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

California Real estate 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.

What you sold

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

Asset type

When you bought and sold

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

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 real estate

California generally taxes real estate 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 real estate: Primary-residence sales may use IRC Section 121 ($250,000 / $500,000). Investment property may use a 1031 planning deferral and can include unrecaptured Section 1250 depreciation. This estimate is not Form 8824. 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 Real estate lander for asset-only copy. Nearby states below keep the same real estate preset so you can compare residency. Estimates are not tax advice.

This real-estate illustration is an investment property, so Section 121 does not apply. Depreciation recapture and a 1031 preview are separate from this three-row gain table. The table is not Form 8824.

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 calculatorReal estate (all states)U.S. Capital Gains Tax CalculatorSection 1211031 exchange

Illustrated tax on a long-term gain

Real estate 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.

GainFederalNIITCaliforniaTexas state tax
$25,000.00$3,750.00$0.00$3,325.00$0.00
$100,000.00$15,000.00$0.00$13,300.00$0.00
$250,000.00$37,500.00$4,940.00$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 Real estate FAQs

How does California tax real estate capital gains?

California generally taxes real estate 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.

Does California follow Section 121 or 1031 automatically?

This calculator models federal Section 121 on a qualifying home sale and a 1031 planning path for investment property. California conformity can differ from federal law. Confirm California home-sale and like-kind rules before you close.

Which IRS forms apply to a California real estate sale?

Plan around closing statements, Form 8949, Schedule D, and Form 8824 if you complete a 1031. 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 real estate 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 real estate gain. Part-year allocation and nonresident sourcing are not modeled — use California instructions or a CPA.

What does the California Real estate illustration assume?

The California Real estate rows use a single filer with $80,000 of other income and a long-term gain in 2026. This real-estate illustration is an investment property, so Section 121 does not apply. Depreciation recapture and a 1031 preview are separate from this three-row gain table. The table is not Form 8824. Texas is the no-tax comparison, not a second residency.

Same asset, nearby states