Capital Gains Tax: how much is CGT in each state in 2024?

1 min readLast updated January 11, 2024by Rachel Carey

Discover more about how capital gains tax works across the different US states.

Summary 

  • Capital gains tax is incurred on the profit you make when you sell an investment or asset. 

  • The long-term capital gains tax rates can range from 0% up to 28% and are subject to several factors.  

  • A number of states, including Texas, Alaska, and Florida, do not tax capital gains.  

  • If you need help with your taxes and managing your finances, a financial advisor can help.  

Understanding capital gains tax 

Capital gains tax (CGT) is incurred on the profit an individual makes when they sell an investment or assets, such as stocks or real estate. 

Other examples of capital assets include:  

  • 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 you pay in capital gains tax depends on your overall taxable income, filing status, and how long you owned the asset before selling it. 

The long-term rates can range from 0% up to 28%; what you are selling will also factor in here, with certain items, such as collectibles, taxed at a higher rate.  

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 as detailed above.  

What states tax capital gains, and at what rate? 

The majority of US states also have their own capital gains tax rates, with most states taxing capital gains as income. California taxes CGT as ordinary income.  

The rates for the taxes you file in 2024 include:  

  • Alabama – The CGT rate is up to 5%.  

  • Arizona – The CGT rate is up to 2.5%. 

  • Arkansas – The CGT rate is is up to 5.50%. 

  • California – California has one of the highest rates of capital gains tax among the 50 states. The highest rate standing at 13.3%.  

  • Colorado – The CGT rate is up to 4.55%. 

  • Connecticut – The CGT rate is up to 6.99%. 

  • Delaware – The CGT rate is up to 6.60%. 

  • Georgia – The CGT rate is up to 5.75%. 

  • Hawaii – CGT is taxed at a lower rate than ordinary income. The highest rate is 7.25%.  

  • Idaho – The CGT rate is up to 5.80%. 

  • Illinois – The CGT rate is flat at 4.95%. 

  • Indiana – The CGT rate is flat at 3.15% 

  • Kansas – The CGT rate cannot exceed 5.70%. 

  • Kentucky – The CGT rate is flat at 4.5% 

  • Louisiana – The CGT rate is up to 4.25%. 

  • Maine – The CGT rate is s up to 7.15%. 

  • Maryland – The CGT rate is up to 5.75%. 

  • Massachusetts – The CGT rate is flat at 8.5%, but certain capital gains are taxed at 12%.  

  • Michigan – The CGT rate is flat at 4.25%. 

  • Minnesota – The CGT rate is up to 9.85%. 

  • Mississippi – The CGT rate is up to 5%. 

  • Missouri – The CGT rate is up to 4.95%. 

  • Montana – The CGT rate is up to 6.90%. 

  • Nebraska – The CGT rate is up to 6.64%. 

  • New Jersey – The CGT rate is up to 10.75%.  

  • New Mexico – The CGT rate is s up to 5.9%. 

  • New York – The CGT rate is up to 8.82%. 

  • North Carolina – The CGT rate is flat at 4.75%. 

  • North Dakota – The CGT rate is up to 2.90%. 

  • Ohio – The CGT rate is up to 4.80%. 

  • Oklahoma – The CGT rate is up to 4.75%. 

  • Oregon– The CGT rate is up to 9.9%. 

  • Pennsylvania – The CGT rate is flat at 3.07%. 

  • Rhode Island – The CGT rate is up to 5.99%. 

  • South Carolina – The CGT rate is up to 6.4%. 

  • South Dakota – The CGT rate is up to 9.85%. 

  • Utah – The CGT rate is flat at 4.95%. 

  • Vermont – Short-term and long-term CGT is taxed as income if the asset is held for under three years. The rate is up to 8.75%. For assets held for more than three years, a Percentage Exclusion allows taxpayers in Vermont can deduct up to 40% of their adjusted net capital gain. However, only certain categories of capital gain income are eligible for this exclusion. 

  • Virginia – The CGT rate is up to 5.75%. 

  • Washington – The CGT tax rate is up to 7%. Revenue from real estate and retirement accounts is excluded from capital gains tax.  

  • West Virginia – The CGT rate is up to 6.5%. 

  • Wisconsin – The CGT rate is up to 7.65%. Similar to Vermont, taxpayers in Wisconsin can deduct 30% on long-term capital gains.  

What states do not tax capital gains? 

Across the US, there are a number of states that do not tax capital gains. These include: 

  • Alaska 

  • Florida 

  • New Hampshire 

  • Nevada 

  • South Dakota 

  • Tennessee 

  • Texas 

  • Wyoming 

These states also do not have 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.  

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.  

Find your perfect financial professional today.

Senior Content Writer

Rachel Carey

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.