Tax
Tax and after-tax profit
Applies the rate that matches the holding period.
The Formula
Tax = gain x rate; After-tax = gain - tax
Applies the rate that matches the holding period.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| r | Tax rate | percent | Long-term rate if held over a year, otherwise ordinary. |
What Each Symbol Means
rpercent
Tax rate
Long-term rate if held over a year, otherwise ordinary.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate capital gains tax page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Capital Gains Tax, filed under Finance. Every number the guide produces comes from substituting into this one line.