Capital Gains Tax by State (2025)
9 of the 51 jurisdictions we can publish charge nothing on a long-term capital gain. 32 tax it at exactly the same rate as your wages. Only 10 give it a rate or an exclusion of its own. The top rate runs from nothing to 13.30% in California.
There is no such thing as a "state long-term capital gains rate" in most of the country. 32 jurisdictions have no capital gains rule at all: a gain drops into ordinary income and is taxed at whatever bracket it lands in. That is the single most important difference from the federal treatment, where a long-term gain gets 0%, 15% or 20% instead of your ordinary rate. At state level, the holding period usually buys you nothing — it changes the rate in just 10 jurisdictions.
Capital gains treatment shown for tax year 2025, the most recent year for which states have published it on their own forms. Rate schedules elsewhere on this site may be for a later tax year; the two are verified separately and are labelled separately.
Where a long-term gain is taxed
Shading is the top rate actually reachable on a long-term gain, after any general exclusion. It is a ceiling, not a bill: in a graduated state a modest gain is taxed far below the top rate shown here.
All 51 published jurisdictions, ranked
Ranked by the top rate on a long-term gain, highest first. Sort by any column. The "short − long" column is the penalty for selling early: a positive figure means a short-term gain costs more. Open a state for the exact exclusion and the source it came from.
| 1 | California | 13.30% | 13.30% | — | Ordinary |
|---|---|---|---|---|---|
| 2 | New Yorkprov. | 10.90% | 10.90% | — | Ordinary |
| 3 | Minnesota | 10.85% | 10.85% | — | Ordinary |
| 4 | District of Columbiaprov. | 10.75% | 10.75% | — | Ordinary |
| 5 | New Jersey | 10.75% | 10.75% | — | Ordinary |
| 6 | Oregonprov. | 9.90% | 9.90% | — | Ordinary |
| 7 | Washington | 9.90% | None | −9.90% | Separate rate |
| 8 | Massachusetts | 9.00% | 12.50% | +3.50% | Ordinary |
| 9 | Vermont | 8.75% | 8.75% | — | Partly excluded |
| 10 | Maryland | 8.50% | 6.50% | −2.00% | Ordinary |
| 11 | Hawaii | 7.25% | 11.00% | +3.75% | Separate rate |
| 12 | Maineprov. | 7.15% | 7.15% | — | Ordinary |
| 13 | Connecticutprov. | 6.99% | 6.99% | — | Ordinary |
| 14 | Delawareprov. | 6.60% | 6.60% | — | Ordinary |
| 15 | Rhode Island | 5.99% | 5.99% | — | Ordinary |
| 16 | New Mexico | 5.90% | 5.90% | — | Partly excluded |
| 17 | Virginiaprov. | 5.75% | 5.75% | — | Ordinary |
| 18 | Kansasprov. | 5.58% | 5.58% | — | Ordinary |
| 19 | Wisconsin | 5.36% | 7.65% | +2.29% | Partly excluded |
| 20 | Idaho | 5.30% | 5.30% | — | Ordinary |
| 21 | Nebraskaprov. | 5.20% | 5.20% | — | Ordinary |
| 22 | Georgiaprov. | 5.19% | 5.19% | — | Ordinary |
| 23 | Alabamaprov. | 5.00% | 5.00% | — | Ordinary |
| 24 | Illinoisprov. | 4.95% | 4.95% | — | Ordinary |
| 25 | West Virginiaprov. | 4.82% | 4.82% | — | Ordinary |
| 26 | Oklahoma | 4.75% | 4.75% | — | Ordinary |
| 27 | Utahprov. | 4.50% | 4.50% | — | Ordinary |
| 28 | Coloradoprov. | 4.40% | 4.40% | — | Ordinary |
| 29 | Mississippi | 4.40% | 4.40% | — | Ordinary |
| 30 | Michiganprov. | 4.25% | 4.25% | — | Ordinary |
| 31 | North Carolinaprov. | 4.25% | 4.25% | — | Ordinary |
| 32 | Montana | 4.10% | 5.90% | +1.80% | Separate rate |
| 33 | Kentuckyprov. | 4.00% | 4.00% | — | Ordinary |
| 34 | Iowaprov. | 3.80% | 3.80% | — | Ordinary |
| 35 | South Carolina | 3.36% | 6.00% | +2.64% | Partly excluded |
| 36 | Ohioprov. | 3.13% | 3.13% | — | Ordinary |
| 37 | Pennsylvania | 3.07% | 3.07% | — | Ordinary |
