How to use it
- Use the formula below with your own figures.
The formula
Tax = gain × applicable rate.
Worked example
Holding periods can change the rate in some countries.
Frequently asked questions
Short vs long term?
Some regions tax long holds more lightly.
Any allowance?
Many countries exempt a small annual gain.
Tips
- Know your marginal vs effective rate.
- Set money aside as you earn if tax isn't withheld.
- Keep receipts for anything deductible.
Key terms
- Marginal rate
- The rate on your top slice of income.
- Effective rate
- Your overall average tax rate.
- Deduction
- An amount subtracted from taxable income.