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The Exit Tax Map: what you keep selling a $1M, $3M or $10M business, by state (2026)

What a single seller keeps after federal, 3.8% and state tax on a $1M, $3M or $10M business sale, for all 50 states and DC. Original 2026 numbers, every state rule dated and linked to its source.

Put your own numbers in: the What You Keep calculator (price, basis, depreciation, state, filing status).

By Hans Goldstein, Enrolled Agent, admitted to practice before the IRS · Published · Rates checked October 18, 2026 · CSV

Short answerSelling a business for $3 million in 2026 costs a single seller $668,488 (22.3%) in the nine states that put no state tax on the gain (ten, counting Oklahoma for a qualifying in-state business), and $1,037,673 (34.6%) in California: a $369,185 gap on the same sale. At $1 million the gap is $103,185 (California vs Alaska); at $10 million it is $1,300,185.
  • Federal tax plus the 3.8% net investment income tax is $668,488 on $3 million in every state (22.3%).
  • The ten lowest: Alaska, Florida, Missouri, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Wyoming, and Oklahoma if the business qualifies for its deduction.
  • The highest at $10 million: California 36.3%, Minnesota 34.0%, District of Columbia 33.9%.
Assumptions: single filer, asset sale, all long-term gain, no other income, no installment sale, 2026 rates. Every state rule is dated and linked below.
$103,185gap between the cheapest and costliest state on a $1 million sale (19.2% to 29.6%)
$369,185gap between the cheapest and costliest state on a $3 million sale (22.3% to 34.6%)
$1,300,185gap between the cheapest and costliest state on a $10 million sale (23.3% to 36.3%)

Which states take the most when you sell a business?

  • The spread is real money. California takes $1,300,185 of state tax on a $10 million sale (13.0%). Nine states take nothing (ten with Oklahoma). Same sale, same federal bill of $2,334,488, $1,300,185 apart.
  • Washington has no wage tax, but it is not a low-tax state for a sale. Its 7% capital gains tax, plus 2.9% above $1 million of taxable gain, takes $240,478 on $3 million and $933,478 on $10 million, which ranks 7th highest of 51 at $10 million.
  • Some income-tax states cost almost nothing. Missouri subtracts all capital gains ($0). North Dakota (40% excluded) takes $12,656 and Arkansas (50% excluded) $18,420 on $1 million, against $103,185 in California. Oklahoma deducts the gain on the sale of an Oklahoma business in full.
  • The rate you see is not the rate you pay. New York's top rate is 10.9%, but a $10 million gain is taxed at a flat 10.3% ($1,030,000). New Jersey's 10.75% top rate applies to the part over $1 million: $1,042,074 on $10 million is 10.4%.
  • Size changes the ranking. The middle of the pack at $1 million is Michigan (23.5%); at $10 million it is Colorado (27.7%). The federal 20% bracket and the 3.8% tax account for most of the climb from 19.2% to 23.3% in the no-tax states.

