Tax season can feel like a minefield for new and old filers alike. Whether you work with a professional or file on your own, landing on the exact amount you owe Uncle Sam (and vice versa) requires tireless calculation.

An important part of this calculus is the capital gains tax -- a government levy on profits reaped from investments. It applies to everything from your stock portfolio to your jewelry drawer.

Here's what you should know about the capital gains tax, including the 2023 rates and the difference between short-term and long-term profits.

What are the new 2023 tax brackets? Answers here

1099, W-4, W-2, W-9, 1040: What are these forms used for when filing your taxes?

What is capital gains tax?

Let's start at the beginning. What are capital gains? Capital gains refer to any profit you make from buying an asset at one price and selling it at a higher price.

All capital gains, like other profits, are subject to taxes. But there are caveats. For example, if you have a stock with a share price of $100 and it rises to $200 — that is a 'capital gain' but not one that you will be taxed on unless you 'close your position,' meaning you sell that stock for the cash value.

Once you sell the stock and realize the actual capital gain (in this case $100) you can be taxed on that difference.

What is Biden's proposed change to the capital gains tax?

In a budget proposal sure to set off a fiscal tug-of-war with Republicans, Biden offered up a plan to nearly double the current capital gains tax rate.

The current highest tax rate for long-term capital gains investment stands at 20% — Biden's proposal would ratchet it up to 39.6%. This would only effect those in the highest tax bracket: Americans making over $1 million a year.

Who has to file a tax return: It's not necessary for everyone. Here are the rules.

Long-term capital gains vs. short-term

A short-term capital gains tax is levied on the profits of investments that were sold after being held for a year of less. They are taxed at the same rate as your income. The IRS's tax brackets determine the tax you pay for each portion of your income.

A long-term capital gains tax is applied to investments that have been held for over a year before they were sold for a profit. Long-term capital gains are generally taxed at a lower rate. For the 2023 tax year, the highest possible rate is 20%.

Tax season 2023 officially started: Here are key deadlines to keep in mind.

IRS may owe you from 2020 taxes: Here's why and what you need to do to find out if you're owed

What qualifies for capital gains tax?

Capital gains taxes are not exclusive to the stock market. Anything considered a "capital asset" is subject to the tax. Essentially, any investment made that could appreciate and create a profit is fair play.

Capital gains tax applies to:

• real estate

• bonds

• mutual funds

• NFTs/cryptocurrency

• jewelry/coin collections

What is income tax? What to know about how it works, different types and more

Is Social Security income taxable by the IRS? Here's what you might owe on your benefits

What is the 2023 capital gains tax rate?

The amount that you will be taxed on capital gains depends on how long you have held a certain capital asset (long-term vs. short-term) and your income (what tax bracket you fall in.)

For short-term gains, you can follow the regular guide for income tax to see how much you will pay for profits.

The long-term capital gains tax rates for both the 2022 and 2023 tax years are: 0%, 15%, or 20%. The higher your income, the more you will have to pay in capital gains taxes.

The rate is 0% for:

• Single/married filing separately with a taxable income less than or equal to $41,675

• Married filing jointly/surviving spouse with a taxable income less than or equal to $83,350

• Head of household with a taxable income less than or equal to $55,800

The rate is 15% for:

• Single with a taxable income between $41,675 and $459,750

• Married filing separately with a taxable income between $41,675 and $258,600

• Married filing jointly/surviving spouse with a taxable income between $83,350 and $517,200

• Head of household with a taxable income between $55,800 and $488,500

The rate is 20% for

• Anyone whose taxable income is above the 15% threshold in their category

In some special cases the rate will be higher than 20%.

• If the taxable part of a gain comes from selling section 1202 qualified small business stock the rate maxes out at 28%.

• The net capital gains from selling collectibles (coins/art) can be taxed at up to 28%.

• The part of an unrecaptured section 1250 gain from selling section 1250 real property can be taxed at up to 25%.

More of your 2022 tax season questions answered

• File your taxes early for a chance to double your refund money with Jackson Hewitt

• 2023 tax season guide for new parents: What to know about the Child Tax Credit, EITC and more

• What is OASDI tax on my paycheck? Here's why you and your employer pay this federal tax

• Do you have to report crypto on taxes? Yes. Here's what you should know about form 8949

• What is a 1098-E form? What you need to know about the student loan interest statement

• Tax season 2023: What exactly is the mileage rate? There's more than one.

• Is it better to pay someone to do your taxes or do them yourself? We'll help you decide.

• Companies can deduct full cost of business meals on 2022 tax returns

This article originally appeared on USA TODAY: What is capital gains tax? Long-term vs short-term, 2023 rate unpacked