Federal Taxes on Capital Gains for Returns with Positive Net Capital Gains, 1913-2025
Note: Includes short and long-term net positive gains. Long-term gains excluded prior to 1987 are included in realized capital gains. Data for each year include some prior year returns. (a) The maximum taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. rate includes effects of exclusions (1954-1986), alternative tax rates (1954-1986; 1991-1996), the minimum tax (1970-1978), alternative minimum tax (1979-1996), income tax surcharges (1968-1970), the Pease limitation (1991-1998, 2013-2017), and the 3.8% net investment income tax of (2013-present). Capital gains taxes for 2015 to 2025 are estimated on a fiscal year basis from the Congressional Budget Office, while realizations are on a calendar year basis. The average effective tax rate increase in 2022 and 2023 reflects a surge in short-term capital gains realizations, which are subject to ordinary income tax rates, and timing differences between realizations and tax payments. Capital gains taxA capital gains tax is levied on the profit made from selling an asset and is often in addition to corporate income taxes, frequently resulting in double taxation. These taxes create a bias against saving, leading to a lower level of national income by encouraging present consumption over investment. rates from 1913 to 1953 come from data compiled by Wolters Kluwer. Midyear rate changes occurred in 1978, 1981, 1997, and 2003.
Source: Treasury Department; Congressional Budget Office; Wolters Kluwer.
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