| 38 | Indianaprov. | 3.00% | 3.00% | — | Ordinary |
| 39 | Louisiana | 3.00% | 3.00% | — | Ordinary |
| 40 | Arkansas | 1.95% | 3.90% | +1.95% | Partly excluded |
| 41 | Arizona | 1.88% | 2.50% | +0.63% | Partly excluded |
| 42 | North Dakota | 1.50% | 2.50% | +1.00% | Partly excluded |
| 43 | Alaska | None | None | — | No tax |
| 44 | Florida | None | None | — | No tax |
| 45 | Missouri | None | None | — | No tax |
| 46 | Nevada | None | None | — | No tax |
| 47 | New Hampshire | None | None | — | No tax |
| 48 | South Dakota | None | None | — | No tax |
| 49 | Tennessee | None | None | — | No tax |
| 50 | Texas | None | None | — | No tax |
| 51 | Wyoming | None | None | — | No tax |
The four ways a state can treat a gain
Not taxed (9). 9 jurisdictions levy no individual income tax at all. 8 of them therefore reach a gain at no rate; Washington is the exception, taxing a long-term gain through a separate excise tax despite having no income tax. Missouri runs the other way: it has an income tax and, from 2025, subtracts 100% of the federally reported capital gain back out of it.
Taxed as ordinary income (32). The normal case. The gain joins your wages and is taxed at your marginal rate. California puts it plainest: its own Form 540 instructions say "No special rate for long term capital gains exists."
Partly excluded. A fixed percentage of the gain is subtracted before the ordinary rate applies, which lowers the effective rate without creating a second schedule. Arkansas excludes 50%, South Carolina 44%, North Dakota 40%, Wisconsin 30%, Arizona 25%.
A separate rate. Three jurisdictions rate the gain on a schedule of its own. Montana publishes a 3.0%/4.1% long-term schedule beside its 4.7%/5.9% ordinary one. Hawaii caps the rate at 7.25% through a worksheet while ordinary income reaches 11%. Washington has no income tax at all and taxes long-term gains through a separate excise tax.
Where the holding period actually changes the rate
In 41 of 51 jurisdictions, selling at eleven months and selling at thirteen months cost exactly the same in state tax. These are the 10 where it does not.
| Jurisdiction | Long-term | Short-term | Difference | Why |
|---|---|---|---|---|
| Hawaii | 7.25% | 11.00% | +3.75% | Long-term gains have their own rate schedule |
| Massachusetts | 9.00% | 12.50% | +3.50% | Short-term gains have their own, higher rate |
| South Carolina | 3.36% | 6.00% | +2.64% | 44% of a long-term gain is excluded |
| Wisconsin | 5.36% | 7.65% | +2.29% | 30% of a long-term gain is excluded |
| Arkansas | 1.95% | 3.90% | +1.95% | 50% of a long-term gain is excluded |
| Montana | 4.10% | 5.90% | +1.80% | Long-term gains have their own rate schedule |
| North Dakota | 1.50% | 2.50% | +1.00% | 40% of a long-term gain is excluded |
| Arizona | 1.88% | 2.50% | +0.63% | 25% of a long-term gain is excluded |
| Maryland | 8.50% | 6.50% | −2.00% | A surtax reaches one class and not the other |
| Washington | 9.90% | 0.00% | −9.90% | Long-term gains have their own rate schedule |
Surtaxes that land on top of the ordinary rate
These are not preferences. In each of these 5 jurisdictions the gain is taxed as ordinary income and then a further rate is added on top, usually above an income threshold.
- California — Behavioral Health Services Tax, 1% above $1,000,000. Taxable income over $1,000,000, including capital gains. Computed on Form 540 line 62. Renamed from the Mental Health Services Tax for taxable years beginning on or after 1 January 2025; the rate and threshold are unchanged, and the threshold is not indexed.
