taxes

5 special taxes that target the wealthy

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The 20 percent capital gains tax
The 20 percent capital gains tax | Westend61/Getty Images

The 20 percent capital gains tax

Richer taxpayers also pay higher taxes on their investments.

The previous top capital gains rate was 15 percent on profits from assets sold after being held for more than a year. That long-term capital gains tax rate applied to taxpayers whose income fell into the 25 percent or higher tax bracket.

Now individuals whose income is in the top tax bracket — that 39.6 percent tax rate — face a 20 percent capital gains rate on profits from long-term asset sales.

All short-term capital gains — from sales of assets held for a year or less — continue to be taxed at your ordinary income tax rate, regardless of which tax bracket your income falls into.

What tax bracket are you in? Use Bankrate's calculator to figure your marginal tax rate.

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