IRS 2022 Tax Framework: What are the Capital Gains Tax Rate Thresholds?


TI have USA Internal Revenue Service (IRS) released the capital gains tax thresholds for 2022 after adjusting tax rates in line with inflation.

Profits from stocks, mutual funds or other fixed assets are taxed at a rate of 0%, 15% or 20%, which depends solely on the taxpayer’s income.

The more you earn, the more taxes you will pay, with thresholds divided into four separate categories based on your marital status.

What are the capital gains tax rate thresholds for 2022?

The tax rate for singles is set at zero percent if their taxable income is up to $ 41,675, 15 percent for those earning between $ 41,675 and $ 459,750, and 20 percent for those earning more than $ 459 $ 750.

For those who fall into the separate marriage filing category, they do not pay taxes if they earn up to $ 41,675, with the tax rate set at 15 percent for those with income between $ 41,675 and $ 258,600, and 20 percent for those who earn more than $ 258,600.

Meanwhile, for people who are considered heads of household, the tax rate is set at 0 percent for incomes up to $ 55,800 and 15 percent for incomes between $ 55,800 and $ 488,500, with those earning more than the latter figure. have to pay. 20 percent taxes.

For co-married couples, there is no tax rate if they earn up to $ 83,350, with a threshold of 15 percent for those with income between $ 83,350 and $ 517,200 and 20 percent for the rest.

What is net investment income tax?

If you are single with a modified adjusted gross income of more than $ 200,000, or a married couple filing more than $ 250,000 in a modified AGI jointly, or a married person filing a separate return in a modified AGI for more than $ 125,000, you will need to pay additional tax of 3.8% on net investment income.

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