Short-term capital gains are taxed at your ordinary federal income tax rate for 2025.
These rates are higher than the long-term capital gains rates and depend entirely on your total taxable income and filing status.
2025 Short-Term Tax Rates
For the 2025 tax year, the seven federal income tax brackets that apply to short-term capital gains are:
| Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | Up to $11,600 | Up to $23,200 | Up to $16,550 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $16,551 to $63,050 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 | $63,051 to $100,500 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,501 to $191,950 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,951 to $243,700 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,701 to $609,350 |
| 37% | Over $609,350 | Over $731,200 | Over $609,350 |
Key Differences
Holding Period: Short-term gains are realized on assets held for one year or less. Long-term gains are for assets held for more than a year and benefit from the 0%, 15%, or 20% preferential rates.
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Net Investment Income Tax (NIIT): The same 3.8% NIIT that applies to long-term gains also applies to short-term gains for high-income earners (MAGI over $200,000 for single filers; $250,000 for joint filers).
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