What the 2024 Capital-Gains Tax Brackets Mean for Your Investments

Investment income is treated differently from wages by the tax code. There is a separate set of tax brackets and rates for long-term capital gains and qualified dividends.

Investors who have taxable accounts – as opposed to tax-advantaged retirement accounts such as individual retirement accounts (IRAs) or 401(k)s – are often eligible for lower tax rates on investment income and other advantages.