State rankings

Capital Gains Tax by State

California has the highest Capital Gains Rate in 2023 (13.3%), followed by New York (10.9%) and New Jersey (10.8%). Arizona has the lowest (2.5%).

Law51 states · 2 metricsUpdated May 26, 2023Original page
1 source
Capital Gains RateBetter directionWhether a higher or a lower value is better. A green arrow means higher is better, a red arrow means lower is better, and no arrow means neither.More in the glossary →
43 of 51 states
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Capital Gains Rate, 2023

Green is better, red is worse (lower is better). Click a place to highlight it.

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All 43 ranked

Best first.

Distribution Median and middle halfThe median is the middle value: half of places are above it, half below. The middle half is the range holding the central 50% of places.More in the glossary →

Each dot is one state; the lines mark the median and the middle half.

Median
5.8%
Middle half 4.8% – 7.08%
Average
6.3%
43 states
Lowest (best)
2.5%
Arizona
Highest (worst)
13.3%
California

Biggest changes · 2022 → 2023

43 states have a value in both years.

Improved most

Declined most

Data

Click a column to sort, a row to highlight that place on the charts.

51 states · # = rank by Capital Gains Rate
#
1Arizona2.5%—
2North Dakota2.9%Possible special treatment.
3Pennsylvania3.07%Possible special treatment.
4Indiana3.15%Possible special treatment.
5Ohio3.99%Possible special treatment.
6Michigan4.25%Possible special treatment.
6Louisiana4.25%Rates may be adjusted down if revenue trigger is met on April 1st.
8Colorado4.4%—
9Kentucky4.5%—
10North Carolina4.75%—
10Oklahoma4.75%—
12Utah4.85%—
13Arkansas4.9%Possible special treatment.
14Illinois4.95%—
14Missouri4.95%Possible special treatment.
16Alabama5%Possible special treatment.
16Mississippi5%—
18Kansas5.7%Possible special treatment.
19Georgia5.75%—
19Virginia5.75%—
19Maryland5.75%Possible special treatment.
22Idaho5.8%—
23New Mexico5.9%Possible special treatment.
24Rhode Island5.99%—
25Iowa6%Possible special treatment.
26South Carolina6.4%Possible special treatment.
27West Virginia6.5%—
28Delaware6.6%Possible special treatment.
29Nebraska6.64%—
30Montana6.75%Possible special treatment.
31Connecticut6.99%—
32Washington7%Real estate, retirement savings accounts, livestock, and timber are exempt for capital gain taxation.
33Maine7.15%—
34Hawaii7.25%Possible special treatment.
35Wisconsin7.65%Possible special treatment.
36Vermont8.75%—
37Massachusetts9%Short-term capital gains taxed at 12% rate. Taxable income over $1 million pays an additional 4%.
38Minnesota9.85%—
39Oregon9.9%Possible special treatment.
40New Jersey10.8%Possible special treatment.
40District of Columbia10.8%—
42New York10.9%Possible special treatment.
43California13.3%Taxable income over $1 million pays an additional 1%, making the maximum rate 13.3% over $1 million.
—Texas—No Capital Gains Tax.
—Florida—No Capital Gains Tax.
—Tennessee—No Capital Gains Tax.
—Nevada—No Capital Gains Tax.
—New Hampshire—No Capital Gains Tax.
—South Dakota—No Capital Gains Tax.
—Alaska—No Capital Gains Tax.
—Wyoming—No Capital Gains Tax.

What correlates with Capital Gains Rate (2023)?

Pearson r against 2,107 other state metrics sharing at least 26 states. Ranks are read by standing: a better rank counts as higher, whether rank 1 is the best place on a list or the worst. Correlation is not causation.

Higher together

Places that have a higher Capital Gains Rate tend to score higher on these (or rank better)

  1. Max RateTax Rates by State
    r = +0.97 · very strong · n = 43
    Plot
  2. Highest Income Tax BracketNo Income Tax States
    r = +0.94 · very strong · n = 43
    Plot
  3. Highest BracketIncome Tax by State
    r = +0.94 · very strong · n = 43
    Plot
  4. Income Tax Maximum RateTaxes by State
    r = +0.91 · very strong · n = 42
    Plot
  5. Taxes Charged on Lottery WinningsTaxes on Lottery Winnings by State
    r = +0.77 · very strong · n = 37
    Plot
  6. Taxes Paid To Own State Per CapitaTax Burden by State
    r = +0.72 · very strong · n = 43
    Plot

Opposite directions

Places that have a higher Capital Gains Rate tend to score lower on these (or rank worse)

  1. Overall Freedom ScoreMost Libertarian States
    r = −0.73 · very strong · n = 42
    Plot
  2. State Freedom ScoreState Powers
    r = −0.73 · very strong · n = 42
    Plot
  3. Balance of Payments without COVIDFederal Aid by State
    r = −0.68 · strong · n = 42
    Plot
  4. Overall Freedom RankMost Libertarian StatesA rank: rank 1 is the best
    r = −0.66 · strong · n = 42
    Plot
  5. Quadratic RuleMost Gerrymandered States
    r = −0.64 · strong · n = 39
    Plot
  6. Balance of Payments (State & Federal)Federal Aid by State
    r = −0.64 · strong · n = 42
    Plot

Quick answers

Which state has the highest Capital Gains Rate?
California has the highest Capital Gains Rate in 2023, at 13.3%, followed by New York (10.9%) and New Jersey (10.8%).
Which state has the lowest Capital Gains Rate?
Arizona has the lowest Capital Gains Rate in 2023, at 2.5%.
What is the median Capital Gains Rate across US states?
The median is 5.8% across the 43 US states with data in 2023.
Where does this capital gains tax by state data come from?
Rankodex compiles it from World Population Review and the primary sources it cites: Realized.

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