Capital Gains Calculator

State Capital Gains Tax Rates by State (2026)

By Nathan Hays · Updated July 26, 2026

Federal capital gains rates are the same everywhere: 0%, 15%, or 20% on long-term gains, ordinary rates on short-term, plus the 3.8% NIIT for high earners. What changes with your address is the state layer. Most states tax gains as ordinary income, eight states tax nothing, and two (Washington and Massachusetts) have special rules. Pick your state below, or run your numbers in the free capital gains tax calculator.

Every state at a glance

The example column shows the estimated state tax on our standard scenario: a single filer with $60,000 of taxable income and a $25,000 long-term gain (federal tax on that gain is $3,750 everywhere). Figures are computed with the same engine as the calculator, from the Tax Foundation's 2026 state tables.

State2026 treatmentState tax in example
AlabamaGraduated to 5%$1,250
AlaskaNo state tax on gains$0
ArizonaFlat 2.5% as ordinary income$625
ArkansasGraduated to 3.9%$975
CaliforniaGraduated to 13.3%$2,026
ColoradoFlat 4.4% as ordinary income$1,100
ConnecticutGraduated to 6.99%$1,375
DelawareGraduated to 6.6%$1,616
District of ColumbiaGraduated to 10.75%$1,803
FloridaNo state tax on gains$0
GeorgiaFlat 5.19% as ordinary income$1,298
HawaiiGraduated to 11%$1,900
IdahoFlat 5.3% as ordinary income$1,325
IllinoisFlat 4.95% as ordinary income$1,238
IndianaFlat 2.95% as ordinary income$738
IowaFlat 3.8% as ordinary income$950
KansasGraduated to 5.58%$1,395
KentuckyFlat 3.5% as ordinary income$875
LouisianaFlat 3% as ordinary income$750
MaineGraduated to 7.15%$1,735
MarylandGraduated to 6.5%$1,188
Massachusetts5% LT (most) / 8.5% short-term$1,250
MichiganFlat 4.25% as ordinary income$1,062
MinnesotaGraduated to 9.85%$1,700
MississippiFlat 4% as ordinary income$1,000
MissouriGraduated to 4.7%$1,175
MontanaGraduated to 5.65%$1,378
NebraskaGraduated to 4.55%$1,138
NevadaNo state tax on gains$0
New HampshireNo state tax on gains$0
New JerseyGraduated to 10.75%$1,466
New MexicoGraduated to 5.9%$1,180
New YorkGraduated to 10.9%$1,350
North CarolinaFlat 3.99% as ordinary income$998
North DakotaGraduated to 2.5%$398
OhioGraduated to 2.75%$688
OklahomaGraduated to 4.5%$1,125
OregonGraduated to 9.9%$2,188
PennsylvaniaFlat 3.07% as ordinary income$768
Rhode IslandGraduated to 5.99%$938
South CarolinaGraduated to 6%$1,500
South DakotaNo state tax on gains$0
TennesseeNo state tax on gains$0
TexasNo state tax on gains$0
UtahFlat 4.5% as ordinary income$1,125
VermontGraduated to 8.75%$1,650
VirginiaGraduated to 5.75%$1,438
Washington7% excise on LT gains over $278,000$0
West VirginiaGraduated to 4.82%$1,205
WisconsinGraduated to 7.65%$1,272
WyomingNo state tax on gains$0

Frequently asked questions

Which states have no capital gains tax?

Eight states have no personal income tax and no ordinary tax on capital gains: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming. Washington also has no income tax but levies a 7% excise tax on long-term gains above $278,000 a year, with real estate exempt.

Which state has the highest capital gains tax?

California, where gains are ordinary income taxed at up to 13.3%. Combined with the top federal rate (20% plus the 3.8% NIIT), a high earner in California can face over 37% on a long-term gain.

Do states give long-term gains a lower rate?

Mostly no: most states tax short-term and long-term gains identically as ordinary income. Exceptions include Massachusetts (higher 8.5% short-term rate), Washington (excise on long-term only), and several states such as Arkansas, Hawaii, Montana, New Mexico, North Dakota, South Carolina, and Wisconsin that give long-term gains a partial exclusion or reduced rate.

More

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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