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Capital gains tax by state
Capital Gains Tax by State (2026): All 50 States and DC
Short answerFederal law taxes long-term gains at 0%, 15% or 20% plus 3.8% NIIT for higher incomes (2026, Rev. Proc. 2025-32 and IRC 1411). States then add their own layer: eight have no individual income tax, Missouri exempts individual capital gains, most tax the gain as ordinary income, and a few give a partial exclusion. The table runs a $1,000,000 gain through each state's 2026 rules.
| State | Top rate 2026 | What changes the answer | State tax on a $1M gain | Federal + NIIT + state |
|---|---|---|---|---|
| Alabama | 5% | 2% / 4% / 5%; 5% on taxable income over $6,000 MFJ ($3,000 single). Capital gains taxed as ordinary income. | $50,000 | $266,113 |
| Alaska | 0% | No individual income tax (repealed 1980). Corporate income tax only. | $0 | $216,113 |
| Arizona | 2.5% | Subtract 25% of net long-term capital gain from assets acquired after Dec 31, 2011 (ARS 43-1022(22)); no subtraction if acquisition date cannot be verified. Gifts/inheritances use transferor's date. | $18,750 | $234,863 |
| Arkansas | 3.7% | 50% of net capital gain is exempt (about 1.85% effective); net capital gain over $10 million in a year is fully exempt. Short-term gain taxed in full. | $18,500 | $234,613 |
| California | 13.3% (12.3% + 1% over $1M) | 1% to 12.3%; 12.3% over $1,485,906 MFJ (2025 figure, 2026 indexing not yet published) plus 1% on income over $1M. | $100,723 | $316,836 |
| Colorado | 4.4% | Capital gain subtraction now limited to farmers (Schedule F) selling Colorado agricultural real property, capped at $100,000. No break for other sellers. | $44,000 | $260,113 |
| Connecticut | 6.99% | 2% to 6.99%; 6.99% over $1,000,000 MFJ ($500,000 single). High earners also lose lower brackets (phase-out and recapture). | $69,900 | $286,013 |
| Delaware | 6.6% | 0% to 6.6%; 6.6% over $60,000 taxable income, same for all filers. HB 13 (6.75%/6.95% brackets) stalled in committee. | $66,000 | $282,113 |
| District of Columbia | 10.75% | 4% to 10.75%; 10.75% over $1,000,000, same brackets for all filing statuses. | $107,500 | $323,613 |
| Florida | 0% | No personal income tax (barred by the Florida Constitution). | $0 | $216,113 |
| Georgia | 4.99% | No capital-gain rate or deduction. Retirement income exclusion (age 62+) counts capital gains: up to $65,000 per person at 65+, $35,000 at 62 to 64 | $49,900 | $266,013 |
| Hawaii | 7.25% on long-term gains (ordinary top 11%) | HRS 235-51(f) alternative tax caps net capital gain at 7.25% for individuals, estates, trusts. HB 476 (raise to 9%) moved to SD1 in 2026 but was not enacted | $72,500 | $288,613 |
| Idaho | 5.3% | 60% deduction of gain on Idaho-situs qualified property: real property held 12+ months, business tangible property used 12+ months in Idaho, livestock, timber (63-3022H), about 2.12% net | $53,000 | $269,113 |
| Illinois | 4.95% | Flat 4.95% since July 1, 2017; no scheduled change | $49,500 | $265,613 |
| Indiana | 2.95% (+ county 0.5% to 3.0%) | 2.95% for 2026; scheduled 2.90% in 2027 | $29,500 | $245,613 |
| Iowa | 3.8% | Gain on farm real property excluded if held 10 yrs and farmed with material participation 10 yrs; breeding livestock too; retired farmer lifetime election. Business sale deduction only pre-2023 | $38,000 | $254,113 |
| Kansas | 5.58% | 5.2% up to $46,000 MFJ, 5.58% above; SB 269 revenue trigger cut did not fire for 2026 | $55,800 | $271,913 |
| Kentucky | 3.5% | Flat 3.5% from Jan 1, 2026 (4.0% in 2025), HB 1 (2025) | $35,000 | $251,113 |
| Louisiana | 3% | Louisiana business sale gain deduction (R.S. 47:293(9)(a)(xvii)) repealed; only for installment and perfected sales before Jan 1, 2025 | $30,000 | $246,113 |
| Maine | 9.15% (7.15% + 2% surcharge over $1.5M MFJ) | 7.15% over $129,750 MFJ; new 2% surcharge on Maine taxable income over $1.5M MFJ ($1M single) from 2026 | $71,500 | $287,613 |
| Maryland | 8.5% (6.5% + 2% capital gains surtax), plus county tax | 2% extra tax on net capital gain if FAGI over $350,000 (any filing status), from 2025. Excludes primary home sold under $1.5M, retirement accounts, some livestock, easement land, IRC 179 property | $117,000 | $333,113 |
| Massachusetts | 9% (5% + 4% surtax over $1,107,750) | Short-term gains taxed at 8.5% (12.5% with surtax); long-term collectibles and pre-1996 installment sales 12% (16% with surtax); other long-term gains 5% | $51,690 | $267,803 |
