Every state's capital gains regime for 2026 in one table — the states that tax gains as ordinary income, the 16 with a preference, exclusion, deduction or surtax of their own, and what the same gain costs in each — from state revenue departments and statutes.
| State | 2026 regime | LT tax on $50k gain | Effective | ST tax | Saving vs ordinary |
|---|---|---|---|---|---|
| Alabama | Taxed as ordinary income | $1,937 | 3.9% | $1,937 | — |
| Alaska | Taxed as ordinary income | $0 | 0% | $0 | — |
| Arizona | 25% subtraction (post-2011 assets) | $938 | 1.9% | $1,250 | $313 |
| Arkansas | 50% of net gain exempt | $925 | 1.9% | $1,850 | $925 |
| California | Taxed as ordinary income | $4,650 | 9.3% | $4,650 | — |
| Colorado | Taxed as ordinary income | $2,200 | 4.4% | $2,200 | — |
| Connecticut | Taxed as ordinary income | $2,925 | 5.9% | $2,925 | — |
| Delaware | Taxed as ordinary income | $3,300 | 6.6% | $3,300 | — |
| District of Columbia | Taxed as ordinary income | $4,250 | 8.5% | $4,250 | — |
| Florida | Taxed as ordinary income | $0 | 0% | $0 | — |
| Georgia | Taxed as ordinary income | $2,495 | 5% | $2,495 | — |
| Hawaii | Alternative tax caps the gain at 7.25% | $3,625 | 7.3% | $3,803 | $178 |
| Idaho | Taxed as ordinary income | $2,650 | 5.3% | $2,650 | — |
| Illinois | Taxed as ordinary income | $2,475 | 5% | $2,475 | — |
| Indiana | Taxed as ordinary income | $1,475 | 3% | $1,475 | — |
| Iowa | Ordinary rates (general deduction repealed 2023) | $1,900 | 3.8% | $1,900 | — |
| Kansas | Taxed as ordinary income | $2,790 | 5.6% | $2,790 | — |
| Kentucky | Taxed as ordinary income | $1,750 | 3.5% | $1,750 | — |
| Louisiana | Taxed as ordinary income | $1,500 | 3% | $1,500 | — |
| Maine | Ordinary rates + 2% general high-income surcharge | $3,572 | 7.1% | $3,572 | — |
| Maryland | Ordinary rates + 2% capital gain surtax (AGI over $350k) | $2,572 | 5.1% | $2,572 | — |
| Massachusetts | Long-term 5% · short-term 8.5% · +4% high-income surtax | $2,500 | 5% | $4,250 | — |
| Michigan | Taxed as ordinary income | $2,125 | 4.2% | $2,125 | — |
| Minnesota | Ordinary rates + 1% net investment income tax over $1M | $3,508 | 7% | $3,508 | — |
| Mississippi | Taxed as ordinary income | $2,000 | 4% | $2,000 | — |
| Missouri | 100% deduction — no state tax on gains (individuals) | $0 | 0% | $0 | $2,350 |
| Montana | Separate long-term rates: 3.0% / 4.1% | $2,050 | 4.1% | $2,825 | $775 |
| Nebraska | Ordinary rates (one-time stock election exists) | $2,275 | 4.6% | $2,275 | — |
| Nevada | Taxed as ordinary income | $0 | 0% | $0 | — |
| New Hampshire | Taxed as ordinary income | $0 | 0% | $0 | — |
| New Jersey | Taxed as ordinary income | $3,185 | 6.4% | $3,185 | — |
| New Mexico | Deduction up to $2,500 (40% for business sales) | $2,328 | 4.7% | $2,328 | $123 |
| New York | Taxed as ordinary income | $2,932 | 5.9% | $2,932 | — |
| North Carolina | Taxed as ordinary income | $1,995 | 4% | $1,995 | — |
| North Dakota | 40% exclusion (long-term) | $585 | 1.2% | $975 | $390 |
| Ohio | Taxed as ordinary income | $1,375 | 2.8% | $1,375 | — |
| Oklahoma | 100% deduction for qualifying Oklahoma gains | $2,250 | 4.5% | $2,250 | — |
| Oregon | Ordinary rates (5% farm-liquidation rate exists) | $4,720 | 9.4% | $4,720 | — |
| Pennsylvania | Taxed as ordinary income | $1,535 | 3.1% | $1,535 | — |
| Rhode Island | Taxed as ordinary income | $2,240 | 4.5% | $2,240 | — |
| South Carolina | 44% deduction (held over 1 year) | $1,601 | 3.2% | $2,747 | $1,146 |
| South Dakota | Taxed as ordinary income | $0 | 0% | $0 | — |
| Tennessee | Taxed as ordinary income | $0 | 0% | $0 | — |
| Texas | Taxed as ordinary income | $0 | 0% | $0 | — |
| Utah | Taxed as ordinary income | $2,225 | 4.5% | $2,225 | — |
| Vermont | Exclusion: $5,000, or 40% if held over 3 years | $2,970 | 5.9% | $3,324 | $354 |
| Virginia | Taxed as ordinary income | $2,875 | 5.8% | $2,875 | — |
| Washington | Standalone excise: 7% / 9.9% over the standard deduction | $0 | 0% | $0 | — |
| West Virginia | Taxed as ordinary income | $2,290 | 4.6% | $2,290 | — |
| Wisconsin | 30% exclusion (held over 1 year) | $2,078 | 4.2% | $2,968 | $890 |
| Wyoming | Taxed as ordinary income | $0 | 0% | $0 | — |
The test gain is $50,000, long-term, stacked on $85,000 of other income, single filer. Washington's figure uses the TY2025 standard deduction of $278,000 (the 2026 indexed amount was unpublished at verification), so most household-size gains owe $0 there. Every state page recomputes on your own gain and income.
