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: CCH Smart Charts™ for Federal, State Income Tax Treatment. Data as of June 2018.


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, HI, IA, IN, LA, MD, MI, MT, ND, NM, NY, OH, 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 12.30% 37.30%
2 Oregon 9.90% 34.90%
3 Minnesota 9.85% 34.85%
4 Iowa* 8.98% 33.98%
5 New Jersey 8.97% 33.97%
6 Vermont 8.95% 33.95%
7 Hawaii* 8.25% 33.25%
8 Wisconsin* 7.65% 32.65%
9 Idaho 7.40% 32.40%
10 Maine 7.15% 32.15%
11 South Carolina* 7.00% 32.00%
12 Connecticut 6.90% 31.90%
12 Arkansas* 6.90% 31.90%
12 Montana* 6.90% 31.90%
13 New York* 6.85% 31.85%
14 Nebraska 6.84% 31.84%
15 Delaware 6.60% 31.60%
16 West Virginia 6.50% 31.50%
17 Kentucky 6.00% 31.00%
17 Georgia 6.00% 31.00%
17 Missouri 6.00% 31.00%
17 Louisiana* 6.00% 31.00%
18 Rhode Island 5.99% 30.99%
19 Maryland* 5.75% 30.75%
19 Virginia 5.75% 30.75%
20 North Carolina 5.50% 30.50%
21 Kansas 5.20% 30.20%
22 Massachusetts 5.10% 30.10%
23 Ohio* 5.00% 30.00%
23 Oklahoma 5.00% 30.00%
23 Mississippi 5.00% 30.00%
23 Utah 5.00% 30.00%
23 Alabama* 5.00% 30.00%
24 Illinois 4.95% 29.95%
25 New Mexico* 4.90% 29.90%
26 Colorado 4.63% 29.63%
27 Arizona 4.54% 29.54%
28 Michigan* 4.25% 29.25%
29 Indiana* 3.23% 28.23%
30 Pennsylvania 3.07% 28.07%
31 North Dakota* 2.90% 27.90%
32 Alaska 0.00% 25.00%
32 Florida 0.00% 25.00%
32 Nevada 0.00% 25.00%
32 New Hampshire 0.00% 25.00%
32 South Dakota 0.00% 25.00%
32 Tennessee 0.00% 25.00%
32 Texas 0.00% 25.00%
32 Washington 0.00% 25.00%
32 Wyoming 0.00% 25.00%

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