California Capital Gains Tax Calculator
Federal + California tax on a capital gain, 2025 tax year.
Updated · By Teodor-Cristian Lutoiu
California taxes capital gains as ordinary income (up to 13.3%). Federal long-term gains are taxed at 0/15/20% depending on total income; short-term gains are taxed as ordinary income (up to 37%). High earners also pay 3.8% NIIT. Combined, a top-bracket CA investor faces ~32% on long-term gains and ~50%+ on short-term.
Enter sale proceeds, cost basis, and other income to see your tax.
0 of 3 filled in.
Uses 2025 federal and California tax brackets. Assumes this sale is your only investment event. Does not model capital loss harvesting, prior-year carryovers, or qualified small business stock exclusions.
See also
How California taxes capital gains
Tax year: 2025. Federal long-term capital gains brackets (IRS Rev. Proc. 2024-40), the Net Investment Income Tax thresholds, and California ordinary-income brackets (CA FTB) are current for gains realized in 2025. 2026 brackets publish Oct–Nov 2025 and will be updated here within 30 days of release.
California is one of a handful of states that taxes capital gains exactly like ordinary income — confirmed by the California Franchise Tax Board. No preferential rate, no deduction, no exclusion. If you sell stock or a rental property in California for a gain, the gain gets added to your other income and taxed at your marginal CA bracket — which can be as high as 13.3% for the top bracket.
Federal tax is separate. For long-term holdings (more than 1 year), federal taxes the gain at preferential rates of 0%, 15%, or 20% depending on your total income bracket (see IRS Topic No. 409). For short-term holdings (1 year or less), federal treats the gain as ordinary income — taxed at your marginal income bracket, up to 37%.
On top of these, the Net Investment Income Tax (NIIT) adds 3.8% on investment income when modified AGI exceeds $200,000 (single) or $250,000 (MFJ).
Combined, a California investor selling a long-held stock can face a total tax rate of 15% federal + 3.8% NIIT + 13.3% CA = 32.1% on the gain. Short-term gains can push past 50% when all layers stack.
Long-term vs short-term
Holding period is the single most important variable in this calculation.
- Held more than 1 year → long-term. Federal taxes at 0/15/20%. California taxes as ordinary income.
- Held 1 year or less → short-term. Federal taxes as ordinary income (up to 37%). California taxes as ordinary income.
The holding period starts the day after you acquire the asset and includes the day you sell. A stock bought on January 10, 2024 and sold on January 10, 2025 is short-term (exactly 1 year — not more than). Sold January 11, 2025 or later → long-term.
Missing long-term status by one day on a $100k gain costs roughly $15,000 in extra federal tax for a taxpayer in the 22% bracket. Set calendar reminders.
Formula
Federal long-term gain tax fills the remaining room in each bracket, starting from your other income:
for each federal LTCG bracket (upper_bound, rate) in [0%, 15%, 20%]:
room_left = max(0, upper_bound − other_income_filled)
taxed_at_this_rate = min(gain_remaining, room_left)
federal_tax += taxed_at_this_rate × rate
gain_remaining -= taxed_at_this_rate
other_income_filled = max(other_income_filled, upper_bound)
Federal short-term gain tax uses the ordinary income brackets and the standard "all-in vs base" difference:
federal_tax = ordinary_tax(other_income + gain) − ordinary_tax(other_income)
NIIT:
niit_taxable = if (other_income + gain) > threshold:
min(gain, (other_income + gain) − threshold)
else:
0
niit_tax = niit_taxable × 3.8%
California tax uses CA ordinary brackets on the gain-on-top:
ca_tax = ca_ordinary_tax(other_income + gain) − ca_ordinary_tax(other_income)
Total:
total_tax = federal_tax + niit_tax + ca_tax
net_after_tax = (sale_proceeds − cost_basis) − total_tax
Scenarios at a glance
Approximate total tax on a $100,000 gain, single filer with $150,000 of other ordinary income (2025 brackets):
| Holding period | Federal tax | NIIT | CA state tax | Total tax | Effective rate |
|---|---|---|---|---|---|
| Short-term (≤ 1 year) | ~$24,000 | $3,800 | ~$9,300 | ~$37,100 | 37.1% |
| Long-term (> 1 year) | ~$15,000 | $3,800 | ~$9,300 | ~$28,100 | 28.1% |
Missing long-term treatment by one day on a $100,000 gain costs roughly $9,000 in extra tax. Track the acquisition date.
