Do swing traders pay capital gains tax?

If you can't qualify as a full-time trader, your swing trades will be taxed in the same manner as any other investor's. You must file gains and losses on IRS Schedule D and follow wash-sale rules.

When you hold your investments for more than a year, you'll have to pay long-term capital gains taxes, which are considerably lower than trading profits.

Short-term gains are taxed at your regular income tax rate, ranging from 10% to 39.6%.