1031 exchange:
Capital Gains State Tax Rates

Capital Gains Tax Rate by State
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State
Top Marginal
Capital Gains
Short Term

Capital
Gains
Long
Term

Notes
Alabama
5
5
5
 
Alaska
0
0
0
No state income tax
Arizona
4.79
4.79
4.79
 
Arkansas
7
7
4.9
Capital gain rate is 70% of state tax rate for long-term gains
California
9.3
9.3
9.3
 
Colorado
4.63
4.63
4.63
Allows $1,200 ($2,400 married) credit for capital gains; no tax on capital gains for in-state businesses. Property bought before 1994 or held for 5 yrs has no CO capital gains tax
Connecticut
5
5
5
 
Delaware
5.95
5.95
5.95
 
DC
8.7
8.7
8.7
 
Florida
0
0
0
No state income tax (high transfer taxes)
Georgia
6
6
6
 
Hawaii
8.25
8.25
8.25
 
Idaho
7.8
7.8
7.8
60% reduction in capital gains provided for cap gains produced in Idaho
Illinois
3
3
3
Flat rate
Indiana
3.4
3.4
3.4
Flat rate
Iowa
8.98
8.98
8.98
 
Kansas
6.45
6.45
6.45
 
Kentucky
6
6
6
 
Louisiana
6
6
6
 
Maine
8.5
8.5
8.5
 
Maryland
4.75
4.75
4.75
 
Massachusetts
5.3
5.3
5.3
Flat rate; long-term gain taxed at lower rates based on length of time security has been held
Michigan
3.9
3.9
3.9
Flat rate
Minnesota
7.85
7.85
7.85
 
Mississippi
5
5
5
 
Missouri
6
6
6
 
Montana
6.9
6.9
6.9
 
Nebraska
6.84
6.84
6.84
 
Nevada
0
0
0

No state income tax

New Hampshire
0
0
0
State income tax on dividends and interest only
New Jersey
8.97
8.97
8.97
 
New Mexico
5.3
5.3
5.3
 
New York
6.85
6.85
6.85
 
North Carolina
8
8
8
 
North Dakota
5.54
5.54
5.54
 
Ohio
6.87
6.87
6.87
 
Oklahoma
6.65
6.65
6.65
 
Oregon
9
9
9
 
Pennsylvania
3.07
3.07
3.07
Flat rate
Rhode Island
10.1
5.1
5.1
25.5% federal tax liability for income and cap gains. State rate applies to federal tax liability.
South Carolina
7
7
3.92
 
South Dakota
0
0
0
No state income tax
Tennesee
0
0
0
State income tax on dividends & interest only
Texas
0
0
0
No state income tax
Utah
6.98
6.98
6.98
 
Vermont
9.5
4.8
4.8
24% federal tax liability for income and cap gains. State rate applies to federal tax liability.
Virginia
5.75
5.75
5.75
 
Washington
0
0
0
No state income tax
West Virginia
6.5
6.5
6.5
 
Wisconsin
6.75
6.75
2.7
 
Wyoming
0
0
0
No state income tax