Capital gains question


In 2023, individual filers won’t pay any capital gains tax if their total taxable income is $44,625 or less. The rate jumps to 15 percent on capital gains, if their income is $44,626 to $492,300. Above that income level the rate climbs to 20 percent.

Let’s say I have 0 income but have 500k of long term gains. Does that mean I pay 15% on 492300 and 20% on 7700 ? Or 20% on 500000?


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