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.
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:
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 10.9%.
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%.
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.
Below is a list of the state capital gains tax rate for taxes you'll file in 2025:
Alabama: Taxes capital gains as income, and the rate reaches 5%.
Alaska: Does not tax capital gains.
Arizona: Taxes capital gains as income, and the rate reaches 2.5%.
Arkansas: Taxes capital gains as income, and the rate reaches around 5.50%.
California: Taxes capital gains as ordinary income. The highest rate reaches 14.4%.
Colorado: Taxes capital gains as income, and the rate reaches 4.55%.
Connecticut: Connecticut’s capital gains tax is 7%.
Delaware: Taxes capital gains as income, and the rate reaches 6.60%.
Florida: Does not tax capital gains.
Georgia: Taxes capital gains as income, and the rate reaches 5.75%.
Hawaii: Taxes capital gains at a lower rate than ordinary income. The highest rate reaches 7.25%.
Idaho: Taxes capital gains as income. The rate reaches 5.80%.
Illinois: Taxes capital gains as income, and the rate is a flat 4.95%.
Indiana: Taxes capital gains as income, and the rate is a flat 3.05%.
Iowa: Taxes capital gains as income, and the rate reaches 6%.
Kansas: Taxes capital gains as income. The rate reaches 5.70% at maximum.
Kentucky: Taxes capital gains as income. The rate is a flat rate of 4.5%.
Louisiana: Taxes capital gains as income. The rate reaches 4.25%.
Maine: Taxes capital gains as income. The rate reaches 7.15% at maximum.
Maryland: Taxes capital gains as income, and the rate reaches 5.75%.
Massachusetts Taxes capital gains as income. Long-term capital gains are usually taxed at a flat rate of about 9%, but the state taxes some types of capital gains at 12%.
Michigan: Taxed as income and at a flat rate of 4.05%.
Minnesota: Taxes capital gains as income, and the rate reaches a maximum of 9.85%.
Mississippi: Taxed as income and reaches 4.70%.
Missouri: Taxed as income, and the rate reaches 4.95%.
Montana: Taxed as income, the highest income tax rate is 6.10%, but with a 2% capital gains credit, this rate is technically 4.10%.
Nebraska: Taxed as income, and the rate reaches 6.64%.
Nevada: Does not tax capital gains.
New Hampshire: Does not tax capital gains.
New Jersey: Taxes capital gains as income, and the rate reaches 10.75%.
New Mexico: The state taxes capital gains as income, and the rate reaches 5.9%.
New York: Taxes capital gains as income, and the rate reaches 10.9%.
North Carolina: Taxed as income and at a flat rate of 4.75%.
North Dakota: Taxed as income (and the rate reaches 2.50%.
Ohio: Taxed as income, and the rate reaches 4.80%.
Oklahoma: Taxed as capital gains, and the rate reaches 3.75%.
Oregon: Taxes capital gains as income, and the rate reaches 9.9%.
Pennsylvania: Taxed as capital gains income at a flat rate of 3.07%.
Rhode Island: Taxed as capital gains income and reaching 5.99%.
South Carolina: Taxes capital gains as income, and the rate reaches 6.4%.
South Dakota: Does not tax capital gains.
Tennessee: Does not tax capital gains.
Texas: Does not tax capital gains.
Utah: Taxes capital gains as income at a flat rate of 4.65%.
Vermont: Taxes short-term capital gains as income; the capital gains tax rate reaches 8.75%.
Virginia: Taxes capital gains as income, with the rate reaching 5.75%.
Washington: Washington State taxes capital gains above $250,000 at a rate of 7%.
West Virginia: The rate reaches 5.12%.
Wisconsin: Taxes capital gains as income. Long-term capital gains can apply a deduction of 30% (or 60% for capital gains from the sale of farm assets). The capital gains tax rate reaches 7.65%.
Wyoming: Does not tax capital gains.
What states with no capital gains tax?
Across the US, there are a number of states that do not tax capital gains.
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Wyoming
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)
Calculate your tax liability with our handy capital gains tax calculator
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.
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.
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.
Rachel is a Senior Content Writer at Unbiased, producing content across a range of different sectors, including personal finance, retirement, and investing. She specializes in simplifying intricate financial terms into clear, engaging content tailored for both B2C and B2B audiences.
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