Wash Sale Rule
The wash sale rule prevents investors from selling at a loss to claim the tax deduction and immediately repurchasing the same investment. If you buy a substantially identical security within 30 days before or after a loss sale, the loss is disallowed and added to the cost basis of the new shares. The rule applies to stocks, bonds, mutual funds, and options, but not to cryptocurrency (as of 2026).
Example
You sell 100 shares of XYZ stock at a $5,000 loss on December 15, then buy 100 shares of XYZ on January 5. The $5,000 loss is disallowed. Instead, it's added to your new shares' basis.
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Arkansas Capital Gains Tax
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Florida Capital Gains Tax
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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.
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
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West Virginia Capital Gains Tax
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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.