California Capital Gains Tax Calculator
California has no special capital gains rate. A gain is added to your income and taxed at your regular state rates, up to 13.3%.
California taxes capital gains as ordinary income. There is no separate long-term rate, so a gain is taxed at the same 1%–12.3% brackets as wages, plus 1% on taxable income over $1 million. Holding period does not matter for the California return. Enter your other income and the sale to see the California tax on your gain.
Enter your other taxable income for the year, then the sale price and your cost basis (what you paid plus improvements and selling costs).
Capital Gains Tax Calculator
California Tax on This Sale
Gain (loss)
Effective CA rate on gain
Top CA bracket reached
How this is calculated
The Franchise Tax Board is explicit: "California does not have a lower rate for capital gains. All capital gains are taxed as ordinary income." The calculator works out your California tax with the gain and without it, and the difference is the tax on the gain. Because the gain sits on top of your other income, it is often taxed at your highest brackets.
Short-term or long-term doesn't matter in California. Unlike the federal return, a stock held for ten years and one held for ten days are taxed the same way on the California return.
Selling your home. California follows the federal exclusion: up to $250,000 of gain ($500,000 for married couples filing jointly) is excluded if you owned and lived in the home for at least two of the five years before the sale.
Losses. A net capital loss offsets up to $3,000 of other income a year, and the rest carries forward to future years.
Large gains. If the gain pushes taxable income over $1 million, the extra 1% Mental Health Services Tax applies to the part above $1 million, for a top rate of 13.3%.
This estimate uses the standard deduction and the latest California brackets published by the FTB. It does not include itemized deductions, credits, the alternative minimum tax or special rules for installment sales and qualified small business stock (which California does not follow the same way).
Frequently Asked Questions
Does California tax capital gains?
Yes. California taxes capital gains as ordinary income, at the same rates as wages: from 1% up to 12.3%, plus a 1% Mental Health Services Tax on taxable income over $1 million, for a top rate of 13.3%.
What is the California capital gains tax rate?
There is no separate rate. The gain is added to your other income and taxed at your regular California bracket rates, so the effective rate on the gain depends on your total income.
Is there a difference between short-term and long-term gains in California?
No. California taxes short-term and long-term gains the same way. The holding period only matters on the federal return.
How can I avoid capital gains tax on a home sale in California?
If you owned and lived in the home as your main residence for at least two of the five years before the sale, you can exclude up to $250,000 of gain ($500,000 for married couples filing jointly) on the California return as well as the federal return.
Can I deduct capital losses in California?
Yes. Capital losses first offset capital gains. A net loss can reduce other income by up to $3,000 a year, and any unused loss carries forward to later years.
This tool provides an educational estimate of California tax only and is not tax advice. It assumes the standard deduction and does not include credits, itemized deductions, the AMT, installment sales or residency changes. Consult a tax professional or the FTB for your situation.