Capital gains tax is what you owe the government for profits on asset sales. Short-term gains tax is for assets held for a year or less, taxed at income rates. Long-term gains tax is for assets held over a year, taxed at lower rates. The rate for 2025 is up to 20%. Tax applies to any capital asset, not just stocks. Rates depend on how long you’ve held the asset and your income. For 2025, rates remain at 0%, 15%, or 20%. The 0% rate applies to specific income levels for different filing statuses. Be prepared for tax season with this guide on capital gains taxes.

Read more at Yahoo Finance: What is the capital gains tax and what are the 2025 rates?