Estimate combined federal and California tax on a stock or home sale — including the $250k/$500k home-sale exclusion and California's full ordinary-rate treatment.
Planning estimate using 2026 federal LTCG / ordinary brackets + CA FTB schedules. Does not handle depreciation recapture, QOZ, 1031 exchange, AMT, or wash sales. Confirm with a tax professional for complex sales.
For most of the U.S., long-term capital gains get a federal break — 0%, 15%, or 20% instead of ordinary income rates. California does not extend that break to its state tax. Every dollar of gain in California is taxed at the regular 1%–12.3% brackets, with the 1% Mental Health Services Tax kicking in above $1,000,000. That makes California one of the most expensive states to realize a large gain, especially for the kind of equity hits common at the top of California's tech and real-estate ladders.
| Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 0% | Up to $48,350 | Up to $96,700 | Up to $64,750 |
| 15% | $48,351 – $533,400 | $96,701 – $613,700 | $64,751 – $566,700 |
| 20% | Over $533,400 | Over $613,700 | Over $566,700 |
Your bracket depends on total taxable income — ordinary plus the gain. The LTCG "stacks" on top of ordinary income, with the gain taxed at the rate of the brackets it fills.
If your modified adjusted gross income exceeds the NIIT threshold — $200,000 single / $250,000 MFJ / $125,000 MFS — you owe an additional 3.8% on the lesser of your net investment income or your MAGI excess. NIIT applies on top of the LTCG rate and is federal only (California has no equivalent).
California folds all capital gains into ordinary income on Form 540 and runs them through the nine standard state brackets. A long-term gain of $200,000 stacked on $100,000 of wages reaches the 9.3% California bracket, generating about $18,600 of state tax on the gain alone. Add federal LTCG and possibly NIIT and the same gain quickly costs 30%+ all-in.
| Filing Status | Top Federal LTCG | NIIT | CA Top (incl. MHST) | Combined |
|---|---|---|---|---|
| Single ($533k+ income, $1M+ taxable) | 20.0% | 3.8% | 13.3% | 37.1% |
| MFJ ($613k+ income, $1M+ taxable) | 20.0% | 3.8% | 13.3% | 37.1% |
| Middle-bracket Californian | 15.0% | 0% – 3.8% | ~9.3% | ~24% – 28% |
If you owned and used a home as your principal residence for at least 2 of the last 5 years, you can exclude up to $250,000 ($500,000 if married filing jointly) of gain from federal income. California conforms to this exclusion, so the same dollars come off the California gain too. Anything above the exclusion is fully taxable on both returns. You generally can't reuse the exclusion within 2 years.
Federally, short-term gains (assets held one year or less) are taxed at ordinary rates from 10% to 37% instead of the LTCG rates — so holding-period planning matters federally. In California, both short-term and long-term gains are taxed identically as ordinary income. Holding longer lowers your federal bill but not your California bill.
The IRS treats cryptocurrency as property. Every sale, swap, or use to pay for goods can generate a capital gain or loss. California follows the same federal characterization for state purposes, so crypto gains are taxed at California's ordinary state rates — no preferential treatment.
Both federal and California allow capital losses to offset capital gains in the same year. Net capital losses are deductible against ordinary income up to $3,000 per year ($1,500 MFS), with the excess carried forward indefinitely. California fully conforms.
For complex or high-value sales, work with a California CPA.