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Does California Really Have the Highest State Tax Rates?

California state tax rates stand as one of the highest tax rates in the US.

California is the state that has always ended up on movie screens. The Golden State offers just about everything; beaches, mountains and great weather. Who wouldn’t want to live there? The answer is not rhetorical. Anyone who hates paying high taxes wouldn’t want to live in California. California is in fact known as the third worst state for taxes.

In all of the United States, the west coast state of CA has the highest state sales tax and some of the highest income tax rates. If you live in California, before filing your taxes, it would be helpful to learn about the California tax rates.

California Income Tax Rates

California’s personal income tax system is composed of  ten brackets. The state actually ranks as the highest income tax rate among states who levy an individual income tax and seventh highest income taxes among all US states. Continue reading “Does California Really Have the Highest State Tax Rates?”

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What is the Tax Rate for Short Term Capital Gains?

2014 Short Term Capital Gains are taxed as “ordinary” income

As of 2013, individuals earning an income of $450,0001 and over saw an increase in the capital gains tax rate. For this group, long term capital gains tax rate jumped from 15% to 20% while the short term 2013 capital gains tax rates increased by 4.6%.

Check out part one of this article, to learn about long term capital gains. Keep reading for more on short term capital gains and how they relate to filing your taxes. 

2014 Tax Return Coupon

What are short term capital gains?

A Capital gain is a profit made from selling any asset when the sale price exceeds the purchase price.

The capital gains clock begins the day after you acquire the asset until the day you sell it (this includes day you sell it). Depending on how long the capital gain is held for will determine if it falls into the short-term category or long-term.

Continue reading “What is the Tax Rate for Short Term Capital Gains?”

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What is Tax Rate for Long Term Capital Gains?

Long Term Capital Gains are Taxed at a Different Rate Than Short Term Capital Gains

If you earned a profit in 2014 from selling an asset such as stock shares or a house, you’ll need to report it as a long term capital gain on your 2014 tax return.

Long term capital gains are taxed differently than short term gains and other income. In fact, long term capital gains are taxed at a lower rate.

Continue reading “What is Tax Rate for Long Term Capital Gains?”