Capital gains tax rates by state
While Texas and Florida have the lowest capital gains tax with 0%, California and New Jersey are high, with 13.3% and 10.75%, respectively.
Summary
The long-term capital gains tax (CGT) rates can range from 0% up to 20% and are subject to several factors, discussed below.
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.
Map of capital gains tax rates by state
The majority of US states also have their own capital gains tax rates, with most states taxing capital gains as income.
The rates for the taxes you file in 2024 are in the drop down below:
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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.
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. If you want to work out how much you need to pay, you can use our capital gains tax calculator to get an idea.
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.
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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.
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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.