US Federal Individual Tax On Capital Gain And Dividend


1. Short-term capital gain and qualified dividend: subject to general tax rates for individual taxpayers. 

2. Long-term capital gain and qualified dividend
a. 0% in the case of gain that would otherwise be taxed at a regular tax rate of 10% or 15%; 
b. 15% in the case of gain that otherwise would be taxed at a 25%, 28%, 33%, or 35% rate; 
c. 20% on gain that otherwise would be taxed at a 39.6% rate. 

Note: A 3.8% tax on net investment income applies to taxpayers with modified adjusted gross income (MAGI) that exceeds $250,000 for joint returns and surviving spouses, $200,000 for single taxpayers and heads of household, or $125,000 for married taxpayers filing separately. After the 3.8% tax is factored in, the top rate on capital gain is 23.8%. 

*25% and 28% tax rates may be applied to applicable capital gains.

*Additional tax of 3.8% applies to net investment income if the applicable threshold amount is met.



The above tax rates are for informational purposes only. Caution must be exercised with respect to the use of the information due to possible misinterpretation or misapplication of the tax rates.