---
title: Do I Pay Taxes When I Profit from a Stock Sale?
description: 'Q: Say I buy $100 worth of stock. If the price jumps to $125 and I sell $100 worth, do I pay taxes? -- David,…'
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published: '2013-11-14T02:44:02.000Z'
modified: '2013-11-14T02:44:02.000Z'
section: Taxes
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word_count: 150
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**Q: Say I buy $100 worth of stock. If the price jumps to $125 and I sell $100 worth, do I pay taxes? -- David, Middletown, Conn.**

A: Yes, your gain is taxable, says CPA Michael Goodman of Wealthstream Advisors in New York City.

Assuming the shares are in a taxable account, your tax bill will be based on the profit you made on each share you sell.

Say, for example, that you purchased 10 shares at $10 each for $100. If the stock price rises to $12.50, and you then sell $100 worth of your stock, you're actually selling eight shares that you originally bought for a total of $80. Thus, you'll owe taxes on a $20 gain.

If you've held those shares for one year or less, that gain will be taxed as ordinary income. Shares held for longer are subject to lower capital gains rates, typically 15%.

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