These are the states with a dedicated page and a verified 2026 rate structure. States are added when their rules can be read from a primary source, not before — the methodology page explains what that means and the unverified list records what is still outstanding.
State layer · Tax year 2026
State capital gains tax, compared
Federal tax is only part of the bill. Every row below is generated from the same verified data module the calculator computes from, so the figures here and the figures it produces cannot disagree.
| What is distinctive | Local add-ons | |||
|---|---|---|---|---|
| Arizona | 2.5% | Partial subtraction | Flat 2.5%, but 1.875% on gains from assets bought after 2011. | — |
| California | 13.3% | Taxed as ordinary income | Taxed as ordinary income, nine brackets, plus a 1% surcharge over $1m. | — |
| Colorado | 4.4% | Taxed as ordinary income | Flat 4.40%. The old capital gain subtraction appears to be gone. | — |
| Delaware | 6.6% | Taxed as ordinary income | Six brackets to 6.6%, on thresholds frozen since 2014. | Wilmington levies a 1.25% earned income tax, which does not reach capital gains. |
| District of Columbia | 10.75% | Taxed as ordinary income | Seven brackets to 10.75%, among the highest rates in the country. | — |
| Florida | None | Not taxed | No income tax by constitutional amendment. Federal tax still applies. | — |
| Georgia | 4.99% | Taxed as ordinary income | Flat 4.99% — not the 5.19% still widely published. | — |
| Idaho | 5.3% | Taxed as ordinary income | A zero band, then 5.3%. The 60% deduction excludes shares. | — |
| Illinois | 4.95% | Taxed as ordinary income | Flat 4.95% on everything. No preferential rate, no exclusion. | — |
| Indiana | 2.95% | Taxed as ordinary income | Flat 2.95% state, plus a county rate that is not modeled. | Every Indiana county levies its own income tax on top of the state rate, at 0.5% to 3.0% for 2026 (DOR Departmental Notice #1, R46/01-26, effective 1 January 2026 — Porter County is lowest at 0.5%, Randolph highest at 3.0%). It reaches capital gains for residents exactly as it reaches wages, and it is NOT computed here, so an Indiana figure is the state layer only. Both the county of residence and the county of principal business or employment are fixed on 1 January of the year the taxable year begins, so moving during the year does not change the rate. County rates may be adjusted in January and again in October. |
| Iowa | 3.8% | Taxed as ordinary income | Flat 3.8%, with narrow farm and ESOP gain deductions not modeled. | — |
| Kansas | 5.58% | Taxed as ordinary income | Two brackets, 5.2% and 5.58%. No zero band, despite what circulates. | — |
| Kentucky | 3.5% | Taxed as ordinary income | Flat 3.5% for 2026, down from 4% in 2025. | — |
| Louisiana | 3% | Taxed as ordinary income | Flat 3%, and the exclusion that used to soften it is gone. | — |
| Maryland | 8.5% | Taxed as ordinary income | Ten brackets to 6.5%, a 2% surcharge cliff at $350,000 of AGI, and county tax on top. | Every Maryland county and Baltimore City levies a local income tax on the same Maryland taxable income, at 2.25% to 3.30% for 2026 (Tax-General 10-106; most jurisdictions are at 3.20%). It reaches capital gains in full and is NOT modeled. A state-only Maryland figure understates the bill by roughly half again. |
| Massachusetts | 9% | Own rate for gains | 5% long-term, 8.5% short-term. Collectibles 12% with a 50% deduction. | — |
| Michigan | 4.25% | Taxed as ordinary income | Flat 4.25%, but the statute sets a trigger rather than a rate. | Around two dozen Michigan cities levy their own income tax, Detroit at 2.4% for residents. City tax is not computed here. |
| Minnesota | 9.85% | Taxed as ordinary income | Four brackets to 9.85%, with thresholds indexed annually. | — |
| Mississippi | 4% | Taxed as ordinary income | First $10,000 of taxable income at 0%, then 4.0%. | — |
| Missouri | None | Not taxed | Gains subtracted in full since 2025. The state tax is $0. | — |
| New Jersey | 10.75% | Taxed as ordinary income | Ordinary income to 10.75%. Fixed thresholds, and no loss carryforward. | — |
| New York | 10.9% | Taxed as ordinary income | Ordinary income, nine brackets to 10.9%. NYC and Yonkers add their own. | New York City and Yonkers levy SEPARATE resident income taxes on top of the state tax, which also reach capital gains. Not modeled; the NYC resident rate was not verified. A New York City answer that omits it understates the tax by several percentage points. |
| North Carolina | 3.99% | Taxed as ordinary income | Flat 3.99% for 2026, no gains deduction; 2027 depends on a revenue trigger. | — |
| Ohio | 2.75% | Taxed as ordinary income | A single 2.75% rate from 2026, above an indexed floor. | Ohio municipalities levy SEPARATE local income taxes. Most do not reach capital gains, but this varies by municipality and is not modeled. |
| Oklahoma | 4.5% | Taxed as ordinary income | Zero band, then 2.5/3.5/4.5% — with a revenue trigger on top. | — |
| Pennsylvania | 3.07% | Taxed as ordinary income | Flat 3.07%, no holding-period distinction, and unusual loss rules. | Pennsylvania localities levy separate earned income taxes, which generally do not reach capital gains. |
| Texas | None | Not taxed | No individual income tax. Federal tax still applies in full. | — |
| Utah | 4.5% | Taxed as ordinary income | Flat 4.5%, with a non-refundable taxpayer credit not modeled. | — |
| Virginia | 5.75% | Taxed as ordinary income | Top rate of 5.75% from just $17,000, on 1990 thresholds. | — |
| Washington | 9.9% | Own rate for gains | No income tax, but a 7% / 9.9% excise on long-term gains. Real estate exempt. | — |
How to read the top rate column
The top rate is the highest marginal rate a capital gain can reach in that state, including any surtax. It is not the rate most filers pay — a gain is stacked on other income the same way it is federally, so a modest gain in a modest-income year may never reach it.
