Gain on sale of qualified small business stock is taxed at a maximum rate of 15%.

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Gain on the sale of qualified small business stock (QSBS) held for more than five years can be excluded from income for federal tax purposes, up to 100% of the gain, depending on when the stock was acquired. The applicable tax rate is not a flat 15%; instead, the exclusion can result in an effective tax rate of 0% on the excluded portion of the gain.

Gain on Sale of Qualified Small Business Stock Is Taxed