Which states have no capital gains tax?

Nine states have no individual income tax and therefore no capital gains tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington (for gains below ~$262,000), and Wyoming. Washington does have a 7% tax on long-term gains above the threshold.

Which state has the highest capital gains tax rate?

California has the highest state capital gains tax rate at 13.3% (on income above $1,000,000). It is also notable for taxing capital gains as ordinary income with no preferential long-term rate. Combined with the 23.8% top federal rate (20% + 3.8% NIIT), California investors can pay 37.1% total on long-term gains.

Do any states offer a lower rate for long-term capital gains?

Very few states offer a preferential rate for long-term capital gains. Most tax them identically to ordinary income. Montana provides a 2% capital gains credit. South Carolina excludes 44% of gains from certain SC assets held over one year, effectively reducing the rate. Arkansas has a 50% exclusion for certain assets. Washington's special capital gains tax only applies to long-term gains above a threshold.

What is the total capital gains tax (federal + state) in California?

For a California investor with long-term gains in the top bracket: 20% federal + 3.8% NIIT + 13.3% California = 37.1% total. For the common 15% federal bracket: 15% + 13.3% = 28.3%, rising to 32.1% if NIIT applies.

State Tax Guide · 2026

State Capital Gains Tax Rates 2026

Compare capital gains tax rates across all 50 states + Washington D.C. for the 2026 tax year. Find your state's rate, see the combined federal + state total, and go to your state's full guide with brackets and strategies.

How to use this table: Filter by rate tier or search for your state. Click any state name for its full 2026 guide with exact brackets and tax-reduction strategies. Use our free calculator to compute your exact federal tax — Pro users get automatic state tax on every calculation.

State	Top State Rate	Rate Structure	Preferential LT Rate?	Combined w/ 15% Fed	Combined w/ 20% Fed + NIIT
Alaska	0%	No income tax	N/A	15%	23.8%
Arizona	2.5%	Flat 2.5%	No	17.5%	26.3%
Alabama	5%	2–5% progressive	No	20%	28.8%
Arkansas	3.9%	2–3.9% progressive	Partial	18.9%	27.7%
California	13.3%	1–13.3% progressive	No	28.3%	37.1%
Colorado	4.4%	Flat 4.4%	No	19.4%	28.2%
Connecticut	6.99%	2–6.99% progressive	No	21.99%	30.79%
Delaware	6.6%	2.2–6.6% progressive	No	21.6%	30.4%
Florida	0%	No income tax	N/A	15%	23.8%
Georgia	5.19%	Flat 5.19%	No	20.19%	29%
Hawaii	11%	1.4–11% progressive	No	26%	34.8%
Idaho	5.3%	Flat 5.3%	No	20.3%	29.1%
Illinois	4.95%	Flat 4.95%	No	19.95%	28.75%
Indiana	2.95%	Flat 2.95%	No	17.95%	26.75%
Iowa	3.8%	Flat 3.8%	No	18.8%	27.6%
Kansas	5.58%	5.2–5.58% progressive	No	20.58%	29.38%
Kentucky	3.5%	Flat 3.5%	No	18.5%	27.3%
Louisiana	3%	Flat 3%	No	18%	26.8%
Maine	7.15%	5.8–7.15% progressive	No	22.15%	30.95%
Maryland	5.75%	2–5.75% + local	No	20.75%+	29.55%+
Massachusetts	9%	5% / 9% millionaires	No	20–24%	28.8–32.8%
Michigan	4.25%	Flat 4.25%	No	19.25%	28.05%
Minnesota	9.85%	5.35–9.85% progressive	No	24.85%	33.65%
Mississippi	4.7%	Flat 4.7%	No	19.7%	28.5%
Missouri	4.7%	2–4.7% progressive	No	19.7%	28.5%
Montana	5.65%	4.7–5.65% progressive	2% credit	20.65%	29.45%
Nebraska	4.55%	2.46–4.55% progressive	No	19.55%	28.35%
Nevada	0%	No income tax	N/A	15%	23.8%
New Hampshire	0%	No income tax	N/A	15%	23.8%
New Jersey	10.75%	1.4–10.75% progressive	No	25.75%	34.55%
New Mexico	5.9%	1.5–5.9% progressive	No	20.9%	29.7%
New York	10.9%	3.9–10.9% progressive	No	25.9%	34.7%
North Carolina	3.99%	Flat 3.99%	No	18.99%	27.79%
North Dakota	2.5%	0–2.5% progressive	No	17.5%	26.3%
Ohio	2.75%	0–2.75% + local	No	17.75%+	26.55%+
Oklahoma	4.5%	2.5–4.5% progressive	No	19.5%	28.3%
Oregon	9.9%	4.75–9.9% progressive	No	24.9%	33.7%
Pennsylvania	3.07%	Flat 3.07%	No	18.07%	26.87%
Rhode Island	5.99%	3.75–5.99% progressive	No	20.99%	29.79%
South Carolina	6%	0–6% progressive	44% excl.	21%	29.8%
South Dakota	0%	No income tax	N/A	15%	23.8%
Tennessee	0%	No income tax	N/A	15%	23.8%
Texas	0%	No income tax	N/A	15%	23.8%
Utah	4.55%	Flat 4.55%	No	19.55%	28.35%
Vermont	8.75%	3.35–8.75% progressive	No	23.75%	32.55%
Virginia	5.75%	2–5.75% progressive	No	20.75%	29.55%
Washington	7–9%	7% above $262k threshold	Threshold	22–24%	30.8–32.8%
West Virginia	4.82%	2.22–4.82% progressive	No	19.82%	28.62%
Wisconsin	7.65%	3.5–7.65% progressive	No	22.65%	31.45%
Wyoming	0%	No income tax	N/A	15%	23.8%
Washington D.C.	10.75%	4–10.75% progressive	No	25.75%	34.55%

