Long-Term Capital Gains Tax Rates 2024
In 2024, long-term capital gains tax rates vary based on income and filing status, ranging from 0% to 20%. The longer you hold assets like stocks or property, the lower your tax rate may be.
by S Samayanka
Updated Apr 22, 2024
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Long-Term Capital Gains Tax
Long-term capital gains are income earned from selling certain investments or assets that you have held onto for more than a year.
Gains on the sale of assets, such as gold, land, or even shares, are taxed at a special rate instead of the slab rate when they are held for a longer period of time. The term "LTCG tax" refers to this particular rate.
Long-Term Capital Gains Tax Rates 2024
The provisions relating to the Long-Term capital gains are given as follows:
- Shares & Equity Funds:
- Holding Period: 12 months or more.
- LTCG Tax Rate: 10%.
- Conditions: capital gains exceeding ₹1 lakh in a year.
- Indexation Benefit: Not applicable.
- Unlisted Shares:
- Holding Period: 24 months or more.
- LTCG Tax Rate: 10%.
- Conditions: capital gains exceeding ₹1 lakh in a year.
- Indexation Benefit: Not applicable.
- Debt Securities:
- Holding Period: Not specified.
- LTCG Tax Rate: Phased out; now subject to income tax as per slab rate.
- Gold and Jewellery:
- Holding Period: 36 months or more.
- LTCG Tax Rate: 20%.
- Indexation Benefit: Available.
- Land and Building:
- Holding Period: 24 months or more.
- LTCG Tax Rate: 20%.
- Indexation Benefit: Available.
Long-Term Capital Gains Tax Rates 2024 in the U.S
The Long-Term Capital Gains Tax Rates in 2024:
|
Filing Status |
0% Rate |
15% Rate |
20% Rate |
|
Single |
Up to $47,025 |
$47,026 – $518,900 |
Over $518,900 |
|
Married filing jointly |
Up to $94,050 |
$94,051 – $583,750 |
Over $583,750 |
|
Married filing separately |
Up to $47,025 |
$47,026 – $291,850 |
Over $291,850 |
|
Head of household |
Up to $63,000 |
$63,001 – $551,350 |
Over $551,350 |
The Long-Term Capital Gains Tax Rates 2023:
|
Filing Status |
0% Rate |
15% Rate |
20% Rate |
|
Single |
Up to $44,625 |
$44,626 – $492,300 |
Over $492,300 |
|
Married filing jointly |
Up to $89,250 |
$89,251 – $553,850 |
Over $553,850 |
|
Married filing separately |
Up to $44,625 |
$44,626 – $276,900 |
Over $276,900 |
|
Head of household |
Up to $59,750 |
$59,751 – $523,050 |
Over $523,050 |
Difference Between Short-term and Long-term Capital Gains
|
Aspect |
Short-Term Capital Gains |
Long-Term Capital Gains |
|
Holding Period |
Ownership of asset for one year or less |
Ownership of assets for more than one year |
|
Tax Treatment |
Taxed as ordinary income, subject to marginal tax brackets |
Taxed at rates of 0%, 15%, or 20% (depending on income level) |
|
Tax Rate |
Subject to ordinary income tax rates, up to 37% |
Generally taxed at lower rates, usually 15% or less |
|
Asset Types |
Stocks, bonds, precious metals, jewellery, real estate, etc. |
Same as short-term, including stocks, bonds, precious metals, etc. |
|
Tax Calculation Basis |
Based on adjusted basis of the asset and marginal tax brackets |
Based on graduated income threshold |
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Long-Term Capital Gains Tax Rates 2024 - FAQs
1. What are long-term capital gains?
Income earned from selling assets held for over a year.
2. How are long-term capital gains taxed?
Special rates based on filing status and income level.
3. What is the long-term capital gains tax rate in 2024?
The rates are 0%, 15%, or 20%, depending on income and filing status.
4. What happened to the long-term capital gains tax on debt securities?
It is phased out and is now subject to income tax as per slab rates.
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