Capital Gain Tax Rates by State

Trying to calculate your capital gains rate? Did you know that many, but not all, states impose state-level capital gains in addition to federal capital gains taxes? To make matters more complicated, not every state uses the same methodology. The map and chart below depict the combined state & federal top marginal tax rate on capital gains.

Combined State & Federal
Top Marginal Tax Rate on Capital Gains

Source: Tax Foundation. State Individual Income Tax Rates and Brackets for 2019. Data as of March 2019.


Notes

  • Values shown do not include depreciation recapture taxes.
  • AK, FL, NV, NH, SD, TN, TX, WA, and WY have no state capital gains tax.  
  • AL, AR, DE, HI, IN, IA, KY, MD, MO, MT, NJ, NM, NY, ND, OR, OH, PA, SC, and WI either allow taxpayer to deduct their federal taxes from state taxable income, have local income taxes, or have special tax treatment of capital gains income.

State Capital Gains Tax Rates

Click or touch a state name for more information

Rank State State Rate Combined Rate
* States either allow a taxpayer to deduct their federal taxes from your state taxable income, have local income taxes, or have special tax treatment of capital gains income.
1 California 13.30% 38.30%
2 Hawaii* 11.00% 36.00%
3 New Jersey* 10.75% 35.75%
4 Oregon* 9.90% 34.90%
5 Minnesota 9.85% 34.85%
6 New York* 8.82% 33.82%
7 Vermont 8.75% 33.75%
8 Iowa* 8.53% 33.53%
9 Wisconsin* 7.65% 32.65%
10 Maine 7.15% 32.15%
11 South Carolina* 7.00% 32.00%
12 Connecticut 6.99% 31.99%
13 Idaho 6.93% 31.93%
T14 Arkansas* 6.90% 31.90%
T14 Montana* 6.90% 31.90%
16 Nebraska 6.84% 31.84%
17 Delaware* 6.60% 31.60%
18 West Virginia 6.50% 31.50%
19 Louisiana 6.00% 31.00%
20 Rhode Island 5.99% 30.99%
T21 Maryland* 5.75% 30.75%
T21 Virginia 5.75% 30.75%
T21 Georgia 5.75% 30.75%
24 Kansas 5.70% 30.70%
25 Missouri 5.40% 30.40%
26 North Carolina 5.25% 30.25%
27 Massachusetts 5.05% 30.05%
T28 Alabama* 5.00% 30.00%
T28 Kentucky* 5.00% 30.00%
T28 Ohio* 5.00% 30.00%
T28 Oklahoma 5.00% 30.00%
T28 Mississippi 5.00% 30.00%
T33 Illinois 4.95% 29.95%
T33 Utah 4.95% 29.95%
35 New Mexico* 4.90% 29.90%
36 Colorado 4.63% 29.63%
37 Arizona 4.54% 29.54%
38 Michigan* 4.25% 28.25%
39 Indiana* 3.23% 28.23%
40 Pennsylvania* 3.07% 28.07%
41 North Dakota 2.90% 27.90%
T42 Alaska 0.00% 25.00%
T42 Florida 0.00% 25.00%
T42 New Hampshire 0.00% 25.00%
T42 Nevada 0.00% 25.00%
T42 South Dakota 0.00% 25.00%
T42 Tennessee 0.00% 25.00%
T42 Texas 0.00% 25.00%
T42 Washington 0.00% 25.00%
T41 Wyoming 0.00% 25.00%

 

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