Capital Gains Tax for New York (2026)
New York (NY) Key Facts
State Capital Gains Rate
10.9%
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 New York
This calculator estimates your combined federal and New York capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
New York Overview
New York taxes capital gains as ordinary income at rates up to 10.9%. NYC residents face an additional city tax of up to 3.876%, bringing the combined state+city rate to nearly 14.8%. 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 New York Compares
New York's capital gains rate of 10.9% compares to New Jersey at 10.75% and Connecticut at 6.99%. State capital gains taxes significantly impact net investment returns.
| State | Top Rate | Notes |
|---|---|---|
| New Jersey | 10.75% | New Jersey has a capital gains rate of 10.75%. |
| Connecticut | 6.99% | Connecticut has a capital gains rate of 6.99%. |
| Pennsylvania | 3.07% | Pennsylvania has a capital gains rate of 3.07%. |
New York's capital gains rate of 10.9% compares to a national average of approximately 5.04%. This is above the national average.
Tips for New York Residents
- 1New York taxes capital gains as ordinary income at rates up to 10.9%. NYC residents face an additional city tax of up to 3.876%, bringing the combined state+city rate to nearly 14.8%.
- 2Federal long-term gains (held 1+ year) are taxed at 0%, 15%, or 20%. New York'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 New York state capital gains tax.
- 5Consider the combined federal + state rate when planning large asset sales. The total can exceed 34.7% for high earners.