Introduction
The capital gains tax is essentially a federal tax on the profits of corporations that do business within the United States. A capital gain is made when a capital asset is sold for higher than its original purchasing price.
There are two types of capital gains taxes: short-term and long-term taxes. Short-term capital gains tax is taxed in a similar manner to ordinary income taxes, up to 37% of total profit in 2022 depending on what tax bracket you fall under. Long-term capital gains taxes on the other hand are derived from assets held for longer than one year before they are sold off. They are taxed on graduated thresholds of 0%, 15%, or 20% of total profit, generally being taxed at 15% and lower for most taxpayers who report long-term capital gains. Therefore, a seller is able to minimize their capital gains tax by holding onto their asset for a year or more before selling it.
The federal government has also passed legislation on capital gains tax, the most recent being the Prohibiting Unrealised Capital Gains Tax, which bars federal officials from taxing capital gains that were not sold or otherwise disposed of.
Check the data in the charts to see how capital gains taxes vary from state to state.
| # | State | Capital Gains Tax Rate | Corporate Tax Rate | Property Tax Rate | Sales Tax Rate |
|---|---|---|---|---|---|
| 1 | California | 13.3% | 8.8% | 0.7% | 7.25% |
| 2 | New Jersey | 10.75% | 11.5% | 2.13% | 6.63% |
| 3 | Oregon | 9.9% | 7.6% | 0.91% | 0% |
| 4 | Minnesota | 9.85% | 9.8% | 1.05% | 6.88% |
| 5 | New York | 8.82% | 7.3% | 1.3% | 4% |
| 6 | Vermont | 8.75% | 8.5% | 1.76% | 6% |
| 7 | Iowa | 8.53% | 8.4% | 1.43% | 6% |
| 8 | Wisconsin | 7.65% | 7.9% | 1.53% | 5% |
| 9 | Hawaii | 7.25% | 6.4% | 0.31% | 4% |
| 10 | Maine | 7.15% | 8.9% | 1.2% | 5.5% |
| 11 | South Carolina | 7% | 5% | 0.53% | 6% |
| 12 | Washington | 7% | 0% | 0.84% | 6.5% |
| 13 | Connecticut | 6.99% | 7.5% | 1.73% | 6.35% |
| 14 | Idaho | 6.93% | 5.8% | 0.65% | 6% |
| 15 | Nebraska | 6.84% | 7.3% | 1.54% | 5.5% |
| 16 | Delaware | 6.6% | 8.7% | 0.59% | 0% |
| 17 | West Virginia | 6.5% | 6.5% | 0.53% | 6% |
| 18 | Rhode Island | 5.99% | 7% | 1.37% | 7% |
| 19 | New Mexico | 5.9% | 5.9% | 0.59% | 5.13% |
| 20 | District of Columbia | 5.75% | 8.3% | 6% | |
| 21 | Georgia | 5.75% | 5.8% | 0.87% | 4% |
| 22 | Maryland | 5.75% | 8.3% | 1.01% | 6% |
| 23 | Virginia | 5.75% | 6% | 0.84% | 5.3% |
| 24 | Kansas | 5.7% | 7% | 1.28% | 6.5% |
| 25 | Arkansas | 5.5% | 5.3% | 0.61% | 6.5% |
| 26 | Missouri | 5.4% | 4% | 0.96% | 4.23% |
| 27 | Alabama | 5% | 6.5% | 0.37% | 4% |
| 28 | Kentucky | 5% | 5% | 0.78% | 6% |
| 29 | Massachusetts | 5% | 8% | 1.08% | 6.25% |
| 30 | Mississippi | 5% | 5% | 0.63% | 7% |
| 31 | North Carolina | 4.99% | 2.5% | 0.78% | 4.75% |
| 32 | Illinois | 4.95% | 9.5% | 1.97% | 6.25% |
| 33 | Utah | 4.95% | 4.9% | 0.56% | 6.1% |
| 34 | Montana | 4.9% | 6.8% | 0.74% | 0% |
| 35 | Ohio | 4.8% | 0% | 1.52% | 5.75% |
| 36 | Oklahoma | 4.75% | 4% | 0.83% | 4.5% |
| 37 | Colorado | 4.55% | 4.6% | 0.52% | 2.9% |
| 38 | Arizona | 4.5% | 4.9% | 0.6% | 5.6% |
| 39 | Louisiana | 4.25% | 7.5% | 0.51% | 4.45% |
| 40 | Michigan | 4.25% | 6% | 1.53% | 6% |
| 41 | Indiana | 3.23% | 4.9% | 0.81% | 7% |
| 42 | Pennsylvania | 3.07% | 9% | 1.43% | 6% |
| 43 | North Dakota | 2.9% | 4.3% | 0.88% | 5% |
| 44 | Alaska | 0% | 9.4% | 0.98% | 0% |
| 45 | Florida | 0% | 5.5% | 0.86% | 6% |
