Washington QSBS Capital Gains Tax 2026: 7% tax on long-term capital gains above the annual threshold.

Washington QSBS capital gains in this model: 7% tax on long-term capital gains above the annual threshold.. Use this calculator to stack federal long-term or short-term tax, NIIT when it applies, and Washington's modeled treatment. Washington is not a zero-CGT state here: long-term gains can face the encoded surtax above the threshold even with no ordinary income tax.

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

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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.

Washington tax on qualified small business stock

Washington uses a special rule: 7% tax on long-term capital gains above the annual threshold. qualified small business stock gains still follow federal character first.

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 Washington 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.

This calculator models Washington long-term capital gains at 7% above $262,000. It does not apply a 9.9% tier on gain above $1 million, and it does not inflation-adjust the $262,000 figure for 2026.

Only long-term gain is run through that surtax. Short-term gain is not taxed by Washington in this model. A $50,000, $100,000, or $250,000 long-term gain sits under the $262,000 threshold, so the illustrated Washington line is $0. Gain above $262,000 is taxed at 7% on the excess only.

Rates last verified: August 2026. Official source: https://dor.wa.gov/.

Washington 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 Washington. Investment real estate does not use Section 121 in this table. QSBS uses a more-than-five-year hold.

Gain	Federal	NIIT	Washington	Texas state tax
$25,000.00	$0.00	$0.00	$0.00	$0.00
$100,000.00	$0.00	$0.00	$0.00	$0.00
$250,000.00	$0.00	$0.00	$0.00	$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

Washington QSBS FAQs

How does Washington tax qualified small business stock capital gains?

Washington uses a special rule: 7% tax on long-term capital gains above the annual threshold. qualified small business stock gains still follow federal character first.

Does Washington honor the federal QSBS exclusion?

This tool applies a modeled federal Section 1202 exclusion when QSBS is checked, then estimates Washington tax on remaining gain (7% tax on long-term capital gains above the annual threshold.). Some states decouple from Section 1202 — verify before you sell.

Which IRS forms apply to a Washington qsbs sale?

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

Do Washington special rules apply to qsbs the same as to other assets?

7% tax on long-term capital gains above the annual threshold. Asset character (for example collectibles or QSBS) is determined federally first. The Washington special layer then applies to remaining taxable gain in this estimate.

What does the Washington QSBS illustration assume?

The Washington 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.