Long-Term Capital Gains
Long-term capital gains receive lower federal tax rates than ordinary income. For 2026, single filers pay 0% on gains if total taxable income is below $49,450, 15% up to $545,500, and 20% above that. These rates are significantly lower than ordinary income rates (up to 37%), which is why holding assets for over a year before selling can result in substantial tax savings.
Example
A single filer with $75,000 taxable income sells stock held for 2 years at a $50,000 profit. The entire gain is taxed at 15% ($7,500) rather than the 22% ordinary rate ($11,000).
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Alabama Capital Gains Tax
Alabama taxes capital gains as ordinary income using its progressive brackets.
Alaska Capital Gains Tax
Alaska has no state capital gains tax. Residents pay only federal capital gains tax.
Arizona Capital Gains Tax
Arizona taxes capital gains as ordinary income using its flat rate.
Arkansas Capital Gains Tax
Arkansas taxes capital gains as ordinary income using its progressive brackets.
California Capital Gains Tax
California taxes capital gains as ordinary income using its progressive brackets.
California Income Tax
California has a progressive income tax with 9 brackets ranging from 1% to 12.3%, plus a 1% Behavioral Health Services Tax on income over $1 million, bringing the top rate to 13.3% — the highest in the nation. Most Californians pay an effective rate between 4% and 7%.
Colorado Capital Gains Tax
Colorado taxes capital gains as ordinary income using its flat rate.
Connecticut Capital Gains Tax
Connecticut taxes capital gains as ordinary income using its progressive brackets.
Delaware Capital Gains Tax
Delaware taxes capital gains as ordinary income using its progressive brackets.
Florida Capital Gains Tax
Florida has no state capital gains tax. Residents pay only federal capital gains tax.
Georgia Capital Gains Tax
Georgia taxes capital gains as ordinary income using its flat rate.
Hawaii Capital Gains Tax
Hawaii offers a preferential rate on long-term capital gains, lower than ordinary income rates.
Idaho Capital Gains Tax
Idaho taxes capital gains as ordinary income using its flat rate.
Illinois Capital Gains Tax
Illinois taxes capital gains as ordinary income using its flat rate.
Income Tax Brackets
The U.S. federal income tax uses seven progressive brackets with rates from 10% to 37%. Each bracket rate only applies to the income within that range — not to your entire income.
Indiana Capital Gains Tax
Indiana taxes capital gains as ordinary income using its flat rate.
Iowa Capital Gains Tax
Iowa taxes capital gains as ordinary income using its flat rate.
Kansas Capital Gains Tax
Kansas taxes capital gains as ordinary income using its progressive brackets.
Kentucky Capital Gains Tax
Kentucky taxes capital gains as ordinary income using its flat rate.
Louisiana Capital Gains Tax
Louisiana taxes capital gains as ordinary income using its flat rate.
Maine Capital Gains Tax
Maine taxes capital gains as ordinary income using its progressive brackets.
Maryland Capital Gains Tax
Maryland taxes capital gains as ordinary income using its progressive brackets.
Massachusetts Capital Gains Tax
Massachusetts taxes capital gains as ordinary income using its flat rate.
Michigan Capital Gains Tax
Michigan taxes capital gains as ordinary income using its flat rate.
Minnesota Capital Gains Tax
Minnesota taxes capital gains as ordinary income using its progressive brackets.
Mississippi Capital Gains Tax
Mississippi taxes capital gains as ordinary income using its flat rate.
Missouri Capital Gains Tax
Missouri has no state capital gains tax. Residents pay only federal capital gains tax.
Montana Capital Gains Tax
Montana offers a preferential rate on long-term capital gains, lower than ordinary income rates.
Nebraska Capital Gains Tax
Nebraska taxes capital gains as ordinary income using its progressive brackets.
Nevada Capital Gains Tax
Nevada has no state capital gains tax. Residents pay only federal capital gains tax.
New Hampshire Capital Gains Tax
New Hampshire has no state capital gains tax. Residents pay only federal capital gains tax.
New Jersey Capital Gains Tax
New Jersey taxes capital gains as ordinary income using its progressive brackets.
New Mexico Capital Gains Tax
New Mexico taxes capital gains as ordinary income using its progressive brackets.
New York Capital Gains Tax
New York taxes capital gains as ordinary income using its progressive brackets.
North Carolina Capital Gains Tax
North Carolina taxes capital gains as ordinary income using its flat rate.
North Dakota Capital Gains Tax
North Dakota offers a preferential rate on long-term capital gains, lower than ordinary income rates.
Ohio Capital Gains Tax
Ohio taxes capital gains as ordinary income using its progressive brackets.
Oklahoma Capital Gains Tax
Oklahoma taxes capital gains as ordinary income using its progressive brackets.
Oregon Capital Gains Tax
Oregon taxes capital gains as ordinary income using its progressive brackets.
Pennsylvania Capital Gains Tax
Pennsylvania taxes capital gains as ordinary income using its flat rate.
Rhode Island Capital Gains Tax
Rhode Island taxes capital gains as ordinary income using its progressive brackets.
South Carolina Capital Gains Tax
South Carolina taxes capital gains as ordinary income using its progressive brackets.
South Dakota Capital Gains Tax
South Dakota has no state capital gains tax. Residents pay only federal capital gains tax.
Tennessee Capital Gains Tax
Tennessee has no state capital gains tax. Residents pay only federal capital gains tax.
Texas Capital Gains Tax
Texas has no state capital gains tax. Residents pay only federal capital gains tax.
Utah Capital Gains Tax
Utah taxes capital gains as ordinary income using its flat rate.
Vermont Capital Gains Tax
Vermont taxes capital gains as ordinary income using its progressive brackets.
Virginia Capital Gains Tax
Virginia taxes capital gains as ordinary income using its progressive brackets.
Washington Capital Gains Tax
Washington imposes a capital gains excise tax on long-term gains above a threshold. This is not an income tax.
West Virginia Capital Gains Tax
West Virginia taxes capital gains as ordinary income using its progressive brackets.
Wisconsin Capital Gains Tax
Wisconsin taxes capital gains as ordinary income using its progressive brackets.
Wyoming Capital Gains Tax
Wyoming has no state capital gains tax. Residents pay only federal capital gains tax.