California Capital Gains Tax Calculator
California taxes capital gains as ordinary income at graduated rates up to 13.3% (12.3% plus 1% on income over $1 million). Estimate federal + state tax.
California has no capital-gains rate of its own. The Franchise Tax Board taxes every gain, short- or long-term, as ordinary income, so a stock or property sale is added to wages and taxed through the same graduated schedule that tops out at 12.3%, with one more percentage point on taxable income above $1 million.
| Rule | California |
|---|---|
| Rate | The ordinary graduated schedule, up to 12.3%, plus the 1% Behavioral Health Services Tax on taxable income over $1,000,000 (13.3% at the very top). |
| Short- vs long-term | No distinction. FTB: "California does not have a lower rate for capital gains. All capital gains are taxed as ordinary income." |
| Where it differs from federal | A gain or loss whose California treatment differs from the federal one is reported on California Schedule D (540), so the state gain can differ from the federal Schedule D figure. |
| Tax year | 2026 return, filed in 2027 on Form 540. |
Sources: California Franchise Tax Board, "Capital gains and losses" (page updated 01/28/2026), read 2026-10-10.
Estimate only, not an official determination. What this estimate covers and its limits
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Additional Details
Pre-filled: Editable top/representative-rate proxy; not a state return calculation
Additional Details
Estimated Federal + State Tax
Estimated • Based on your inputs
Estimated Net Sale Proceeds
$85,850.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
The California line is the modeled gain times the 13.3% in the Modeled State Rate field, added to the federal estimate.
Estimate only — these are not official figures
State tax is not a return calculation: California treats capital gains as ordinary income and has no lower long-term rate. The 13.3% default is only the maximum marginal personal rate (12.3% plus the 1% Behavioral Health Services Tax), not the rate on every dollar.
Do not rely on these amounts for budgeting or payment. For exact amounts, check the California tax authority (https://www.ftb.ca.gov/file/personal/income-types/capital-gains-and-losses.html).
Key State Information
A Californian who sells shares held for five years pays the state the same marginal rate as on a paycheck: holding longer cuts the federal bill but never the California one. The 13.3% default in the calculator is the top marginal rate, reached only above $1 million of taxable income, so replace it with your own marginal rate for a smaller sale.
Example Calculation
A single filer in Sacramento with $95,000 of other taxable income sells index-fund shares bought for $40,000 two and a half years ago for $160,000.
Entered as $40,000 basis, $160,000 proceeds, single, $95,000 of other income: the calculator finds a $120,000 long-term (30 months) gain, $18,000 of regular federal tax plus $570 of net investment income tax, and $15,960 of California tax at the 13.3% default.
Result: $34,530 in total (28.78% of the gain), leaving $125,470. The $15,960 applies 13.3% to the whole gain, but that rate starts only above $1 million of taxable income, which this $215,000 year does not reach, so California's actual tax on the gain is lower.
StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
Does California tax long-term capital gains at a lower rate?
No. The Franchise Tax Board says California does not have a lower rate for capital gains and taxes all of them as ordinary income, whatever the holding period.
Why is the default California rate 13.3%?
It is the highest combined marginal rate: 12.3% plus the 1% Behavioral Health Services Tax that applies only to taxable income above $1,000,000. For a smaller gain your marginal rate is lower, so edit the Modeled State Rate field.
When do I need California Schedule D (540)?
When California treats a gain or loss differently from the federal return, for example because of a different basis, the difference is reported on California Schedule D (540).
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