| Michigan | 4.25% | Flat 4.25% for 2026; revenue trigger not met (GF revenue -1.56% vs 2.70% inflation) | $42,500 | $258,613 |
| Minnesota | 10.85% (9.85% + 1% NIIT over $1M) | 1% Net Investment Income Tax on net investment income over $1M (federal NII definition, includes capital gains); excludes gain on MN class 2a ag property; no other-state credit against it | $98,500 | $314,613 |
| Mississippi | 4% (over $10,000) | No separate rate. Gain on shares of MS-domiciled corporations/financial institutions or interests in domestic LPs/LLCs held over 1 year is excluded, net of related losses (Miss. Code 27-7-9(f)(10)) | $40,000 | $256,113 |
| Missouri | 0% on capital gains (4.7% ordinary) | 100% of federally reported capital gains (short and long term, incl. real estate) subtracted from MO AGI on Form MO-A for individuals, tax years from 2025 (RSMo 143.121); losses not subtracted | $0 | $216,113 |
| Montana | 4.1% on long-term gains (5.65% ordinary) | Net long-term capital gains taxed at 3.0% up to $95,000 MFJ ($47,500 single) less ordinary taxable income, 4.1% above (MCA 15-30-2103); short-term gains at ordinary rates | $41,000 | $257,113 |
| Nebraska | 4.55% | One-time election (Form 4797N) to exclude gain on stock of a qualified NE corporation acquired as an employee; corp needs 5+ shareholders and 3+ years NE business | $45,500 | $261,613 |
| Nevada | 0% | No personal income tax; constitutional ban | $0 | $216,113 |
| New Hampshire | 0% | No wage or capital gains tax; Interest and Dividends Tax repealed for periods beginning after Dec 31, 2024 | $0 | $216,113 |
| New Jersey | 10.75% | 10.75% on taxable income over $1M (single and MFJ); 8.97% $500K to $1M. Rate schedule unchanged since 2020 | $83,270 | $299,383 |
| New Mexico | 5.9% | Deduct the greater of net capital gain up to $2,500, or 40% of up to $1,000,000 of net capital gain from the sale of a business allocated or apportioned to NM (NMSA 7-2-34) | $58,853 business or stock gain: $35,400 | $274,966 business or stock: $251,513 |
| New York | 10.9% (plus NYC 3.876%) | MFJ: 6.85% to $2,155,350, 9.65% to $5M, 10.3% to $25M, 10.9% over $25M; benefit recapture above $107,650 NYAGI | $70,359 | $286,472 |
| North Carolina | 3.99% | Down from 4.25% in 2025. Further 0.5 pt cuts from 2027 depend on General Fund revenue triggers (G.S. 105-153.7(a1)), floor 2.49% | $39,900 | $256,013 |
| North Dakota | 2.5% (40% LTCG exclusion) | Exclude 40% of net long-term capital gain (incl. capital gain distributions) from ND taxable income; nonresidents only on ND-sourced net LTCG; effective top rate on LTCG about 1.5% | $15,000 | $231,113 |
| Ohio | 2.75% (3% on business income) | Gain from selling a business (sale of goodwill, or of an ownership interest if treated as asset sale or seller materially participated) is business income: first $250,000 deducted, rest at 3% | $27,500 business or stock gain: $22,500 | $243,613 business or stock: $238,613 |
| Oklahoma | 4.5% | Capital gain deduction (Form 561): 100% of gain on Oklahoma real or tangible property held 5 yrs, or Oklahoma company stock/interest or business assets held 2 yrs (HQ in OK 3 yrs) | $0 | $216,113 |
| Oregon | 9.9% (plus up to 4% Portland-area local) | No general capital gains rate; a reduced farm capital gain rate is available for qualifying farm property sales | $99,000 | $315,113 |
| Pennsylvania | 3.07% | No capital gains provision; gains taxed at 3.07%. Principal residence gain exempt (own 2 of 5 yrs, occupy 2 of 5 yrs), guide states no dollar cap; business/rental portion taxable | $30,700 | $246,813 |
| Rhode Island | 5.99% | 5.99% over $186,450 taxable income, all filing statuses (one schedule). New surtax on income over $1M: 1% 2027, 2% 2028, 3% 2029+ | $59,900 | $276,013 |
| South Carolina | 5.21% (44% LTCG deduction, ~2.92% effective) | 44% deduction of net long-term capital gain (held over 1 year) for individuals, estates, trusts (12-6-1150); only 56% of LTCG taxed. H.4216 did not change it | $29,176 | $245,289 |
| South Dakota | 0% | No personal income tax | $0 | $216,113 |
| Tennessee | 0% | No personal income tax; Hall tax on interest and dividends fully repealed for tax years beginning on or after 1/1/2021 | $0 | $216,113 |
| Texas | 0% | No personal income tax; Constitution bars individual income tax (Art. 8 Sec. 24-a) and capital gains tax (Sec. 24-b, added 11/4/2025) | $0 | $216,113 |
| Utah | 4.45% | Flat 4.45% for 2026 (SB 60, 2026 session, retrospective to 1/1/2026; was 4.5% in 2025) | $44,500 | $260,613 |
