Capital gains tax by state, 2026
Most states tax a capital gain as ordinary income at their own bracket rates. 8 have no income tax, and a few exclude part of a long-term gain or use their own rates. Here is every state on the same $100,000 long-term gain for a single filer with $80,000 of other income.
| State | State tax on a $100,000 long-term gain |
|---|---|
| Alabama | $5,000 |
| Alaska | $0 (no income tax) |
| Arizona | $1,875 (own rule: 25% of a long-term capital gain is subtracted (assets acquired after 2011)) |
| Arkansas | $1,950 (own rule: 50% of a net long-term capital gain is excluded, and the part above $10 million is exempt) |
| California | $9,300 |
| Colorado | $4,400 |
| Connecticut | $5,900 |
| Delaware | $6,600 |
| District of Columbia | $8,500 |
| Florida | $0 (no income tax) |
| Georgia | $5,190 |
| Hawaii | $7,250 (own rule: long-term capital gains are taxed at no more than 7.25%) |
| Idaho | $5,300 |
| Illinois | $4,950 |
| Indiana | $2,950 |
| Iowa | $3,800 |
| Kansas | $5,580 |
| Kentucky | $3,500 |
| Louisiana | $3,000 |
| Maine | $7,150 |
| Maryland | $5,137 |
| Massachusetts | $5,000 |
| Michigan | $4,250 |
| Minnesota | $7,380 (own rule: an extra 1% applies to net investment income above $1 million) |
| Mississippi | $4,000 |
| Missouri | $4,700 |
| Montana | Special rule: long-term capital gains have their own rates, 3.0% and 4.1%; the 2026 thresholds changed with the 2025 rate cuts and are not published yet |
| Nebraska | $4,550 |
| Nevada | $0 (no income tax) |
| New Hampshire | $0 (no income tax) |
| New Jersey | $6,370 |
| New Mexico | $4,772 (own rule: up to $2,500 of a capital gain is deducted; 40% of up to $1 million only on the sale of a New Mexico business (from 2025)) |
| New York | $5,857 |
| North Carolina | $3,990 |
| North Dakota | $1,170 (own rule: 40% of a net long-term capital gain is excluded) |
| Ohio | $2,750 |
| Oklahoma | $4,500 |
| Oregon | $9,349 |
| Pennsylvania | $3,070 |
| Rhode Island | $4,618 |
| South Carolina | $3,360 (own rule: 44% of a net long-term capital gain is deducted) |
| South Dakota | $0 (no income tax) |
| Tennessee | $0 (no income tax) |
| Texas | $0 (no income tax) |
| Utah | $4,500 |
| Vermont | $7,126 |
| Virginia | $5,750 |
| Washington | $0 (own rule: no income tax, but a 7% tax on long-term gains above a yearly deduction ($278,000 for 2025, the latest published) and 9.9% on taxable gains above $1 million; real estate and retirement accounts are exempt) |
| West Virginia | $4,820 |
| Wisconsin | $3,710 (own rule: 30% of a net long-term capital gain is deducted (60% for farm assets)) |
| Wyoming | $0 (no income tax) |
States with their own rules
Arizona, Arkansas, North Dakota, South Carolina and Wisconsin exclude part of a long-term gain, New Mexico deducts up to $2,500 of it, Hawaii taxes long-term gains at no more than 7.25%, Minnesota adds 1% on investment income above $1 million, and Washington, which has no income tax, taxes long-term gains above a yearly deduction: $50,540 on a $1,000,000 gain. Each rule was checked against the state's own tax authority or statute. Montana's 2026 capital gains thresholds changed with its 2025 rate cuts and are not published yet, so Montana shows its rule without a figure.
For your own figures, use the calculator, which adds the federal tax.
Updated: