Stocks & taxes

Terry Says

That depends on two things:
1. How long you held the stock. If you owned it over a year, you will pay the much lower capital gains tax rate. But depending on your income, you may not owe ANY taxes on this gain. (see Capital Gains tax rate chart below).

2. If you owned the stock for less than a year, then the gains are added to your ordinary income.
The amount of taxes will depend on your tax bracket, which is applied to all your income that year.

Oh, by the way, if you sell at a loss, you can write off $3,000 of losses against ordinary income that year, and carry any larger losses forward to use in future years.

Capital Gains Tax Rates for 2025
The long-term capital gains tax rates for 2025 are as follows:
0% for single filers with taxable income of $48,350 or less, and for married couples filing jointly with $96,700 or less.
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15% for single filers with taxable income between $48,351 and $441,450, and for married couples filing jointly between $96,701 and $496,600.
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20% for single filers with taxable income over $441,450, and for married couples filing jointly over $496,600.
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Check with your tax preparer to find the specific tax amounts, based on your other income.