Lowest top rate
0%
9 states or DC entries
State tax comparison
🇺🇸2026 tax model
Capital Gains Tax by State
Compare long-term and short-term state capital gains rates, special exclusions, and modeled tax—then learn how income, basis, losses, NIIT, residency, and asset type change what you may owe.
By Sammy S. · Founder · AuthorUpdated for 2026
51
States + DC covered
9
0% top long-term state rate
14.3%
Highest (CA)
2026
Tax model year
Highest top rate
14.3%
California
Tax year
2026
Federal + state model
Head-to-head
Compare capital gains tax between two states
Compare top effective rates, ordinary or preferential treatment, and estimated state tax at representative gain levels.
Compare any two states
Long- and short-term rates, tax treatment, and scenario estimates.
All 50 states + DC
Capital gains tax rates by state
Rank #1 is the lowest top long-term effective state rate. A top rate is a comparison benchmark, not the rate on every dollar or every taxpayer.
| Rank | State | Treatment | Long-term | Short-term | $250k long-term gain · $100k other taxable income |
|---|---|---|---|---|---|
| #1 |  Alaska | No state capital gains tax | 0% | 0% | $0 |
| #1 |  Florida | No state capital gains tax | 0% | 0% | $0 |
| #1 |  Missouri | Full individual exclusion | 0% | 0% | $0 |
| #1 |  Nevada | No state capital gains tax | 0% | 0% | $0 |
| #1 |  New Hampshire | No state capital gains tax | 0% | 0% | $0 |
| #1 |  South Dakota | No state capital gains tax | 0% | 0% | $0 |
| #1 |  Tennessee | No state capital gains tax | 0% | 0% | $0 |
| #1 |  Texas | No state capital gains tax | 0% | 0% | $0 |
| #1 |  Wyoming | No state capital gains tax | 0% | 0% | $0 |
| #10 |  North Dakota | Preferential long-term treatment | 1.5% | 2.5% | $2,925 |
| #11 |  Arkansas | Preferential long-term treatment | 1.85% | 3.7% | $4,625 |
| #12 |  Arizona | Preferential long-term treatment | 1.88% | 2.5% | $4,687.5 |
| #13 |  Ohio | Taxed as ordinary income | 2.75% | 2.75% | $6,875 |
| #14 |  Indiana | Taxed as ordinary income | 2.95% | 2.95% | $7,375 |
| #15 |  Louisiana | Taxed as ordinary income | 3% | 3% | $7,500 |
| #16 |  Pennsylvania | Taxed as ordinary income | 3.07% | 3.07% | $7,675 |
| #17 |  South Carolina | Preferential long-term treatment | 3.36% | 6% | $8,400 |
| #18 |  Kentucky | Taxed as ordinary income | 3.5% | 3.5% | $8,750 |
| #19 |  New Mexico | Preferential long-term treatment | 3.54% | 5.9% | $7,564 |
| #20 |  Iowa | Taxed as ordinary income | 3.8% | 3.8% | $9,500 |
| #21 |  North Carolina | Taxed as ordinary income | 3.99% | 3.99% | $9,975 |
| #22 |  Mississippi | Taxed as ordinary income | 4% | 4% | $10,000 |
| #23 |  Montana | Preferential long-term treatment | 4.1% | 5.65% | $10,250 |
| #24 |  Michigan | Taxed as ordinary income | 4.25% | 4.25% | $10,625 |
| #25 |  Colorado | Taxed as ordinary income | 4.4% | 4.4% | $11,000 |
| #26 |  Oklahoma | Taxed as ordinary income | 4.5% | 4.5% | $11,250 |
| #26 |  Utah | Taxed as ordinary income | 4.5% | 4.5% | $11,250 |
| #28 |  Nebraska | Taxed as ordinary income | 4.55% | 4.55% | $11,375 |
| #29 |  West Virginia | Taxed as ordinary income | 4.82% | 4.82% | $12,050 |
| #30 |  Illinois | Taxed as ordinary income | 4.95% | 4.95% | $12,375 |
| #31 |  Georgia | Taxed as ordinary income | 4.99% | 4.99% | $12,475 |
| #32 |  Alabama | Taxed as ordinary income | 5% | 5% | $12,500 |
| #33 |  Vermont | Preferential long-term treatment | 5.25% | 8.75% | $11,116.5 |
| #34 |  Idaho | Taxed as ordinary income | 5.3% | 5.3% | $13,250 |
| #35 |  Wisconsin | Preferential long-term treatment | 5.36% | 7.65% | $9,275 |
| #36 |  Kansas | Taxed as ordinary income | 5.58% | 5.58% | $13,950 |
| #37 |  Virginia | Taxed as ordinary income | 5.75% | 5.75% | $14,375 |
