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Profits on investments held over 1 year. Lower tax rate than short-term.
Why It Matters
Long-term rates are the government's reward for patient investing. Most investors pay just 15% on long-term gains. If you're in the 22% tax bracket, waiting that extra month saves you 7% on every dollar of profit.
Key Points
- Rates: 0% (income under ~$44k), 15% (up to ~$492k), 20% (above ~$492k) for 2024
- High earners may owe an additional 3.8% Net Investment Income Tax (NIIT)
- Qualified dividends also get these favorable long-term rates
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Profits on investments held over 1 year. Lower tax rate than short-term. Long-term rates are the government's reward for patient investing. Most investors pay just 15% on long-term gains.
Long-term rates are the government's reward for patient investing. Most investors pay just 15% on long-term gains. If you're in the 22% tax bracket, waiting that extra month saves you 7% on every dollar of profit.
Rates: 0% (income under ~$44k), 15% (up to ~$492k), 20% (above ~$492k) for 2024
High earners may owe an additional 3.8% Net Investment Income Tax (NIIT)
Qualified dividends also get these favorable long-term rates