Capital gains on stocks, crypto & funds
Most investments - stocks, crypto, mutual funds and ETFs - follow the same capital gains rules: short-term (held a year or less) at ordinary income rates, and long-term (over a year) at 0/15/20% plus the 3.8% NIIT for high earners. Crypto is taxed as property, so trades and spends are taxable. Funds may distribute taxable gains even if you do not sell. Precious metals are collectibles, taxed up to 28%. General information, not tax advice.
Source: IRS Topic No. 409, Capital Gains and Losses. Data as of June 2026.
By investment type
| Investment | Long-term rate | Key wrinkle |
|---|---|---|
| Stocks & bonds | 0/15/20% | Qualified dividends also get long-term rates |
| Cryptocurrency | 0/15/20% | Taxed as property; every trade/spend is a taxable event |
| Mutual funds | 0/15/20% | Capital-gain distributions are taxable even without a sale |
| ETFs | 0/15/20% | Generally fewer distributions; more tax-efficient |
| Gold/silver & metal ETFs | Up to 28% | Treated as collectibles |
| Rental real estate | 0/15/20% + up to 25% | Depreciation recapture (Section 1250) |
Cost basis and the wash-sale rule
Your taxable gain is sale price minus cost basis (what you paid plus fees). Track it carefully - brokers report it, but corporate actions and crypto transfers can complicate it. The wash-sale rule disallows a loss if you rebuy a substantially identical security within 30 days. See how to calculate the tax and the special rates for metals and depreciated property.
Frequently asked questions
How are capital gains on stocks taxed?
The same as most assets: short-term (held a year or less) at ordinary income rates, long-term (over a year) at 0/15/20% plus the 3.8% NIIT for high earners. Selling shares triggers the gain; dividends are taxed separately (qualified dividends get the long-term rates).
Is crypto taxed as capital gains?
Yes. The IRS treats cryptocurrency as property, so selling, trading or spending it is a taxable event. Gains follow the same short-term and long-term rules as stocks. Every disposal must be reported, and exchanges increasingly issue tax forms.
Are mutual funds and ETFs taxed differently?
Your own buy/sell of fund shares follows the normal rules. But mutual funds can also distribute capital gains to you even if you did not sell - these capital gain distributions are taxable in the year received. ETFs are generally more tax-efficient and distribute fewer gains.
What about gold and precious metals?
Physical gold, silver and many metal-backed ETFs are treated as collectibles, so long-term gains can be taxed up to 28% federally - higher than the usual 20% top rate. See the collectibles page.
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Last updated: 2026-06-21