Capital Gains Tax by State (2026), and Why Your State Rate Decides How Much a §453 Sale Saves

Want your own number, not a state average?

The rates on this page are general. Your bill depends on your gain, your basis and when you sell. Hans can run yours.

Free data · Verified October 22, 2026

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<a href="https://goldsteinco.net/capital-gains-tax-by-state/"><img src="https://goldsteinco.net/img-orig/federal-long-term-capital-gains-rate-tiers-2026-single-vs-married.png" alt="2026 long-term capital gains rates: 0% up to $49,450, 15% up to $545,500, then 20% (single); NIIT adds 3.8%" width="1200" height="800"></a><br><small>Chart: <a href="https://goldsteinco.net/capital-gains-tax-by-state/">Goldstein &amp; Co.</a></small>

Capital gains tax rate by state, 2026: the table

Federal long-term capital gains tax tops out at 20% plus the 3.8% net investment income tax, so 23.8% before any state. Add your state and the combined top rate runs from 23.8% in 8 states with no income tax to 37.1% in California. Highest five: California 37.1%, New York 34.7%, Minnesota 34.65%, District of Columbia 34.55%, New Jersey 34.55%.

Click a column to sort. Every state row links to the state's own revenue department, legislature or statute. State rates were read on those sources on October 18, 2026 and this table was published October 22, 2026.

