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.
Glossar
Tax Rate
Definition ⎊ Tax rate refers to the percentage at which a government levies taxes on income, capital gains, or transactions.
Capital Gains
Basis ⎊ The calculation of the initial investment outlay, or basis, is fundamental for determining the quantum of profit or loss realized upon the disposition of a crypto asset or derivative position.
Long-Term Capital Gains Tax
Imputation ⎊ Long-term capital gains tax, within cryptocurrency, options, and derivatives, applies to profits realized from assets held for greater than one year, assessed against the holding period basis and adjusted cost.
Current
Valuation ⎊ Current, within cryptocurrency derivatives, represents the instantaneous market price of an underlying asset or contract, crucial for pricing models and risk assessment.
Long-Term Capital Gains Rate
Taxation ⎊ The long-term capital gains rate, within cryptocurrency, options, and derivatives, dictates the tax liability on profits realized from assets held for more than one year, differing from short-term rates applied to assets held for a year or less.
Long-Term Capital Gains
Benefit ⎊ Long-term capital gains represent the profit realized from the sale of a capital asset, including certain cryptocurrencies and financial derivatives, held for a period exceeding one year.