Capital Gains
Capital Gains Tax by State 2026
2026-03-22TaxRatesHub Editorial Team7 min
How States Tax Capital Gains
Most states treat capital gains as ordinary income, taxing them at the same rates as wages.
Highest Capital Gains States
California (13.3%), New York (10.9%), New Jersey (10.75%), and Minnesota (9.85%) have the highest top rates.
Best States for Investors
Nine states with no income tax also exempt capital gains. New Hampshire only taxes interest and dividends.
Planning Strategies
Consider relocating before selling assets, time gains for low-income years, and use tax-loss harvesting.
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