Capital Gains Tax by State (2026), and Why Your State Rate Decides How Much a §453 Sale Saves
The federal capital-gains rate is the same wherever you live. Your state rate is what changes the size of the check. In most states there is no special capital-gains rate at all. The large majority tax a capital gain exactly like a paycheck: as ordinary income, at the top marginal rate. So the higher your state's income tax, the more a structured installment sale (which spreads the gain across years) is worth.
Want your own number, not a state average?
The rates on this page are general. Your bill depends on your gain, your basis and when you sell. Hans can run yours.

Capital gains tax rate by state, 2026: the table
Federal long-term capital gains tax tops out at 20% plus the 3.8% net investment income tax, so 23.8% before any state. Add your state and the combined top rate runs from 23.8% in 8 states with no income tax to 37.1% in California. Highest five: California 37.1%, New York 34.7%, Minnesota 34.65%, District of Columbia 34.55%, New Jersey 34.55%.
Click a column to sort. Every state row links to the state's own revenue department, legislature or statute. State rates were read on those sources on October 18, 2026 and this table was published October 22, 2026.
| State | State top rate on long-term gain | Combined top rate (20% + 3.8% + state) | State gain break | Combined after the break | State rule and source | Checked |
|---|---|---|---|---|---|---|
| Alabama | 5% | 28.8% | None | n/a | 2% / 4% / 5%; 5% over $3,000 of taxable income (single). Alabama lets you deduct the federal income tax and 3.8% NIIT the sale causes, so the 5% applies to the gain net of them. Alabama Dept. of Revenue, income tax rates; Alabama Form 40 booklet, Federal Income Tax Deduction Worksheet | Read on the state source |
| Alaska | 0% | 23.8% | None | n/a | No individual income tax. Tax Foundation, State Individual Income Tax Rates and Brackets | Read on the state source |
| Arizona | 2.5% | 26.3% | 25% subtraction for assets acquired after 2011 | n/a | Flat 2.5% for 2026. A 25% subtraction of long-term gain on assets acquired after 2011 is NOT applied in the base case (acquisition date unknown); see footnote. Arizona DOR, 2026 Form 140ES booklet; A.R.S. 43-1022(22) | Read on the state source |
| Arkansas | 3.7% | 27.5% | 50% of net long-term gain taxed; gain over $10 million exempt | 25.65% | Top rate 3.7% for 2026 (SB 1, 2026 special session). Only 50% of net long-term gain is taxed; gain above $10 million is fully exempt. Arkansas SB 1 fiscal impact statement (3.7% for 2026); Arkansas DFA Form AR1000D | Read on the state source |
| California | 13.3% | 37.1% | None | n/a | 1% to 12.3% (12.3% over $768,213 single, 2026 schedule X) plus the 1% Mental Health Services Tax on taxable income over $1 million. Franchise Tax Board, 2026 tax rate schedules (Tax News, October 2026); FTB, capital gains and losses | Read on the state source |
| Colorado | 4.4% | 28.2% | None | n/a | Flat 4.4% for 2026. Colorado DR 0104EP (2026) | Read on the state source |
| Connecticut | 6.99% | 30.79% | None | n/a | 2% to 6.99% (6.99% over $500,000 single). High earners also add back the 2% phase-out ($250) and the lower-bracket recapture ($3,400 at $540,000 of AGI), per the CT-1040ES 2026 tables. Connecticut DRS, Form CT-1040ES (Rev. 01/26) | Read on the state source |
| Delaware | 6.6% | 30.4% | None | n/a | 0% to 6.6%; 6.6% over $60,000 (2026). Delaware Division of Revenue, tax computation table (effective January 1, 2025, unchanged) | Read on the state source |
| District of Columbia | 10.75% | 34.55% | None | n/a | 4% to 10.75%; 10.75% over $1,000,000, same brackets for every filing status. DC Office of Tax and Revenue, individual income tax rates | Read on the state source |
