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What Is the Current Maximum Long-Term Capital Gains Tax Rate?

The current maximum long-term capital gains tax rate is 20%. This rate applies to taxpayers whose income exceeds a certain threshold (the highest income bracket).

For many taxpayers, the long-term capital gains rate is 15%, and for those in the lowest income brackets, it can be 0%. This preferential rate is a major incentive for holding capital assets for more than one year.

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