Before you start investing your money and earning returns, there are several things you need to know. According to the MSA program online at the Villanova University, among the many things to understand before investing is the capital gains tax. As the name suggests, capital gains tax is a tax of gains you make from investing. All profits, whether it is from the sale of real estate to the stock market and futures, are subjects to capital gains tax.

In the US, the system behind capital gains tax is rather unique. The amount charged is not based on the amount of wealth you have or the return itself, but on the income tax rate you’re on. Even when you’re making millions from the stock market, you will not have to pay more in capital gains tax if your personal income is low.

You can master the basics of Global Taxes from the infographic released by taxandbusinessonline.villanova.edu.