California Capital Gains Tax Calculator 2025-2026
Calculates CA state tax on capital gains (taxed as ordinary income).
Our free California Capital Gains tax calculator calculates CA state tax on capital gains for 2025-2026. California taxes all capital gains as ordinary income (1% to 12.3% brackets). Enter total taxable income, capital gain amount, and filing status for instant CA tax calculations. This California Capital Gains tax calculator helps you understand how much California state tax you'll owe on your capital gains, whether from stocks, real estate, or other investments.
How the California Capital Gains Tax Calculator Works
Unlike the federal government, California taxes all capital gains as ordinary income using the state's progressive tax brackets. The California Capital Gains tax calculator takes your total taxable income (including capital gains), applies California's 2025-2026 tax brackets (ranging from 1% to 12.3%), and calculates your total California tax. If your taxable income exceeds $1,000,000, it also adds the 1% Mental Health Services Tax surcharge. The effective rate shows what percentage of your total income goes to California taxes.
Using the California Capital Gains Tax Calculator
When using this California Capital Gains tax calculator, you'll need to enter your total taxable income, which includes both your regular income and your capital gains. California doesn't distinguish between short-term and long-term capital gains for state tax purposes - both are taxed at your regular income tax rate. This is different from federal tax law, which offers lower rates (0%, 15%, or 20%) for long-term capital gains held for more than one year.
California Tax Brackets for Capital Gains
The calculator uses California's 2025-2026 tax brackets, which range from 1% for the lowest income earners to 12.3% for the highest earners. For single filers, the top bracket of 12.3% applies to taxable income over $721,314. For married couples filing jointly, the top bracket applies to income over $1,442,628. Additionally, if your taxable income exceeds $1,000,000, you'll pay an extra 1% Mental Health Services Tax on the entire amount.
Understanding California Capital Gains Tax
California is one of the few states that taxes capital gains at the same rate as ordinary income, with no preferential treatment for long-term capital gains. This means when you use a California Capital Gains tax calculator, you'll see that your capital gains are subject to the same progressive tax rates as your regular income. This can result in significantly higher state taxes on capital gains compared to federal taxes, especially for high-income taxpayers.
California vs Federal Capital Gains Tax Rates
For example, if you're a single filer with $500,000 in taxable income (including $200,000 in capital gains), your California tax rate would be 9.3% on most of that income. At the federal level, if those were long-term capital gains, you might only pay 15% or 20% on the gains portion. But in California, the entire amount is taxed at your regular income tax rate, which could be as high as 12.3% plus the 1% surcharge for income over $1 million.
Mental Health Services Tax Surcharge
The California Capital Gains tax calculator accounts for all of these factors, including the Mental Health Services Tax surcharge that applies to high earners. This surcharge adds an additional 1% tax on all taxable income over $1,000,000, which can significantly increase your total California tax liability. For taxpayers with substantial capital gains, this can mean paying effective California tax rates of 13.3% or higher on their gains.
Formulas Used in the California Capital Gains Tax Calculator
California Tax Calculation Formula
California Tax Calculation: Uses progressive brackets: 1% ($0-$10,756 single), 2% ($10,757-$25,499), 4% ($25,500-$40,245), 6% ($40,246-$55,866), 8% ($55,867-$70,606), 9.3% ($70,607-$360,659), 10.3% ($360,660-$432,787), 11.3% ($432,788-$721,314), 12.3% (above $721,314).
Mental Health Services Tax Formula
Mental Health Services Tax: If Taxable Income > $1,000,000, add Taxable Income × 0.01
Effective Tax Rate Calculation
Effective CA Rate: Effective Rate = Total CA Tax / Total Taxable Income
The California Capital Gains tax calculator applies these brackets progressively, meaning you pay the lower rate on income in each bracket, and higher rates only apply to income above each threshold. This progressive system ensures that lower-income taxpayers pay a smaller percentage of their income in taxes, while higher-income taxpayers pay a larger percentage.