US Marginal Tax Slab and Capital Gains Rate Calculator
The calculator in this page calculates the short term and long term capital gains and dividend rates based on your adjusted gross income and modified adjusted gross income. You can use these at the following page to calculate the value of one post-tax invested dollar at withdrawal for retirement and taxable investments. Your adjusted gross income can be obtained from a tax return form. The modified adjusted gross income is required to see if you are hit with the additional 3.8% Medicare tax per health care legislation. The modified adjusted gross income is the adjusted gross income with the foreign earned income exclusion and the foreign housing exclusion added back in. Most people would have the same adjusted gross income and modified adjusted gross income.
A good description of the various tax rates is at this website.
A qualified dividend is awarded on domestic and qualifying foreign assets held for more than 60 days during the 121-day period beginning 60 days before the ex-dividend date. It is taxed at the long term rate as opposed to the short term rates for other dividends, called ordinary dividends, which do not meet these criteria. Mutual funds having a lot of transactions can lead to assets with holding periods not meeting the qualified dividend criteria.
Additionally, mutual funds with a lot of transactions generate annual capital gains distributions which are taxable each year at the long term capital gains rates.
State taxation varies considerably from state to state and one should be able to obtain marginal tax rates from one’s state taxation website. This document (see Table 3)summarizes state capital gains rates.
Edit the blue cells in the spreadsheet and enter your data and the calculations will refresh.