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State	State top rate on long-term gain	Combined top rate (20% + 3.8% + state)	State gain break	Combined after the break	State rule and source	Checked
Alabama	5%	28.8%	None	n/a	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. Alabama Dept. of Revenue, income tax rates; Alabama Form 40 booklet, Federal Income Tax Deduction Worksheet	Read on the state source
Alaska	0%	23.8%	None	n/a	No individual income tax. Tax Foundation, State Individual Income Tax Rates and Brackets	Read on the state source
Arizona	2.5%	26.3%	25% subtraction for assets acquired after 2011	n/a	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. Arizona DOR, 2026 Form 140ES booklet; A.R.S. 43-1022(22)	Read on the state source
Arkansas	3.7%	27.5%	50% of net long-term gain taxed; gain over $10 million exempt	25.65%	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. Arkansas SB 1 fiscal impact statement (3.7% for 2026); Arkansas DFA Form AR1000D	Read on the state source
California	13.3%	37.1%	None	n/a	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. Franchise Tax Board, 2026 tax rate schedules (Tax News, October 2026); FTB, capital gains and losses	Read on the state source
Colorado	4.4%	28.2%	None	n/a	Flat 4.4% for 2026. Colorado DR 0104EP (2026)	Read on the state source
Connecticut	6.99%	30.79%	None	n/a	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. Connecticut DRS, Form CT-1040ES (Rev. 01/26)	Read on the state source
Delaware	6.6%	30.4%	None	n/a	0% to 6.6%; 6.6% over $60,000 (2026). Delaware Division of Revenue, tax computation table (effective January 1, 2025, unchanged)	Read on the state source
District of Columbia	10.75%	34.55%	None	n/a	4% to 10.75%; 10.75% over $1,000,000, same brackets for every filing status. DC Office of Tax and Revenue, individual income tax rates	Read on the state source
Florida	0%	23.8%	None	n/a	No personal income tax. Florida Dept. of Revenue FAQ	Read on the state source
Georgia	4.99%	28.79%	None	n/a	Flat 4.99% from January 1, 2026 (HB 463, signed May 2026). Governor of Georgia, May 11, 2026 release (HB 463)	Read on the state source
Hawaii	7.25% on long-term gain (11% ordinary top)	31.05%	Capped at 7.25% on long-term gain	n/a	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). Hawaii Revised Statutes 235-51	Read on the state source
Idaho	5.3%	29.1%	60% deduction for Idaho real and tangible property only	n/a	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. Idaho State Tax Commission, rate schedule; Idaho Code 63-3024	Read on the state source
Illinois	4.95%	28.75%	None	n/a	Flat 4.95% since July 1, 2017. Illinois Dept. of Revenue, income tax rates	Read on the state source
Indiana	2.95% (plus county tax)	26.75%	None	n/a	State rate 2.95% for 2026 (2.90% in 2027). County income tax is extra and is not included. Indiana DOR, income tax rates	Read on the state source
Iowa	3.8%	27.6%	None	n/a	Flat 3.8% for 2026 (SF 2442). Iowa Dept. of Revenue, 2026 individual income tax rate (Oct. 21, 2025)	Confirmed via search result (state site blocks automated fetches)
Kansas	5.58%	29.38%	None	n/a	5.2% to $23,000, 5.58% above (single). SB 269 triggered no 2026 cut. K.S.A. 79-32,110; Kansas DOR Notice 25-06	Read on the state source
Kentucky	3.5%	27.3%	None	n/a	Flat 3.5% from January 1, 2026 (HB 1, 2025). Kentucky HB 1 (2025 RS), KRS 141.020	Read on the state source
Louisiana	3%	26.8%	None	n/a	Flat 3% from 2025 (Act 11 of 2024 special session). Louisiana Dept. of Revenue RIB 25-012	Read on the state source
Maine	9.15% (7.15% + 2% surcharge over $1M)	32.95%	None	n/a	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. Maine Revenue Services, 2026 tax rate schedules	Read on the state source
Maryland	8.5% (6.5% + 2% gain surtax), plus county tax	32.3%	None	n/a	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. Maryland Comptroller, 2026 withholding information; Maryland Comptroller, 2025 session tax alert	Read on the state source
Massachusetts	9% (5% + 4% surtax over $1,107,750)	32.8%	None	n/a	5% on long-term gain plus the 4% surtax on taxable income over $1,107,750 (2026). Massachusetts DOR, 4% surtax on taxable income	Confirmed via search result (state site blocks automated fetches)
Michigan	4.25%	28.05%	None	n/a	Flat 4.25% for 2026 (revenue trigger not met). Michigan Treasury notice, April 15, 2026	Read on the state source
Minnesota	10.85% (9.85% + 1% on investment income over $1M)	34.65%	None	n/a	5.35% to 9.85% (9.85% over $203,150 single, 2026) plus a 1% tax on net investment income over $1,000,000. Minnesota DOR, 2026 income tax brackets; Minnesota DOR, net investment income tax	Read on the state source
Mississippi	4% (over $10,000)	27.8%	None	n/a	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. Mississippi DOR, general information (tax rates)	Read on the state source
Missouri	0% on capital gains (4.7% ordinary)	23.8%	100% of capital gain subtracted	n/a	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. Missouri DOR, capital gains subtraction FAQ	Read on the state source
Montana	4.1% on long-term gains (5.65% ordinary)	27.9%	None	n/a	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. Montana Code Annotated 15-30-2103; Montana DOR, HB 337 rates	Read on the state source
Nebraska	4.55%	28.35%	None	n/a	2.46% / 3.51% / 4.55%; 4.55% over $24,760 (single, 2026), 3.99% from 2027. Nebraska Form 1040N-ES (2026 voucher); Neb. Rev. Stat. 77-2715.03	Read on the state source
Nevada	0%	23.8%	None	n/a	No personal income tax. Tax Foundation, State Individual Income Tax Rates and Brackets	Read on the state source
New Hampshire	0%	23.8%	None	n/a	No tax on wages or capital gains; the Interest and Dividends Tax ended for periods beginning after December 31, 2024. New Hampshire DRA, Interest and Dividends Tax repeal	Confirmed via search result (state site blocks automated fetches)
New Jersey	10.75%	34.55%	None	n/a	1.4% to 10.75%; 10.75% over $1,000,000 (single). Rate schedule unchanged since 2020. New Jersey Division of Taxation, tax rate schedules	Read on the state source
New Mexico	5.9% (40% business-sale deduction)	29.7%	40% deduction on a New Mexico business sale (up to $1,000,000 of gain)	n/a	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. New Mexico TRD, 2025 PIT adjustments instructions; New Mexico HB 252 (2024), rates from 2025	Read on the state source
New York	10.9% (plus NYC)	34.7%	None	n/a	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. NY Tax Dept., Form IT-2105-I (2026), tax computation worksheets	Read on the state source
North Carolina	3.99%	27.79%	None	n/a	Flat 3.99% for 2026 (4.25% in 2025). North Carolina DOR, tax rate schedules	Read on the state source
North Dakota	2.5% (40% long-term gain exclusion)	26.3%	40% exclusion	25.3%	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)). North Dakota Century Code 57-38-30.3; North Dakota Form ND-1ES (2026)	Read on the state source
Ohio	3% on business income (2.75% on other income)	26.8%	First $250,000 of business gain deducted	n/a	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. Ohio Revised Code 5747.02	Read on the state source
Oklahoma	4.5%	28.3%	100% deduction for sale of an Oklahoma business meeting the ownership tests	n/a	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. Oklahoma Tax Commission, Form 561 instructions (capital gain deduction); Oklahoma HB 2764 (2025), rate	Read on the state source
Oregon	9.9% (plus Portland-area local)	33.7%	None	n/a	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. Oregon DOR, Publication OR-ESTIMATE 2026	Read on the state source
Pennsylvania	3.07%	26.87%	None	n/a	Flat 3.07%. No capital gains break. Pennsylvania DOR, personal income tax rates	Read on the state source
Rhode Island	5.99%	29.79%	None	n/a	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. Rhode Island Division of Taxation, Advisory 2025-22	Read on the state source
South Carolina	5.21% (44% long-term gain deduction)	29.01%	44% deduction	26.72%	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). SCDOR, information about H. 4216; SC Code 12-6-1150	Read on the state source
South Dakota	0%	23.8%	None	n/a	No personal income tax. South Dakota DOR, income tax	Read on the state source
Tennessee	0%	23.8%	None	n/a	No personal income tax (Hall tax repealed for tax years beginning 2021). Tennessee Dept. of Revenue, Hall Income Tax repeal	Read on the state source
Texas	0%	23.8%	None	n/a	No personal income tax; the constitution bars one and, since November 2025, a capital gains tax. Texas Constitution Art. 8, Sec. 24-a and 24-b	Read on the state source
Utah	4.45%	28.25%	None	n/a	Flat 4.45% for 2026 (SB 60, 2026 session). Utah SB 60 (2026 General Session), enrolled	Read on the state source
Vermont	8.75%	32.55%	40% exclusion on assets held over 3 years (cap $350,000 of exclusion)	n/a	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. Vermont Dept. of Taxes, 2025 IN-111 instructions; Vermont Dept. of Taxes, 2025 IN-153 instructions	Read on the state source
Virginia	5.75%	29.55%	None	n/a	2% / 3% / 5% / 5.75%; 5.75% over $17,000. Code of Virginia 58.1-320; Virginia Tax, rates	Read on the state source
Washington	9.9% (7% + 2.9% over $1M)	33.7%	None	n/a	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. RCW 82.87.040; Washington DOR, capital gains tax amounts	Read on the state source
West Virginia	4.58%	28.38%	None	n/a	2.11% to 4.58%; 4.58% over $60,000 (SB 392, retroactive to January 1, 2026). West Virginia Tax Dept., income tax reduction bill	Read on the state source
Wisconsin	7.65% (30% long-term gain exclusion)	31.45%	30% exclusion	29.15%	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. Wisconsin DOR, 2026 Form 1-ES instructions; Wisconsin Schedule WD instructions	Read on the state source
Wyoming	0%	23.8%	None	n/a	No personal income tax. Wyoming Legislature memo (no state income tax)	Read on the state source

