Do capital gains and income dividends get taxed?

Yes, both capital gains and income dividends are subject to taxation. Capital gains are taxed when you sell an asset for more than its purchase price, with rates depending on how long you've held the asset. Income dividends, which are earnings distributed to shareholders, are typically taxed as ordinary income, though qualified dividends may be taxed at lower capital gains rates. Tax rates can vary based on individual circumstances and prevailing tax laws.