CA Capital Gains Tax Calculator 2025–2026 | California State Tax on Capital Gains

The CA Capital Gains Tax Calculator for 2025–2026 helps you accurately estimate how much California state tax you may owe on capital gains. Unlike federal tax rules, California taxes all capital gains as ordinary income, with no special lower rate for long-term investments.

This free California capital gains tax calculator allows you to:

• Calculate California state tax on capital gains

• Understand your effective California tax rate

• Account for high-income surcharges such as the Mental Health Services Tax

Whether your gains come from stocks, real estate, crypto, or other investments, this calculator provides fast and reliable estimates using official California tax brackets.

How the CA Capital Gains Tax Calculator Works

California’s capital gains tax system is straightforward but often misunderstood. This calculator works by adding your capital gains to your total taxable income, then applying California’s 2025–2026 progressive income tax brackets.

Calculation Steps:

1. Enter your total taxable income

2. Add your capital gains amount

3. Select your filing status (Single, Married Filing Jointly, etc.)

4. Apply California state income tax brackets

5. Add the 1% Mental Health Services Tax if income exceeds $1,000,000

The result shows your total California tax liability and effective tax rate.

California Capital Gains Tax Explained

California is one of the few states that does not offer preferential tax rates for long-term capital gains. For state tax purposes:

• Short-term and long-term capital gains are treated the same

• Capital gains are taxed as ordinary income

• Higher income results in higher marginal tax rates

As a result, California capital gains taxes can be significantly higher than federal capital gains taxes, especially for high-income earners.

California Capital Gains Tax Brackets (2025–2026)

This CA capital gains tax calculator uses the official California income tax brackets for 2025–2026.

Single Filers:

• 1% on income up to $10,756

• 2% on $10,757 – $25,499

• 4% on $25,500 – $40,245

• 6% on $40,246 – $55,866

• 8% on $55,867 – $70,606

• 9.3% on $70,607 – $360,659

• 10.3% on $360,660 – $432,787

• 11.3% on $432,788 – $721,314

• 12.3% on income over $721,314

Mental Health Services Tax (1% Surcharge)

California imposes an additional 1% Mental Health Services Tax on taxpayers whose taxable income exceeds $1,000,000.

• The surcharge applies to the entire taxable income

• High-income taxpayers may face effective state tax rates of 13.3% or higher

This calculator automatically includes this surcharge when applicable.

California vs Federal Capital Gains Tax

Example:

If a single filer earns $500,000 in total taxable income, including $200,000 in capital gains:

• California: Capital gains may be taxed at 9.3% or higher

• Federal: Long-term gains may only be taxed at 15% or 20%

Effective California Capital Gains Tax Rate

The calculator also displays your effective tax rate, calculated as:

Effective CA Tax Rate = Total California Tax ÷ Total Taxable Income

This gives a clear picture of how much of your income goes toward California state taxes.

Why Use a CA Capital Gains Tax Calculator?

Using this calculator helps you:

• Estimate California capital gains tax for 2025–2026

• Understand the impact of progressive tax brackets

• Account for high-income surcharges

• Plan investment or property sales more effectively

It is especially useful for investors, real estate sellers, and high-income taxpayers.

Important Notes

• California does not distinguish between short-term and long-term capital gains

• This calculator estimates California state tax only

• Federal taxes, deductions, and credits are not included

⚠️ For exact tax liability, consult a licensed tax professional or CPA.