| 46 | Nevada | 0% | 0% | 0.56% | 6.85% |
| 47 | New Hampshire | 0% | 7.5% | 1.89% | 0% |
| 48 | South Dakota | 0% | 0% | 1.14% | 4.5% |
| 49 | Tennessee | 0% | 6.5% | 0.63% | 7% |
| 50 | Texas | 0% | 0% | 1.6% | 6.25% |
| 51 | Wyoming | 0% | 0% | 0.51% | 4% |
Capital Gains Tax Rate by State
Alabama
Capital Gains Tax Rate
5%
Ranked in the US
#27
Ranked in the US
#24
0.37%
Ranked in the US
#49
Ranked in the US
#7
Alaska
Capital Gains Tax Rate
0%
Ranked in the US
#44
Ranked in the US
#4
0.98%
Ranked in the US
#21
Ranked in the US
#1
Arizona
Capital Gains Tax Rate
4.5%
Ranked in the US
#38
Ranked in the US
#38
Ranked in the US
#39
5.6%
Ranked in the US
#23
Arkansas
Capital Gains Tax Rate
5.5%
Ranked in the US
#25
Ranked in the US
#34
0.61%
Ranked in the US
#38
6.5%
Ranked in the US
#41
California
Capital Gains Tax Rate
13.3%
Ranked in the US
#1
Ranked in the US
#7
Ranked in the US
#34
7.25%
Ranked in the US
#51
Colorado
Capital Gains Tax Rate
4.55%
Ranked in the US
#37
Ranked in the US
#41
0.52%
Ranked in the US
#46
2.9%
Ranked in the US
#6
Connecticut
Capital Gains Tax Rate
6.99%
Ranked in the US
#13
Ranked in the US
#16
1.73%
Ranked in the US
#5
6.35%
Ranked in the US
#40
Delaware
Capital Gains Tax Rate
6.6%
Ranked in the US
#16
Ranked in the US
#8
0.59%
Ranked in the US
#40
Ranked in the US
#2
District of Columbia
Capital Gains Tax Rate
5.75%
Ranked in the US
#20
Ranked in the US
#11
Ranked in the US
#25
Florida
Capital Gains Tax Rate
0%
Ranked in the US
#45
Ranked in the US
#33
0.86%
Ranked in the US
#26
Ranked in the US
#26
Georgia
Capital Gains Tax Rate
5.75%
Ranked in the US
#21
Ranked in the US
#31
0.87%
Ranked in the US
#25
Ranked in the US
#8
Hawaii
Capital Gains Tax Rate
7.25%
Ranked in the US
#9
Ranked in the US
#27
0.31%
Ranked in the US
#50
Ranked in the US
#9
Idaho
Capital Gains Tax Rate
6.93%
Ranked in the US
#14
Ranked in the US
#32
0.65%
Ranked in the US
#35
Ranked in the US
#27
Illinois
Capital Gains Tax Rate
4.95%
Ranked in the US
#32
Ranked in the US
#3
1.97%
Ranked in the US
#2
6.25%
Ranked in the US
#37
Indiana
Capital Gains Tax Rate
3.23%
Ranked in the US
#41
Ranked in the US
#39
0.81%
Ranked in the US
#30
Ranked in the US
#47
Iowa
Capital Gains Tax Rate
8.53%
Ranked in the US
#7
Ranked in the US
#10
1.43%
Ranked in the US
#11
Ranked in the US
#28
Kansas
Capital Gains Tax Rate
5.7%
Ranked in the US
#24
Ranked in the US
#21
1.28%
Ranked in the US
#15
6.5%
Ranked in the US
#42
Kentucky
Capital Gains Tax Rate
5%
Ranked in the US
#28
Ranked in the US
#35
0.78%
Ranked in the US
#31
Ranked in the US
#29
Louisiana
Capital Gains Tax Rate
4.25%
Ranked in the US
#39
Ranked in the US
#17
0.51%
Ranked in the US
#47
4.45%
Ranked in the US
#13
Maine
Capital Gains Tax Rate
7.15%
Ranked in the US
#10
Ranked in the US
#6
Ranked in the US
#16
5.5%
Ranked in the US
#21
Maryland
Capital Gains Tax Rate
5.75%
Ranked in the US
#22
Ranked in the US
#12
1.01%
Ranked in the US
#20
Ranked in the US
#30
Massachusetts
Capital Gains Tax Rate
5%
Ranked in the US
#29
Ranked in the US
#13
1.08%
Ranked in the US
#18
6.25%
Ranked in the US
#38
Michigan
Capital Gains Tax Rate
4.25%
Ranked in the US
#40
Ranked in the US
#28
1.53%
Ranked in the US
#8
Ranked in the US
#31
Minnesota
Capital Gains Tax Rate
9.85%
Ranked in the US
#4
Ranked in the US
#2
1.05%
Ranked in the US
#19
6.88%
Ranked in the US
#46
Mississippi
Capital Gains Tax Rate
5%
Ranked in the US
#30
Ranked in the US
#36
0.63%
Ranked in the US
#36
