Income taxes are charged on income earned, including money earned from working or running a business. Capital gains taxes, on the other hand, are charged on income that comes from capital assets increasing in value and being sold. Virtually any assets you own can be considered capital assets, and you could owe capital gains taxes if you sell them at a profit. Capital gains taxes work differently from income taxes, as you're subject to a different rate depending on how long you owned the asset prior to selling it. If you owned it for more than a year, you'll pay the long-term capital gains tax rate.  This is lower than the income tax rate for most people, and is typically between 0% and 20%. If you own an asset for less than a year before selling at a profit, you pay short-term capital gains taxes at your ordinary income tax rate.