California variant. This is a California-specific version of the Stock Sale Capital Gains Tax Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Stock Sale Capital Gains Tax Estimator.
Most states tax capital gains as ordinary income. In California, that means a top rate of 13.3% on gains.
Capital gains tax in California
Federally, long-term gains are taxed at 0%, 15%, or 20% depending on income, plus a possible 3.8% net investment income tax. California then taxes the same gains as ordinary income at up to 13.3%.
Short-term gains (assets held under a year) are taxed as ordinary income at both levels - usually the most expensive outcome.
About taxes and housing in California
California has the highest top marginal income tax rate in the nation, reaching 13.3% on the highest earners with an additional surcharge on income above $1 million.
California's Proposition 13 caps annual increases in a property's assessed value at 2%, which keeps long-term owners' tax bills well below current market value.
California has the largest state economy in the U.S., powered by technology, entertainment, and agriculture, but also one of the highest costs of living.
Worked example: $50,000 long-term gain
A $50,000 long-term gain: federal 15% = $7,500, plus California state tax up to 13.3% = $6,650, for a combined bill near $14,150.
Quick reference
- State income tax: 1-13.3% (highest in US), additional 1% mental health tax over $1M
- State sales tax: 7.25% (plus 1.31% avg local)
- Median home value: $760,000
- Median household income: $95,521
- Effective property tax rate: 0.71%
- Avg auto insurance: $2,291/yr
Frequently Asked Questions
Does California tax capital gains?
Yes - California taxes capital gains as ordinary income at up to 13.3%.
What's the difference between short and long-term gains?
Assets held over a year get preferential long-term federal rates (0/15/20%); shorter holds are taxed as ordinary income.