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.
Click or touch a state name for more information
| Rank | State | Rates 2023 | Rates 2022 |
|---|---|---|---|
| 1 | California | 13.30% | 13.30% |
| 2 | New Jersey * | 10.75% | 10.75% |
| 2 | Washington D.C. | 10.75% | 10.75% |
| 4 | Oregon * | 9.90% | 9.90% |
| 5 | Minnesota | 9.85% | 9.85% |
| 6 | Massachusetts | 9.00% | 5.00% |
| 7 | New York * | 10.90% | 10.90% |
| 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 | Montana * | 6.75% | 6.75% |
| 15 | Nebraska | 6.64% | 6.84% |
| 16 | Delaware * | 6.60% | 6.60% |
| 17 | West Virginia | 6.50% | 6.50% |
| 18 | South Carolina * | 6.40% | 6.50% |
| 19 | Iowa * | 6.00% | 8.53% |
| 20 | Rhode Island | 5.99% | 5.99% |
| 21 | New Mexico * | 5.90% | 5.90% |
| 22 | Idaho | 5.80% | 6.00% |
| 23 | Georgia | 5.75% | 5.75% |
| 23 | Maryland * | 5.75% | 5.75% |
| 23 | Virginia | 5.75% | 5.75% |
| 26 | Kansas | 5.70% | 5.70% |
| 27 | Alabama * | 5.00% | 5.00% |
| 27 | Mississippi | 5.00% | 5.00% |
| 29 | North Carolina | 4.75% | 4.99% |
| 30 | Illinois | 4.95% | 4.95% |
| 31 | Arkansas * | 4.90% | 4.90% |
| 32 | Utah | 4.85% | 4.85% |
| 33 | Oklahoma | 4.75% | 4.75% |
| 34 | Kentucky * | 4.50% | 5.00% |
| 34 | Missouri * | 4.95% | 5.30% |
| 36 | Colorado | 4.40% | 4.40% |
| 37 | Louisiana | 4.25% | 4.25% |
| 37 | Michigan * | 4.25% | 4.25% |
| 39 | Ohio * | 3.99% | 3.99% |
| 40 | Indiana * | 3.15% | 3.23% |
| 41 | Pennsylvania * | 3.07% | 3.07% |
| 42 | North Dakota * | 2.90% | 2.90% |
| 43 | Arizona | 2.50% | 2.98% |
| 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% |
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.
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, Washington, and Wyoming.
In these states you are only subject to Federal Capital Gains, which are typically lower than your ordinary income tax rate.
After those states with no capital gains, the next group of states have a rate that is between zero and the ordinary income rate.
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.
On the other end of the spectrum from the no capital gains states are those who, by comparison, have high capital gains. These start with California at 13.30%, which is over 2% higher than the number two and three states (New Jersey and Washington D.C.), which tied at 10.75%.
Real estate, retirement savings accounts, livestock, and timber are exempt for capital gain taxation in the state of Washington.
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.
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