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State and local taxes often apply to capital gains. In a state whose tax is stated as a percentage of the federal tax liability, the percentage is easy to calculate. Some states structure their taxes differently. In this case, the treatment of long-term and short-term gains does not necessarily correspond to the federal treatment. Capital gains ...
Say, for example, that you and your spouse file jointly and earned $150,000 in 2023. During this period, you also sold a rental property and have a long-term capital gain of $50,000.
The capital gains tax applies to this net capital gains figure. Also, if you have a year with a net loss on asset sales, the rules allow a deduction of the loss from your taxable income of up to ...
Federal Tax Rates for Long-Term Capital Gains. Rate. Single. Married Filing Jointly. Married Filing Separately. Head of Household. 0%. $0 – $40,400. $0 – $80,800
States allow a variety of tax credits in computing tax. Each state administers its own tax system. Many states also administer the tax return and collection process for localities within the state that impose income tax. State income tax is allowed as an itemized deduction in computing federal income tax, subject to limitations for individuals.
State tax levels indicate both the tax burden and the services a state can afford to provide residents. States use a different combination of sales, income, excise taxes, and user fees. Some are levied directly from residents and others are levied indirectly. This table includes the per capita tax collected at the state level.
Of states that do levy an income tax, nine of them tax long-term capital gains less than ordinary income. These states include Arizona, Arkansas, Hawaii, Montana, New Mexico, North Dakota, South ...
Investors must pay capital gains taxes on the income they make as a profit from selling investments or assets. The federal government taxes long-term capital gains at the rates of 0%, 15% and 20% ...