Which states have no capital gains tax?

States with no broad individual income tax, such as Texas and Florida, show $0 state capital gains tax in our model. Confirm residency and any local rules before you file.

Does California tax long-term gains at a lower rate?

California generally taxes capital gains as ordinary income under its graduated brackets. There is no federal-style 0%/15%/20% long-term preference in the state model.

Tax guide

State capital gains tax: zero, flat, and high-tax states

Updated 2026-08-18 · Educational only — not tax advice

Federal capital gains tax is only part of the story. States fall into rough buckets: zero state income tax on capital gains, flat-rate taxation, graduated ordinary-income treatment, and a handful of special-rule jurisdictions.

Zero-tax examples include Texas and Florida. Flat-rate states such as Illinois apply a single percentage in our model. Graduated states like California can push combined federal-plus-state effective rates well above 30% for top earners. Washington, North Dakota, and Montana apply specialised capital gains rules that are not a simple flat percentage.

How to compare states

Open the 50-state hub, pick your state for a pre-selected calculator, and read the official source link on each page. Moving solely for tax reasons involves housing, employment, and domicile rules far beyond this overview.

Our engine encodes category models and special rules from published sources; rates change, so verify before filing. See methodology for how we update data.

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