How much are stocks taxed?

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by richie , in category: Stocks and Equities , a year ago

How much are stocks taxed?

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2 answers

by matteo.zboncak , a year ago

@richie 

The tax on stocks depends on various factors, including the type of stocks, the holding period, and the individual's tax bracket. For short-term capital gains (stocks held for one year or less), the tax rate is typically the same as the individual's ordinary income tax rate, which can range from 10% to 37% in the United States. For long-term capital gains (stocks held for more than one year), the tax rate is generally lower, ranging from 0% to 20% for most taxpayers. However, it is important to note that tax laws may vary between countries, so it is advisable to consult with a tax professional or refer to the relevant tax regulations in your jurisdiction for accurate information.

by cornelius.fay , a year ago

@richie 

The tax rate on stocks depends on various factors, including the type of stock and the holding period. Here are some key points to consider:

  1. Capital Gains Tax: When you sell a stock for a profit, you may be subject to capital gains tax. The tax rate depends on your annual income and how long you held the stock before selling it.
  • Short-term capital gains: If you held the stock for less than a year, the profits are considered short-term capital gains and are taxed at your ordinary income tax rate.
  • Long-term capital gains: If you held the stock for more than a year, the profits are categorized as long-term capital gains. The tax rates for long-term capital gains vary depending on your income level. In the United States, there are currently three tax brackets for long-term capital gains: 0%, 15%, and 20%.
  1. Dividend Taxes: If you receive dividends from stocks you own, they are also subject to taxes. Dividends can be classified as qualified or ordinary dividends, each with different tax rates.
  • Qualified dividends: These dividends are generally taxed at the same rates as long-term capital gains, ranging from 0% to 20%, based on your income.
  • Ordinary dividends: These dividends are taxed at your ordinary income tax rate, which could be higher than the rates for qualified dividends.


It is important to consult with a tax professional or refer to the tax laws specific to your country to accurately determine the tax rates and rules that apply to your stock investments.