How the combined number is built: federal long-term rate 20% (single filers over $545,500 of taxable income in 2026) plus the 3.8% net investment income tax (over $200,000 of modified AGI, single) plus the state's top rate on long-term gain. It does not subtract any federal deduction for state tax paid and leaves out local taxes (New York City, Maryland counties, Indiana counties, Portland-area). The "after the break" column is computed only for the four states whose rule applies one fixed exclusion to every taxpayer (Arkansas, North Dakota, Wisconsin, South Carolina); other states with special treatment are described in the "State gain break" column and not recomputed, because the result depends on the asset and the sale. Washington's figure is its capital gains excise tax, not an income tax. Missouri is shown at 0% on capital gain; ordinary-income recapture is still taxed there.

Cite this table

Free to use with a link back. Copy the attribution below.

<p>Source: <a href="https://goldsteinco.net/capital-gains-tax-by-state/">Goldstein &amp; Co., Capital gains tax rate by state (2026)</a>, October 22, 2026.</p>

CSV · JSON · Cite as: Goldstein & Co. (Hans Goldstein, Enrolled Agent), "Capital gains tax rate by state (2026)," October 22, 2026, https://goldsteinco.net/capital-gains-tax-by-state/

Sources

Federal:

• IRS Rev. Proc. 2025-32 (2026 inflation adjustments)
• IRC 1411 (net investment income tax)

State sources (51 rows, 61 source checks)

