Capital Gains Tax#
Long-term capital gains (and qualified dividends) are taxed at lower rates than ordinary income.
Show code cell source
from policyengine_us import IndividualSim
import plotly.express as px
import pandas as pd
sim = IndividualSim()
sim.add_person(age=30, name="person")
sim.add_household(members=["person"], zip_code="01001")
sim.vary("long_term_capital_gains", max=1_000_000)
df = pd.DataFrame(
{
"Long-term capital gains": sim.calc("long_term_capital_gains")[0],
"Marginal capital gains rate": sim.deriv(
"capital_gains_tax", wrt="long_term_capital_gains"
),
}
)
px.line(
df, y="Marginal capital gains rate", x="Long-term capital gains"
).update_layout(
title="Marginal capital gains rate by long-term capital gains income",
yaxis_tickformat=".0%",
xaxis_tickformat="$,",
)