Capital Gain and Qualified Dividend Maximum Tax Rates. For 2018, the breakpoints no longer follow the tax brackets for regular income tax purposes. The breakpoints are as follows:
- Single Taxable Income $ 0 to 38,600 maximum rate = 0%
38,601 to 425,800 maximum rate = 15%
425,801 and over maximum rate = 20% - MFJ or QW Taxable Income $ 0 to 77,200 maximum rate = 0%
77,201 to 479,000 maximum rate = 15%
479,001 and over maximum rate = 20% - MFS Taxable Income $ 0 to 38,600 maximum rate = 0%
38,601 to 239,500 maximum rate = 15%
239,501 and over maximum rate = 20% - HOH Taxable Income $ 0 to 51,700 maximum rate = 0%
51,701 to 452,400 maximum rate = 15%
452,401 and over maximum rate = 20% - Estates and Trusts Taxable Income $ 0 to 2,600 maximum rate = 0%
2,601 to 12,700 maximum rate = 15%
12,701 and over maximum rate = 20%
The breakpoints for the 25% maximum rate for unrecaptured section 1250 gain, and the 28% maximum rate for 28% rate gain follows prior law. Thus, the 25% and 28% maximum rates apply when taxable income exceeds the 24% tax bracket for regular income tax purposes
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