• Alabama: Alabama Dept. of Revenue, income tax rates; Alabama Form 40 booklet, Federal Income Tax Deduction Worksheet
• Alaska: Tax Foundation, State Individual Income Tax Rates and Brackets
• Arizona: Arizona DOR, 2026 Form 140ES booklet; A.R.S. 43-1022(22)
• Arkansas: Arkansas SB 1 fiscal impact statement (3.7% for 2026); Arkansas DFA Form AR1000D
• California: Franchise Tax Board, 2026 tax rate schedules (Tax News, October 2026); FTB, capital gains and losses
• Colorado: Colorado DR 0104EP (2026)
• Connecticut: Connecticut DRS, Form CT-1040ES (Rev. 01/26)
• Delaware: Delaware Division of Revenue, tax computation table (effective January 1, 2025, unchanged)
• District of Columbia: DC Office of Tax and Revenue, individual income tax rates
• Florida: Florida Dept. of Revenue FAQ
• Georgia: Governor of Georgia, May 11, 2026 release (HB 463)
• Hawaii: Hawaii Revised Statutes 235-51
• Idaho: Idaho State Tax Commission, rate schedule; Idaho Code 63-3024
• Illinois: Illinois Dept. of Revenue, income tax rates
• Indiana: Indiana DOR, income tax rates
• Iowa: Iowa Dept. of Revenue, 2026 individual income tax rate (Oct. 21, 2025)
• Kansas: K.S.A. 79-32,110; Kansas DOR Notice 25-06
• Kentucky: Kentucky HB 1 (2025 RS), KRS 141.020
• Louisiana: Louisiana Dept. of Revenue RIB 25-012
• Maine: Maine Revenue Services, 2026 tax rate schedules
• Maryland: Maryland Comptroller, 2026 withholding information; Maryland Comptroller, 2025 session tax alert
• Massachusetts: Massachusetts DOR, 4% surtax on taxable income
• Michigan: Michigan Treasury notice, April 15, 2026
• Minnesota: Minnesota DOR, 2026 income tax brackets; Minnesota DOR, net investment income tax
• Mississippi: Mississippi DOR, general information (tax rates)
• Missouri: Missouri DOR, capital gains subtraction FAQ
• Montana: Montana Code Annotated 15-30-2103; Montana DOR, HB 337 rates
• Nebraska: Nebraska Form 1040N-ES (2026 voucher); Neb. Rev. Stat. 77-2715.03
• Nevada: Tax Foundation, State Individual Income Tax Rates and Brackets
• New Hampshire: New Hampshire DRA, Interest and Dividends Tax repeal
• New Jersey: New Jersey Division of Taxation, tax rate schedules
• New Mexico: New Mexico TRD, 2025 PIT adjustments instructions; New Mexico HB 252 (2024), rates from 2025
• New York: NY Tax Dept., Form IT-2105-I (2026), tax computation worksheets
• North Carolina: North Carolina DOR, tax rate schedules
• North Dakota: North Dakota Century Code 57-38-30.3; North Dakota Form ND-1ES (2026)
• Ohio: Ohio Revised Code 5747.02
• Oklahoma: Oklahoma Tax Commission, Form 561 instructions (capital gain deduction); Oklahoma HB 2764 (2025), rate
• Oregon: Oregon DOR, Publication OR-ESTIMATE 2026
• Pennsylvania: Pennsylvania DOR, personal income tax rates
• Rhode Island: Rhode Island Division of Taxation, Advisory 2025-22
• South Carolina: SCDOR, information about H. 4216; SC Code 12-6-1150
• South Dakota: South Dakota DOR, income tax
• Tennessee: Tennessee Dept. of Revenue, Hall Income Tax repeal
• Texas: Texas Constitution Art. 8, Sec. 24-a and 24-b
• Utah: Utah SB 60 (2026 General Session), enrolled
• Vermont: Vermont Dept. of Taxes, 2025 IN-111 instructions; Vermont Dept. of Taxes, 2025 IN-153 instructions
• Virginia: Code of Virginia 58.1-320; Virginia Tax, rates
• Washington: RCW 82.87.040; Washington DOR, capital gains tax amounts
• West Virginia: West Virginia Tax Dept., income tax reduction bill
• Wisconsin: Wisconsin DOR, 2026 Form 1-ES instructions; Wisconsin Schedule WD instructions
• Wyoming: Wyoming Legislature memo (no state income tax)

General education, not tax or legal advice for your situation. Hans Goldstein is an Enrolled Agent, admitted to practice before the Internal Revenue Service. Not affiliated with or endorsed by the IRS. If a source changes after October 22, 2026, the CSV is updated and dated.

Embed this chart

<a href="https://goldsteinco.net/capital-gains-tax-by-state/"><img src="https://goldsteinco.net/img-orig/capital-gains-tax-by-state-key-numbers.png" alt="Key numbers: 0% rate on long-term gains up to $49,450 of taxable income (single); 15% rate up to $545,500 (single)" width="1200" height="800"></a><br><small>Chart: <a href="https://goldsteinco.net/capital-gains-tax-by-state/">Goldstein &amp; Co.</a></small>

The three kinds of states

1. States that tax gains as ordinary income (most of them). No 0%/15% break. The gain stacks onto your income and pays the state's top marginal rate. These are the states where a §453 structured sale moves the needle most:

2. Nine states with no state tax on the gain at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Here the §453 benefit is federal only. It is still real (it keeps you in lower federal brackets year to year and preserves deductions), just smaller.