| Florida | 0% | 23.8% | None | n/a | No personal income tax. Florida Dept. of Revenue FAQ | Read on the state source |
| Georgia | 4.99% | 28.79% | None | n/a | Flat 4.99% from January 1, 2026 (HB 463, signed May 2026). Governor of Georgia, May 11, 2026 release (HB 463) | Read on the state source |
| Hawaii | 7.25% on long-term gain (11% ordinary top) | 31.05% | Capped at 7.25% on long-term gain | n/a | Long-term gain is capped at 7.25% (HRS 235-51(f)); the first slice taxed below 7.25% at graduated rates is not modeled (see footnote). Hawaii Revised Statutes 235-51 | Read on the state source |
| Idaho | 5.3% | 29.1% | 60% deduction for Idaho real and tangible property only | n/a | Flat 5.3% on taxable income above a small zero bracket ($4,811 single in 2025). The 60% deduction applies only to Idaho real and tangible property, not to goodwill, so it is not applied. Idaho State Tax Commission, rate schedule; Idaho Code 63-3024 | Read on the state source |
| Illinois | 4.95% | 28.75% | None | n/a | Flat 4.95% since July 1, 2017. Illinois Dept. of Revenue, income tax rates | Read on the state source |
| Indiana | 2.95% (plus county tax) | 26.75% | None | n/a | State rate 2.95% for 2026 (2.90% in 2027). County income tax is extra and is not included. Indiana DOR, income tax rates | Read on the state source |
| Iowa | 3.8% | 27.6% | None | n/a | Flat 3.8% for 2026 (SF 2442). Iowa Dept. of Revenue, 2026 individual income tax rate (Oct. 21, 2025) | Confirmed via search result (state site blocks automated fetches) |
| Kansas | 5.58% | 29.38% | None | n/a | 5.2% to $23,000, 5.58% above (single). SB 269 triggered no 2026 cut. K.S.A. 79-32,110; Kansas DOR Notice 25-06 | Read on the state source |
| Kentucky | 3.5% | 27.3% | None | n/a | Flat 3.5% from January 1, 2026 (HB 1, 2025). Kentucky HB 1 (2025 RS), KRS 141.020 | Read on the state source |
| Louisiana | 3% | 26.8% | None | n/a | Flat 3% from 2025 (Act 11 of 2024 special session). Louisiana Dept. of Revenue RIB 25-012 | Read on the state source |
| Maine | 9.15% (7.15% + 2% surcharge over $1M) | 32.95% | None | n/a | 5.8% / 6.75% / 7.15% (7.15% over $64,850 single) plus a new 2% surcharge on Maine taxable income over $1,000,000 (single) from 2026. Maine Revenue Services, 2026 tax rate schedules | Read on the state source |
| Maryland | 8.5% (6.5% + 2% gain surtax), plus county tax | 32.3% | None | n/a | State brackets to 6.5% (over $1,000,000 single) plus a 2% tax on net capital gain when federal AGI is over $350,000. County income tax (2.25% to 3.30%) is extra and is not included. Maryland Comptroller, 2026 withholding information; Maryland Comptroller, 2025 session tax alert | Read on the state source |
| Massachusetts | 9% (5% + 4% surtax over $1,107,750) | 32.8% | None | n/a | 5% on long-term gain plus the 4% surtax on taxable income over $1,107,750 (2026). Massachusetts DOR, 4% surtax on taxable income | Confirmed via search result (state site blocks automated fetches) |
| Michigan | 4.25% | 28.05% | None | n/a | Flat 4.25% for 2026 (revenue trigger not met). Michigan Treasury notice, April 15, 2026 | Read on the state source |
| Minnesota | 10.85% (9.85% + 1% on investment income over $1M) | 34.65% | None | n/a | 5.35% to 9.85% (9.85% over $203,150 single, 2026) plus a 1% tax on net investment income over $1,000,000. Minnesota DOR, 2026 income tax brackets; Minnesota DOR, net investment income tax | Read on the state source |
| Mississippi | 4% (over $10,000) | 27.8% | None | n/a | 0% on the first $10,000, 4% above for 2026 (4.4% in 2025). The exclusion for gain on shares of Mississippi-domiciled corporations is for stock sales, not applied to this asset sale. Mississippi DOR, general information (tax rates) | Read on the state source |
