when a consumer purchases certain goods and services from a retailer a sales tax is applied to the sales price of the commodity at the point of sale since sales tax is governed by individual state governments the sales tax rate will vary from state to state in georgia the rate is 4 while the tax rate in california is 7 25 34
income gained from investments is categorized as earnings and tax rates on capital gains and dividends apply when the value of an investment rises and the security is sold for a profit the tax rate that the investor pays depends on how long they held the asset the tax rate of a short term investment held for one year or less is equal to the investor s ordinary income tax 5 individuals in the 22 marginal tax bracket will pay 22 on short term capital gains the tax rate on profits from investments held longer than a year ranges from 0 to 20 5for tax year 2023 individuals with such taxable income at or below 44 625 pay 0 if they have income above 44 625 to 492 300 they pay 15 those individual investors with such income over 492 300 pay a 20 tax rate on capital gains 6married individuals filing jointly and surviving spouses with such taxable income at or below 89 250 pay 0 if they have income over 89 250 to 553 850 they pay 15 those married filing jointly investors with such income over 553 850 pay a 20 tax rate on capital gains 6heads of households hoh with such taxable income at or below 59 750 pay 0 if they have income over 59 750 to 523 050 they pay 15 those hoh investors with such income over 523 050 pay a 20 tax rate on capital gains 6married individuals filing separately with such taxable income at or below 44 625 pay 0 if they have income over 44 625 to 276 900 they pay 15 those married individuals filing separately with such income over 276 900 pay a 20 tax rate on capital gains 6for tax year 2024 individuals with such taxable income at or below 47 025 pay 0 if they have income over 47 025 to 518 900 they pay 15 those individual investors with such income over 518 900 pay a 20 tax rate on capital gains 7married individuals filing jointly and surviving spouses with such taxable income at or below 94 050 pay 0 if they have income over 94 050 to 583 750 they pay 15 those married filing jointly investors with such income over 583 750 pay a 20 tax rate on capital gains 7heads of households hoh with such taxable income at or below 63 000 pay 0 if they have income over 63 000 to 551 350 they pay 15 those hoh investors with such income over 551 350 pay a 20 tax rate on capital gains 7married individuals filing separately with such taxable income at or below 47 025 pay 0 if they have income over 47 025 to 291 850 they pay 15 those married individuals filing separately with such income over 291 850 pay a 20 tax rate on capital gains 7qualified dividends are subject to the same tax rate schedule for long term capital gains non qualified dividends have the same tax rates as short term capital gains 89tax rates abroadtax rates vary from country to country some countries implement a progressive tax system while others use regressive or proportional tax rates a regressive tax schedule is one in which the tax rate increases as the taxable amount decreases the proportional or flat tax rate system applies the same tax rates to all taxable amounts regardless of income level bolivia and greenland are examples of countries that have this system of taxes in place 