Biden's FY25 Budget Proposal Raises Capital Gains Tax Rates

Proposed Increase to 39.6%

In President Biden's proposed Fiscal Year 2025 Budget for the United States Government, a key component is the proposed increase in the capital gains tax rate to 39.6%. This would nearly double the current rate of 20%.

Contextual Proposal

The proposed capital gains tax increase is part of a larger proposal to raise the long-term capital gains and qualified dividend income tax rate to 44.6% for individuals with taxable income exceeding $1 million.

Additional Tax Rate Changes

In addition to the proposed capital gains tax increase, the budget proposal also includes increases to the top individual income tax rate, which would increase to 39.6% for single filers with income above $400,000 and $450,000 for joint filers.