| Missouri | 0% on capital gains (4.7% ordinary) | 23.8% | 100% of capital gain subtracted | n/a | 100% of federally reported capital gains are subtracted from Missouri income from tax year 2025 (RSMo 143.121). Ordinary-income recapture would still be taxed. Missouri DOR, capital gains subtraction FAQ | Read on the state source |
| Montana | 4.1% on long-term gains (5.65% ordinary) | 27.9% | None | n/a | Long-term gain: 3.0% on the first $47,500, 4.1% above (single), MCA 15-30-2103. Ordinary income is 4.7% / 5.65% for 2026. Montana Code Annotated 15-30-2103; Montana DOR, HB 337 rates | Read on the state source |
| Nebraska | 4.55% | 28.35% | None | n/a | 2.46% / 3.51% / 4.55%; 4.55% over $24,760 (single, 2026), 3.99% from 2027. Nebraska Form 1040N-ES (2026 voucher); Neb. Rev. Stat. 77-2715.03 | Read on the state source |
| Nevada | 0% | 23.8% | None | n/a | No personal income tax. Tax Foundation, State Individual Income Tax Rates and Brackets | Read on the state source |
| New Hampshire | 0% | 23.8% | None | n/a | No tax on wages or capital gains; the Interest and Dividends Tax ended for periods beginning after December 31, 2024. New Hampshire DRA, Interest and Dividends Tax repeal | Confirmed via search result (state site blocks automated fetches) |
| New Jersey | 10.75% | 34.55% | None | n/a | 1.4% to 10.75%; 10.75% over $1,000,000 (single). Rate schedule unchanged since 2020. New Jersey Division of Taxation, tax rate schedules | Read on the state source |
| New Mexico | 5.9% (40% business-sale deduction) | 29.7% | 40% deduction on a New Mexico business sale (up to $1,000,000 of gain) | n/a | 1.5% to 5.9%. For the sale of a New Mexico business, 40% of up to $1,000,000 of net capital gain is deducted (NMSA 7-2-34); other sales get only the greater of $2,500. New Mexico TRD, 2025 PIT adjustments instructions; New Mexico HB 252 (2024), rates from 2025 | Read on the state source |
| New York | 10.9% (plus NYC) | 34.7% | None | n/a | Worksheet tax with benefit recapture: a $1M gain is taxed at a flat 6.85%, $1,077,550 to $5M at 9.65%, $5M to $25M at 10.3%, over $25M at 10.9%. New York City tax (up to 3.876%) is extra and is not included. NY Tax Dept., Form IT-2105-I (2026), tax computation worksheets | Read on the state source |
| North Carolina | 3.99% | 27.79% | None | n/a | Flat 3.99% for 2026 (4.25% in 2025). North Carolina DOR, tax rate schedules | Read on the state source |
| North Dakota | 2.5% (40% long-term gain exclusion) | 26.3% | 40% exclusion | 25.3% | 0% / 1.95% / 2.5% after excluding 40% of net long-term capital gain allocated to North Dakota (NDCC 57-38-30.3(2)(d)). North Dakota Century Code 57-38-30.3; North Dakota Form ND-1ES (2026) | Read on the state source |
| Ohio | 3% on business income (2.75% on other income) | 26.8% | First $250,000 of business gain deducted | n/a | Business-sale gain is business income: the first $250,000 is deducted, the rest taxed at a flat 3% (ORC 5747.02(A)(4)). Non-business gain is 2.75% over $26,050. Ohio Revised Code 5747.02 | Read on the state source |
| Oklahoma | 4.5% | 28.3% | 100% deduction for sale of an Oklahoma business meeting the ownership tests | n/a | 4.5% for 2026. Gain on the sale of all or substantially all assets of an Oklahoma business (owned 2+ years, headquartered in Oklahoma 3+ years) is 100% deductible (68 O.S. 2358, Form 561), so the base case is $0; the 4.5% figure is shown as the alternative. Oklahoma Tax Commission, Form 561 instructions (capital gain deduction); Oklahoma HB 2764 (2025), rate | Read on the state source |
| Oregon | 9.9% (plus Portland-area local) | 33.7% | None | n/a | 4.75% to 9.9%; 9.9% over $125,000 (single, 2026). Capital gain is ordinary income. Metro/Portland local taxes are extra and not included. Oregon DOR, Publication OR-ESTIMATE 2026 | Read on the state source |
| Pennsylvania | 3.07% | 26.87% | None | n/a | Flat 3.07%. No capital gains break. Pennsylvania DOR, personal income tax rates | Read on the state source |
