Last Updated on December 15, 2024
- Taxable Income: Earnings from a taxable brokerage account, such as dividends, interest, and capital gains, are taxed annually. This means you’ll pay taxes on these income sources each year, regardless of whether you withdraw the funds or not.
- Capital Gains Tax: When you sell an investment for a profit (capital gain), you’ll owe taxes on that gain. The tax rate depends on:
- Your overall income level
- How long you held the asset before selling (short-term or long-term)
- The type of investment (e.g., stocks, bonds, mutual funds)
’24-’25 Tax Brackets
- 10%: $0 to $11,925 (single filers) or $0 to $23,850 (joint filers)
- 12%: $11,926 to $47,150 (single filers) or $23,851 to $94,750 (joint filers)
- 22%: $47,151 to $190,750 (single filers) or $94,751 to $312,350 (joint filers)
- 24%: $190,751 to $462,500 (single filers) or $312,351 to $622,050 (joint filers)
- 32%: $462,501 to $693,750 (single filers) or $622,051 to $931,500 (joint filers)
- 35%: $693,751 to $1,096,750 (single filers) or $931,501 to $1,357,750 (joint filers)
- 37%: Over $1,096,750 (single filers) or over $1,357,750 (joint filers)