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Editor’s Note: This story originally appeared on The Penny Hoarder.

When you sell an investment for a profit, the Internal Revenue Service wants its cut.

Capital gains are the profits you make when you sell a stock, mutual fund or other taxable asset.

You’ll owe capital gains taxes if that investment increased in value while you owned it. How much you owe depends on a couple of factors, including your income and how long you owned the capital asset.

There are several legitimate ways to lower your capital gains tax liability, including investing in a retirement account.

Here’s everything you need to know, including capital gains tax rates and how to calculate what you owe.

What Is Capital Gains Tax?

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