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Question:
I have recently sold my vacant land (property) in N.Y.C. I had this property since 1992. What are the combined State and Federal cap. gain taxes percentage?
Answer:
Currently, the highest federal capital gains tax rate for long term capital gains is 20%, but single filers who earn more than $200,000 and joint filers who earn more than $250,000 pay an additional 3.8% tax on all investment income. Therefore, the top federal tax rate for long term capital gains is 23.8%.
Each state has their own tax rate for long term capital gains, so you will have to check your state’s tax code to find what rate is applicable in your state. New York’s maximum state and federal combined rate is 31.5%; with NYC residents having to pay a local capital gains tax as well.
The average combined federal, state, and local top marginal tax rates on long term capital gains in the US is 28.6%.
Do you have questions about capital gains? If so contact the experienced Media Tax Attorney Steven Chisholm.
This legal question was answered by Steven Chisholm, an experienced Media Tax Attorney. This does not consent an attorney client relationship.