Zero, zip, zilch: The U.S. tax code has a 0% rate on investment income, even for Americans with significant assets. The
waning days of this tax-filing season are a good time to think about how to use it in the future.
The zero rate isn’t a secret. 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. That total included about 34,000 filers earning $1 million or more.