Understanding Tax Brackets and Capital Gains Tax
Income Tax Brackets
The income tax brackets determine the percentage of income that is subject to taxation. In the United States, the current income tax brackets for individuals are as follows:
- 10%
- 12%
- 22%
- 24%
- 32%
- 35%
- 37%
Capital Gains Tax
Capital gains tax is a tax levied on the profit you make from selling an asset that has increased in value. Investment properties, such as rental homes or commercial real estate, are subject to capital gains tax.
Florida Capital Gains Tax
In Florida, capital gains tax is not levied on the proceeds from the sale of a primary residence. However, capital gains from the sale of investment properties are subject to a capital gains rate of 6.5%.
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