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Long-Term Capital Gains Tax Rates
In 2023, the 0% rate applies for individual taxpayers with taxable income up to $44,625 on single returns ($41,675 for 2022), $59,750 for head-of-household filers ($55,800 for 2022), and $89,250 for joint returns ($83,350 for 2023).
The 20% rate for 2023 starts at $492,301 for singles ($459,751 for 2022), $523,051 for heads of household ($488,501 for 2022), and $553,851 for couples filing jointly ($517,201 for 2022).
The 15% rate is for filers with taxable incomes between the 0% and 20% breakpoints.
Standard Deductions
The standard deduction amounts were increased for 2023 to account for inflation. Married couples filing jointly get $27,700 ($25,900 for 2022), plus $1,500 for each spouse age 65 or older ($1,450 for 2022). Singles can claim a $13,850 standard deduction ($12,950 for 2022) — $15,700 if they're at least 65 years old ($14,700 for 2022). Head-of-household filers get $20,800 for their standard deduction ($19,400 for 2022), plus an additional $1,850 once they reach age 65 ($1,750 for 2022). Blind people can tack on an extra $1,500 to their standard deduction ($1,400 for 2022). That jumps to $1,850 if they're unmarried and not a surviving spouse ($1,750 for 2022).
Residential Clean Energy Credit
If you install an alternative energy system in your home that relies on a renewable energy source, such as solar, wind, geothermal, or fuel cell technology, this credit is for you. Solar panels, solar electric equipment, solar-powered water heaters, and wind turbines are eligible for the credit. And beginning in 2023, the credit also applies to battery storage technology with a capacity of at least three kilowatt hours. The size of the credit is 30% of the cost of the equipment and installation for renewable energy systems. The full credit goes through 2032. After that, it drops to 26% in 2033 and 22% in 2034, before it expires in 2035.
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