As of January 2013, the Capital Gains tax rate was increased from 15% to 20% for individuals filing single, with incomes in excess of $400,000. This new 20% rate also applies to married couples filing jointly, with incomes in excess of $450,000. The previous Federal Capital Gains tax rate of 15% remains for investors below these threshold income amounts.
Additionally, there is a Medicare tax of 3.8% for “net investment income.” This includes interest, dividends, capital gains, retirement income and income from partnerships (as well as other forms of “unearned income”). It affects taxpayers who exceed threshold income amounts of $200,000 for single filers and $250,000 for married couples filing jointly.
There is also a 0.9% increase in the Medicare tax imposed on wages. It applies to wages in excess of $200,000 for single filers and wages in excess of $250,000 for married couples.