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The 2022 Capital Gains Rates Are Better Than Ever – Buffalo News

Table source: Author. Data Source: IRS.

This is the real tax deal

The long-term capital gains rates are the true prize for investors. You can drastically drop your tax bill after holding your investments for over a year. Long-term investors unlock the 0%, 15%, and 20% capital gains rates. The IRS expanded the income range for each tax bracket so you’ll be able to make a bit more money before your income tips into the next bracket.

Most people will fall into the 15% tax bracket. For those who have a lower taxable income this year, you could bypass taxes altogether. There’s a 0% tax bracket for single filers who have taxable income under $41,676. You can sweeten the pot if you’re filing as a married couple. You and your spouse can earn up to $83,350 before you have to pay taxes on your long-term gains.

Let’s say a couple’s total taxable income from working a job and capital gains is $83,000. The couple could pay 0% on profits for stocks held over a year if they are married filing jointly.

Here are the 2022 and 2021 capital gains rates:

2022 long-term capital gains tax brackets

For single filers with taxable income of…

For married joint filers with taxable income of…

For heads of households with taxable income of…

…this is the long-term capital gains rate

$0 to $41,675

$0 to $83,350

$0 to $55,800

0%

$41,676 to $459,750

$83,351 to $517,200

$55,801 to $488,500

15%

Over $459,750

Over $517,200

Over $488,500

20%

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