taxes on mutual fund in a non retirement account

I am considering investing in some mutual funds from long term saving sepereate from retirement. Maybe to buy a house or new car, etc. I just want to know how the taxes work when I withdraw?

Is it the same as stocks just short term or long term capital gain?

Also if the fund pays dividends that would have to be income.

Hopefully someone knows the answer to this

If the sum of a mutual fund's transactions during the year adds up to an overall gain, you'll receive a taxable distribution. That's because funds are required to either pass out all of their gains each year or pay corporate income tax on them. When you get a distribution -- even if you have it reinvested the tax bill becomes yours. And depending on whether the gains were short or long term, you'll be paying either your regular tax rate or the capital-gains rate, which is typically 15%.

If your fund's returns are exceptional, a taxable distribution might not be such a big deal. But if they are merely average, the tax bite can hurt.