposes only. This content does not constitute investment advice. Read our disclaimer
StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
Tax you pay on profits from selling investments.
Why It Matters
Capital gains tax can eat 15-37% of your profits depending on how long you held. Selling a $10,000 gain after 11 months vs 13 months could cost you thousands more in taxes. Tax-aware investing is free money.
Key Points
- Hold over 1 year for long-term rates (0%, 15%, or 20% depending on income)
- Short-term gains (under 1 year) are taxed as ordinary income - up to 37%
- You don't owe taxes until you sell - unrealized gains aren't taxed
Try the Calculator
Capital Gains Tax Calculator
Put your knowledge of capital gains tax into practice with our free calculator.
Learn More
Capital Gains Explained
Get a complete explanation with examples, key takeaways, and a quiz to test your knowledge.
Related Terms
Common Questions
Tax you pay on profits from selling investments. Capital gains tax can eat 15-37% of your profits depending on how long you held. Selling a $10,000 gain after 11 months vs 13 months could cost you thousands more in taxes.
Capital gains tax can eat 15-37% of your profits depending on how long you held. Selling a $10,000 gain after 11 months vs 13 months could cost you thousands more in taxes. Tax-aware investing is free money.
Hold over 1 year for long-term rates (0%, 15%, or 20% depending on income)
Short-term gains (under 1 year) are taxed as ordinary income - up to 37%
You don't owe taxes until you sell - unrealized gains aren't taxed