The table: tax and what you keep, 50 states and DC

Sale of $3 million: tax and what you keep, by state

Tax on a $3 million business sale by state, 2026, single filer
StateFederal taxState taxTotal taxYou keepEffective rate
Alabama$668,488$116,536$785,024$2,214,97626.2%
Alaska$668,488$0$668,488$2,331,51222.3%
Arizona$668,488$75,000$743,488$2,256,51224.8%
Arkansas$668,488$55,420$723,908$2,276,09224.1%
California$668,488$369,185$1,037,673$1,962,32734.6%
Colorado$668,488$132,000$800,488$2,199,51226.7%
Connecticut$668,488$209,650$878,138$2,121,86229.3%
Delaware$668,488$196,984$865,472$2,134,52828.8%
District of Columbia$668,488$306,525$975,013$2,024,98732.5%
Florida$668,488$0$668,488$2,331,51222.3%
Georgia$668,488$149,700$818,188$2,181,81227.3%
Hawaii$668,488$217,500$885,988$2,114,01229.5%
Idaho$668,488$159,000$827,488$2,172,51227.6%
Illinois$668,488$148,500$816,988$2,183,01227.2%
Indiana$668,488$88,500$756,988$2,243,01225.2%
Iowa$668,488$114,000$782,488$2,217,51226.1%
Kansas$668,488$167,313$835,801$2,164,19927.9%
Kentucky$668,488$105,000$773,488$2,226,51225.8%
Louisiana$668,488$90,000$758,488$2,241,51225.3%
Maine$668,488$253,980$922,468$2,077,53230.7%
Maryland$668,488$248,385$916,873$2,083,12730.6%
Massachusetts$668,488$225,690$894,178$2,105,82229.8%
Michigan$668,488$127,500$795,988$2,204,01226.5%
Minnesota$668,488$309,805$978,293$2,021,70732.6%
Mississippi$668,488$119,600$788,088$2,211,91226.3%
Missouri$668,488$0$668,488$2,331,51222.3%
Montana$668,488$122,478$790,966$2,209,03426.4%
Nebraska$668,488$136,199$804,687$2,195,31326.8%
Nevada$668,488$0$668,488$2,331,51222.3%
New Hampshire$668,488$0$668,488$2,331,51222.3%
New Jersey$668,488$289,574$958,062$2,041,93831.9%
New Mexico$668,488$150,758$819,246$2,180,75427.3%
New York$668,488$289,500$957,988$2,042,01231.9%
North Carolina$668,488$119,700$788,188$2,211,81226.3%
North Dakota$668,488$42,656$711,144$2,288,85623.7%
Ohio$668,488$82,500$750,988$2,249,01225.0%
Oklahoma$668,488$0$668,488$2,331,51222.3%
Oregon$668,488$295,244$963,732$2,036,26832.1%
Pennsylvania$668,488$92,100$760,588$2,239,41225.4%
Rhode Island$668,488$176,568$845,056$2,154,94428.2%
South Carolina$668,488$86,562$755,050$2,244,95025.2%
South Dakota$668,488$0$668,488$2,331,51222.3%
Tennessee$668,488$0$668,488$2,331,51222.3%
Texas$668,488$0$668,488$2,331,51222.3%
Utah$668,488$133,500$801,988$2,198,01226.7%
Vermont$668,488$226,201$894,689$2,105,31129.8%
Virginia$668,488$172,243$840,731$2,159,26928.0%
Washington$668,488$240,478$908,966$2,091,03430.3%
West Virginia$668,488$136,603$805,091$2,194,90926.8%
Wisconsin$668,488$152,228$820,716$2,179,28427.4%
Wyoming$668,488$0$668,488$2,331,51222.3%

Click a column heading to sort. Every dollar figure is rounded to the dollar. Download everything: CSV or JSON.

Ranked: see the 50-state ranking on a $3M sale.

For reporters: the press kit and changelog.

The map and the ranking

Map of the total tax rate, $3 million sale

Each square is one state (tile map, not to scale). Darker means a higher share of the sale goes to tax. Lightest 22.3%, darkest 34.6%.

