Income tax is paid on earnings from employment, interest, dividends, royalties, or self-employment, whether it’s in the form of services, money, or property. Capital gains tax is paid on income that derives from the sale or exchange of an asset, such as a stock or property that’s categorized as a capital asset.
Income Tax
Your income tax percentage is variable based on your specific tax bracket, and this is dependent on how much income you make throughout the entire calendar year. Tax brackets also vary depending upon whether you file as an individual or jointly with a spouse. For the 2021 and 2022 tax years, federal income tax percentages range from 10% to 37% of a person’s taxable yearly income after deductions.