| Vermont | 8.75% | Elect $5,000 flat exclusion or 40% of gain on assets held 3+ yrs (not homes, public stock/bonds, most depreciable property; farm/timber OK); capped at lesser of 40% of fed taxable income or $350,000 | $56,875 | $272,988 |
| Virginia | 5.75% | 5.75% over $17,000 (all filers); 2026 millionaire bracket bills (HB 188, HB 1754) not in enacted budget | $57,500 | $273,613 |
| Washington | 9.9% (7% + 2.9% over $1M) | 7% excise on LTCG over the standard deduction, plus 2.9% on gains over $1M (SB 5813, from 2025). Real estate exempt, incl. entity interests to extent gain is from real estate | $0 business or stock gain: $50,540 | $216,113 business or stock: $266,653 |
| West Virginia | 4.58% | 4.58% over $60,000 (same brackets single and MFJ); SB 392 cut all rates 5%, retroactive to 1/1/2026 (was 4.82%) | $45,800 | $261,913 |
| Wisconsin | 7.65% (30% LTCG exclusion, ~5.36% effective) | Exclude 30% of net capital gain on assets held over 1 year; 60% for farm assets (livestock, farm equipment, farm real property used in farming) | $53,550 | $269,663 |
| Wyoming | 0% | No personal income tax | $0 | $216,113 |
Rates and rules verified against each state's revenue department or statute (October 2, 2026) and the engine's 2026 tables; computed October 7, 2026: married filing jointly, $150,000 other income, $1,000,000 long-term gain on real estate held for years (second line where a business or stock gain is taxed differently), engine.js yearTax. 51 states have a full page; the rest are summarized in their row. Education only.
Run any state
Federal on the sale$0
NIIT$0
State$0
Total tax, held over a year$0
Effective rate0%
If held one year or less$0
2026 law from the engine: federal 0/15/20% brackets (Rev. Proc. 2025-32), 25% cap on unrecaptured 1250 gain, ordinary rates on 1245 recapture, 3.8% NIIT over $200,000 single / $250,000 joint (IRC 1411), AMT, and your state's rules. Tax shown is the tax caused by the sale. Excludes selling costs, local taxes and NIIT exceptions for active business owners. Education only.
Frequently asked questions
Which states have no capital gains tax?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming tax neither wages nor capital gains for individuals (2026). Washington has no wage tax but taxes long-term gains on stocks and business interests over its annual deduction; real estate is exempt. Missouri exempts individual capital gains from 2025, but still taxes Section 1245 recapture as ordinary income.
Which state has the highest capital gains tax?
California, at up to 13.3% on all income including long-term gains (12.3% top bracket plus the 1% mental health services tax over $1 million), with no lower rate for long-term gains. Several states add surtaxes on very large incomes: Massachusetts 4% over $1,107,750 (2026), Minnesota 1% on net investment income over $1 million, Maine 2% from 2026, Washington 2.9% on gains over $1 million.
Do states tax long-term capital gains at a lower rate?
Most do not: they tax capital gains as ordinary income. A minority give a break: Arkansas excludes 50%, South Carolina 44%, North Dakota 40%, Wisconsin 30% (60% for farm assets), Arizona 25% for assets bought after 2011, Montana and Hawaii cap the rate, and Oklahoma deducts qualifying Oklahoma gains in full.
If I move before I sell, which state taxes the gain?
Generally the state where you live when the gain is recognized taxes gain on intangibles such as stock, while real estate and business property are taxed by the state where they sit. Installment payments received after a move can still be taxed by the old state for property located there, and some states (New York, California) have specific rules for this. See the state pages for withholding and accrual rules.
How was the state tax column computed?
Each row runs the same sale through the Big Sale Tax engine on October 7, 2026: married filing jointly, $150,000 of other income, $1,000,000 of long-term gain, 2026 law. State tax is the tax caused by the sale; total adds federal income tax and NIIT. It ignores local income taxes and state-specific deductions the engine does not model.
Free PDF sheet
Long-Term vs Short-Term Capital Gains (2026)
The one-year holding rule, the 2026 0/15/20% thresholds for every filing status, NIIT, recapture, the state layer and a worked $200,000 example: 11 months vs 13 months, and what spreading the gain can save.
Next step
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