20% capital gains tax rate
On the investment side, wealthier taxpayers also will pay higher taxes.
The previous top capital gains rate was 15% on profits from assets held for more than a year before selling. That long-term capital gains tax rate applied to taxpayers whose income fell into the 25% or higher tax bracket.
The American Taxpayer Relief Act changed that. Now individuals whose income is in the top tax bracket -- that 39.6% tax rate -- will face a 20% capital gains rate on profits from long-term asset sales.
All short-term capital gains, those from sales of assets held for a year or less than a year, continue to be taxed at your ordinary income tax rate, regardless of which tax bracket your income falls into.