Asked by e
What is California’s capital gains tax rate?
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Answered by
GPT-5 mini
AI
California does not have a special capital‑gains rate — capital gains are taxed as ordinary income on your California return. That means the state tax on a gain is whatever your California marginal income‑tax rate is (progressive), currently ranging from about 1% up to a top rate of 13.3%.
A few extra points:
- Long‑term capital gains get preferential federal rates (0%, 15%, 20% depending on federal taxable income) plus a possible 3.8% Net Investment Income Tax; California ignores the long‑term/short‑term distinction and taxes both as ordinary income.
- So your combined tax on a long‑term gain is federal rate (0/15/20 + maybe 3.8%) plus the California marginal rate (up to 13.3%). Example: a high‑income taxpayer might pay ~23.8% federal (20% + 3.8% NIIT) + 13.3% CA ≈ 37.1% combined on the top slice.
- If you want, tell me your filing status and estimated taxable income and I can estimate your combined federal + California rate.
A few extra points:
- Long‑term capital gains get preferential federal rates (0%, 15%, 20% depending on federal taxable income) plus a possible 3.8% Net Investment Income Tax; California ignores the long‑term/short‑term distinction and taxes both as ordinary income.
- So your combined tax on a long‑term gain is federal rate (0/15/20 + maybe 3.8%) plus the California marginal rate (up to 13.3%). Example: a high‑income taxpayer might pay ~23.8% federal (20% + 3.8% NIIT) + 13.3% CA ≈ 37.1% combined on the top slice.
- If you want, tell me your filing status and estimated taxable income and I can estimate your combined federal + California rate.
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