- Maryland — Additional 2% tax on net capital gain, 2% above $350,000. Net capital gain included in Maryland adjusted gross income, where federal adjusted gross income exceeds $350,000. The threshold is the same for every filing status. Enacted in the 2025 legislative session; see Tax-General Article s 10-105(a)(3).
- Massachusetts — 4% surtax, 4% above $1,083,150. The portion of combined Part A, Part B and Part C taxable income above the surtax threshold, which is $1,083,150 for tax year 2025. MGL c.62 s.4(d) sets the threshold at $1,000,000 and subjects it to an annual cost-of-living adjustment; $1,000,000 was the figure for tax year 2023 and $1,053,750 for 2024.
- Minnesota — Net Investment Income Tax, 1% above $1,000,000. Net investment income — including capital gains, interest, dividends, rental and royalty income, non-qualified annuities and certain passive business income — above $1,000,000. In force for taxable years beginning after 31 December 2023.
- Washington — Additional tax on gains above $1 million, 2.9% above $1,000,000. Taxable Washington long-term capital gains above $1,000,000, on top of the 7% rate, giving 9.9% in total. Added by ESSB 5813, Chapter 421, Laws of 2025, first effective for tax year 2025.
Exclusions that reach only one kind of asset
25 jurisdictions offer a deduction, credit or exemption that applies to a named class of asset rather than to capital gains at large — farmland, an in-state business, bullion, a principal residence. These do not change the rates in the table above, because they do nothing for someone selling a share of stock. They are listed here because for the person who owns that asset they are often the whole answer.
| Jurisdiction | Provision | What it reaches |
|---|---|---|
| Alabama | Precious metal bullion | Beginning 1 January 2025, net capital gain on the exchange of precious metal bullion is not reported. The Sound Money Tax Neutrality Act (Act 2024-0447) amended Section 40-18-14 to exclude it. "Precious metal bullion" means coins, bars or rounds containing primarily refined gold, silver, platinum or palladium, marked and valued primarily by weight, purity and content. |
| Arkansas | Gains above $10 million | Net capital gain in excess of $10,000,000, from a gain realised on or after 1 January 2014, is exempt from Arkansas tax outright. Form AR1000D line 7b asks for the total only "if less than $10,000,000". |
| Colorado | Colorado capital gain subtraction (DR 0104AD, with DR 1316) | For tax years commencing on or after 1 January 2022 the subtraction "is allowed only for capital gains recognized by farmers from the sale of agricultural real property", and only taxpayers required to file IRS Schedule F may claim it. The property must have been acquired on or after 9 May 1994 and owned for at least five uninterrupted years before the sale. The subtraction is capped at $100,000. |
| Connecticut | Connecticut Homecare Option Program for the Elderly | Interest, dividends or capital gains earned on contributions to an account established for a designated beneficiary under the Connecticut Homecare Option Program for the Elderly may be subtracted, to the extent properly included in the beneficiary's federal gross income. |
| Delaware | Pension and eligible retirement income exclusion | Eligible retirement income, which the instructions define to include dividends, capital gains net income and interest, falls within Delaware's exclusion for taxpayers aged 60 and over. The exclusion is an age-based cap on retirement income, not a capital gains preference. |
| District of Columbia | Qualified small business stock add-back | Where the taxpayer claimed the federal exclusion of capital gains on the sale or exchange of qualified small business stock under IRC s 1202, the District requires the gain to be added back. The gross income exclusion does not apply in the District. |
| Qualified Opportunity Fund deferral add-back | Capital gains deferred on the federal return through an investment in a Qualified Opportunity Fund must be added back on Schedule I. | |
| Idaho | Idaho capital gains deduction (Form CG) | 60% of capital gain net income from qualifying Idaho property: real property held at least 12 months; tangible personal property used in a revenue-producing enterprise and held at least 12 months; cattle and horses held at least 24 months and other breeding livestock held at least 12 months; timber held at least 24 months; and certain sales of partnership interests. Stocks, goodwill and other intangibles do not qualify. |
| Illinois | Capital gains on employer securities | Certain capital gains on employer securities are among the Illinois subtractions reportable on Schedule K-1-P. |
