New York Capital Gains Tax (2026)
New York taxes capital gains as ordinary income on a graduated scale from 3.9% up to a top rate of 10.9%. Run your own numbers with the free capital gains tax calculator, which estimates federal, NIIT, and New York tax together.
In short: federal long-term rates of 0%, 15%, or 20% apply everywhere. New York adds state tax on top, at up to 10.9%.
How New York treats capital gains
New York taxes capital gains as ordinary income on a graduated scale from 3.9% up to a top rate of 10.9%. The estimate subtracts New York's standard deduction ($8,000 single / $16,050 married).
Parts of New York also levy local income taxes that are not included in these estimates.
2026 New York income tax brackets
| Taxable income | Rate |
|---|---|
| $0 – $8,500 | 3.9% |
| $8,500 – $11,700 | 4.4% |
| $11,700 – $13,900 | 5.15% |
| $13,900 – $80,650 | 5.4% |
| $80,650 – $215,400 | 5.9% |
| $215,400 – $1,077,550 | 6.85% |
| $1,077,550 – $5,000,000 | 9.65% |
| $5,000,000 – $25,000,000 | 10.3% |
| Over $25,000,000 | 10.9% |
Single-filer taxable income. Married thresholds are doubled.
A worked example
Say you are a single filer in New York 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). New York adds an estimated $1,350, for a combined $5,100, an effective 20.4% 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 New York tax capital gains?
Yes. New York taxes capital gains as ordinary income. New York taxes capital gains as ordinary income on a graduated scale from 3.9% up to a top rate of 10.9%.
What will I pay on a long-term gain in New York?
Combined, our worked example ($25,000 long-term gain on $60,000 of income, single) comes to $5,100: $3,750 federal plus $1,350 New York tax, an effective 20.4%.
Do I still owe federal capital gains tax in New York?
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 New York tax together.
More
- Every state's capital gains treatment
- Capital gains tax explained: short-term vs long-term
- Neighbors alphabetically: New Mexico · North Carolina
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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