| #38 |  Rhode Island | Taxed as ordinary income | 5.99% | 5.99% | $13,841.64 |
| #39 |  Delaware | Taxed as ordinary income | 6.6% | 6.6% | $16,500 |
| #40 |  Connecticut | Taxed as ordinary income | 6.99% | 6.99% | $15,940 |
| #41 |  Maine | Taxed as ordinary income | 7.15% | 7.15% | $17,875 |
| #42 |  Hawaii | Preferential long-term treatment | 7.25% | 11% | $18,125 |
| #43 |  Massachusetts | Taxed as ordinary income | 9% | 9% | $12,500 |
| #44 |  Maryland | Taxed as ordinary income | 9.5% | 9.5% | $21,257 |
| #45 |  Oregon | Taxed as ordinary income | 9.9% | 9.9% | $18,820.1 |
| #45 |  Washington | Long-term excise tax | 9.9% | 0% | $0 |
| #47 | District of Columbia | Taxed as ordinary income | 10.75% | 10.75% | $21,970 |
| #47 |  New Jersey | Taxed as ordinary income | 10.75% | 10.75% | $15,925 |
| #49 |  Minnesota | Taxed as ordinary income | 10.85% | 10.85% | $22,132.42 |
| #50 |  New York | Taxed as ordinary income | 10.9% | 10.9% | $15,952.7 |
| #51 |  California | Taxed as ordinary income | 14.3% | 14.3% | $23,250 |
#1Alaska0%
Alaska0%No state capital gains taxST 0%
#1Florida0%
Florida0%No state capital gains taxST 0%
#1Missouri0%
Missouri0%Full individual exclusionST 0%
#1Nevada0%
Nevada0%No state capital gains taxST 0%
#1New Hampshire0%
New Hampshire0%No state capital gains taxST 0%
#1South Dakota0%
South Dakota0%No state capital gains taxST 0%
#1Tennessee0%
Tennessee0%No state capital gains taxST 0%
#1Texas0%
Texas0%No state capital gains taxST 0%
#1Wyoming0%
Wyoming0%No state capital gains taxST 0%
#10North Dakota1.5%
North Dakota1.5%Preferential long-term treatmentST 2.5%
#11Arkansas1.85%
Arkansas1.85%Preferential long-term treatmentST 3.7%
#12Arizona1.88%
Arizona1.88%Preferential long-term treatmentST 2.5%
#13Ohio2.75%
Ohio2.75%Taxed as ordinary incomeST 2.75%
#14Indiana2.95%
Indiana2.95%Taxed as ordinary incomeST 2.95%
#15Louisiana3%
Louisiana3%Taxed as ordinary incomeST 3%
#16Pennsylvania3.07%
Pennsylvania3.07%Taxed as ordinary incomeST 3.07%
#17South Carolina3.36%
South Carolina3.36%Preferential long-term treatmentST 6%
#18Kentucky3.5%
Kentucky3.5%Taxed as ordinary incomeST 3.5%
#19New Mexico3.54%
New Mexico3.54%Preferential long-term treatmentST 5.9%
#20Iowa3.8%
Iowa3.8%Taxed as ordinary incomeST 3.8%
#21North Carolina3.99%
North Carolina3.99%Taxed as ordinary incomeST 3.99%
#22Mississippi4%
Mississippi4%Taxed as ordinary incomeST 4%
#23Montana4.1%
Montana4.1%Preferential long-term treatmentST 5.65%
#24Michigan4.25%
Michigan4.25%Taxed as ordinary incomeST 4.25%
#25Colorado4.4%
Colorado4.4%Taxed as ordinary incomeST 4.4%
#26Oklahoma4.5%
Oklahoma4.5%Taxed as ordinary incomeST 4.5%
#26Utah4.5%
Utah4.5%Taxed as ordinary incomeST 4.5%
#28Nebraska4.55%
Nebraska4.55%Taxed as ordinary incomeST 4.55%
#29West Virginia4.82%
West Virginia4.82%Taxed as ordinary incomeST 4.82%
#30Illinois4.95%
Illinois4.95%Taxed as ordinary incomeST 4.95%
#31Georgia4.99%
Georgia4.99%Taxed as ordinary incomeST 4.99%
#32Alabama5%
Alabama5%Taxed as ordinary incomeST 5%
#33Vermont5.25%
Vermont5.25%Preferential long-term treatmentST 8.75%
#34Idaho5.3%
Idaho5.3%Taxed as ordinary incomeST 5.3%
#35Wisconsin5.36%
Wisconsin5.36%Preferential long-term treatmentST 7.65%
#36Kansas5.58%
Kansas5.58%Taxed as ordinary incomeST 5.58%
#37Virginia5.75%
Virginia5.75%Taxed as ordinary incomeST 5.75%
#38Rhode Island5.99%
Rhode Island5.99%Taxed as ordinary incomeST 5.99%
#39Delaware6.6%
Delaware6.6%Taxed as ordinary incomeST 6.6%
#40Connecticut6.99%
Connecticut6.99%Taxed as ordinary incomeST 6.99%
#41Maine7.15%
Maine7.15%Taxed as ordinary incomeST 7.15%
#42Hawaii7.25%
Hawaii7.25%Preferential long-term treatmentST 11%
#43Massachusetts9%