Tile map: total tax rate on a $3 million business sale by state, 2026. Lightest 22.3%, darkest 34.6%.Alaska: 22.3% total, you keep $2,331,512AK22.3%Maine: 30.7% total, you keep $2,077,532ME30.7%Vermont: 29.8% total, you keep $2,105,311VT29.8%New Hampshire: 22.3% total, you keep $2,331,512NH22.3%Washington: 30.3% total, you keep $2,091,034WA30.3%Idaho: 27.6% total, you keep $2,172,512ID27.6%Montana: 26.4% total, you keep $2,209,034MT26.4%North Dakota: 23.7% total, you keep $2,288,856ND23.7%Minnesota: 32.6% total, you keep $2,021,707MN32.6%Illinois: 27.2% total, you keep $2,183,012IL27.2%Wisconsin: 27.4% total, you keep $2,179,284WI27.4%Michigan: 26.5% total, you keep $2,204,012MI26.5%New York: 31.9% total, you keep $2,042,012NY31.9%Rhode Island: 28.2% total, you keep $2,154,944RI28.2%Massachusetts: 29.8% total, you keep $2,105,822MA29.8%Oregon: 32.1% total, you keep $2,036,268OR32.1%Nevada: 22.3% total, you keep $2,331,512NV22.3%Wyoming: 22.3% total, you keep $2,331,512WY22.3%South Dakota: 22.3% total, you keep $2,331,512SD22.3%Iowa: 26.1% total, you keep $2,217,512IA26.1%Indiana: 25.2% total, you keep $2,243,012IN25.2%Ohio: 25.0% total, you keep $2,249,012OH25.0%Pennsylvania: 25.4% total, you keep $2,239,412PA25.4%New Jersey: 31.9% total, you keep $2,041,938NJ31.9%Connecticut: 29.3% total, you keep $2,121,862CT29.3%California: 34.6% total, you keep $1,962,327CA34.6%Utah: 26.7% total, you keep $2,198,012UT26.7%Colorado: 26.7% total, you keep $2,199,512CO26.7%Nebraska: 26.8% total, you keep $2,195,313NE26.8%Missouri: 22.3% total, you keep $2,331,512MO22.3%Kentucky: 25.8% total, you keep $2,226,512KY25.8%West Virginia: 26.8% total, you keep $2,194,909WV26.8%Virginia: 28.0% total, you keep $2,159,269VA28.0%Maryland: 30.6% total, you keep $2,083,127MD30.6%Delaware: 28.8% total, you keep $2,134,528DE28.8%Arizona: 24.8% total, you keep $2,256,512AZ24.8%New Mexico: 27.3% total, you keep $2,180,754NM27.3%Kansas: 27.9% total, you keep $2,164,199KS27.9%Arkansas: 24.1% total, you keep $2,276,092AR24.1%Tennessee: 22.3% total, you keep $2,331,512TN22.3%North Carolina: 26.3% total, you keep $2,211,812NC26.3%South Carolina: 25.2% total, you keep $2,244,950SC25.2%District of Columbia: 32.5% total, you keep $2,024,987DC32.5%Oklahoma: 22.3% total, you keep $2,331,512OK22.3%Louisiana: 25.3% total, you keep $2,241,512LA25.3%Mississippi: 26.3% total, you keep $2,211,912MS26.3%Alabama: 26.2% total, you keep $2,214,976AL26.2%Georgia: 27.3% total, you keep $2,181,812GA27.3%Hawaii: 29.5% total, you keep $2,114,012HI29.5%Texas: 22.3% total, you keep $2,331,512TX22.3%Florida: 22.3% total, you keep $2,331,512FL22.3%

Total tax rate on a $3 million sale, highest to lowest

Federal tax and 3.8% NIITState tax
Total tax rate on a $3 million business sale by state, 2026: federal (navy) and state (brick)0%5%10%15%20%25%30%35%California34.6%Minnesota32.6%District of Columbia32.5%Oregon32.1%New Jersey31.9%New York31.9%Maine30.7%Maryland30.6%Washington30.3%Vermont29.8%Massachusetts29.8%Hawaii29.5%Connecticut29.3%Delaware28.8%Rhode Island28.2%Virginia28.0%Kansas27.9%Idaho27.6%Wisconsin27.4%New Mexico27.3%Georgia27.3%Illinois27.2%West Virginia26.8%Nebraska26.8%Utah26.7%Colorado26.7%Michigan26.5%Montana26.4%North Carolina26.3%Mississippi26.3%Alabama26.2%Iowa26.1%Kentucky25.8%Pennsylvania25.4%Louisiana25.3%Indiana25.2%South Carolina25.2%Ohio25.0%Arizona24.8%Arkansas24.1%North Dakota23.7%Alaska22.3%Florida22.3%Missouri22.3%New Hampshire22.3%Nevada22.3%Oklahoma22.3%South Dakota22.3%Tennessee22.3%Texas22.3%Wyoming22.3%

How an installment sale changes this

The table assumes the buyer pays you everything at closing. If you take what you need at closing and the rest on a schedule you pick, each payment is taxed in the year it arrives, and a lower slice of the gain lands in the 20% bracket and under the 3.8% tax.

That is how the same sale can net more. State results vary with how graduated the state's rates are.

Worked example: the same $3 million sale, one payment or five

A single seller with no other income sells a business for $3,000,000. The basis is zero, so every dollar received is long-term gain. We compare taking all of it at closing with an installment sale paid in five yearly payments of $600,000, each taxed in the year it arrives. Interest on the note is ignored.

One payment at closingFive yearly paymentsDifference
Federal income tax$562,088$410,440$151,648 less
3.8% net investment income tax$106,400$76,000$30,400 less
Federal total$668,488$486,440$182,048 less
You keep, Texas (no state tax)$2,331,512$2,513,560$182,048 more
California state tax$369,185$278,336$90,849 less
You keep, California$1,962,327$2,235,224$272,897 more

Why the total is lower. Each year's $600,000 sits mostly in the 15% federal bracket instead of the 20% bracket that starts at $545,500 of taxable income, each year gets its own $16,100 standard deduction, and each year gets its own $200,000 before the 3.8% tax starts. In California the same effect works through the graduated rates. The Texas row is 6.1% of the price; the California row is 9.1%.

