Please enable JavaScript to view the comments powered by Disqus.

Ask Kim

New Rules on Capital Gains

Rates didn’t change, but they’re pegged to your income instead of your tax bracket.

Getty Images

What are the long-term capital gains rates under the new tax law? - C.C., Williamsburg, Va.

SEE ALSO: 26 Ways the New Tax Law Will Affect Your Wallet

The rates didn’t change, but they’re pegged to your income instead of your tax bracket. For 2018, you’ll pay 0% on long-term capital gains (investments held longer than a year) if your taxable income is below $38,600 for single filers, $51,700 for heads of household or $77,200 for joint filers. You’ll pay the 15% rate for taxable income up to $425,800 for singles, $452,400 for heads of household or $479,000 for joint filers. Above those income levels, the rate is 20%. You may owe state taxes, too, and high earners may also have a 3.8% net investment income tax, says Mark Luscombe of Wolters Kluwer Tax & Accounting.

Got a question? Ask Kim at askkim@kiplinger.com.