Most states simply add gains to ordinary income. There is no state-level "capital gains rate" to look up in them — the cost of a gain is whatever brackets it stacks into, which is why two states with the same top rate can charge very different amounts on the same gain. Their pages say this plainly and show the stacking.
Source: state revenue departments, checked state by state for this family.
Washington's excise (7%, then 9.9%, over a $278,000 standard deduction) only touches very large gains. Massachusetts (5% long-term / 8.5% short-term) and Montana (3.0%/4.1% long-term schedule) price gains separately. Arizona, Arkansas, South Carolina, Wisconsin, North Dakota, Vermont and New Mexico exclude or deduct a slice. Hawaii caps the tax at 7.25% of the gain. Missouri deducts everything. Maryland, Minnesota and Maine move the other way, adding surtaxes at high incomes.
Source: state statutes and revenue departments as cited on each state page.
Federally, long-term gains are taxed at 0/15/20% by taxable income, short-term gains as ordinary income, with a 3.8% net investment income tax over statutory MAGI thresholds. State and federal rules differ in both directions — a gain can be free in one layer and expensive in the other — so each state page computes the state layer only and explains the federal one separately.
Source: IRS Topic 409; IRC §1411.
On the test gain, the nine no-income-tax states and Missouri (100% deduction) all charge $0 — and Washington charges $0 too at this size because of its $278,000 standard deduction. Among states that do tax the gain, the exclusion states (Arkansas, Arizona, South Carolina) come in lowest. Sort the table to see the full order, then open a state to run your own figures.
No. Nine states have no income tax reaching gains at all. Washington is the special case: no income tax, but a standalone excise on long-term gains over its standard deduction. Every other state taxes gains — most as ordinary income, a minority under their own regimes.
Mostly it is federal. Only the breakaway states (Massachusetts, Montana, Washington, Hawaii and the exclusion states) price the holding period differently; in ordinary-treatment states a gain is taxed the same whenever it was held, and their pages say so.
Three reasons: the regime (exclusions shrink the taxed portion), the brackets the gain stacks into above $85,000 of other income, and surtaxes that only bite at high incomes. Change the income on any state page and its figure moves — the table is one snapshot, the calculators are the tool.
Capital gains tax in every state for 2026: which states tax gains as ordinary income, which give a preference, exclusion or surtax, and what a $50,000 long-term gain costs in each state on $85,000 of other income.
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One hub for the whole country: how each state taxes a capital gain in 2026 — ordinary treatment in most, a preference, exclusion or surtax in the breakaway states — and what the same gain costs in each.
On the test case — a $50,000 long-term gain over $85,000 of other income — state tax runs from $0 (no-tax states, Missouri’s full deduction, and Washington under its standard deduction) to the top ordinary-treatment states, with the exclusion states in between.
Each state page computes the tax on a gain the way a return does: the regime first (how much of the gain is taxed, or its separate rate), then the stacking through the state’s real brackets.
The nine no-income-tax states charge nothing; Missouri deducts 100% of gains for individuals; and Washington’s excise starts only above its $278,000 standard deduction (TY2025 figure).
Massachusetts and Montana price them on separate schedules; Arizona, Arkansas, South Carolina, Wisconsin, North Dakota, Vermont and New Mexico exclude or deduct a slice; Hawaii caps the tax at 7.25% of the gain.
In Maryland (2% over $350,000 AGI), Minnesota (1% net investment income tax over $1M) and Maine (a general 2% high-income surcharge) — each state page models and labels its own.
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