| Rhode Island | 5.99% | 29.79% | None | n/a | 3.75% / 4.75% / 5.99%; 5.99% over $186,450 (2026). A surtax on income over $1M starts in 2027, so it does not apply here. Rhode Island Division of Taxation, Advisory 2025-22 | Read on the state source |
| South Carolina | 5.21% (44% long-term gain deduction) | 29.01% | 44% deduction | 26.72% | 1.99% under $30,000 of taxable income, 5.21% minus $966 above (H.4216, effective 2026), after the 44% deduction for net capital gain (SC Code 12-6-1150). SCDOR, information about H. 4216; SC Code 12-6-1150 | Read on the state source |
| South Dakota | 0% | 23.8% | None | n/a | No personal income tax. South Dakota DOR, income tax | Read on the state source |
| Tennessee | 0% | 23.8% | None | n/a | No personal income tax (Hall tax repealed for tax years beginning 2021). Tennessee Dept. of Revenue, Hall Income Tax repeal | Read on the state source |
| Texas | 0% | 23.8% | None | n/a | No personal income tax; the constitution bars one and, since November 2025, a capital gains tax. Texas Constitution Art. 8, Sec. 24-a and 24-b | Read on the state source |
| Utah | 4.45% | 28.25% | None | n/a | Flat 4.45% for 2026 (SB 60, 2026 session). Utah SB 60 (2026 General Session), enrolled | Read on the state source |
| Vermont | 8.75% | 32.55% | 40% exclusion on assets held over 3 years (cap $350,000 of exclusion) | n/a | 3.35% to 8.75%. Vermont excludes 40% of gain on assets held over three years, capped at $350,000 of exclusion; whether goodwill of a business qualifies is not spelled out (see footnote). Brackets are the 2025 schedule: 2026 is not published. Vermont Dept. of Taxes, 2025 IN-111 instructions; Vermont Dept. of Taxes, 2025 IN-153 instructions | Read on the state source |
| Virginia | 5.75% | 29.55% | None | n/a | 2% / 3% / 5% / 5.75%; 5.75% over $17,000. Code of Virginia 58.1-320; Virginia Tax, rates | Read on the state source |
| Washington | 9.9% (7% + 2.9% over $1M) | 33.7% | None | n/a | 7% on Washington capital gains after the standard deduction ($278,000 for 2025; 2026 not yet published), plus 2.9% on the part above $1,000,000 (RCW 82.87.040). Washington has no tax on wages. RCW 82.87.040; Washington DOR, capital gains tax amounts | Read on the state source |
| West Virginia | 4.58% | 28.38% | None | n/a | 2.11% to 4.58%; 4.58% over $60,000 (SB 392, retroactive to January 1, 2026). West Virginia Tax Dept., income tax reduction bill | Read on the state source |
| Wisconsin | 7.65% (30% long-term gain exclusion) | 31.45% | 30% exclusion | 29.15% | 3.5% to 7.65% (7.65% over $332,720 single, 2026) after excluding 30% of net capital gain on assets held over one year. Wisconsin DOR, 2026 Form 1-ES instructions; Wisconsin Schedule WD instructions | Read on the state source |
| Wyoming | 0% | 23.8% | None | n/a | No personal income tax. Wyoming Legislature memo (no state income tax) | Read on the state source |
How the combined number is built: federal long-term rate 20% (single filers over $545,500 of taxable income in 2026) plus the 3.8% net investment income tax (over $200,000 of modified AGI, single) plus the state's top rate on long-term gain. It does not subtract any federal deduction for state tax paid and leaves out local taxes (New York City, Maryland counties, Indiana counties, Portland-area). The "after the break" column is computed only for the four states whose rule applies one fixed exclusion to every taxpayer (Arkansas, North Dakota, Wisconsin, South Carolina); other states with special treatment are described in the "State gain break" column and not recomputed, because the result depends on the asset and the sale. Washington's figure is its capital gains excise tax, not an income tax. Missouri is shown at 0% on capital gain; ordinary-income recapture is still taxed there.
