The capital gains tax is what you’ll owe the government for your profit on the sale of an asset such as a home or stocks. Here's what you need to know about the capital gains tax, including the rates for 2025 and the difference between short-term and long-term gains. What is the capital gains tax? Let's start at the beginning. What are capital gains? Capital gains refer to any profit you make from acquiring an asset at one price and selling it at a higher price. It does not refer to any profits you hav ...