What this does not show. It assumes the buyer pays every installment on time: you hold the buyer's note, so the buyer's credit is your risk, and a note secured by a lien or letter of credit costs something. Interest on the note is taxed as ordinary income each year.

Depreciation recapture is taxed in the year of sale, not as payments arrive. If your installment notes outstanding at year end exceed $5 million, Section 453A adds an interest charge on the tax you have not yet paid (a $10 million sale is in that range).

Other income in the payment years shrinks the saving. The result is one scenario, not a promise: the figure for your sale comes from your own return.

Computed with the same federal rules and scripts as the map (check_math.py). Section 453 and 453A: 26 U.S.C. 453, 26 U.S.C. 453A. To model it on your own numbers, use the installment sale calculator.

Methodology

What the map assumes

  • Filer. Single, resident of the state shown, for the whole year. Moving before a sale does not always change the bill: a state can still tax gain sourced to a business located there, and some states accelerate the tax on an installment sale when you leave.
  • The sale. The assets of an operating business, owned more than five years, with no real estate, farmland, or qualified small business stock. The whole price over basis is long-term capital gain: $1,000,000, $3,000,000 or $10,000,000. Real sales also produce ordinary income (inventory, equipment recapture) that is taxed higher.
  • Other income. None. The gain is the only income, so it stacks from the bottom of every bracket.
  • Payment. All cash at closing. No installment sale (see the worked example for what changes).
  • Federal. 2026 standard deduction $16,100; long-term gain taxed at 0% to $49,450, 15% to $545,500, 20% above (single, Rev. Proc. 2025-32, IRS). Plus the 3.8% net investment income tax on the lesser of net investment income or modified AGI over $200,000 (single, IRC 1411, not indexed, IRS). The 3.8% tax is included because the table assumes an owner who does not materially participate. An owner who works in the business generally owes none on an asset sale; the checkbox above removes it.
  • State. The state's 2026 rates applied to the gain, stacked from zero. We include every break that applies to any long-term gain (for example the 50% exclusion in Arkansas, 40% in North Dakota, 44% in South Carolina, 30% in Wisconsin, Hawaii's 7.25% cap, Montana's 4.1% rate, Missouri's full subtraction) and the break that is written specifically for the sale of an in-state business (New Mexico, Ohio, Oklahoma). Breaks that depend on the type of asset, an acquisition date, or revenue size we do not assume (Arizona's post-2011 subtraction, Idaho's 60% on Idaho property, Washington's family-owned business deduction). Where we apply a break that has a condition, or leave out one that might apply, the state's footnote gives the other number.
  • Not included. State standard deductions and personal exemptions (a deduction as large as the federal $16,100 would change any state's bill by under $1,800), local income taxes (New York City, Maryland counties, Indiana counties, Portland-area taxes, school district taxes), and selling costs. Pass-through entity tax elections are not modeled.

How it was checked

  • Primary sources. Each state's 2026 rate, bracket and gain rule is tied to the statute, agency page or form linked in the state list, and a script (verify_sources.py) fetched every source on October 18, 2026 and confirmed that each figure we use appears in it: 61 source checks, 0 failing. Three states block automated fetches (Iowa, Massachusetts, New Hampshire); those rates were confirmed from the state's own pages in search results.
  • Math. The numbers come from model.py. A separate script (check_math.py) re-derives the federal tax by stepping through the brackets, compares all 153 rows with a second code base (the Big Sale Tax calculator engine) and with closed-form formulas written from the statutes, and asserts that every difference between the two is the one we expect (for example, the engine applies state standard deductions and this table does not). Result: 153 rows, 0 failures.
  • Rounding. Each component is rounded to the dollar, and totals are the sums of the rounded parts.
  • Corrections. Tax law changes. If you find a rate or rule that is wrong or out of date, write to the address in the footer and we will fix it and date the change. The next scheduled review is when the IRS publishes the 2027 inflation adjustments.

State rules, dated and sourced

Each entry is the 2026 rule used for that state, with the source we checked on October 18, 2026. Numbers in superscript point to the footnotes.

