Capital Gains Tax for California (2026)
California (CA) Key Facts
State Capital Gains Rate
13.3%
Taxed As
Ordinary income
Federal Rate Applies
Yes (0%, 15%, or 20%)
Long Term vs Short Term
Both taxed at state level
How This Calculator Works in California
This calculator estimates your combined federal and California capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
California Overview
California taxes capital gains as ordinary income at rates up to 13.3%, the highest state rate in the nation, with no preferential long-term rate. Federal capital gains taxes also apply, with long-term rates of 0%, 15%, or 20% depending on income. The combined state and federal burden should be considered when planning asset sales or investment strategies.
How California Compares
California's capital gains rate of 13.3% compares to Oregon at 9.9% and Nevada at 0%. State capital gains taxes significantly impact net investment returns.
| State | Top Rate | Notes |
|---|---|---|
| Oregon | 9.9% | Oregon has a capital gains rate of 9.9%. |
| Nevada | 0% | Nevada has a capital gains rate of 0%. |
| Arizona | 2.5% | Arizona has a capital gains rate of 2.5%. |
California's capital gains rate of 13.3% compares to a national average of approximately 5.04%. This is above the national average.
Tips for California Residents
- 1California taxes capital gains as ordinary income at rates up to 13.3%, the highest state rate in the nation, with no preferential long-term rate.
- 2Federal long-term gains (held 1+ year) are taxed at 0%, 15%, or 20%. California's state tax applies on top of the federal rate.
- 3Hold investments over one year to qualify for lower federal long-term rates rather than ordinary income rates.
- 4Tax-loss harvesting—selling losing investments to offset gains—reduces both federal and California state capital gains tax.
- 5Consider the combined federal + state rate when planning large asset sales. The total can exceed 37.1% for high earners.