| Iowa | Iowa capital gain deduction (IA 100 series) | A deduction for net capital gain from the sale of real property used in a farming business, subject to a ten-year holding period and a material participation test with its own checklist of qualifying arrangements; crop-share and CRP arrangements have their own rules. Claimed on form IA 100H for sales on or after 1 January 2023, or IA 100B for installments from earlier sales. |
| Retired farmer lifetime election | A retired farmer, or a surviving spouse, may make a lifetime election to exclude qualifying capital gains from the sale of real property, cattle or horses, or other livestock, on form IA 100G instead of IA 100H. | |
| Kentucky | Lump-sum distribution capital gains election | Where the taxpayer elected the 20 percent capital gains rate for federal purposes on the portion of a lump-sum distribution, a Kentucky adjustment applies. Schedule P and Form 4972-K are required. |
| Louisiana | Repealed net capital gains deduction — transitional survival | The deduction survives only where "a purchase agreement was executed by all parties and all conditions contractually required to perfect the sale were satisfied prior to January 1, 2025", in which case it is allowed even if closing occurs after that date. |
| Maine | Mill Facilities District program bonds | Interest income and capital gains from the sale of Mill Facilities District program bonds may be subtracted on the Schedule 1S Other Income Subtraction Modifications Worksheet. |
| Michigan | Senior interest, dividends and capital gains deduction | Senior citizens born before 1946 may deduct part of the interest, dividends and capital gains included in AGI. For 2025 the deduction is capped at $14,688 for single filers and $29,376 for joint filers. |
| Michigan basis adjustments (MI-1040D and MI-8949) | Michigan Adjustments of Capital Gains and Losses is used only where gains or losses are attributable to an election to use Section 271 treatment for property acquired before Michigan's income tax began, or similar basis differences. It changes the amount of the gain, never the rate. | |
| Mississippi | Mississippi domestic entity exemption | Gain on the sale of authorised shares in financial institutions domiciled in Mississippi, and on shares in certain domestic corporations and partnership interests held longer than one year, is exempt. |
| Missouri | Capital gain exclusion on sale of low income housing | 25% of the capital gain on the sale of a federally subsidised HUD low income housing project to a nonprofit or governmental organisation, where at least 40% of units are occupied at 60% or less of median income and the buyer agrees to preserve or increase low income occupancy. A separate, older provision that predates the general subtraction. |
| Employee Stock Ownership Plan (ESOP) capital gain deduction | 50% of the net capital gain on a qualifying sale of employer securities to an ESOP. | |
| Nebraska | Special capital gains / extraordinary dividend deduction | Available only to Nebraska residents, and to part-year residents while resident, on a one-time election covering gain on stock of a qualifying Nebraska employer corporation. Claimed on Form 4797N with federal Schedule D and Form 8949 attached. |
| Gain on the sale or exchange of bullion | Net capital gain derived from the sale or exchange of gold or silver bullion may be subtracted to the extent included in federal AGI. It does not apply where the gain arises as a taxable distribution from a retirement plan account holding bullion. | |
| New Mexico | New Mexico business sale deduction | 40% of up to $1,000,000 of net capital gain income from the sale of a New Mexico business, claimed instead of the $2,500 flat deduction where it is larger. Introduced in its current form by H.B. 252 (2024) for taxable years beginning on or after 1 January 2025. |
| Ohio | Business income deduction | Where a capital gain is Ohio business income rather than nonbusiness income — for example a gain on a partial or complete liquidation of a business the taxpayer is engaged in — it falls under the Ohio Schedule of Business Income, where the business income deduction and the separate flat business income rate apply instead of the nonbusiness schedule. The booklet works the distinction through two named examples. |
| Oklahoma | Oklahoma capital gain deduction (Schedule 511-A line 12, Form 561) | A full deduction for qualifying gains receiving capital treatment: gains on real or tangible personal property located in Oklahoma owned at least five uninterrupted years; on stock or an ownership interest in an Oklahoma headquartered company, LLC or partnership owned at least two uninterrupted years; or on property sold as part of the sale of all or substantially all the assets of an Oklahoma headquartered business, where the property was owned at least two uninterrupted years. |