Massachusetts9%Taxed as ordinary incomeST 9%
#44Maryland9.5%
Maryland9.5%Taxed as ordinary incomeST 9.5%
#45Oregon9.9%
Oregon9.9%Taxed as ordinary incomeST 9.9%
#45Washington9.9%
Washington9.9%Long-term excise taxST 0%
#47District of Columbia10.75%
Taxed as ordinary incomeST 10.75%
#47New Jersey10.75%
New Jersey10.75%Taxed as ordinary incomeST 10.75%
#49Minnesota10.85%
Minnesota10.85%Taxed as ordinary incomeST 10.85%
#50New York10.9%
New York10.9%Taxed as ordinary incomeST 10.9%
#51California14.3%
California14.3%Taxed as ordinary incomeST 14.3%
Highest and lowest state capital gains rates
10 highest top long-term rates
10 lowest top long-term rates
State tax examples for common capital gains scenarios
Examples use a single filer and show state tax only. Federal capital gains tax and NIIT are calculated separately and do not vary by state.
| Scenario | California | Texas | Washington | Missouri |
|---|---|---|---|---|
| $50k long-term gain · $80k other taxable income | $4,640.11 | $0 | $0 | $0 |
| $250k long-term gain · $100k other taxable income | $23,250 | $0 | $0 | $0 |
| $50k short-term gain · $80k other taxable income | $4,640.11 | $0 | $0 | $0 |
| $1.5M long-term gain · $150k other taxable income | $185,699.39 | $0 | $91,978 | $0 |
$50k long-term gain · $80k other taxable income
California$4,640.11
Texas$0
Washington$0
Missouri$0
$250k long-term gain · $100k other taxable income
California$23,250
Texas$0
Washington$0
Missouri$0
$50k short-term gain · $80k other taxable income
California$4,640.11
Texas$0
Washington$0
Missouri$0
$1.5M long-term gain · $150k other taxable income
California$185,699.39
Texas$0
Washington$91,978
Missouri$0
Calculation guide
How capital gains tax is calculated
A state rate alone cannot tell you the final bill. Capital gains tax starts with the transaction, then applies federal and state rules in a specific order.
- 1
Calculate the realized gain
Start with sale proceeds, subtract selling costs, then subtract adjusted cost basis. Basis can include purchase commissions, reinvested distributions, and qualifying capital improvements.
- 2
Net gains and losses
Capital losses generally offset capital gains. Federal returns net short- and long-term items separately before combining them; state conformity and carryforward rules can differ.
- 3
Determine the holding period
Federal gains are generally short-term when the asset was held one year or less and long-term when held more than one year. Some state preferences require an even longer holding period.
- 4
Stack the gain on other income
Federal long-term brackets depend on total taxable income—not the gain by itself. Short-term gains and most state-taxable gains are added to ordinary income.
- 5
Apply the state treatment
A state may use ordinary brackets, exclude part of a long-term gain, apply a separate preferential schedule, impose an excise tax, or levy no individual tax.
- 6
Check surtaxes and payments
High earners may owe the 3.8% federal NIIT plus a state surcharge. A large sale may also require federal and state estimated payments before the annual return is due.
Federal and state capital gains taxes work in layers
Moving to a no-tax state can remove the state layer, but it does not remove federal tax. These four layers explain why two investors with the same gain can owe different amounts.
Federal long-term tax
Most net long-term gains use 0%, 15%, or 20% rates. The available room in each band depends on filing status and taxable income from all sources.
Federal short-term tax
Net short-term gains are taxed through ordinary federal brackets, currently up to 37%. Holding an investment beyond one year can therefore change the federal result substantially.
