2014 Capital Gain Tax Rates

Jan 15, 2015 by

IRS shieldIs it just me, or do changes to the tax code invariably make things more complex, never simpler? Case in point: Before 2013 capital gains were taxed at two rates. Now there are four rates, a potential surtax, plus some “special cases.”

One complication is that capital gains may now be subject to the 3.8% Affordable Care Act (ACA) surtax. As you’re perusing the rates in the tables below, keep in mind:

If your modified adjusted gross income exceeds $250,000 for married filing jointly or $200,000 for a single filer, add the 3.8% surtax to the rate you see in the table.

Also bear in mind that the income figures in the tables below are taxable income. That’s the number on line 43 of the 2014 1040 form. Taxable income is your earned income LESS exemptions, standard or itemized deductions, and adjustments like the deduction for a Health Savings Account contribution, PLUS your “unearned” income from investments, retirement account distributions, alimony, rent, etc.

 2014 U.S. Federal Long-Term Capital Gain Income Tax Rates

Remember—these are for long-term gains: assets held at least one year.

 

 

0% Capital Gain Rate

2014 capital gain tax rates

 

 

 

 

 

15% Capital Gain Rate

2014 capital gain tax rates

 

 

 

 

 

20% Capital Gain Rate

2014 capital gain tax rates

 

 

 

 

 

Miscellaneous Capital Gain Rates

2014 capital gain tax rates

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