California QSBS Capital Gains Tax 2026: Graduated income tax (top rate up to 13.3%)

California QSBS capital gains in this model: Graduated income tax (top rate up to 13.3%). Use this calculator to stack federal long-term or short-term tax, NIIT when it applies, and California's modeled treatment. California generally taxes the gain as ordinary state income, so the state line can rival or exceed the federal long-term rate on a large sale.

Rates last verified: August 2026

Capital Gains Calculator

Federal · NIIT · All 50 states

2026 ratesIRS verified

Follow the three steps, save the sale, then calculate. Required fields are marked with *.

Your tax profile

These apply to every sale in this estimate.

Tax year

Filing status

State

Annual taxable income (before these gains)

Capital loss carried from prior years

What you sold

Prices and quantity for this lot. Give it a name if you will add more than one sale.

Asset type

Asset name

Buy price

Sell price

Quantity / units

Selling expenses

Qualified Small Business Stock (Section 1202)

When you bought and sold

The IRS uses these dates to decide short-term vs long-term rates.

Buy date

Sell date

Next: Save this sale to the order log, then click Calculate now. Tax results do not update until you calculate.

Order log

Sales included in this tax estimate.

Please fill in the details to see your results. Follow the three steps on the left, then save a sale here.

California tax on qualified small business stock

California generally taxes qualified small business stock gains under its graduated income-tax framework (Graduated income tax (top rate up to 13.3%)). This estimate applies the top modeled California rate to remaining taxable gain.

Federal rules for qualified small business stock: IRC Section 1202 may exclude eligible qualified small business stock gain after a more-than-five-year hold, subject to per-issuer caps. State conformity is not guaranteed. Holding period still matters for LTCG vs STCG except where a longer QSBS or real-estate test applies.

Open the parent California calculator for a generic sale, or the national QSBS lander for asset-only copy. Nearby states below keep the same qsbs preset so you can compare residency. Estimates are not tax advice.

This model applies Section 1202 only after a more-than-five-year hold, capped at the greater of $10 million or 10 times basis. That is the pre-4 July 2025 rule as implemented here. Stock acquired after 4 July 2025 is not modeled for a $15 million cap, a 50% exclusion at three years, a 75% exclusion at four years, or a $75 million gross-asset limit. California adds the federal exclusion back into the state tax line. Other states are not given a separate QSBS adjustment in this model.

California does not give capital gains a preferential state rate. The model applies graduated income tax with a top rate up to 13.3% to taxable gain, the same way it treats wages. A long-term federal 15% or 20% bill can therefore sit next to a larger California line on a big sale.

The Mental Health Services Tax is not added on top of that 13.3% figure in this calculator. Residency, not the exchange where the shares traded, is what this page assumes for the state line.

Rates last verified: August 2026. Official source: https://www.ftb.ca.gov/.

California calculator QSBS (all states)U.S. Capital Gains Tax Calculator How to calculate gain Schedule D and Form 8949

Illustrated tax on a long-term gain

QSBS held long enough for long-term treatment in California. Investment real estate does not use Section 121 in this table. QSBS uses a more-than-five-year hold.

Gain	Federal	NIIT	California	Texas state tax
$25,000.00	$0.00	$0.00	$3,325.00	$0.00
$100,000.00	$0.00	$0.00	$13,300.00	$0.00
$250,000.00	$0.00	$0.00	$33,250.00	$0.00

Single filer, tax year 2026, $80,000.00 of other taxable income. Texas is the no-tax comparison. Illustration only, not your return.

FAQ

California QSBS FAQs

How does California tax qualified small business stock capital gains?

Does California honor the federal QSBS exclusion?

This tool applies a modeled federal Section 1202 exclusion when QSBS is checked, then estimates California tax on remaining gain (Graduated income tax (top rate up to 13.3%)). Some states decouple from Section 1202 — verify before you sell.

Which IRS forms apply to a California qsbs sale?

Plan around acquisition records, Form 8949, Schedule D, and Section 1202 support. California may require its own income-tax return when the state line is not $0. NIIT, if any, is computed on Form 8960.

Does California tax qsbs gains if I am a part-year resident?

This page assumes full-year California residency and applies graduated income tax (top rate up to 13.3%) to taxable qualified small business stock gain. Part-year allocation and nonresident sourcing are not modeled — use California instructions or a CPA.

What does the California QSBS illustration assume?

The California QSBS rows use a single filer with $80,000 of other income and a long-term gain in 2026. This model applies Section 1202 only after a more-than-five-year hold, capped at the greater of $10 million or 10 times basis. That is the pre-4 July 2025 rule as implemented here. Stock acquired after 4 July 2025 is not modeled for a $15 million cap, a 50% exclusion at three years, a 75% exclusion at four years, or a $75 million gross-asset limit. California adds the federal exclusion back into the state tax line. Other states are not given a separate QSBS adjustment in this model. Texas is the no-tax comparison, not a second residency.