© 2025 Arizent. All rights reserved.
Tax

Which states tax capital gains the most?

ByEditorial Staff
June 4, 2024 5:30 AM
Complimentary Access Pill
Enjoy complimentary access to top ideas and insights — selected by our editors.

Taxpayers who sell their assets are subject to taxes on net earnings, or capital gains, without factoring in inflation. In addition to the federal Tax Code on capital gains, individual states have their own accommodations. 

Eight states tax capital gains at lower rates than ordinary income, while two tax capital gains at higher rates than ordinary income. Thirty-three states tax capital gains at the same rate as ordinary income and eight states have no capital gains tax.

Scroll through below to learn more about the states and their tax rates on capital gains.

Source: Tax Foundation

State tax rates on capital gains_States taxing capital gains at lower rates than ordinary income_1.jpg
These are the states taxing capital gains at lower rates than ordinary income.
State tax rates on capital gains_States taxing capital gains at higher rates than ordinary income_2.jpg
These are the states taxing capital gains at higher rates than ordinary income.
State tax rates on capital gains_States taxing capital gains at the same rate as ordinary income_3.jpg
These are the states taxing capital gains at the same rate as ordinary income.
State tax rates on capital gains_No capital gains tax_4.jpg
These are the states with no capital gains tax.
Editorial Staff
Tax State taxes Capital gains taxes
MORE FROM FINANCIAL PLANNING