| Gains on exempt government obligations | The capital gain or loss from the sale of a U.S. Government obligation is exempt, as is the gain on a state or municipal bond where the statute authorising its issuance so provides. | |
| Oregon | Farm liquidation long-term capital gain tax rate (ORS 316.045) | A reduced rate on net long-term capital gain from capital assets used in farming activities. The sale must end all of the taxpayer's ownership interests in a farming business or in property used in one; a sale to a related person under IRC s 267 does not qualify, a farm dwelling or homesite is not property used in the trade or business of farming, and a net loss across all assets sold in the year disqualifies the claim. The sale of ownership interests in a farming entity qualifies where the taxpayer held at least a 10 percent interest. Computed on Publication OR-FCG. |
| Manufactured dwelling park capital gain exclusion | An exclusion for capital gain on the sale of a manufactured dwelling park, listed among the Oregon subtractions in Publication OR-17. | |
| Oregon deferral of reinvested capital gain | A deferral, rather than an exclusion, for capital gain that is reinvested, described in its own section of Publication OR-17. | |
| Pennsylvania | Sale of a principal residence | Gain on the sale of a principal residence occurring on or after 1 January 1998 is exempt, where the property was owned and occupied as the principal residence for two of the five years before sale. No loss may be taken. Where part of the property was in business or rental use, the exemption does not reach that portion. |
| Utah | Capital gain transaction credit | A credit of 4.5% of eligible capital gains — the same as the tax rate, so it cancels the tax — where "at least 70 percent of the gross proceeds of the transaction are used to buy stock in a qualified Utah small business corporation within 12 months from when the capital gain transaction occurred" and the taxpayer "did not have an ownership interest in the qualified Utah small business corporation at the time of investment." See UCA s 59-10-1022. |
| Vermont | 40% exclusion for assets held more than three years | 40% of adjusted net capital gain on assets held more than three years, capped at $350,000 and further capped at 40% of federal taxable income. Real estate used as a primary or non-primary home, depreciable personal property other than farm property and standing timber, and publicly traded stocks, bonds and other financial instruments are all excluded from it. |
| Virginia | Long-term capital gain subtraction for qualified business investments | Income taxed as a long-term capital gain, or as investment services partnership income for federal purposes, may be subtracted where it is attributable to an investment in a "qualified business" under Va. Code s 58.1-339.4 — a business in advanced computing, materials, manufacturing, biotechnology, medical devices, energy, environmental technology, nanotechnology or a similar field, with its principal facility in Virginia and revenues under $3 million in the year before the investment. The qualifying investment window ran from 1 April 2010 to 30 June 2020. |
| Wisconsin | Farm asset exclusion | 60% of net long-term gain from the sale of farm assets — livestock, farm equipment, farm real property and farm depreciable property — may be excluded instead of 30%. It applies to capital gain as computed under the Internal Revenue Code, not to amounts treated as ordinary income through depreciation recapture. |
What this page does not tell you
These are top rates, not your rate. In a graduated state the figure shown is the rate on the last dollar of a large gain. A $20,000 gain in a state with a 10.75% top rate is very unlikely to meet 10.75%.
Nothing here is the federal tax. A state that charges nothing does not stop the IRS charging 0%, 15% or 20% on the same long-term gain, plus the 3.8% federal net investment income tax where it applies. State tax is a layer on top.
Local income taxes are excluded. Maryland counties, New York City, Yonkers and Indiana counties all reach capital gains on top of the state rate, and none of them is in the figures above. See local income taxes.
Residency and sourcing decide who taxes the gain, and this dataset holds neither. A gain on real property is usually taxed where the property sits; a gain on stock is usually taxed where you live when you sell.
21 of 51 records are provisional rather than verified. For those jurisdictions we established the treatment from the absence of any capital gains modification in the state's own complete instructions, rather than from an affirmative statement that no preference exists. That is weaker evidence and it is labelled as such, in the table and on each state page.
How we verify this data · Sources · Disclaimer — this is published information, not tax advice.