Table 1

Effective tax rate on stock sold in 2024 by average annual return

Stock sold in 2024 and purchased in the designated year.
Capital gains taxes on inflationary gains can push the effective tax rate well above the 23.8% statutory rate.

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Notes: SPX=S&P 500 Index. Effective tax rate is infinite when the nominal price increases and the real value declines.

Sources: Author's calculations, Yahoo Finance, and BLS.