GainsCalc

Capital gains tax by state

Most US states tax capital gains as ordinary income at their regular rates. A few give long-term gains a special rate (Hawaii 7.25%, Massachusetts 5%, Montana up to 4.1%) or a partial exclusion (South Carolina 44%, Wisconsin 30%, Arkansas 50%, and others). 8 jurisdictions levy no capital-gains tax at all. The "combined top long-term rate" adds the federal 23.8% top to each state's effective rate - a top-bracket illustration, not what a typical investor pays, and not tax advice.

Source: Tax Foundation, 2026 state income tax rates. Data as of June 2026.

All 51 jurisdictions

Combined top long-term rate = federal 20% + 3.8% NIIT + the state's effective top long-term rate.

StateState treatmentCombined top long-termDetails
Alabama Taxed as ordinary income 28.8% Alabama page
Alaska No state capital gains tax 23.8% Alaska page
Arizona 25% exclusion 25.675% Arizona page
Arkansas 50% exclusion 25.75% Arkansas page
California Taxed as ordinary income 37.1% California page
Colorado Taxed as ordinary income 28.2% Colorado page
Connecticut Taxed as ordinary income 30.79% Connecticut page
Delaware Taxed as ordinary income 30.4% Delaware page
District of Columbia Taxed as ordinary income 34.55% District of Columbia page
Florida No state capital gains tax 23.8% Florida page
Georgia Taxed as ordinary income 28.99% Georgia page
Hawaii Special rate 7.25% 31.05% Hawaii page
Idaho 60% exclusion 25.92% Idaho page
Illinois Taxed as ordinary income 28.75% Illinois page
Indiana Taxed as ordinary income 26.75% Indiana page
Iowa Taxed as ordinary income 27.6% Iowa page
Kansas Taxed as ordinary income 29.38% Kansas page
Kentucky Taxed as ordinary income 27.3% Kentucky page
Louisiana Taxed as ordinary income 26.8% Louisiana page
Maine Taxed as ordinary income 30.95% Maine page
Maryland Taxed as ordinary income 30.3% Maryland page
Massachusetts Special rate 5% 28.8% Massachusetts page
Michigan Taxed as ordinary income 28.05% Michigan page
Minnesota Taxed as ordinary income 33.65% Minnesota page
Mississippi Taxed as ordinary income 27.8% Mississippi page
Missouri Taxed as ordinary income 28.5% Missouri page
Montana Special rate 4.1% 27.9% Montana page
Nebraska Taxed as ordinary income 28.35% Nebraska page
Nevada No state capital gains tax 23.8% Nevada page
New Hampshire No state capital gains tax 23.8% New Hampshire page
New Jersey Taxed as ordinary income 34.55% New Jersey page
New Mexico 40% exclusion 27.34% New Mexico page
New York Taxed as ordinary income 34.7% New York page
North Carolina Taxed as ordinary income 27.79% North Carolina page
North Dakota 40% exclusion 25.3% North Dakota page
Ohio Taxed as ordinary income 26.55% Ohio page
Oklahoma 100% exclusion 23.8% Oklahoma page
Oregon Taxed as ordinary income 33.7% Oregon page
Pennsylvania Taxed as ordinary income 26.87% Pennsylvania page
Rhode Island Taxed as ordinary income 29.79% Rhode Island page
South Carolina 44% exclusion 27.16% South Carolina page
South Dakota No state capital gains tax 23.8% South Dakota page
Tennessee No state capital gains tax 23.8% Tennessee page
Texas No state capital gains tax 23.8% Texas page
Utah Taxed as ordinary income 28.3% Utah page
Vermont 40% exclusion 29.05% Vermont page
Virginia Taxed as ordinary income 29.55% Virginia page
Washington 7% LTCG tax above deduction 30.8% Washington page
West Virginia Taxed as ordinary income 28.62% West Virginia page
Wisconsin 30% exclusion 29.16% Wisconsin page
Wyoming No state capital gains tax 23.8% Wyoming page

Source: Tax Foundation, 2026 state income tax rates and state revenue departments, 2026. Data as of June 2026.

By region

Northeast

Midwest

South

West

Related

Last updated: 2026-06-21