3. Washington is the special case. No income tax, but a 7% excise on long-term capital gains above roughly $278,000 (2025, inflation-adjusted), plus an additional 2.9% on taxable gains above $1 million. It excludes real estate, retirement accounts, and certain small-business sales, so a home or rental sale escapes it, but a business or securities sale over the threshold does not.

(A dozen states, including Arizona, Arkansas, Montana, New Mexico, North Dakota, South Carolina, and Wisconsin, offer a partial capital-gains deduction or exclusion that lowers the effective rate below their top marginal rate. Confirm your state's exact treatment with your CPA.)

Go deeper: capital gains tax in all 50 states and DC for 2026 on Big Sale Tax.

Why this matters for a structured sale

A §453 structured installment sale defers the federal gain identically in all 50 states. What differs is the state layer. Because most states tax the gain as ordinary income, spreading it across years also keeps each year in a lower state bracket, as well as a lower federal one. The math:

• High-tax state (CA, NY, NJ, HI, OR, MN, MA): biggest win. You're deferring both a 20% federal + 3.8% NIIT layer and a 9 to 13.3% state layer, and the state layer often drops a bracket or two when spread.
• No-tax state (TX, FL, NV, WA-real-estate, etc.): a federal-only win. Still worth a look on larger deals, but the state savings aren't there.

For a state-specific breakdown, see the California capital-gains breakdown. The same logic applies to any state, scaled to its rate.

Frequently asked

Which states have no capital gains tax? Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no tax on capital gains as income. Washington does impose a separate 7% excise on long-term gains over $278,000 for 2025 (indexed), plus 2.9% more on taxable gains over $1 million (excluding real estate and retirement accounts).

Do most states give capital gains a lower rate like the federal 0/15/20%? No. Most states have no preferential capital-gains rate. They tax the gain as ordinary income at the same brackets that apply to wages. California is the highest at 13.3%.

Does a structured installment sale work in my state? Yes. The federal §453 deferral works in all 50 states. Your state's rate only determines how much extra you save on the state layer on top of the federal deferral.

Every state's deferral page

Find your state's specific capital-gains and §453 breakdown:

Alabama · Alaska · Arizona · Arkansas · Colorado · Connecticut · Washington DC · Delaware · Florida · Georgia · Hawaii · Idaho · Illinois · Indiana · Iowa · Kansas · Kentucky · Louisiana · Maine · Maryland · Massachusetts · Michigan · Minnesota · Mississippi · Missouri · Montana · Nebraska · Nevada · New Hampshire · New Jersey · New Mexico · New York · North Carolina · North Dakota · Ohio · Oklahoma · Oregon · Pennsylvania · Rhode Island · South Carolina · South Dakota · Tennessee · Texas · Utah · Vermont · Virginia · Washington · West Virginia · Wisconsin · Wyoming

More states

• Missouri capital gains tax: no tax on the gain (100% subtraction)
• Ohio capital gains tax: 2.75% flat
• Michigan capital gains tax: 4.25% flat
• Indiana capital gains tax: 2.95% flat (2026), plus county tax
• Tennessee capital gains tax: no state income tax
• Nevada capital gains tax: no state income tax
• New Hampshire capital gains tax: no tax on gains
• Alaska capital gains tax: no state income tax
• South Dakota capital gains tax: no state income tax
• Wyoming capital gains tax: no state income tax

Illustrative only. Not tax, legal, or accounting advice. 2026 figures; state rates, thresholds, and capital-gains deductions change and vary by situation. Confirm your state's current treatment with your CPA.

Every state, with a calculator

Pick your state to run the four layers that actually decide the bill: federal brackets, the 3.8% net investment income tax, depreciation recapture and state tax.

The four layers on any state sale

Whatever your state charges, the same stack applies:

1. Federal long-term capital gains at 0%, 15% or 20%, set by total taxable income for the year.
2. Net investment income tax: an extra 3.8% once modified AGI passes $200,000 single, $250,000 married filing jointly, and only $125,000 married filing separately. Those thresholds have never been indexed for inflation, so more sellers cross them every year.
3. Depreciation recapture at up to 25% on the real-property portion if the asset was ever a rental or business property. Under §453(i) recapture is recognised in the year of sale no matter how you structure payments.
4. State tax, from 0% to 13.3% depending on where you live.

The net investment income tax is the layer sellers miss most often, because it is not part of the headline capital-gains rate and it appears nowhere on the bracket tables.

State-by-state rates and calculators