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.

State Capital Gains Tax Rates

Click or touch a state name for more information

Rank State Rates 2024 Rates 2023
1 California † 13.30% 13.30%
2 New York * 10.90% 10.90%
3 New Jersey * 10.75% 10.75%
3 Washington D.C. 10.75% 10.75%
5 Oregon * 9.90% 9.90%
6 Minnesota 9.85% 9.85%
7 Massachusetts 9.00% 9.00%
8 Vermont 8.75% 8.75%
9 Wisconsin * 7.65% 7.65%
10 Hawaii * 7.25% 7.25%
11 Maine 7.15% 7.15%
12 Washington ‡ 7.00% 7.00%
13 Connecticut 6.99% 6.99%
14 Delaware * 6.60% 6.60%
15 South Carolina * 6.40% 6.40%
16 Rhode Island 5.99% 5.99%
17 Montana * 5.90% 6.75%
17 New Mexico * 5.90% 5.90%
19 Nebraska 5.84% 6.64%
20 Idaho 5.80% 5.80%
21 Maryland * 5.75% 5.75%
21 Virginia 5.75% 5.75%
23 Iowa * 5.70% 6.00%
23 Kansas 5.70% 5.70%
25 Georgia 5.49% 5.75%
26 West Virginia 5.12% 6.50%
27 Alabama * 5.00% 5.00%
28 Illinois 4.95% 4.95%
29 Missouri * 4.80% 4.95%
30 Oklahoma 4.75% 4.75%
31 Mississippi 4.70% 5.00%
32 Utah 4.65% 4.85%
33 North Carolina 4.50% 4.75%
34 Arkansas * 4.40% 4.90%
34 Colorado 4.40% 4.40%
36 Louisiana 4.25% 4.25%
36 Michigan * 4.25% 4.25%
38 Kentucky * 4.00% 4.50%
39 Ohio * 3.50% 3.99%
40 Pennsylvania * 3.07% 3.07%
41 Indiana * 3.05% 3.15%
42 Arizona * 2.50% 2.50%
42 North Dakota * 2.50% 2.90%
44 Alaska 0.00% 0.00%
44 Florida 0.00% 0.00%
44 Nevada 0.00% 0.00%
44 New Hampshire 0.00% 0.00%
44 South Dakota 0.00% 0.00%
44 Tennessee 0.00% 0.00%
44 Texas 0.00% 0.00%
44 Wyoming 0.00% 0.00%

The Basics of Capital Gains

There are two types of capital gains: long-term and short-term. Any asset held for less than a year is considered short term and is subject to a different capital gains structure, usually ordinary income.

Other sold assets will be taxed at long-term capital gains rates. The Federal rates are 0%, 15%, or 20%, depending on filing status and taxable income. Each state may also have a capital gains tax, but each treats them slightly differently.

States with No Capital Gains Taxes

If you have a large number of assets there might be a benefit to reside in one of the following states. These include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming.

In these states you are only subject to Federal Capital Gains, which are typically lower than your ordinary income tax rate. 

Nine States with Low Capital Gains Rates

After those states with no capital gains, the next group of states have a rate that is between zero and the ordinary income rate.

  • Arizona, Arkansas, Hawaii, Montana, New Mexico, North Dakota, South Carolina, Vermont, and Wisconsin — tax long-term capital gains below ordinary income.
  • These states are able to achieve lower rates by
    • Allowing taxpayers to exclude some or all gains from their taxable income, or
    • Having a tax rate that is below ordinary income.

States that Reward Their Local Businesses

There is a neat “keep it local” break for capital gains on investments in in-state businesses in states like Colorado, Idaho, Louisiana, and Oklahoma. While states like Wisconsin and Iowa give breaks to specific types of businesses such as farming.

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.

Rates exclude a payroll tax of 1.1 percent to fund the state’s disability insurance program. As of 2024, there is no wage ceiling for this payroll tax, which means that the state’s top individual income tax rate on wage income becomes 14.4 percent.

Real estate, retirement savings accounts, livestock, and timber are exempt for capital gain taxation in the state of Washington.

Source: Tax Foundation. State Tax Changes Taking Effect January 1, 2024. Federation of Tax Administrators. State Individual Income Taxes as of January 1, 2024.
Notes
  • Values shown do not include depreciation recapture taxes.
  • AK, FL, NV, NH, SD, TN, TX, and WY have no state capital gains tax.
  • AL, AZ, AK, DE, HI, IA, IN, KY, MD, MI, MO, MT, ND, NM, NY, OH, OR, PA, SC, VT, 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.
  • California imposes an additional 1% tax on taxable income over $1 million, making the maximum rate 13.3% over $1 million.
  • The maximum rate for short-term capital gains in the state of Massachusetts is 12.5%.
  • This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions.
  • Realized does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.
  • Values shown do not include depreciation recapture taxes.

laptop-capital-gains-calculator-spreadsheet

Need to figure out your Capital Gains Tax liability on a sale of an asset? The Capital Gains Tax Calculator is designed to provide you an estimate on the cap gains tax owed after selling an asset or property.

  • Includes short and long-term Federal and State Capital Gains Tax Rates for 2023 or 2024.
  • Calculate the capital gains tax on a sale of real estate property, equipment, stock, mutual fund, or bonds.
  • Requires only 7 inputs into a simple Excel spreadsheet.
  • Additional inputs available for calculating adjusted tax basis and depreciation recapture including depreciation, debt, and closing costs.

Download the Capital Gains Calculator

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Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment.

Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested.

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The Investor's Cap Gains Guidebook

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