California Capital Gains Tax Calculator
California taxes all capital gains as ordinary income, with no preferential long-term rate. Top marginal state rate is 12.3% (plus a 1% Mental Health Services Tax on income over $1M).
California state capital gains
Up to 12.3%
California treats long- and short-term gains as ordinary income at its standard progressive brackets. Federal long-term rates (0% / 15% / 20%) and the 3.8% Net Investment Income Tax still apply on top.
How California taxes capital gains
California is one of the strictest states for investors: there is no separate long-term capital gains rate. Whether you held the asset for one day or twenty years, the gain is added to ordinary income and taxed using the standard California progressive brackets (1% to 12.3%). Income over $1 million is subject to an additional 1% Mental Health Services Tax (MHST), pushing the effective top rate to 13.3% — among the highest in the country. Federal long-term rates (0% / 15% / 20%) and the 3.8% Net Investment Income Tax still apply on top of state tax.
Federal capital gains calculator
The calculator below estimates federal tax on your gain. Add California state tax separately (see the worked example below).
Estimated federal income tax
$18,024
On ordinary income
$14,274
On long-term gains
$3,750
Total taxable income
$113,000
Effective rate (all income)
14.1%
Ordinary income bracket slices
| Rate | Taxable in slice | Tax |
|---|---|---|
| 10% | $11,925 | $1,193 |
| 12% | $36,550 | $4,386 |
| 22% | $39,525 | $8,696 |
Long-term gain is stacked after ordinary taxable income for 0% / 15% / 20% rates (2025 IRS thresholds).
Adding California state tax on top
The federal calculator above does not include state tax. For a California resident, the rough rule is: apply your California marginal income tax rate (up to 12.3%) to the entire capital gain, then add it to the federal tax shown above.
Worked example
A California single filer with $120,000 of wages who realizes a $50,000 long-term capital gain in 2025 would owe roughly:
- Federal long-term tax: most of the gain falls in the 15% LTCG bracket → roughly $7,500 federal.
- California state tax: the gain stacks on top of ordinary income in the state brackets. With $120k of wages already taxed, the $50k gain mostly sits in the upper Californiabrackets → rough state liability $4,000–$6,000 depending on deductions.
- NIIT: probably none at this income level (kicks in over $200k single).
Total combined federal + California state tax on the $50k long-term gain is roughly $11,500–$13,500, or about 23–27%. The same gain realized by a Texas or Florida resident would only owe the federal $7,500 portion.