A rate of None means the state does not tax capital gains at all. Washington is the exception worth knowing about: it has no individual income tax, but it does levy a separate 7% excise tax on long-term gains above an annually indexed standard deduction, so its row is not the zero it first appears.
Treatment, and why it matters more than the rate
Most states tax gains as ordinary income, applying their normal ladder with no distinction between a long-held investment and a quick trade. In those states the entire holding-period saving is federal.
A few do something else. Arizona subtracts a quarter of net long-term gain, but only for assets acquired after 2011 — two identical gains can carry different tax depending on a purchase date. Massachusetts taxes in classes rather than on a ladder, with short-term gains at a higher rate than long-term. Washington charges an excise tax rather than an income tax at all.
Those structural differences change the answer more than a percentage point or two of rate does, which is why the column is here.
What this table does not show
State taxable income is computed with each state's own additions, subtractions and deductions, none of which are modeled here. The calculator approximates the state base from federal ordinary taxable income and says so in a warning on every state result. Treat a state figure as close for a straightforward wage-and-sale situation and rough if your return carries significant state adjustments.
Part-year residency, non-resident source rules and gains on property in another state are all outside scope. So are local income taxes except where noted in the final column.
Every covered state
- CaliforniaTaxed as ordinary income, nine brackets, plus a 1% surcharge over $1m.
- ArizonaFlat 2.5%, but 1.875% on gains from assets bought after 2011.
- TexasNo individual income tax. Federal tax still applies in full.
- FloridaNo income tax by constitutional amendment. Federal tax still applies.
- New YorkOrdinary income, nine brackets to 10.9%. NYC and Yonkers add their own.
- WashingtonNo income tax, but a 7% / 9.9% excise on long-term gains. Real estate exempt.
- IllinoisFlat 4.95% on everything. No preferential rate, no exclusion.
- Massachusetts5% long-term, 8.5% short-term. Collectibles 12% with a 50% deduction.
- PennsylvaniaFlat 3.07%, no holding-period distinction, and unusual loss rules.
- OhioA single 2.75% rate from 2026, above an indexed floor.
- New JerseyOrdinary income to 10.75%. Fixed thresholds, and no loss carryforward.
- ColoradoFlat 4.40%. The old capital gain subtraction appears to be gone.
- MichiganFlat 4.25%, but the statute sets a trigger rather than a rate.
- LouisianaFlat 3%, and the exclusion that used to soften it is gone.
- IdahoA zero band, then 5.3%. The 60% deduction excludes shares.
- MissouriGains subtracted in full since 2025. The state tax is $0.
- MississippiFirst $10,000 of taxable income at 0%, then 4.0%.
- GeorgiaFlat 4.99% — not the 5.19% still widely published.
- KentuckyFlat 3.5% for 2026, down from 4% in 2025.
- IndianaFlat 2.95% state, plus a county rate that is not modeled.
- OklahomaZero band, then 2.5/3.5/4.5% — with a revenue trigger on top.
- IowaFlat 3.8%, with narrow farm and ESOP gain deductions not modeled.
- UtahFlat 4.5%, with a non-refundable taxpayer credit not modeled.
- DelawareSix brackets to 6.6%, on thresholds frozen since 2014.
- MarylandTen brackets to 6.5%, a 2% surcharge cliff at $350,000 of AGI, and county tax on top.
- North CarolinaFlat 3.99% for 2026, no gains deduction; 2027 depends on a revenue trigger.
- District of ColumbiaSeven brackets to 10.75%, among the highest rates in the country.
- KansasTwo brackets, 5.2% and 5.58%. No zero band, despite what circulates.
- MinnesotaFour brackets to 9.85%, with thresholds indexed annually.
- VirginiaTop rate of 5.75% from just $17,000, on 1990 thresholds.
For the federal rules that apply wherever you live, start with the federal guide or the full guide index.