If you live in the United States, you don’t just pay federal capital gains tax.
You also live in a state.
And in 2026, that second layer matters more than most investors realize.
While federal capital gains rules get all the headlines — 0%, 15%, 20% brackets, inflation adjustments, Medicare surtaxes — state-level capital gains taxes quietly reshape your real after-tax return. Some states tax capital gains as ordinary income. Some don’t tax them at all. A few state tax changes have added entirely new capital gains taxes in recent years. Others are debating changes right now.









