Key takeaways
Capital Gains Tax by State
California has the highest state capital
California
California has the highest state capital gains tax rate in the country at 13.3%, which includes a 1% surcharge on taxable income over $1 million.
New York (
New York
New York (10.9%), District of Columbia and New Jersey (10.75% each), and Oregon (9.9%) round out the top five highest rates.
Eight states levy no capital gains tax at
Arizona
Eight states levy no capital gains tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming. Arizona has the lowest rate among states that do tax capital gains, at 2.5%.
Map
Capital Gains Tax Rate by State Map
| Rank | State | Rate % |
|---|---|---|
| 1 | California | 13.3 |
| 2 | New York | 10.9 |
| 3 | District of Columbia | 10.75 |
| 3 | New Jersey | 10.75 |
| 5 | Oregon | 9.9 |
| 6 | Minnesota | 9.85 |
| 7 | Massachusetts | 9 |
| 8 | Vermont | 8.75 |
| 9 | Wisconsin | 7.65 |
| 10 | Hawaii | 7.25 |
| 11 | Maine | 7.15 |
| 12 | Washington | 7 |
| 13 | Connecticut | 6.99 |
| 14 | Montana | 6.75 |
| 15 | Nebraska | 6.64 |
| 16 | Delaware | 6.6 |
| 17 | West Virginia | 6.5 |
| 18 | South Carolina | 6.4 |
| 19 | Iowa | 6 |
| 20 | Rhode Island | 5.99 |
| 21 | New Mexico | 5.9 |
| 22 | Idaho | 5.8 |
| 23 | Georgia | 5.75 |
| 23 | Maryland | 5.75 |
| 23 | Virginia | 5.75 |
| 26 | Kansas | 5.7 |
| 27 | Alabama | 5 |
| 27 | Mississippi | 5 |
| 29 | Illinois | 4.95 |
| 29 | Missouri | 4.95 |
| 31 | Arkansas | 4.9 |
| 32 | Utah | 4.85 |
| 33 | North Carolina | 4.75 |
| 33 | Oklahoma | 4.75 |
| 35 | Kentucky | 4.5 |
| 36 | Colorado | 4.4 |
| 37 | Louisiana | 4.25 |
| 37 | Michigan | 4.25 |
| 39 | Ohio | 3.99 |
| 40 | Indiana | 3.15 |
| 41 | Pennsylvania | 3.07 |
| 42 | North Dakota | 2.9 |
| 43 | Arizona | 2.5 |
| 44 | Alaska | 0 |
| 44 | Florida | 0 |
| 44 | Nevada | 0 |
| 44 | New Hampshire | 0 |
| 44 | South Dakota | 0 |
| 44 | Tennessee | 0 |
| 44 | Texas | 0 |
| 44 | Wyoming | 0 |
California's 13.3% top rate is the darkest shade on the map. The eight no-tax states, including Texas, Florida, and Nevada, show no capital gains tax at all, and Arizona's 2.5% is the lowest rate among states that do tax capital gains.
Rate: highest, median, and lowest
Capital Gains Tax by State Table
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|
Rank
|
State
|
Rate
|
|---|---|---|
| 1 |
California
|
13.30% |
| 2 |
New York
|
10.90% |
| 3 |
District of Columbia
|
10.75% |
| 3 |
New Jersey
|
10.75% |
| 5 |
Oregon
|
9.90% |
| 6 |
Minnesota
|
9.85% |
| 7 |
Massachusetts
|
9.00% |
| 8 |
Vermont
|
8.75% |
| 9 |
Wisconsin
|
7.65% |
| 10 |
Hawaii
|
7.25% |
| 11 |
Maine
|
7.15% |
| 12 |
Washington
|
7.00% |
| 13 |
Connecticut
|
6.99% |
| 14 |
Montana
|
6.75% |
| 15 |
Nebraska
|
6.64% |
| 16 |
Delaware
|
6.60% |
| 17 |
West Virginia
|
6.50% |
| 18 |
South Carolina
|
6.40% |
| 19 |
Iowa
|
6.00% |
| 20 |
Rhode Island
|
5.99% |
| 21 |
New Mexico
|
5.90% |
| 22 |
Idaho
|
5.80% |
| 23 |
Georgia
|
5.75% |
| 23 |
Maryland
|
5.75% |
| 23 |
Virginia
|
5.75% |
| 26 |
Kansas
|
5.70% |
| 27 |
Alabama
|
5.00% |
| 27 |
Mississippi
|
5.00% |
| 29 |
Illinois
|
4.95% |
| 29 |
Missouri
|
4.95% |
| 31 |
Arkansas
|
4.90% |
| 32 |
Utah
|
4.85% |
| 33 |
North Carolina
|
4.75% |
| 33 |
Oklahoma
|
4.75% |
| 35 |
Kentucky
|
4.50% |
| 36 |
Colorado
|
4.40% |
| 37 |
Louisiana
|
4.25% |
| 37 |
Michigan
|
4.25% |
| 39 |
Ohio
|
3.99% |
| 40 |
Indiana
|
3.15% |
| 41 |
Pennsylvania
|
3.07% |
| 42 |
North Dakota
|
2.90% |
| 43 |
Arizona
|
2.50% |
| 44 |
Alaska
|
0.00% |
| 44 |
Florida
|
0.00% |
| 44 |
Nevada
|
0.00% |
| 44 |
New Hampshire
|
0.00% |
| 44 |
South Dakota
|
0.00% |
| 44 |
Tennessee
|
0.00% |
| 44 |
Texas
|
0.00% |
| 44 |
Wyoming
|
0.00% |
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Distribution
How rate varies across 50 states
The top three states account for 13.4% of the combined total.
States With the Highest and Lowest Capital Gains Tax Rates
Highest
13.3
California
Lowest
0.0
Wyoming
Top 10 Highest — Rate
Top 10 Lowest — Rate
States With the Highest Capital Gains Tax Rates
California has the highest capital gains tax rate in the country at 13.3%, which includes a 1% surcharge on taxable income over $1 million. New York follows at 10.9%, and District of Columbia and New Jersey are tied at 10.75%.
Massachusetts stands out for its structure rather than its 9% top rate: short-term capital gains are taxed separately at 12%, and taxable income over $1 million pays an additional 4%. Oregon (9.9%) and Minnesota (9.85%) round out the top six.
States With No Capital Gains Tax
Eight states levy no capital gains tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming. Among states that do tax capital gains, Arizona has the lowest rate on record at 2.5%, followed by North Dakota at 2.9%.
Washington taxes capital gains at 7% but exempts real estate, retirement savings accounts, livestock, and timber from the tax, a narrower base than most states that levy a capital gains tax.
Quick Answers
What state has the highest capital gains tax?
Which states have no capital gains tax?
What is the capital gains tax rate in Washington state?
What state has the lowest capital gains tax among states that tax it?
Do states tax capital gains at the same rate as income?
What is the capital gains tax rate in Massachusetts?
Methodology
Rates reflect each state's top capital gains tax rate on record for 2026. Most states tax capital gains as ordinary income; a few give preferential treatment, a federal deduction, or include local taxes.
Sources
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