Alabama top rate 5%1
2% / 4% / 5%; 5% over $3,000 of taxable income (single). Alabama lets you deduct the federal income tax and 3.8% NIIT the sale causes, so the 5% applies to the gain net of them. Checked October 18, 2026. Source: Alabama Dept. of Revenue, income tax rates; Alabama Form 40 booklet, Federal Income Tax Deduction Worksheet.
Alaska top rate 0%
No individual income tax. Checked October 18, 2026. Source: Tax Foundation, State Individual Income Tax Rates and Brackets.
Arizona top rate 2.5%2
Flat 2.5% for 2026. A 25% subtraction of long-term gain on assets acquired after 2011 is NOT applied in the base case (acquisition date unknown); see footnote. Checked October 18, 2026. Source: Arizona DOR, 2026 Form 140ES booklet; A.R.S. 43-1022(22).
Arkansas top rate 3.7%
Top rate 3.7% for 2026 (SB 1, 2026 special session). Only 50% of net long-term gain is taxed; gain above $10 million is fully exempt. Checked October 18, 2026. Source: Arkansas SB 1 fiscal impact statement (3.7% for 2026); Arkansas DFA Form AR1000D.
California top rate 13.3%
1% to 12.3% (12.3% over $768,213 single, 2026 schedule X) plus the 1% Mental Health Services Tax on taxable income over $1 million. Checked October 18, 2026. Source: Franchise Tax Board, 2026 tax rate schedules (Tax News, October 2026); FTB, capital gains and losses.
Colorado top rate 4.4%
Flat 4.4% for 2026. Checked October 18, 2026. Source: Colorado DR 0104EP (2026).
Connecticut top rate 6.99%
2% to 6.99% (6.99% over $500,000 single). High earners also add back the 2% phase-out ($250) and the lower-bracket recapture ($3,400 at $540,000 of AGI), per the CT-1040ES 2026 tables. Checked October 18, 2026. Source: Connecticut DRS, Form CT-1040ES (Rev. 01/26).
Delaware top rate 6.6%
0% to 6.6%; 6.6% over $60,000 (2026). Checked October 18, 2026. Source: Delaware Division of Revenue, tax computation table (effective January 1, 2025, unchanged).
District of Columbia top rate 10.75%
4% to 10.75%; 10.75% over $1,000,000, same brackets for every filing status. Checked October 18, 2026. Source: DC Office of Tax and Revenue, individual income tax rates.
Florida top rate 0%
No personal income tax. Checked October 18, 2026. Source: Florida Dept. of Revenue FAQ.
Georgia top rate 4.99%
Flat 4.99% from January 1, 2026 (HB 463, signed May 2026). Checked October 18, 2026. Source: Governor of Georgia, May 11, 2026 release (HB 463).
Hawaii top rate 7.25% on long-term gain (11% ordinary top)3
Long-term gain is capped at 7.25% (HRS 235-51(f)); the first slice taxed below 7.25% at graduated rates is not modeled (see footnote). Checked October 18, 2026. Source: Hawaii Revised Statutes 235-51.
Idaho top rate 5.3%4
Flat 5.3% on taxable income above a small zero bracket ($4,811 single in 2025). The 60% deduction applies only to Idaho real and tangible property, not to goodwill, so it is not applied. Checked October 18, 2026. Source: Idaho State Tax Commission, rate schedule; Idaho Code 63-3024.
Illinois top rate 4.95%
Flat 4.95% since July 1, 2017. Checked October 18, 2026. Source: Illinois Dept. of Revenue, income tax rates.
Indiana top rate 2.95% (plus county tax)5
State rate 2.95% for 2026 (2.90% in 2027). County income tax is extra and is not included. Checked October 18, 2026. Source: Indiana DOR, income tax rates.
Iowa top rate 3.8%6
Flat 3.8% for 2026 (SF 2442). Checked October 18, 2026. Source: Iowa Dept. of Revenue, 2026 individual income tax rate (Oct. 21, 2025).
Kansas top rate 5.58%
5.2% to $23,000, 5.58% above (single). SB 269 triggered no 2026 cut. Checked October 18, 2026. Source: K.S.A. 79-32,110; Kansas DOR Notice 25-06.
Kentucky top rate 3.5%
Flat 3.5% from January 1, 2026 (HB 1, 2025). Checked October 18, 2026. Source: Kentucky HB 1 (2025 RS), KRS 141.020.
Louisiana top rate 3%
Flat 3% from 2025 (Act 11 of 2024 special session). Checked October 18, 2026. Source: Louisiana Dept. of Revenue RIB 25-012.
Maine top rate 9.15% (7.15% + 2% surcharge over $1M)
5.8% / 6.75% / 7.15% (7.15% over $64,850 single) plus a new 2% surcharge on Maine taxable income over $1,000,000 (single) from 2026. Checked October 18, 2026. Source: Maine Revenue Services, 2026 tax rate schedules.
Maryland top rate 8.5% (6.5% + 2% gain surtax), plus county tax57
State brackets to 6.5% (over $1,000,000 single) plus a 2% tax on net capital gain when federal AGI is over $350,000. County income tax (2.25% to 3.30%) is extra and is not included. Checked October 18, 2026. Source: Maryland Comptroller, 2026 withholding information; Maryland Comptroller, 2025 session tax alert.
Massachusetts top rate 9% (5% + 4% surtax over $1,107,750)6
5% on long-term gain plus the 4% surtax on taxable income over $1,107,750 (2026). Checked October 18, 2026. Source: Massachusetts DOR, 4% surtax on taxable income.
Michigan top rate 4.25%
Flat 4.25% for 2026 (revenue trigger not met). Checked October 18, 2026. Source: Michigan Treasury notice, April 15, 2026.
Minnesota top rate 10.85% (9.85% + 1% on investment income over $1M)8
5.35% to 9.85% (9.85% over $203,150 single, 2026) plus a 1% tax on net investment income over $1,000,000. Checked October 18, 2026. Source: Minnesota DOR, 2026 income tax brackets; Minnesota DOR, net investment income tax.
Mississippi top rate 4% (over $10,000)
0% on the first $10,000, 4% above for 2026 (4.4% in 2025). The exclusion for gain on shares of Mississippi-domiciled corporations is for stock sales, not applied to this asset sale. Checked October 18, 2026. Source: Mississippi DOR, general information (tax rates).
Missouri top rate 0% on capital gains (4.7% ordinary)9
100% of federally reported capital gains are subtracted from Missouri income from tax year 2025 (RSMo 143.121). Ordinary-income recapture would still be taxed. Checked October 18, 2026. Source: Missouri DOR, capital gains subtraction FAQ.
Montana top rate 4.1% on long-term gains (5.65% ordinary)
Long-term gain: 3.0% on the first $47,500, 4.1% above (single), MCA 15-30-2103. Ordinary income is 4.7% / 5.65% for 2026. Checked October 18, 2026. Source: Montana Code Annotated 15-30-2103; Montana DOR, HB 337 rates.
Nebraska top rate 4.55%
2.46% / 3.51% / 4.55%; 4.55% over $24,760 (single, 2026), 3.99% from 2027. Checked October 18, 2026. Source: Nebraska Form 1040N-ES (2026 voucher); Neb. Rev. Stat. 77-2715.03.
Nevada top rate 0%
No personal income tax. Checked October 18, 2026. Source: Tax Foundation, State Individual Income Tax Rates and Brackets.
New Hampshire top rate 0%6
No tax on wages or capital gains; the Interest and Dividends Tax ended for periods beginning after December 31, 2024. Checked October 18, 2026. Source: New Hampshire DRA, Interest and Dividends Tax repeal.
New Jersey top rate 10.75%
1.4% to 10.75%; 10.75% over $1,000,000 (single). Rate schedule unchanged since 2020. Checked October 18, 2026. Source: New Jersey Division of Taxation, tax rate schedules.
New Mexico top rate 5.9% (40% business-sale deduction)10
1.5% to 5.9%. For the sale of a New Mexico business, 40% of up to $1,000,000 of net capital gain is deducted (NMSA 7-2-34); other sales get only the greater of $2,500. Checked October 18, 2026. Source: New Mexico TRD, 2025 PIT adjustments instructions; New Mexico HB 252 (2024), rates from 2025.
New York top rate 10.9% (plus NYC)511
Worksheet tax with benefit recapture: a $1M gain is taxed at a flat 6.85%, $1,077,550 to $5M at 9.65%, $5M to $25M at 10.3%, over $25M at 10.9%. New York City tax (up to 3.876%) is extra and is not included. Checked October 18, 2026. Source: NY Tax Dept., Form IT-2105-I (2026), tax computation worksheets.
North Carolina top rate 3.99%
Flat 3.99% for 2026 (4.25% in 2025). Checked October 18, 2026. Source: North Carolina DOR, tax rate schedules.
North Dakota top rate 2.5% (40% long-term gain exclusion)
