US capital gains calculator (all states)
California is one of the highest capital gains tax states in the US — California taxes all capital gains as ordinary income at state rates up to 13.3%, on top of federal long-term capital gains rates of 0%, 15%, or 20%. Combined, California residents can face capital gains tax rates of 15–33% depending on income. At $150,000 income, combined federal + state capital gains tax can reach 35–45% including the 3.8% Net Investment Income Tax (NIIT) for high earners. The federal Section 121 home sale exclusion allows up to $250,000 in gains to be excluded for single filers and $500,000 for married couples filing jointly on a primary residence.
2026-style federal + NIIT + flat state rate — educational only, not tax advice.
Short-term gains use ordinary federal brackets on top of your income. Long-term uses 0% / 15% / 20% bands stacked on taxable income.
Net proceeds after tax
$102,990
Sale price minus total tax (simplified).
Sale allocation (proportional to sale price)
| Income Level | Federal Rate | CA State Rate | Combined Rate |
|---|---|---|---|
| Up to ~$47,000 (single) | 0% | 1%–4% | ~1–4% |
| $47,001–$100,000 | 15% | 4%–9.3% | ~19–24% |
| $100,001–$150,000 | 15% | 9.3% | ~24–25% |
| $150,001–$200,000 | 15–20% | 9.3%–10.3% | ~25–30% |
| Over $1,000,000 | 20% + 3.8% NIIT | 13.3% | ~37% |
The federal Section 121 exclusion allows California homeowners to exclude up to $250,000 in capital gains (single filers) or $500,000 (married filing jointly) from the sale of a primary residence. To qualify: you must have owned the home for at least 2 of the last 5 years, and lived in it as your primary residence for at least 2 of the last 5 years. California does not offer a separate state exclusion — the federal exclusion applies to your California return as well. Gains above the exclusion amount are fully taxable at combined federal + state rates.
| Income Before Gain | Federal Rate | CA State Rate | Combined Effective Rate |
|---|---|---|---|
| $50,000 | 0–15% | ~4–6% | ~15–25% |
| $100,000 | 15% | ~9.3% | ~25–28% |
| $150,000 | 15–20% | ~9.3–10.3% | ~28–35% |
| $250,000+ | 20% + 3.8% NIIT | ~13.3% | ~37% |
California rental properties do not qualify for the Section 121 home sale exclusion. The full capital gain is subject to federal long-term rates plus California's state income tax rates up to 13.3%. Additionally, depreciation recapture is taxed at the federal rate of 25% (Section 1250), plus California state income tax on top. On a $400,000 gain from a rental property at $150,000 income, expect combined tax of approximately $112,000–$140,000 — an effective rate of 28–35% on the full gain.
| Amount | |
|---|---|
| Purchase price | $600,000 |
| Sale price | $1,000,000 |
| Capital gain | $400,000 |
| Federal tax (15%) | $60,000 |
| California state tax (~9.3%) | $37,200 |
| Total estimated tax | ~$97,200 |
| Effective rate on gain | ~24% |
California taxes capital gains as ordinary income at state rates up to 13.3%. Combined with federal long-term rates of 0%, 15%, or 20%, California residents face total capital gains tax rates of approximately 15–37% depending on income. High earners also pay a 3.8% federal Net Investment Income Tax (NIIT).
The federal Section 121 exclusion allows up to $250,000 in home sale gains to be excluded for single filers and $500,000 for married couples filing jointly. California follows the federal exclusion — no separate state exemption exists. You must have owned and lived in the home for at least 2 of the last 5 years.
No. California taxes both short-term and long-term capital gains as ordinary income at the same state rates up to 13.3%. This is unlike the federal system, which taxes long-term gains at preferential rates of 0%, 15%, or 20%. California's treatment makes it one of the least favorable states for capital gains.
The 3.8% federal Net Investment Income Tax (NIIT) applies to capital gains for single filers with modified AGI above $200,000 and married filers above $250,000. California does not have a separate NIIT but taxes investment income at regular state income tax rates up to 13.3%.
California rental property gains are taxed at combined federal + state rates — potentially 28–37% for higher-income sellers. Federal depreciation recapture is taxed at 25% federally plus California state income tax. California does not offer any exclusion or reduced rate for rental property sales.
Strategies to reduce California capital gains tax include: using the Section 121 primary residence exclusion, tax-loss harvesting to offset gains, contributing to a traditional IRA or 401(k) to reduce taxable income, holding assets over 1 year for federal long-term rates, and 1031 exchanges for investment properties (federal only — California has its own clawback rules).
Educational estimates only. Not tax advice.