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.

Define Short-Term versus Long-Term Capital Gains in the Context of Derivatives
How Does the Tax Rate Difference Influence a Trader’s Strategy?
How Does a Change in Capital Gains Tax Affect a Derivative’s Profitability?
How Does the 60/40 Rule Compare to Standard Short-Term Capital Gains Tax Rates?
What Is the Tax Implication If a Crypto Option Is Classified as a “Collectible”?
How Are Capital Gains Typically Classified for Crypto Spot Trading?
Can the 60/40 Rule Ever Result in a Higher Tax Burden than Standard Long-Term Capital Gains?
Why Is the 60/40 Split Considered a Tax Advantage for Short-Term Traders?

Glossar