Capital Gains Tax by State
States ranked by capital gains tax rate — from 0% to 13.3%. Most states tax capital gains as regular income, but rates vary dramatically. If you're selling stocks, real estate, or a business, where you live matters.
8 states
charge 0% capital gains tax
13.3%
highest rate (California)
$13,300
tax on $100K gain in CA vs $0 in TX
| Rank | State | Effective Rate | Treatment | Notes |
|---|---|---|---|---|
| 1 | Alaska | 0.00% | No tax | No state income tax |
| 1 | Florida | 0.00% | No tax | No state income tax |
| 1 | Nevada | 0.00% | No tax | No state income tax |
| 1 | New Hampshire | 0.00% | No tax | No tax on earned income (interest/dividend tax repealed) |
| 1 | South Dakota | 0.00% | No tax | No state income tax |
| 1 | Tennessee | 0.00% | No tax | No state income tax |
| 1 | Texas | 0.00% | No tax | No state income tax |
| 1 | Wyoming | 0.00% | No tax | No state income tax |
| 9 | Washington | 7.00% | Special rate | 7% tax on long-term gains over $270K (since 2022) |
| 10 | Arizona | 2.50% | Taxed as income | Flat 2.5% rate applies to all income including gains |
| 11 | North Dakota | 2.50% | Taxed as income | Low progressive rates (1.95-2.5%) |
| 12 | Pennsylvania | 3.07% | Taxed as income | Flat 3.07% rate on all income |
| 13 | Indiana | 3.05% | Taxed as income | Flat 3.05% rate |
| 14 | Michigan | 4.25% | Taxed as income | Flat 4.25% |
| 15 | Colorado | 4.40% | Taxed as income | Flat 4.4% |
| 16 | Illinois | 4.95% | Taxed as income | Flat 4.95% |
| 17 | North Carolina | 4.50% | Taxed as income | Flat 4.5% |
| 18 | Utah | 4.65% | Taxed as income | Flat 4.65% |
| 19 | Kentucky | 4.00% | Taxed as income | Flat 4.0% |
| 20 | Massachusetts | 5.00% | Taxed as income | Flat 5% on long-term, 9% surtax on income over $1M |
| 21 | Ohio | 3.50% | Taxed as income | Progressive rates, max 3.5% (income over $26K exempt) |
| 22 | Oklahoma | 4.75% | Taxed as income | Top rate 4.75% |
| 23 | Idaho | 5.80% | Taxed as income | Flat 5.8% |
| 24 | Mississippi | 4.70% | Taxed as income | Flat 4.7% |
| 25 | Alabama | 5.00% | Taxed as income | Top rate 5%, with federal deduction |
| 26 | Georgia | 5.49% | Taxed as income | Top rate 5.49% |
| 27 | Missouri | 4.95% | Taxed as income | Top rate 4.95% |
| 28 | Virginia | 5.75% | Taxed as income | Top rate 5.75% |
| 29 | Wisconsin | 5.30% | Taxed as income | Progressive, 60% exclusion on long-term gains |
| 30 | Arkansas | 4.40% | Taxed as income | Top rate 4.4% |
| 31 | Louisiana | 4.25% | Taxed as income | Top rate 4.25% |
| 32 | New Mexico | 4.90% | Partial exclusion | 40% deduction on gains (max $1,000), top rate 5.9% |
| 33 | South Carolina | 6.20% | Taxed as income | Top rate 6.2% |
| 34 | Nebraska | 5.84% | Taxed as income | Top rate 5.84% |
| 35 | Delaware | 6.60% | Taxed as income | Top rate 6.6% |
| 36 | Maryland | 5.75% | Taxed as income | Top rate 5.75% + county surtax |
| 37 | Rhode Island | 5.99% | Taxed as income | Top rate 5.99% |
| 38 | Iowa | 5.70% | Taxed as income | Top rate 5.7% |
| 39 | Kansas | 5.70% | Taxed as income | Top rate 5.7% |
| 40 | Connecticut | 6.99% | Taxed as income | Top rate 6.99% |
| 41 | Montana | 4.10% | Partial exclusion | Capital gains credit reduces effective rate |
| 42 | Maine | 7.15% | Taxed as income | Top rate 7.15% |
| 43 | Minnesota | 9.85% | Taxed as income | Top rate 9.85% |
| 44 | New Jersey | 8.97% | Taxed as income | Top rate 8.97-10.75% on high gains |
| 45 | New York | 8.82% | Taxed as income | Top rate 8.82% + NYC surcharge up to 3.876% |
| 46 | Oregon | 9.90% | Taxed as income | Top rate 9.9% |
| 47 | Vermont | 8.75% | Taxed as income | Top rate 8.75% |
| 48 | Hawaii | 7.25% | Special rate | 7.25% rate on capital gains (lower than regular income rate) |
| 49 | California | 13.30% | Taxed as income | No special rate — taxed at regular income rates up to 13.3% |
| 50 | District of Columbia | 10.75% | Taxed as income | Top rate 10.75% |
| 51 | West Virginia | 5.12% | Taxed as income | Top rate 5.12% |
About this data:
Effective rates shown are estimates for long-term capital gains on a $100K gain at $150K total income. Actual rates depend on your specific income level, filing status, and the state's bracket structure. Federal capital gains tax (0%, 15%, or 20%) applies in addition to state tax. Consult a tax professional for personalized advice.