Best states to sell a business, ranked by what you keep on a $3M sale (2026)
All 50 states and DC, federal, 3.8% and state tax, ranked by the amount a single seller keeps.
By Hans Goldstein, Enrolled Agent, admitted to practice before the IRS ·
On a $3,000,000 business sale, a single seller keeps $2,331,512 in 10 states tied at the top and $1,962,327 in California, a $369,185 gap. The five lowest-keep states are California ($1,962,327), Minnesota ($2,021,707), District of Columbia ($2,024,987), Oregon ($2,036,268), New Jersey ($2,041,938).
The states with no state tax on the gain (Alaska, Florida, Missouri, New Hampshire, Nevada, Oklahoma, South Dakota, Tennessee, Texas, Wyoming) tie at the top because federal and NIIT are identical everywhere. Computed October 18, 2026.
| Rank | State | State tax | Total tax | You keep | Total rate |
|---|---|---|---|---|---|
| 1 | Alaska | $0 | $668,488 | $2,331,512 | 22.3% |
| 1 | Florida | $0 | $668,488 | $2,331,512 | 22.3% |
| 1 | Missouri | $0 | $668,488 | $2,331,512 | 22.3% |
| 1 | Nevada | $0 | $668,488 | $2,331,512 | 22.3% |
| 1 | New Hampshire | $0 | $668,488 | $2,331,512 | 22.3% |
| 1 | Oklahoma | $0 | $668,488 | $2,331,512 | 22.3% |
| 1 | South Dakota | $0 | $668,488 | $2,331,512 | 22.3% |
| 1 | Tennessee | $0 | $668,488 | $2,331,512 | 22.3% |
| 1 | Texas | $0 | $668,488 | $2,331,512 | 22.3% |
| 1 | Wyoming | $0 | $668,488 | $2,331,512 | 22.3% |
| 11 | North Dakota | $42,656 | $711,144 | $2,288,856 | 23.7% |
| 12 | Arkansas | $55,420 | $723,908 | $2,276,092 | 24.1% |
| 13 | Arizona | $75,000 | $743,488 | $2,256,512 | 24.8% |
| 14 | Ohio | $82,500 | $750,988 | $2,249,012 | 25.0% |
| 15 | South Carolina | $86,562 | $755,050 | $2,244,950 | 25.2% |
| 16 | Indiana | $88,500 | $756,988 | $2,243,012 | 25.2% |
| 17 | Louisiana | $90,000 | $758,488 | $2,241,512 | 25.3% |
| 18 | Pennsylvania | $92,100 | $760,588 | $2,239,412 | 25.4% |
| 19 | Kentucky | $105,000 | $773,488 | $2,226,512 | 25.8% |
| 20 | Iowa | $114,000 | $782,488 | $2,217,512 | 26.1% |
| 21 | Alabama | $116,536 | $785,024 | $2,214,976 | 26.2% |
| 22 | Mississippi | $119,600 | $788,088 | $2,211,912 | 26.3% |
| 23 | North Carolina | $119,700 | $788,188 | $2,211,812 | 26.3% |
| 24 | Montana | $122,478 | $790,966 | $2,209,034 | 26.4% |
| 25 | Michigan | $127,500 | $795,988 | $2,204,012 | 26.5% |
| 26 | Colorado | $132,000 | $800,488 | $2,199,512 | 26.7% |
| 27 | Utah | $133,500 | $801,988 | $2,198,012 | 26.7% |
| 28 | Nebraska | $136,199 | $804,687 | $2,195,313 | 26.8% |
| 29 | West Virginia | $136,603 | $805,091 | $2,194,909 | 26.8% |
| 30 | Illinois | $148,500 | $816,988 | $2,183,012 | 27.2% |
| 31 | Georgia | $149,700 | $818,188 | $2,181,812 | 27.3% |
| 32 | New Mexico | $150,758 | $819,246 | $2,180,754 | 27.3% |
| 33 | Wisconsin | $152,228 | $820,716 | $2,179,284 | 27.4% |
| 34 | Idaho | $159,000 | $827,488 | $2,172,512 | 27.6% |
| 35 | Kansas | $167,313 | $835,801 | $2,164,199 | 27.9% |
| 36 | Virginia | $172,243 | $840,731 | $2,159,269 | 28.0% |
| 37 | Rhode Island | $176,568 | $845,056 | $2,154,944 | 28.2% |
| 38 | Delaware | $196,984 | $865,472 | $2,134,528 | 28.8% |
| 39 | Connecticut | $209,650 | $878,138 | $2,121,862 | 29.3% |
| 40 | Hawaii | $217,500 | $885,988 | $2,114,012 | 29.5% |
| 41 | Massachusetts | $225,690 | $894,178 | $2,105,822 | 29.8% |
| 42 | Vermont | $226,201 | $894,689 | $2,105,311 | 29.8% |
| 43 | Washington | $240,478 | $908,966 | $2,091,034 | 30.3% |
| 44 | Maryland | $248,385 | $916,873 | $2,083,127 | 30.6% |
| 45 | Maine | $253,980 | $922,468 | $2,077,532 | 30.7% |
| 46 | New York | $289,500 | $957,988 | $2,042,012 | 31.9% |
| 47 | New Jersey | $289,574 | $958,062 | $2,041,938 | 31.9% |
| 48 | Oregon | $295,244 | $963,732 | $2,036,268 | 32.1% |
| 49 | District of Columbia | $306,525 | $975,013 | $2,024,987 | 32.5% |
| 50 | Minnesota | $309,805 | $978,293 | $2,021,707 | 32.6% |
| 51 | California | $369,185 | $1,037,673 | $1,962,327 | 34.6% |
Methodology
Each row is the Exit Tax Map model at a $3,000,000 gain: federal income tax on long-term gain (2026 bands, IRS Rev. Proc. 2025-32), the 3.8% net investment income tax (IRC 1411) and the state rule for that state, each linked to its state source on the Exit Tax Map.
Ties share a rank. Downloads: CSV. Want your own price, basis and state? Use the What You Keep calculator.
Assumptions: single filer, asset sale of an operating business owned over five years in the home state, all gain long-term capital gain, no other income, 2026 law, federal standard deduction $16,100, no local taxes. Every state rule is dated and linked in the Exit Tax Map.
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Hans Goldstein is an Enrolled Agent, admitted to practice before the Internal Revenue Service. Not affiliated with or endorsed by the IRS. He is not a CPA or attorney. Education only, not tax or legal advice for your situation.