Investment gains and dividends
The sale of stocks, bonds and mutual funds held for more than a year, as well as qualified dividends, are taxed at the preferential long-term capital gains rates, ranging from 0% to 20%.
For 2019, if you’re single with taxable income of $39,375 or less or married filing jointly with taxable income of $78,750 or less, your long-term capital gains are taxed at 0%.
For people with higher taxable incomes, the rates go up. The next rate is 15% (singles with incomes between $39,376 and $434,550, and married couples with incomes between $78,751 and $488,850). The top capital gains rate is 20% for people with incomes above those amounts.
