Let’s talk about Capital Gains tax. What is it? When do I have to pay it? How much is it?

Short Term Capital Gains Tax is when you sell a home you recently purchased in less than a year and pay a tax rate of between 10-37% on the profit. These charts below will help you to understand what you might owe in your particular circumstance.

Short-Term Capital Gains Tax Rates for 2022

Rate Single filers Married couples filing jointly Head of household

10% Up to $10,275 Up to $20,550 Up to $14,650

12% $10,275 – $41,775 $20,550 – $83,550 $14,650 – $55,900

22% $41,775 – $89,075 $83,550 – $178,150 $55,900 – $89,050

24% $89,075 – $170,050 $178,150 – $340,100 $89,050 – $170,050

32% $170,050 – $215,950 $340,100 – $431,900 $170,050 – $215,950

35% $215,950– $539,900 $431,900 – $647,850 $215,950– $539,900

37% $539,900+ $647,850+ $539,900+

Long-Term Capital Gains is very different.

2022 Capital Gains Tax Rate Thresholds
Capital Gains
Tax Rate
Taxable Income
(Single)
Taxable Income
(Married Filing Separate)
Taxable Income
(Head of Household)
Taxable Income
(Married Filing Jointly)
0%
Up to $41,675
Up to $41,675
Up to $55,800
Up to $83,350
15%
$41,675 to $459,750
$41,675 to $258,600
$55,800 to $488,500
$83,350 to $517,200
20%
Over $459,750
Over $258,600
Over $488,500
Over $517,200