Free to use with a link back. Copy the attribution below.
CSV · JSON · Cite as: Goldstein & Co. (Hans Goldstein, Enrolled Agent), "Capital gains tax rate by state (2026)," October 22, 2026, https://goldsteinco.net/capital-gains-tax-by-state/
Sources
Federal:
State sources (51 rows, 61 source checks)
- Alabama: Alabama Dept. of Revenue, income tax rates; Alabama Form 40 booklet, Federal Income Tax Deduction Worksheet
- Alaska: Tax Foundation, State Individual Income Tax Rates and Brackets
- Arizona: Arizona DOR, 2026 Form 140ES booklet; A.R.S. 43-1022(22)
- Arkansas: Arkansas SB 1 fiscal impact statement (3.7% for 2026); Arkansas DFA Form AR1000D
- California: Franchise Tax Board, 2026 tax rate schedules (Tax News, October 2026); FTB, capital gains and losses
- Colorado: Colorado DR 0104EP (2026)
- Connecticut: Connecticut DRS, Form CT-1040ES (Rev. 01/26)
- Delaware: Delaware Division of Revenue, tax computation table (effective January 1, 2025, unchanged)
- District of Columbia: DC Office of Tax and Revenue, individual income tax rates
- Florida: Florida Dept. of Revenue FAQ
- Georgia: Governor of Georgia, May 11, 2026 release (HB 463)
- Hawaii: Hawaii Revised Statutes 235-51
- Idaho: Idaho State Tax Commission, rate schedule; Idaho Code 63-3024
- Illinois: Illinois Dept. of Revenue, income tax rates
- Indiana: Indiana DOR, income tax rates
- Iowa: Iowa Dept. of Revenue, 2026 individual income tax rate (Oct. 21, 2025)
- Kansas: K.S.A. 79-32,110; Kansas DOR Notice 25-06
- Kentucky: Kentucky HB 1 (2025 RS), KRS 141.020
- Louisiana: Louisiana Dept. of Revenue RIB 25-012
- Maine: Maine Revenue Services, 2026 tax rate schedules
- Maryland: Maryland Comptroller, 2026 withholding information; Maryland Comptroller, 2025 session tax alert
- Massachusetts: Massachusetts DOR, 4% surtax on taxable income
- Michigan: Michigan Treasury notice, April 15, 2026
- Minnesota: Minnesota DOR, 2026 income tax brackets; Minnesota DOR, net investment income tax
- Mississippi: Mississippi DOR, general information (tax rates)
- Missouri: Missouri DOR, capital gains subtraction FAQ
- Montana: Montana Code Annotated 15-30-2103; Montana DOR, HB 337 rates
- Nebraska: Nebraska Form 1040N-ES (2026 voucher); Neb. Rev. Stat. 77-2715.03
- Nevada: Tax Foundation, State Individual Income Tax Rates and Brackets
- New Hampshire: New Hampshire DRA, Interest and Dividends Tax repeal
- New Jersey: New Jersey Division of Taxation, tax rate schedules
- New Mexico: New Mexico TRD, 2025 PIT adjustments instructions; New Mexico HB 252 (2024), rates from 2025
- New York: NY Tax Dept., Form IT-2105-I (2026), tax computation worksheets
- North Carolina: North Carolina DOR, tax rate schedules
- North Dakota: North Dakota Century Code 57-38-30.3; North Dakota Form ND-1ES (2026)
- Ohio: Ohio Revised Code 5747.02
- Oklahoma: Oklahoma Tax Commission, Form 561 instructions (capital gain deduction); Oklahoma HB 2764 (2025), rate
- Oregon: Oregon DOR, Publication OR-ESTIMATE 2026
- Pennsylvania: Pennsylvania DOR, personal income tax rates
- Rhode Island: Rhode Island Division of Taxation, Advisory 2025-22
- South Carolina: SCDOR, information about H. 4216; SC Code 12-6-1150
- South Dakota: South Dakota DOR, income tax
- Tennessee: Tennessee Dept. of Revenue, Hall Income Tax repeal
- Texas: Texas Constitution Art. 8, Sec. 24-a and 24-b
- Utah: Utah SB 60 (2026 General Session), enrolled
- Vermont: Vermont Dept. of Taxes, 2025 IN-111 instructions; Vermont Dept. of Taxes, 2025 IN-153 instructions
