Capital Gain and Dividend Rates. For tax years beginning after 2012, the top rate for capital gains and dividends will permanently rise to 20% (up from 15%) for taxpayers with incomes exceeding $400,000 ($450,000 for married taxpayers). Note that the 3.8% surtax on investment type income and gains will also apply so the overall rate for taxpayers in this income level will be 23.8%.

For taxpayers in tax brackets below 25%, capital gains and dividends will permanently be subject to a 0% rate. Taxpayers who are subject to a 25% or greater rate on ordinary income, but whose income levels fall below the $400,000/$450,000 thresholds, will continue to be subject to a 15% rate on capital gains and dividends. The rate will be at 18.8% for those subject to the surtax.