Net Investment Income Tax
NIIT is 3.8% of the lesser of net investment income or MAGI above $200,000 single / head of household, $250,000 married filing jointly, or $125,000 married filing separately.
State and local tax
Most states add capital gains to ordinary income. Preferential states may exclude part of qualifying long-term gains; local income taxes can add another layer in places such as New York City.
Capital gains rules by asset type
The general rate table is most useful for stocks, funds, and ordinary investment property. Asset-specific federal exclusions and state exemptions can matter more than the headline rate.
Stocks, ETFs, and mutual funds
Sales, fund distributions, reinvested dividends, wash sales, and tax-lot selection affect basis and net gain. Keep broker confirmations and Forms 1099-B.
Cryptocurrency
Selling, trading one token for another, or spending crypto can be taxable. Exchange records may omit transfers and original basis, so reconcile wallets before filing.
Real estate
A qualifying main-home sale may exclude up to $250,000 of federal gain ($500,000 for many joint filers). Rental depreciation recapture and state conformity need separate review.
Business interests and collectibles
Business sales can split into capital gain, ordinary income, and depreciation recapture. Collectibles and certain small-business stock can use special federal rates or exclusions.
Before selling an appreciated asset
Tax planning should happen before the trade closes. Once a gain is realized, many choices cannot be changed retroactively.
Verify adjusted basis
Include acquisition costs, reinvested distributions, eligible improvements, splits, and prior basis adjustments.
Review available losses
Realized losses may offset gains, but the federal wash-sale rule can defer a loss when substantially identical securities are repurchased too soon.
Project full-year income
Bonuses, RSUs, retirement distributions, business income, and the gain itself can push dollars into higher federal, NIIT, and state bands.
Confirm residency and sourcing
Changing an address shortly before a sale does not automatically change tax residency. States examine domicile, days, property, business activity, and where tangible assets are located.
Plan estimated payments
Withholding may not cover a large transaction. Review federal safe-harbor rules and your state's estimated-tax deadlines to reduce penalties.
Save transaction documents
Retain purchase and sale confirmations, improvement receipts, appraisals, loss carryforwards, residency records, and state allocation support.
How to read capital gains tax rankings
Top effective rate
The highest modeled state rate after a long-term exclusion, preferential cap, or surcharge.
Ordinary treatment
The state generally adds gains to taxable income and applies its income-tax brackets.
Preferential treatment
Qualifying long-term gains receive an exclusion or a lower rate schedule.
Scenario tax
Incremental state liability at a stated gain and other-income level; actual returns can differ.
Capital gains tax by state FAQs
California has the highest top long-term effective state rate in this model at 14.3% (Taxes all capital gains as ordinary income; top rate 13.3% plus 1% MHSA over $1M.).
Alaska, Florida, Missouri, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Wyoming show a 0% top long-term state capital gains rate. Missouri's 0% reflects its individual capital gains subtraction; Washington is not zero — it levies a long-term capital gains excise tax above its standard deduction.
Most states tax both as ordinary income. Preferential states exclude part of long-term gains or use a lower CG schedule. Washington's excise tax applies only to long-term gains. Missouri's individual subtraction covers federally reported capital gains.
Long-term gains use 0%/15%/20% brackets under IRS Rev. Proc. 2025-32 (for example, 0% up to $49,450 of taxable income for singles). Short-term gains use ordinary brackets up to 37%. High earners may also owe 3.8% NIIT.
Washington has no wage income tax but taxes Washington-allocated long-term capital gains after a $278,000 standard deduction (2025 amount). Taxable gains are taxed at 7% up to $1 million and 9.9% above that. Real estate and many retirement assets are exempt.
For individuals, Missouri allows a 100% subtraction of federally reported capital gains when computing Missouri AGI for tax years beginning on or after January 1, 2025 (HB 594). Confirm Form MO-A instructions for filing details.
No. The 3.8% Net Investment Income Tax is federal. It applies when MAGI exceeds $200,000 (single) or $250,000 (married filing jointly), regardless of state.
Use top long-term effective rates for a quick statutory comparison, then check scenario examples for dollar impact. Your other income, filing status, and asset type can change the result.
State models use statewide income-tax engines. Some places add local income tax (for example NYC or Maryland counties). Local taxes are noted where material but may not be fully modeled on every profile.
Use the Capital Gains Tax Calculator for purchase/sale dates, basis, state, losses, and primary-residence exclusion estimates.
Estimates are educational and do not account for every deduction, loss carryforward, residency rule, local tax, or asset-specific exception.