The tax rate for short-term capital gains depends on your country and specific tax laws. In the U.S., for example, short-term capital gains are taxed as ordinary income, which means they are taxed at the same rate as your regular income (which can range from 10% to 37% depending on your total taxable income).
U.S. Short-Term Capital Gains Tax Rates (2023)
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Short-term capital gains apply to assets held for one year or less.
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Taxed as ordinary income, meaning the rate is based on your income bracket.
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10% to 37% depending on your income level.
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Example:
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If you’re in the 22% income bracket, your short-term gains are taxed at 22%.
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If you're in the highest bracket, which is 37%, then your short-term gains are taxed at 37%.
Other Countries:
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Canada: Taxed at a combination of federal and provincial rates. You pay tax on 50% of the capital gain, and it’s added to your income.
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U.K.: Short-term capital gains are taxed at 10% or 20% (for most people) but 18% or 28% for higher earners or gains from property.
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Australia: If you sell an asset within 12 months, it’s taxed as income, but the effective rate might be reduced by 50% if you hold the asset for more than a year.
Do you have a specific country or situation in mind for more tailored information?
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