Profits you earn from the sale of most assets are taxed as capital gains by the federal government. Gains from the sale of assets held for more than a year are deemed “long-term” capital gains which are typically taxed at lower rates than gains on assets held less than for one year (short-term capital gains).


The sale of investment property held for rental purposes is subject to federal capital gains tax. Tax rates range from 0% to 20% depending on your taxable income, as shown in this table:

2022 Long-term Capital Gains Tax Rates

Tax Rate 0% 15% 20%
Filing Status Taxable Income
Single Up to $41,675 $41,676 to $459,750 Over $459,750
Head of household Up to $55,800 $55,801 to $488,500 Over $488,500
Married filing jointly Up to $83,350 $83,351 to $517,200 Over $517,200
Married filing separately Up to $41,675 $41,676 to $258,600 Over $258,600

Source: turbotax.com