State Capital Gains Tax Calculator
When you sell an investment, business asset, or real estate at a profit, both federal and state governments may tax the capital gain. While the federal government offers preferential long-term capital gains rates, most states tax capital gains as ordinary income at the same rate as wages and salaries. Enter your capital gain (the profit above your cost basis) and your state's applicable income tax rate to calculate the state-level capital gains tax you owe, on top of your federal tax.
State capital gains tax formula
State Capital Gains Tax = Gain x (State Rate / 100)
Net Gain after State Tax = Gain - State Tax
This calculator shows state tax only. To get your combined tax burden, add the applicable federal capital gains tax (0%, 15%, or 20% for long-term; ordinary income rates for short-term) to the state tax shown here. Net investment income tax (3.8%) may also apply at the federal level for higher earners.
State capital gains tax rates at a glance (2024)
- California: up to 13.3% (taxed as ordinary income)
- Oregon: up to 9.9%
- Minnesota: up to 9.85%
- New Jersey: up to 10.75%
- New York: up to 10.9% state (plus NYC)
- Illinois: 4.95% (flat rate)
- Texas, Florida, Nevada, Washington: 0% (no income tax; WA has a 7% long-term capital gains tax above $250,000)
State capital gains tax FAQ
Do states tax capital gains?
Most states tax capital gains as ordinary income at their regular income tax rates. A few states offer preferential rates for long-term gains. Nine states have no income tax and therefore no state capital gains tax: Alaska, Florida, Nevada, New Hampshire (on wages), South Dakota, Tennessee, Texas, Washington (residents pay a 7% tax on long-term gains over $250,000 threshold since 2023), and Wyoming.
Is the state capital gains tax rate different from the federal rate?
Yes. The federal long-term capital gains rate is 0%, 15%, or 20% depending on your taxable income. States typically tax gains at their standard income tax rates, which range from 0% to 13.3% (California). State capital gains tax is calculated separately from and in addition to the federal tax.
What is the California capital gains tax rate?
California taxes all capital gains as ordinary income at the standard graduated income tax rates. The top rate for high earners is 13.3%. California does not provide a preferential rate for long-term capital gains, making it one of the highest capital gains tax states.
Does holding a stock longer reduce my state capital gains tax?
In most states, no. Most states that have an income tax treat both short-term and long-term capital gains as ordinary income. Only a few states offer a lower rate or partial exclusion for long-term gains. Check your state's Department of Revenue for details.
Can I deduct capital losses against capital gains for state tax purposes?
Most states conform to federal treatment and allow capital losses to offset capital gains. Net capital losses can be deducted against ordinary income up to the federal limit ($3,000 per year), with the remainder carried forward. State conformity varies; verify with your state's Department of Revenue.
Official sources
- IRS Topic No. 409 (Capital Gains and Losses): IRS Capital Gains.
- Tax Foundation: State Capital Gains Tax Rates.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.