California Capital Gains Tax (2026)
California taxes capital gains as ordinary income on a graduated scale from 1% up to a top rate of 13.3%. Run your own numbers with the free capital gains tax calculator, which estimates federal, NIIT, and California tax together.
In short: federal long-term rates of 0%, 15%, or 20% apply everywhere. California adds state tax on top, at up to 13.3%.
How California treats capital gains
California taxes capital gains as ordinary income on a graduated scale from 1% up to a top rate of 13.3%. The estimate subtracts California's standard deduction ($5,540 single / $11,080 married).
2026 California income tax brackets
| Taxable income | Rate |
|---|---|
| $0 – $11,079 | 1% |
| $11,079 – $26,264 | 2% |
| $26,264 – $41,452 | 4% |
| $41,452 – $57,542 | 6% |
| $57,542 – $72,724 | 8% |
| $72,724 – $371,479 | 9.3% |
| $371,479 – $445,771 | 10.3% |
| $445,771 – $742,953 | 11.3% |
| $742,953 – $1,000,000 | 12.3% |
| Over $1,000,000 | 13.3% |
Single-filer taxable income. Married thresholds are doubled.
A worked example
Say you are a single filer in California with $60,000 of taxable income who sells stock held over a year for a $25,000 long-term gain. Federal tax on the gain is $3,750 (all of it lands in the 15% bracket at this income; no NIIT applies below $200,000 MAGI). California adds an estimated $2,026, for a combined $5,776, an effective 23.1% on the gain. These figures use the same math as the calculator, 2026 federal brackets per IRS Rev. Proc. 2025-32, and state figures from the Tax Foundation's State Individual Income Tax Rates and Brackets, 2026.
Frequently asked questions
Does California tax capital gains?
Yes. California taxes capital gains as ordinary income. California taxes capital gains as ordinary income on a graduated scale from 1% up to a top rate of 13.3%.
What will I pay on a long-term gain in California?
Combined, our worked example ($25,000 long-term gain on $60,000 of income, single) comes to $5,776: $3,750 federal plus $2,026 California tax, an effective 23.1%.
Do I still owe federal capital gains tax in California?
Yes. Federal capital gains tax (0%, 15%, or 20% long-term, ordinary rates short-term, plus the 3.8% NIIT for high earners) applies no matter your state. The free calculator estimates federal, NIIT, and California tax together.
More
- Every state's capital gains treatment
- Capital gains tax explained: short-term vs long-term
- Neighbors alphabetically: Arkansas · Colorado
This page is general information, not tax, legal, or financial advice. Rates and rules can change and depend on your situation. Confirm details with a tax professional, the IRS, or your state's revenue department.
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