The Wall Street Journal
Zero, zip, zilch: The U.S. tax code has a 0% rate on investment income, even for Americans with significant assets. It has been in effect since 2008, and nearly 11 million filers—about 7%—qualified for it in 2020, according to the latest Internal Revenue Service data. The rate only applies to net capital gains and dividend income from investments in taxable accounts, not tax-sheltered retirement accounts such as traditional IRAs or 401(k)s. In recent decades, taxable accounts have become less popular for saving as retirement accounts have grown.