- Virginia: Code of Virginia 58.1-320; Virginia Tax, rates
- Washington: RCW 82.87.040; Washington DOR, capital gains tax amounts
- West Virginia: West Virginia Tax Dept., income tax reduction bill
- Wisconsin: Wisconsin DOR, 2026 Form 1-ES instructions; Wisconsin Schedule WD instructions
- Wyoming: Wyoming Legislature memo (no state income tax)
General education, not tax or legal advice for your situation. Hans Goldstein is an Enrolled Agent, admitted to practice before the Internal Revenue Service. Not affiliated with or endorsed by the IRS. If a source changes after October 22, 2026, the CSV is updated and dated.

The three kinds of states
1. States that tax gains as ordinary income (most of them). No 0%/15% break. The gain stacks onto your income and pays the state's top marginal rate. These are the states where a §453 structured sale moves the needle most:
2. Nine states with no state tax on the gain at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Here the §453 benefit is federal only. It is still real (it keeps you in lower federal brackets year to year and preserves deductions), just smaller.
3. Washington is the special case. No income tax, but a 7% excise on long-term capital gains above roughly $278,000 (2025, inflation-adjusted), plus an additional 2.9% on taxable gains above $1 million. It excludes real estate, retirement accounts, and certain small-business sales, so a home or rental sale escapes it, but a business or securities sale over the threshold does not.
(A dozen states, including Arizona, Arkansas, Montana, New Mexico, North Dakota, South Carolina, and Wisconsin, offer a partial capital-gains deduction or exclusion that lowers the effective rate below their top marginal rate. Confirm your state's exact treatment with your CPA.)
Go deeper: capital gains tax in all 50 states and DC for 2026 on Big Sale Tax.
Why this matters for a structured sale
What is the tax bill on your sale going to be?
Send me the sale price and rough basis. Within one business day I'll email you the actual number and the Seller's Guide to §453. If it doesn't fit your deal, I'll tell you that plainly.
No retainer · no obligation. Hans Goldstein, a licensed insurance agent (CA Insurance License #4273294), will contact you and may discuss insurance products, including annuities.
A §453 structured installment sale defers the federal gain identically in all 50 states. What differs is the state layer. Because most states tax the gain as ordinary income, spreading it across years also keeps each year in a lower state bracket, as well as a lower federal one. The math:
- High-tax state (CA, NY, NJ, HI, OR, MN, MA): biggest win. You're deferring both a 20% federal + 3.8% NIIT layer and a 9 to 13.3% state layer, and the state layer often drops a bracket or two when spread.
- No-tax state (TX, FL, NV, WA-real-estate, etc.): a federal-only win. Still worth a look on larger deals, but the state savings aren't there.
For a state-specific breakdown, see the California capital-gains breakdown. The same logic applies to any state, scaled to its rate.
Frequently asked
Which states have no capital gains tax? Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no tax on capital gains as income. Washington does impose a separate 7% excise on long-term gains over $278,000 for 2025 (indexed), plus 2.9% more on taxable gains over $1 million (excluding real estate and retirement accounts).
