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Californians Pay Second Highest Capital Gains Tax Rate in the World

Tax Foundation logoTax Foundation: The High Burden of State and Federal Capital Gains Taxes:

As Congress begins to debate tax reform in the coming months, there is
one tax that they should pay close attention to: the capital gains tax.
The capital gains tax is a tax on profit through the sale of property or
investments. At the beginning of this year, the top marginal statutory
capital gains tax rate was increased to 23.8% from 15%.
Although lower than the tax on ordinary income, states also tax capital
gains, some of them as high as 13.3%, adding an additional tax
burden to savers and investors. Some taxpayers could pay up to a 33% tax on capital gains, a rate that far exceeds rates throughout
the world. This high tax rate has long-term negative implications for
the economy as people save and invest less and capital seeks higher
returns in other countries.

Long-term Capital Gains Rate

Rank

Country/State

Capital Gains Rate

1

Denmark

42.0%

2

California

33.0%

3

France

32.5%

4

Finland

32.0%

5

New York

31.4%

6

Oregon

31.0%

7

Delaware

30.4%

8

New Jersey

30.4%

9

Vermont

30.4%

10

Maryland

30.3%

11

Maine

30.1%

12

Ireland

30.0%

13

Sweden   

30.0%

14

Idaho

29.7%

15

Minnesota

29.7%

16

North Carolina

29.7%

17

Iowa

29.6%

18

Hawaii

29.4%

19

District of Columbia

29.1%

20

Nebraska

29.1%

21

Connecticut

29.0%

22

West Virginia

28.9%

23

Ohio

28.7%

24

Georgia

28.6%

25

Kentucky

28.6%


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