| State | Top Marginal | Capital Gains Short Term | CapitalGains Long Term | Notes |
| Alabama | 5 | 5 | 5 | |
| Alaska | 0 | 0 | 0 | No state income tax |
| Arizona | 5.04 | 5.04 | 5.04 | |
| Arkansas | 7 | 7 | 4.9 | Capital gain rate is 70% of state tax rate for long-term gains |
| California | 9.3 | 9.3 | 9.3 | |
| Colorado | 4.63 | 4.63 | 4.63 | Allows $1,200 ($2,400 married) credit for capital gains; no tax on capital gains for in-state businesses. Property bought before 1994 or held for 5 yrs has no CO capital gains tax |
| Connecticut | 4.5 | 4.5 | 4.5 | |
| Delaware | 5.95 | 5.95 | 5.95 | |
| DC | 9 | 9 | 9 | |
| Florida | 0 | 0 | 0 | No state income tax (high transfer taxes) |
| Georgia | 6 | 6 | 6 | |
| Hawaii | 8.5 | 8.5 | 8.5 | |
| Idaho | 8.2 | 8.2 | 8.2 | 60% reduction in capital gains provided for cap gains produced in Idaho |
| Illinois | 3 | 3 | 3 | Flat rate |
| Indiana | 3.4 | 3.4 | 3.4 | Flat rate |
| Iowa | 8.98 | 8.98 | 8.98 | |
| Kansas | 6.45 | 6.45 | 6.45 | |
| Kentucky | 6 | 6 | 6 | |
| Louisiana | 6 | 6 | 6 | |
| Maine | 8.5 | 8.5 | 8.5 | |
| Maryland | 4.8 | 4.8 | 4.8 | |
| Massachusetts | 12 | 12 | 5 | Flat rate; long-term gain taxed at lower rates based on length of time security has been held |
| Michigan | 4.2 | 4.2 | 4.2 | Flat rate |
| Minnesota | 7.85 | 7.85 | 7.85 | |
| Mississippi | 5 | 5 | 5 | |
| Missouri | 6 | 6 | 6 | |
| Montana | 11 | 11 | 11 | |
| Nebraska | 6.68 | 6.68 | 6.68 | |
| Nevada | 0 | 0 | 0 | No state income tax |
| New Hampshire | 0 | 0 | 0 | State income tax on dividends and interest only |
| New Jersey | 6.37 | 6.37 | 6.37 | |
| New Mexico | 8.2 | 8.2 | 8.2 | |
| New York | 6.85 | 6.85 | 6.85 | |
| North Carolina | 7.75 | 7.75 | 7.75 | |
| North Dakota | 5.54 | 5.54 | 5.54 | |
| Ohio | 6.98 | 6.98 | 6.98 | |
| Oklahoma | 6.75 | 6.75 | 6.75 | |
| Oregon | 9 | 9 | 9 | |
| Pennsylvania | 3.07 | 3.07 | 3.07 |  Flat rate |
| Rhode Island | 10.1 | 5.1 | 5.1 | 25.5% federal tax liability for income and cap gains. State rate applies to federal tax liability. |
| South Carolina | 7 | 7 | 3.92 | |
| South Dakota | 0 | 0 | 0 | No state income tax |
| Tennessee | 0 | 0 | 0 | State income tax on dividends & interest only |
| Texas | 0 | 0 | 0 | No state income tax |
| Utah | 7 | 7 | 7 | |
| Vermont | 9.5 | 4.8 | 4.8 | 24% federal tax liability for income and cap gains. State rate applies to federal tax liability. |
| Virginia | 5.75 | 5.75 | 5.75 | |
| Washington | 0 | 0 | 0 | No state income tax |
| West Virginia | 6.5 | 6.5 | 6.5 | |
| Wisconsin | 6.75 | 6.75 | 2.7 | |
| Wyoming | 0 | 0 | 0 | No state income tax |
If your transaction applies to the capital gains tax rules in a state with ZERO capital gains tax… CONGRATULATIONS!
If not… either get ready to buck up and fork over a ton of cash to Uncle Sam or start looking for capital gains deferral / reduction options right now before its too late.
Post a comment below if you have questions about some capital gains deferral options and I’ll try to answer them in another post.
If you see any errors please shoot me over the correct info.
Source: REIbrain.com
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