Do most states give capital gains a lower rate like the federal 0/15/20%? No. Most states have no preferential capital-gains rate. They tax the gain as ordinary income at the same brackets that apply to wages. California is the highest at 13.3%.
Does a structured installment sale work in my state? Yes. The federal §453 deferral works in all 50 states. Your state's rate only determines how much extra you save on the state layer on top of the federal deferral.
Every state's deferral page
Find your state's specific capital-gains and §453 breakdown:
Alabama · Alaska · Arizona · Arkansas · Colorado · Connecticut · Washington DC · Delaware · Florida · Georgia · Hawaii · Idaho · Illinois · Indiana · Iowa · Kansas · Kentucky · Louisiana · Maine · Maryland · Massachusetts · Michigan · Minnesota · Mississippi · Missouri · Montana · Nebraska · Nevada · New Hampshire · New Jersey · New Mexico · New York · North Carolina · North Dakota · Ohio · Oklahoma · Oregon · Pennsylvania · Rhode Island · South Carolina · South Dakota · Tennessee · Texas · Utah · Vermont · Virginia · Washington · West Virginia · Wisconsin · Wyoming
More states
- Missouri capital gains tax: no tax on the gain (100% subtraction)
- Ohio capital gains tax: 2.75% flat
- Michigan capital gains tax: 4.25% flat
- Indiana capital gains tax: 2.95% flat (2026), plus county tax
- Tennessee capital gains tax: no state income tax
- Nevada capital gains tax: no state income tax
- New Hampshire capital gains tax: no tax on gains
- Alaska capital gains tax: no state income tax
- South Dakota capital gains tax: no state income tax
- Wyoming capital gains tax: no state income tax
Find out what your sale is really going to cost you in tax, and what you can do about it
No retainer. On a funded structure, the insurer pays a one-time commission of about 4% of the amount structured to the brokerage firm that places it (Hans’s share is about 2.4%; no trail). It is built into the annuity pricing, not a separate fee.
Find out what your tax bill actually looks like before you sell, including the parts your CPA may not raise until the return is already being prepared.
Most people find out what they owe after the sale closes, when nothing can be changed. A short conversation now tells you the number, which layers apply to your situation, and which options are still open while the sale is still in front of you.
- What you will actually owe: federal, the 3.8% surtax, recapture and your state
- Which of those layers you can still do something about
- Whether spreading the sale changes the number in your case
Hans Goldstein · 213-414-2808 · Hans Goldstein: Tax & Exit Planning · This is an educational conversation, not tax advice. Bring your CPA in before you file.
Hans Goldstein, a licensed insurance agent (CA Insurance License #4273294), will contact you and may discuss insurance products, including annuities.
Illustrative only. Not tax, legal, or accounting advice. 2026 figures; state rates, thresholds, and capital-gains deductions change and vary by situation. Confirm your state's current treatment with your CPA.
Every state, with a calculator
Pick your state to run the four layers that actually decide the bill: federal brackets, the 3.8% net investment income tax, depreciation recapture and state tax.
The four layers on any state sale
Whatever your state charges, the same stack applies:
- Federal long-term capital gains at 0%, 15% or 20%, set by total taxable income for the year.
- Net investment income tax: an extra 3.8% once modified AGI passes $200,000 single, $250,000 married filing jointly, and only $125,000 married filing separately. Those thresholds have never been indexed for inflation, so more sellers cross them every year.
- Depreciation recapture at up to 25% on the real-property portion if the asset was ever a rental or business property. Under §453(i) recapture is recognised in the year of sale no matter how you structure payments.
- State tax, from 0% to 13.3% depending on where you live.
The net investment income tax is the layer sellers miss most often, because it is not part of the headline capital-gains rate and it appears nowhere on the bracket tables.
State-by-state rates and calculators
Run your specific numbers
The calculator runs your sale through real 2026 federal + state tax brackets and shows §453 savings vs lump sum side-by-side.
Run the calculator → 213-414-2808Also see: capital gains calculator