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Explain the capital gains tax rate in the US.
assistant
The capital gains tax rate in the United States is determined by three factors: the taxpayer’s income, the type of security involved, and the holding period of the security. Taxpayers in higher tax brackets pay higher capital gains taxes. Generally, short-term gains (held for one year or less) are taxed at the taxpayer’s ordinary income tax rate, while long-term gains (held for more than one year) are subject to lower tax rates. For the 2020 tax year, short-term capital gains tax rates range from 10% to 37%, while long-term capital gains tax rates range from 0% to 20%.