Long-term capital gains are generally taxed at a lower rate than short-term, according to the Internal Revenue Service. While short-term gains are taxed at regular rates, from 0 to 39.6 percent, long-term gains are usually taxed between 0 and 20 percent. These rates are effective for 2013 and later.
As of 2015, taxpayers in the 10 or 15 percent tax bracket pay no capital gains tax; those in the 25 to 35 percent brackets pay 15 percent on most capital gains. The 20 percent capital gains rate is applied to high-income taxpayers, whose tax return shows over $406,750 for an individual or $457,600 on a joint return, according to the IRS. Capital gains on sales of certain small business stock, collectibles such as coins or art, and certain depreciated real property may be taxed at a higher rate.