0% / 1.95% / 2.5% after excluding 40% of net long-term capital gain allocated to North Dakota (NDCC 57-38-30.3(2)(d)). Checked October 18, 2026. Source: North Dakota Century Code 57-38-30.3; North Dakota Form ND-1ES (2026).
Ohio top rate 3% on business income (2.75% on other income)12
Business-sale gain is business income: the first $250,000 is deducted, the rest taxed at a flat 3% (ORC 5747.02(A)(4)). Non-business gain is 2.75% over $26,050. Checked October 18, 2026. Source: Ohio Revised Code 5747.02.
Oklahoma top rate 4.5%13
4.5% for 2026. Gain on the sale of all or substantially all assets of an Oklahoma business (owned 2+ years, headquartered in Oklahoma 3+ years) is 100% deductible (68 O.S. 2358, Form 561), so the base case is $0; the 4.5% figure is shown as the alternative. Checked October 18, 2026. Source: Oklahoma Tax Commission, Form 561 instructions (capital gain deduction); Oklahoma HB 2764 (2025), rate.
Oregon top rate 9.9% (plus Portland-area local)5
4.75% to 9.9%; 9.9% over $125,000 (single, 2026). Capital gain is ordinary income. Metro/Portland local taxes are extra and not included. Checked October 18, 2026. Source: Oregon DOR, Publication OR-ESTIMATE 2026.
Pennsylvania top rate 3.07%
Flat 3.07%. No capital gains break. Checked October 18, 2026. Source: Pennsylvania DOR, personal income tax rates.
Rhode Island top rate 5.99%
3.75% / 4.75% / 5.99%; 5.99% over $186,450 (2026). A surtax on income over $1M starts in 2027, so it does not apply here. Checked October 18, 2026. Source: Rhode Island Division of Taxation, Advisory 2025-22.
South Carolina top rate 5.21% (44% long-term gain deduction)
1.99% under $30,000 of taxable income, 5.21% minus $966 above (H.4216, effective 2026), after the 44% deduction for net capital gain (SC Code 12-6-1150). Checked October 18, 2026. Source: SCDOR, information about H. 4216; SC Code 12-6-1150.
South Dakota top rate 0%
No personal income tax. Checked October 18, 2026. Source: South Dakota DOR, income tax.
Tennessee top rate 0%
No personal income tax (Hall tax repealed for tax years beginning 2021). Checked October 18, 2026. Source: Tennessee Dept. of Revenue, Hall Income Tax repeal.
Texas top rate 0%
No personal income tax; the constitution bars one and, since November 2025, a capital gains tax. Checked October 18, 2026. Source: Texas Constitution Art. 8, Sec. 24-a and 24-b.
Utah top rate 4.45%
Flat 4.45% for 2026 (SB 60, 2026 session). Checked October 18, 2026. Source: Utah SB 60 (2026 General Session), enrolled.
Vermont top rate 8.75%14
3.35% to 8.75%. Vermont excludes 40% of gain on assets held over three years, capped at $350,000 of exclusion; whether goodwill of a business qualifies is not spelled out (see footnote). Brackets are the 2025 schedule: 2026 is not published. Checked October 18, 2026. Source: Vermont Dept. of Taxes, 2025 IN-111 instructions; Vermont Dept. of Taxes, 2025 IN-153 instructions.
Virginia top rate 5.75%
2% / 3% / 5% / 5.75%; 5.75% over $17,000. Checked October 18, 2026. Source: Code of Virginia 58.1-320; Virginia Tax, rates.
Washington top rate 9.9% (7% + 2.9% over $1M)15
7% on Washington capital gains after the standard deduction ($278,000 for 2025; 2026 not yet published), plus 2.9% on the part above $1,000,000 (RCW 82.87.040). Washington has no tax on wages. Checked October 18, 2026. Source: RCW 82.87.040; Washington DOR, capital gains tax amounts.
West Virginia top rate 4.58%
2.11% to 4.58%; 4.58% over $60,000 (SB 392, retroactive to January 1, 2026). Checked October 18, 2026. Source: West Virginia Tax Dept., income tax reduction bill.
Wisconsin top rate 7.65% (30% long-term gain exclusion)
3.5% to 7.65% (7.65% over $332,720 single, 2026) after excluding 30% of net capital gain on assets held over one year. Checked October 18, 2026. Source: Wisconsin DOR, 2026 Form 1-ES instructions; Wisconsin Schedule WD instructions.
Wyoming top rate 0%
No personal income tax. Checked October 18, 2026. Source: Wyoming Legislature memo (no state income tax).

