California Capital Gains Tax Calculator 2026

Calculate your total federal + California capital gains tax on any asset sale. See your net proceeds and effective rate instantly.

Enter your sale details. Works for real estate, stocks, business interests, and other capital assets.

Sale Price (Gross Proceeds)

Adjusted Cost Basis

Selling Costs

Holding Period

Filing Status

Other Household Income

Depreciation Recapture (real estate only)

Your Capital Gains Tax Breakdown

Note: California taxes all capital gains as ordinary income — there is no preferential rate at the state level.

Total Gain

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Total Tax Owed

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Net Proceeds

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Effective Tax Rate

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Tax Breakdown

Gross Sale Price—

Less: Cost Basis—

Less: Selling Costs—

Taxable Gain—

Federal Capital Gains Rate—

Federal Capital Gains Tax—

Depreciation Recapture Tax (25%)—

Net Investment Income Tax (3.8%)—

California Capital Gains Tax—

Total Tax—

What This Means for You

Strategies to Reduce Capital Gains Tax

1031 Exchange (Real Estate): Defer 100% of capital gains and depreciation recapture by exchanging into a like-kind property. No limit on the amount deferred.
Installment Sale: Spread the gain over multiple years by accepting payments over time. Can keep you in a lower bracket each year.
Opportunity Zone Investment: Invest your gain in a Qualified Opportunity Zone fund to defer and potentially reduce federal tax. California does not conform — state tax still applies.
Charitable Remainder Trust: Donate appreciated assets to a CRT, avoid immediate capital gains tax, receive an income stream, and get a partial charitable deduction.
Timing the Sale: If you are near a bracket threshold, timing the sale to a lower-income year can drop you from 20% to 15% — or even 0% — federal rate.
Tax-Loss Harvesting: Offset gains with capital losses from other investments. Losses can offset gains dollar-for-dollar, with up to $3,000 of excess losses deductible against ordinary income.

Selling a major asset?

KDA's CPAs analyze every available strategy — 1031, installment sale, charitable trust, opportunity zone — and implement the one that keeps the most money in your pocket.

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Capital Gains Tax in California: The Full Picture

California is one of the highest capital gains tax states in the country. Unlike the federal government, which taxes long-term capital gains at preferential rates (0%, 15%, or 20%), California taxes all capital gains — short-term and long-term — as ordinary income at rates up to 13.3%. Combined with the federal rate, California residents can face a total capital gains tax rate exceeding 37% on large gains.

Federal Capital Gains Rates for 2026

For long-term gains (assets held more than one year), the federal rates are: 0% for income up to $94,050 (MFJ), 15% for income up to $583,750 (MFJ), and 20% for income above that threshold. An additional 3.8% Net Investment Income Tax (NIIT) applies to investment income above $250,000 (MFJ).

Depreciation Recapture

When you sell real property on which you have claimed depreciation deductions, the IRS "recaptures" those deductions at a flat 25% federal rate (unrecaptured Section 1250 gain). California taxes this recapture as ordinary income at your marginal state rate. This is often the largest and most surprising component of the tax on a real estate sale.

Frequently Asked Questions

Q: Is there a way to avoid California capital gains tax?
A: California taxes capital gains as ordinary income with no exclusions beyond the primary residence exclusion. Strategies to reduce or defer the tax include: 1031 exchanges (for real estate), installment sales, charitable remainder trusts, and opportunity zone investments (federal deferral only — California does not conform).

Q: Do I owe California tax if I moved out of state before selling?
A: California taxes gains on California-source income, which includes gains from the sale of California real property regardless of where you live when you sell. For other assets (stocks, business interests), the sourcing rules are more complex.

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Want KDA to Run the Exact Numbers for Your Situation?

Calculators give you a starting point. KDA gives you a complete tax strategy — identifying every deduction, optimizing your entity structure, and building a year-round plan to minimize your California tax burden.

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California Capital Gains Tax Calculator 2026