Ranked in the US
#48
Missouri
Capital Gains Tax Rate
5.4%
Ranked in the US
#26
Ranked in the US
#43
0.96%
Ranked in the US
#22
4.23%
Ranked in the US
#12
Montana
Capital Gains Tax Rate
4.9%
Ranked in the US
#34
Ranked in the US
#23
0.74%
Ranked in the US
#33
Ranked in the US
#3
Nebraska
Capital Gains Tax Rate
6.84%
Ranked in the US
#15
Ranked in the US
#19
1.54%
Ranked in the US
#7
5.5%
Ranked in the US
#22
Nevada
Capital Gains Tax Rate
0%
Ranked in the US
#46
Ranked in the US
#46
0.56%
Ranked in the US
#42
6.85%
Ranked in the US
#45
New Hampshire
Capital Gains Tax Rate
0%
Ranked in the US
#47
Ranked in the US
#18
1.89%
Ranked in the US
#3
Ranked in the US
#4
New Jersey
Capital Gains Tax Rate
10.75%
Ranked in the US
#2
11.5%
Ranked in the US
#1
2.13%
Ranked in the US
#1
6.63%
Ranked in the US
#44
New Mexico
Capital Gains Tax Rate
5.9%
Ranked in the US
#19
Ranked in the US
#30
0.59%
Ranked in the US
#41
5.13%
Ranked in the US
#19
New York
Capital Gains Tax Rate
8.82%
Ranked in the US
#5
Ranked in the US
#20
Ranked in the US
#14
Ranked in the US
#10
North Carolina
Capital Gains Tax Rate
4.99%
Ranked in the US
#31
Ranked in the US
#45
0.78%
Ranked in the US
#32
4.75%
Ranked in the US
#16
North Dakota
Capital Gains Tax Rate
2.9%
Ranked in the US
#43
Ranked in the US
#42
0.88%
Ranked in the US
#24
Ranked in the US
#17
Ohio
Capital Gains Tax Rate
4.8%
Ranked in the US
#35
Ranked in the US
#47
1.52%
Ranked in the US
#10
5.75%
Ranked in the US
#24
Oklahoma
Capital Gains Tax Rate
4.75%
Ranked in the US
#36
Ranked in the US
#44
0.83%
Ranked in the US
#29
4.5%
Ranked in the US
#14
Oregon
Capital Gains Tax Rate
9.9%
Ranked in the US
#3
Ranked in the US
#15
0.91%
Ranked in the US
#23
Ranked in the US
#5
Pennsylvania
Capital Gains Tax Rate
3.07%
Ranked in the US
#42
Ranked in the US
#5
1.43%
Ranked in the US
#12
Ranked in the US
#32
Rhode Island
Capital Gains Tax Rate
5.99%
Ranked in the US
#18
Ranked in the US
#22
1.37%
Ranked in the US
#13
Ranked in the US
#49
South Carolina
Capital Gains Tax Rate
7%
Ranked in the US
#11
Ranked in the US
#37
0.53%
Ranked in the US
#44
Ranked in the US
#33
South Dakota
Capital Gains Tax Rate
0%
Ranked in the US
#48
Ranked in the US
#48
1.14%
Ranked in the US
#17
4.5%
Ranked in the US
#15
Tennessee
Capital Gains Tax Rate
0%
Ranked in the US
#49
Ranked in the US
#25
0.63%
Ranked in the US
#37
Ranked in the US
#50
Texas
Capital Gains Tax Rate
0%
Ranked in the US
#50
Ranked in the US
#49
Ranked in the US
#6
6.25%
Ranked in the US
#39
Utah
Capital Gains Tax Rate
4.95%
Ranked in the US
#33
Ranked in the US
#40
0.56%
Ranked in the US
#43
6.1%
Ranked in the US
#36
Vermont
Capital Gains Tax Rate
8.75%
Ranked in the US
#6
Ranked in the US
#9
1.76%
Ranked in the US
#4
Ranked in the US
#34
Virginia
Capital Gains Tax Rate
5.75%
Ranked in the US
#23
Ranked in the US
#29
0.84%
Ranked in the US
#27
5.3%
Ranked in the US
#20
Washington
Capital Gains Tax Rate
7%
Ranked in the US
#12
Ranked in the US
#50
0.84%
Ranked in the US
#28
6.5%
Ranked in the US
#43
West Virginia
Capital Gains Tax Rate
6.5%
Ranked in the US
#17
Ranked in the US
#26
0.53%
Ranked in the US
#45
Ranked in the US
#35
Wisconsin
Capital Gains Tax Rate
7.65%
Ranked in the US
#8
Ranked in the US
#14
1.53%
Ranked in the US
#9
Ranked in the US
#18
Wyoming
Capital Gains Tax Rate
0%
Ranked in the US
#51
Ranked in the US
#51
0.51%
Ranked in the US
#48
Ranked in the US
#11
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