Worked example
Elena lives in San Francisco and sells Tesla stock. Single filer.
- Sale proceeds: $100,000
- Cost basis (what she paid originally): $40,000
- Other income (salary + interest): $150,000
- Holding period: 3 years → long-term
Calculator output:
- Capital gain: $60,000
- Federal long-term tax: $9,000 (15% × $60,000; all of it in the 15% bracket since her total income pushes past the 0% threshold)
- NIIT: Not triggered — total income $210k is only $10k above the $200k threshold; NIIT taxable portion is $10k × 3.8% = $380... actually this calculator says "yes" because $210k > $200k. Correcting: NIIT is $10k × 3.8% = $380.
- California tax: $60,000 taxed at CA marginal brackets (she's already in the 9.3% CA bracket at $150k income; the full $60k gain lands in 9.3% since 9.3% extends to $360k) ≈ $5,580
- Total tax: ~$14,960
- Net after tax: $45,040
- Effective rate: 24.9%
If Elena had held the stock 11 months (short-term), federal tax would have been the 24% ordinary bracket on most of the gain ≈ $14,400. Total tax jumps to ~$20,360, and net after tax drops to $39,640 — roughly $5,400 less for selling one month too early.
FAQ
Can I offset capital gains with capital losses?
Yes. Losses from other sales in the same year offset gains dollar-for-dollar (long-term losses against long-term gains first, then short-term, with netting rules). Unused losses carry forward indefinitely; up to $3,000 of net capital loss can offset ordinary income each year ($1,500 if MFS). This calculator doesn't handle loss harvesting — consult a CPA if your situation involves multiple gain/loss events.
Does California have a 0% capital gains bracket?
No. Every dollar of capital gain is taxed as ordinary income from the first dollar, starting at 1% for low incomes and climbing up to 13.3% for the top bracket. Unlike federal, there's no exempt zone.
What about the home sale exclusion?
The federal home sale exclusion ($250k single / $500k MFJ) applies to primary residence sales when you've owned and lived in the home 2 of the last 5 years. California follows the same exclusion. This calculator is for investment asset sales; for home sales, subtract the exclusion from the gain before plugging in.
What's "qualified small business stock"?
Section 1202 allows exclusion of up to 100% of federal capital gains on certain qualified small business stock (QSBS) held 5+ years, up to $10M or 10× basis, whichever is greater. Significant benefit for startup employees. California does not conform — CA still taxes the full gain at ordinary rates. This calculator assumes non-QSBS.
Do cryptocurrencies count as investment property?
Yes. The IRS treats crypto as property, so selling or trading crypto at a gain triggers capital gains tax just like stock. Same federal long-term vs short-term rules. California treats it as ordinary income.
What if I owe more state tax than federal?
Happens for high-income Californians on long-term gains — CA ordinary rate can exceed the 15% federal LTCG rate. Your federal tax return typically lets you deduct state income tax on Schedule A (capped at $10,000 under SALT cap through 2025; expires late 2025). For high-income filers, the SALT cap means you can't deduct most of the CA tax at federal level.
Does moving out of California after the sale help?
California taxes gains on a residence basis for the tax year. If you sell while a California resident, the gain is CA-taxable. If you move out of California before the sale, CA doesn't tax it — but be careful about the "sham domicile" rules. CA Franchise Tax Board aggressively audits large gains from former residents. Keep good records of the move date and that you severed ties before the sale.
Last updated: April 23, 2026