How much you pay on a capital gain depends a lot on where you live. The federal rate is the same nationwide, but state treatment ranges from zero to 13.3% on top. This guide ranks all 50 states plus DC for 2026.
The three groups
States fall into three camps:
| Group | How gains are taxed | Examples |
|---|---|---|
| No state tax on gains | 0% at the state level | Florida, Texas, Washington (general income), Tennessee, Nevada, Wyoming, South Dakota, Alaska, New Hampshire |
| Special rate or exclusion | A lower flat rate or partial exclusion on long-term gains | Hawaii (7.25%), Massachusetts (5%), Montana (up to 4.1%), South Carolina (44% exclusion), Wisconsin (30%), Arkansas (50%), Arizona (25% subtraction) |
| Ordinary income | Gains taxed at the normal income rate | California, New York, New Jersey, Oregon, Minnesota and most others |
Highest combined rates
The combined top long-term rate adds the federal 23.8% (20% plus the 3.8% NIIT) to each state’s effective top rate. The leaders:
| State | State rate | Combined top long-term |
|---|---|---|
| California | 13.3% | ~37.1% |
| New Jersey | 10.75% | ~34.55% |
| New York | 10.9% | ~34.7% |
| Oregon | 9.9% | ~33.7% |
| Minnesota | 9.85% | ~33.65% |
These are top-bracket illustrations - most investors pay less. See the full highest capital gains tax ranking.
Lowest
The no-tax states tie at the bottom (federal-only, up to 23.8%). Among states that do tax gains, low flat rates and generous exclusions make North Dakota (effective ~1.5% on long-term gains), Arizona (~1.875%) and Arkansas (~1.95%) the friendliest.
Use the calculator to combine federal, NIIT and your state’s tax, or open your state page for the exact rule.
This is general information, not tax advice. Verify with the IRS, your state tax authority, or a professional.