To pay capital gains tax on stocks, you'll generally follow these steps:

1. Determine Your Capital Gain or Loss:

• Calculate your basis: This is typically the original purchase price of the stock plus any associated costs like broker commissions. If you reinvested dividends, those amounts also increase your basis. 

• Calculate your net proceeds: This is the sale price of the stock minus any selling costs (e.g., broker fees). 

• Subtract your basis from your net proceeds: If the result is positive, you have a capital gain. If the result is negative, you have a capital loss. 

2. Determine Holding Period:

• Short-term capital gains: Apply to assets held for one year or less. They are taxed at your ordinary income tax rates.

• Long-term capital gains: Apply to assets held for more than one year. They are taxed at potentially lower capital gains rates, depending on your income level. 

3. Determine Tax Rate:

• Short-term capital gains (assets held for a year or less) are taxed at your ordinary income tax rates. The 2025 ordinary income tax brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. 

• Long-term capital gains tax rates are at 0%, 15%, and 20%, depending on your annual taxable income and filing status.   .

IRS: https://www.irs.gov/taxtopics/tc409