![]() Social Security tax rate, FICA tax rate and Medicare tax rate and bonus tax rate Note: gains on the sale of collectibles (e.g., antiques, works of art and stamps) are taxed at a maximum rate of 28 percent. These dividends, just like short-term capital gains, are taxed as ordinary income.Ģ019 tax rates: Long-term capital gains (LTCG) and Qualified dividend income (QDI) LTCG and QDI tax ratesĢ020 tax rates: Long-term capital gains (LTCG) and Qualified dividend income (QDI) LTCG and QDI tax rates Ordinary dividend income refers to income that doesn’t meet the qualified dividend income criteria above.Qualified dividend income is taxed the same rate as long-term capital gains, so it will also follow the rates shown in the table below. For a dividend to be a qualified dividend, you must have held the asset for more than 60 days during the 121-day period starting 60 days before the ex-dividend date. Qualified dividend income refers to income held for a certain period.These gains are taxed just the same as ordinary income, so you can refer to the federal income tax rates above. Short-term capital gains refer to assets sold for a profit that were held for one year or less.Use the table lower in this section to determine your rate. The specific rates depend on your taxable income, but it’s not the same as the percentages listed above. Long-term capital gains refer to assets sold for a profit that were held for more than one year. ![]() To know what dividend or capital gain tax rate applies here, you should also look at the timeframes involved. When you receive a monthly bank statement or quarterly investment statement, it may show that you were paid capital gains or dividends. Capital gains tax rate and dividend tax rates There are two places where you might find these categories: either on your bank or investment statements or on your paycheck. Now, let’s get to the other types of tax rates. Tax rates for 20: Capital gains tax rates and more Want to dig deeper on the math here? Check out our tax brackets article for a full explanation. ![]() To calculate your effective tax rate, you’d divide the total amount of tax paid for each income range by the total amount of taxable income. Using the example above, we know not all your income would be taxed at 22%.
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