Capital gains tax rates by state
Discover the capital gains tax rate broken down by state. You can also connect with a financial advisor and get expert advice by answering a few questions below.
Summary
A number of states, including Texas, Alaska, and Florida, do not tax capital gains.
California and New Jersey have the highest CGT, of 13.3% and 10.75% respectively.
Unbiased can connect you to a financial advisor who can help you create a financial plan and reach your goals.
Do you pay state tax on capital gains?
In addition to paying the federal capital gains tax, the majority of US states have their own capital gains tax rates.
Most states tax capital gains as income, meaning the maximum rate you will pay is the state's maximum income tax rate.
Additionally, some states do not have state income taxes and do not tax capital gains.
Capital gains tax rates by state 2024
The rates for the taxes you file in 2024 are in the drop-down below:
Below is a list of the state capital gains tax rate for taxes you'll file in 2025:
What states with no capital gains tax?
Across the US, there are a number of states that do not tax capital gains.
These states also do not have a personal income tax.
Instead, these states receive taxes in another way, often with higher property or sales tax.
Sometimes, states will tax different areas compared to their neighbors, for example, New Hampshire taxes investment income but not wages.
What are the states with the highest capital gains tax?
California has the highest state capital gains tax rate in the country, up to 13.3%.
New York and New Jersey follow closely behind with maximum rates of 10.9% and 10.75% respectively.
The top five is rounded out with Oregon, with a maximum rate of 9.9%, and Minnesota, with its highest rate of 9.85%.
The top 10 breakdown is as follows:
California: 13.3%
New York: 10.9%
New Jersey: 10.75%
Oregon: 9.9%
Minnesota: 9.85%
Vermont: 8.75%
Massachusetts: 8.5%
Wisconsin: 7.65%
Hawaii: 7.25%
Maine: 7.15%
What is capital gains tax?
Capital gains tax is incurred on the profit an individual makes when they sell an investment or assets, such as stocks or real estate.
Other assets also fall under capital gains tax, including:
Digital assets, such as cryptocurrency and non-fungible tokens (NFTs)
Gems and jewelry
Household furnishings
Vehicles
Gold, silver, and other metals
Coin and stamp collections
How much do capital gains tax will you pay?
How much you pay in capital gains tax depends on your overall taxable income, filing status, and how long you owned the asset before selling it.
If you want to work out how much you need to pay, you can use our capital gains tax calculator to get an idea.
If your gain is short-term, so it’s held for less than a year, you will pay a short-term capital gains tax rate. This is at your ordinary income tax rate.
If your gain is long-term, so it’s held for more than a year, you will pay a long-term capital gains tax rate of between 0% and 28%.
What you are selling will also factor in here, with certain items, such as collectibles, taxed at a higher rate.
How to avoid state capital gains tax?
There are some simple and legal ways to reduce the amount of capital gains tax you pay or even avoid it altogether.
Use your retirement plans wisely: Choosing a tax-advantaged retirement account means you will not be taxed on investment earnings while they remain in the account.
Hold your investments for over a year: Long-term capital gains tax rates tend to be lower than short-term rates, meaning you won’t have to pay as much if you hold your account for longer.
Consider moving state: As we’ve seen, eight states do not impose a state capital gains tax. If you’re in a position to move to one of these states, you could completely get rid of your state capital gains tax obligation.
Get expert help with your taxes
Do you need help getting your taxes in order before the April tax deadline?
A financial advisor is the best option when it comes to your finances. They can help you navigate complex tax rules and make filing your taxes a simple and straightforward process.
When looking for a financial advisor, a good place to start is Unbiased.
Here, you can get matched with an independent SEC-regulated financial advisor who can ensure your taxes are in line with IRS rules and you are taking advantage of all the tax deductions available to you.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.