States with no capital gains tax

Nine states — plus Washington D.C. is not among them — have no individual income tax, meaning capital gains are completely untaxed at the state level. These are the most tax-friendly states for investors:

Alaska0% — No income tax Florida0% — No income tax Nevada0% — No income tax New Hampshire0% — No income tax South Dakota0% — No income tax Tennessee0% — No income tax Texas0% — No income tax Wyoming0% — No income tax

Note: Washington has no general income tax but does have a 7% capital gains tax on long-term gains above approximately $262,000 (inflation-adjusted annually). Gains below that threshold remain untaxed.

The highest capital gains tax states

These states combine the highest top rates with no preferential long-term treatment — meaning patient investors pay the same as traders:

California: 13.3% — combined with 20% federal + 3.8% NIIT = 37.1% total
New Jersey: 10.75% — total up to 34.55%
New York: 10.9% + up to 3.876% NYC city tax — total up to 38.6% for NYC residents
Oregon: 9.9% — total up to 33.7%
Minnesota: 9.85% — total up to 33.65%

New York City residents face the steepest combined burden: state income tax (up to 10.9%) plus NYC city tax (up to 3.876%) on top of federal rates can push the all-in rate on long-term gains to 38.6%+ — higher than the top federal ordinary income rate.

How state capital gains taxes work

Unlike the federal system, which has a separate preferential rate structure for capital gains (0/15/20%), most states simply tax capital gains as ordinary income at their regular income tax rates. This means:

Holding an investment for over a year gets you federal preferential rates — but usually no state preferential rate
State tax is calculated on your total gain (net of losses), generally as reported on your federal return
Some states start from federal AGI (so federal loss harvesting flows through); others have their own adjustments
Part-year residents generally owe tax only on the gains realized while resident in the state

Calculate your combined tax instantly: Our free calculator handles federal. Pro users ($15 one-time) get automatic state tax calculation for all 50 states — just enter your state and the math is done for you.

State tax guides

For detailed bracket tables, worked examples, and tax-reduction strategies specific to each state, see the individual guides: