Investor Education | The best tax rate on capital gains
Currently, long term capital gains from sales of securities are generally taxed at a maximum 15% rate (20% for certain high-income investors). But some investors do even better.
A 0% rate—that’s right, no misprint—applies to investors in the two lowest regular income tax brackets of 10% and 15%. If your long-term gains take you to the top of the 15% bracket but you do not cross the threshold, you do not owe any tax on those gains in 2016. For example, the upper threshold for a joint filer in the 15% tax bracket in 2016 is $75,300. If you earn $60,000 in salary, you can realize a $15,300 capital gain and pay zero tax on that gain.
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Investment Consultant
Tam Hubert, CFP®, CFA
Investment Assistant
Kristi Remus
