Kamala Harris Calls for 28% Capital Gains Tax, Diverging from Higher Biden Rate
Capital gains tax rates are an important issue for some voters in the upcoming November election.


In a notable policy shift, Democratic presidential nominee, Vice President Kamala Harris, has proposed a 28% capital gains tax rate for some high earners, departing from President Joe Biden's more aggressive stance on taxing investment income.
The move came as the 2024 presidential election campaign gained momentum and economic policies, including Harris’ proposal for several new tax credits, took center stage.
Here’s more of what you need to know.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Related: Harris Policy Platform: Five New Tax Credits to Know
Kamala Harris capital gains tax
The Vice President has proposed a 28% rate for long-term capital gains for those earning a million dollars or more a year — an increase from the current top capital gains tax rate of 20%.
However, this proposed rate falls short of the nearly 40% rate previously suggested by the Biden administration in Biden’s FY25 budget proposal.
“We will tax capital gains at a rate that rewards investment in America’s innovators, founders, and small businesses,” Harris said at a campaign rally in New Hampshire.
- Capital gains taxes are levied on profits from selling assets like stocks, mutual funds, and real estate.
- The rate depends on your taxable income and how long you've held the asset.
- However, capital gains tax rates are generally lower than the federal income tax rates for ordinary income like wages.
As Kiplinger has reported, President Biden's capital gains tax plan called for nearly doubling the top rate to 39.6%. When combined with a proposed Net Investment Income Tax increase to 5%, the wealthiest Americans' total rate could have been 44.6%.
Sanders on Kamala Harris rate
What did Bernie Sanders say? Notably, Sen. Bernie Sanders (I-Vt.) told NBC's Meet the Press that he would "go higher than that" referring to Harris' proposed 28% capital gains tax rate for high earners.
Sanders has previously proposed taxing capital gains at ordinary income tax rates for households earning $250,000 or more a year.
Current capital gains tax
Long-term capital gains tax rates apply to assets held for more than a year.
Currently, the rates are 0%, 15%, or 20%, depending on your income level; essentially, the higher your income, the higher your rate.
The income thresholds for long-term capital gains are adjusted annually for inflation.
Also, the Net Investment Income surtax (NIIT) is currently 3.8%. It applies to individuals, trusts, and estates with certain investment income above specific modified adjusted gross income (MAGI) threshold amounts.
Kamala Harris 'wealth tax'?
Harris says her plan for making the “tax code more fair,” including a so-called “Billionaire Minimum Tax,” is designed to balance raising revenue and maintaining investment incentives.
President Biden's budget proposal, some of which the Harris campaign has generally supported, includes a Billionaire Minimum Tax for households with a net worth of over $100 million. Biden’s proposed tax rate would be at least 25%, a notable increase for the wealthiest taxpayers, who reportedly pay an average tax rate of about 8.2%, according to the White House.
Note: Such a minimum tax would implicate the controversial idea of taxing unrealized gains. For more information, see Kiplinger’s report Unrealized Gains Tax: One Important Thing to Know Now.
Overall, proponents suggest Harris’ plan could:
- Generate additional revenue to fund social programs
- Reduce income inequality
- Preserve incentives for long-term investment and entrepreneurship
Critics, however, argue that increasing capital gains tax rates could discourage investment (e.g., some might hold onto assets longer to avoid realizing gains) and potentially hamper economic growth.
Trump on capital gains
Meanwhile, former president and Republican presidential nominee Donald Trump will likely support a 15% reduced capital gains tax rate. That would be a significant cut from the current top rate of 20% for long-term capital gains.
That proposal is also part of a broader conservative tax agenda (some described in Project 2025, from which Trump has tried to distance himself ) that some say would shift U.S. tax policy towards a consumption model.
It's also worth noting that in a September speech before the Economic Club of New York, Trump pledged to reduce the corporate tax rate to 15% (from the current 21%) for companies that make products in the U.S.
Related: Project 2025 Tax Overhaul Blueprint
- Some critics see this potential capital gains tax cut as primarily benefiting high-income earners since most taxpayers already pay 15% or less on their capital gains.
- Some proponents suggest a lower capital gains tax rate could stimulate investment and economic growth.
Capital gains tax rates: Bottom line
Harris' 28% long-term rate proposal adds another dimension to discussions that already include the TCJA tax cliff, Trump's vow to end taxes on Social Security benefits, and both candidates' pledge to eliminate federal tax on tips.
However, whatever side of the political aisle you’re on, it’s good to remember that any changes to the already complicated U.S. tax code would likely face intense lobbying from groups who benefit from the current lower rates.
Most importantly, implementing a new capital gains tax rate or Billionaire Minimum Tax would require congressional approval, which could be challenging given the current political landscape.
If you're worried about your tax liability, consult a trusted financial advisor or tax planner.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.
-
The Shutdown Standoff Is Heading for Its Next Big Test
A key mid-October deadline could intensify the shutdown fight in Washington, and the fallout could soon hit workers and your wallet.
-
Should You Buy Gold as It Tops $4,000? Here's What the Experts Say
Rate cuts, a weak dollar and macro uncertainty have helped create a "perfect storm" for gold this year. Should investors add exposure or is it too late to buy?
-
Don't Let Your Equity Compensation Trip You Up: A Financial Expert's Guide
Stock options, RSUs and other executive perks can come with some serious strings attached. To avoid a nasty tax surprise, you need a plan.
-
6 Steps to Protect Your Retirement Savings
Don't let a shaky economy and volatile market derail your retirement. These moves will help ensure your money lasts as long as you do.
-
I'm a Financial Adviser: The OBBB Is a Reminder for Older People to Have a Long-Term Plan
The new tax bill presents a good opportunity for retirees to revisit tax plans, look into doing some Roth conversions and consider plans for long-term care.
-
Moving Abroad? You Might Need a Cross-Border Financial Adviser
If you want to live in another country long term, you could benefit from an expert's guidance. Here's how to find a good qualified adviser to help with residency requirements, documentation, financial laws and tax impacts.
-
Three Popular Tax Breaks Are Gone for Good in 2026
Tax Breaks Here's a list of federal tax deductions and credits that you can't claim in the 2026 tax year. Plus, high-income earners could get hit by a 'surprise' tax bill.
-
Financial Advisers: Here's How to Help Soon-to-Be Married Clients Get Their Financial House in Order
Getting married changes a couple's life in more ways than one, so it's a good idea to discuss financial and legal issues like pre-/postnuptial agreements, estate plans and life insurance.
-
The October 15 Tax Deadline Is Coming: A Tax Attorney Highlights What You Need to Know
If you filed an extension in April, time is running out to get your taxes wrapped up for last year. Here's what you need to know for filing your 2024 taxes and preparing for tax year 2025.
-
Three Strategies to Take Advantage of OBBB Changes, From a Financial Planning Pro
Four of the One Big Beautiful Bill's changes could impact your retirement, so it's smart to review your financial plans to see if these strategies would help you get the most out of the new provisions.