What are taxes on earnings from the appreciation of an investment called?

The taxes on earnings from the appreciation of an investment are referred to as capital gains. When an investment increases in value and is sold at a higher price than its purchase price, the profit realized is known as a capital gain. Governments typically impose taxes on these gains to generate revenue. This taxation usually applies when the gains are realized, meaning when the investment is sold rather than when its value simply increases on paper.

Income taxes, on the other hand, relate to earnings from work or other forms of income that are not specifically tied to the appreciation of investments. Estate taxes are levied on the total value of a deceased person's estate before distribution to heirs, while dividend taxes are imposed on dividends received from shares of stock. Hence, capital gains are the most accurate term for taxes on the profit made from the appreciation of investments.