Footnotes and ambiguities

  1. Alabama. Alabama allows a deduction for federal income tax paid, so the state figure is computed on the gain net of the federal income tax and NIIT in the row.
  2. Arizona. Arizona subtracts 25% of long-term gain on assets acquired after December 31, 2011 (A.R.S. 43-1022(22)). We do not know the acquisition date, so the base case does not apply it. With it, the state tax is 25% lower: see the CSV column alt_state_tax_usd.
  3. Hawaii. Hawaii's 7.25% cap (HRS 235-51(f)) applies to the gain above the income taxed at lower graduated rates. We apply 7.25% to the whole gain, which overstates the state tax by less than $3,500 at every size.
  4. Idaho. Idaho has a 0% bracket on the first $4,811 of taxable income (2025 amount). We apply 5.3% to the whole gain, which overstates the state tax by about $255. Idaho's 60% deduction covers Idaho real property and tangible business property, not goodwill, so it is not applied.
  5. Indiana, Maryland, New York, Oregon. Local income taxes (county, city or district) are not included; they would add to the state figure shown.
  6. Iowa, Massachusetts, New Hampshire. The state site blocks automated fetches; the rate was confirmed from the state's own pages in a search result on October 18, 2026.
  7. Maryland. Maryland's 2% gain tax applies when federal AGI is over $350,000, 'subject to certain exceptions' (Comptroller tax alert); we apply it to the whole gain. County tax is not included.
  8. Minnesota. Minnesota's 1% tax applies to net investment income over $1 million; an owner who materially participates in the business has no federal net investment income on an asset sale, so would not owe it. See the active-owner column in the CSV.
  9. Missouri. Missouri subtracts all federally reported capital gains from 2025 (RSMo 143.121). Ordinary-income recapture on the sale would still be taxed at up to 4.7%; this table assumes the whole gain is long-term capital gain.
  10. New Mexico. New Mexico's 40% deduction applies to the sale of a business allocated to New Mexico, up to $1,000,000 of gain (a $400,000 deduction). Other sales (stock or real estate) get only $2,500: see alt_state_tax_usd.
  11. New York. We follow the 2026 IT-2105-I tax computation worksheets with NYAGI equal to the gain and no New York standard deduction; New York City tax is not included.
  12. Ohio. Ohio treats the gain from selling a business as business income (first $250,000 deducted, 3% on the rest). If the gain were non-business income, the rate is 2.75% over $26,050; see alt_state_tax_usd. At $10 million the business rule costs more than the 2.75% rule.
  13. Oklahoma. Oklahoma's deduction covers the sale of all or substantially all the assets of an Oklahoma business owned 2+ years with headquarters in Oklahoma 3+ years (Form 561 instructions; the edition we could retrieve is the 2019 edition, statute 68 O.S. 2358). Sellers who do not meet the headquarters or ownership tests owe 4.5%: see alt_state_tax_usd. Ordinary-income recapture is not deductible.
  14. Vermont. Vermont's 40% exclusion (cap $350,000) is for assets held over three years other than homes, depreciable personal property and publicly traded securities. Goodwill is neither on that list nor named as eligible, so we flag it as ambiguous and apply the exclusion; without it the tax is higher (alt_state_tax_usd). Vermont's 2026 brackets were not published as of October 18, 2026, so the 2025 schedule is used.
  15. Washington. Washington's standard deduction for 2026 was not published as of October 18, 2026, so the 2025 amount ($278,000) is used; a higher 2026 amount would lower the tax by 7% of the increase. A family-owned small business deduction (up to $111,000 in 2025) may apply if the business had $11 million or less of revenue and is not applied here. Washington's new income tax does not start until 2028.

Cite this

Suggested citation
Goldstein, Hans. "The Exit Tax Map: what you keep selling a $1M, $3M or $10M business, by state (2026)." Big Sale Tax, October 18, 2026. https://bigsaletax.com/data/exit-tax-map-by-state/
Embed the chart (updates when the page does)
<iframe src="https://bigsaletax.com/data/exit-tax-map-by-state/embed/" title="Exit Tax Map 2026: total tax on a $3M business sale by state" width="100%" height="1000" style="border:0;max-width:820px" loading="lazy"></iframe>
<p>Source: <a href="https://bigsaletax.com/data/exit-tax-map-by-state/">The Exit Tax Map, Big Sale Tax, October 18, 2026</a></p>

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