Question: do you pay taxes on stocks if you reinvest?
Answer: In contrast, interest and dividend income are taxed in the year in which they are earned. ... To continue with the example above, if you buy stock for $1,000 and then sell that stock for $2,000, you will pay $247.65 in capital gains tax. That would leave you with $1,752.35 to reinvest (not including brokerage commissions).