Capital Gains Tax: Short-Term 2024

It’s important to note that, as of 2024, short-term capital gains for individual day traders are indeed taxed as ordinary income, and the applicable tax rate depends on your total taxable income for the year. Here’s how the tax brackets break down for various filing statuses:

Single Filers:

• 10% for income up to $11,600.
• 12% for income between $11,601 and $47,150.
• 22% for income between $47,151 and $100,525.
• 24% for income between $100,526 and $191,950.
• 32% for income between $191,951 and $243,725.
• 35% for income between $243,726 and $609,350.
• 37% for income of $609,351 or more.

Married Filing Jointly:

• 10% for income up to $23,200.
• 12% for income between $23,201 and $94,300.
• 22% for income between $94,301 and $201,050.
• 24% for income between $201,051 and $383,900.
• 32% for income between $383,901 and $487,450.
• 35% for income between $487,451 and $731,200.
• 37% for income of $731,201 or more.

Married Filing Separately:

• 10% for income up to $11,600.
• 12% for income between $11,601 and $47,150.
• 22% for income between $47,151 and $100,525.
• 24% for income between $100,526 and $191,950.
• 32% for income between $191,951 and $243,725.
• 35% for income between $243,726 and $365,600.
• 37% for income of $365,601 or more.

Head of Household:

• 10% for income up to $16,550.
• 12% for income between $16,551 and $63,100.
• 22% for income between $63,101 and $100,500.
• 24% for income between $100,501 and $191,950.
• 32% for income between $191,951 and $243,700.
• 35% for income between $243,701 and $609,350.
• 37% for income of $609,350 or more.

As an individual day trader, your short-term capital gains from day trading activities will be taxed at the applicable income tax rate within your tax bracket. It’s important to keep this in mind when calculating your potential tax liability and to consult with a tax professional for personalized guidance based on your specific financial situation and trading activities.