State Capital Gains Tax on Home Sale by State (2026 & 2027 Guide)

Selling a home can create a large profit, but taxes can reduce how much you keep.

While federal capital gains tax rules apply across the country, state tax treatment varies widely.

Some states charge no state tax on home sale gains, some tax gains as ordinary income, and others offer deductions or special exclusions. Where you live can make a meaningful difference.

Use this state-by-state guide to compare capital gains tax on home sales in all 50 states.

State Capital Gains Tax Directory

Alabama Capital Gains Tax on Home Sale
Learn how Alabama taxes home sale profits, including filing rules and planning considerations.

Alaska Capital Gains Tax on Home Sale
Alaska has no state income tax, so most residents do not pay state tax on home sale gains.

Arizona Capital Gains Tax on Home Sale
Explore Arizona home sale capital gains rules and possible tax planning strategies.

Arkansas Capital Gains Tax on Home Sale
See how Arkansas taxes profits from selling a primary residence or other property.

California Capital Gains Tax on Home Sale
Understand California’s tax treatment of home sale gains, where gains are generally taxed as income.

Colorado Capital Gains Tax on Home Sale
Review Colorado tax rules for selling a home and capital gain planning.

Connecticut Capital Gains Tax on Home Sale
Learn how Connecticut taxes home sale gains and what homeowners should know.

Delaware Capital Gains Tax on Home Sale
Explore Delaware home sale tax rules and potential tax costs.

Florida Capital Gains Tax on Home Sale
Florida has no state income tax, so most residents owe no state tax on home sale gains.

Georgia Capital Gains Tax on Home Sale
See how Georgia taxes capital gains when selling a home.

Hawaii Capital Gains Tax on Home Sale
Review Hawaii home sale capital gains tax rules and possible reduced-rate treatment.

Idaho Capital Gains Tax on Home Sale
Learn how Idaho taxes profits from selling residential property.

Illinois Capital Gains Tax on Home Sale
Illinois generally taxes gains under its flat income tax system.

Indiana Capital Gains Tax on Home Sale
Explore Indiana home sale capital gains tax and filing requirements.

Iowa Capital Gains Tax on Home Sale
See Iowa rules for home sale gains and tax planning opportunities.

Kansas Capital Gains Tax on Home Sale
Learn how Kansas taxes profits from selling a home.

Kentucky Capital Gains Tax on Home Sale
Review Kentucky home sale gain treatment and planning tips.

Louisiana Capital Gains Tax on Home Sale
Understand Louisiana tax rules for selling a home at a profit.

Maine Capital Gains Tax on Home Sale
See how Maine taxes home sale gains and what may apply.

Maryland Capital Gains Tax on Home Sale
Explore Maryland home sale gain treatment and total state tax considerations.

Massachusetts Capital Gains Tax on Home Sale
Learn how Massachusetts taxes gains from selling residential property.

Michigan Capital Gains Tax on Home Sale
Review Michigan home sale capital gains tax rules.

Minnesota Capital Gains Tax on Home Sale
See Minnesota home sale gain rules, including possible surtax considerations.

Mississippi Capital Gains Tax on Home Sale
Understand Mississippi tax treatment of profits from selling a home.

Missouri Capital Gains Tax on Home Sale
Review Missouri changes affecting state taxation of capital gains.

Montana Capital Gains Tax on Home Sale
Explore Montana rules and reduced-rate treatment for some gains.

Nebraska Capital Gains Tax on Home Sale
Learn how Nebraska taxes profits from residential property sales.

Nevada Capital Gains Tax on Home Sale
Nevada has no state income tax, so most residents owe no state tax on home sale gains.

New Hampshire Capital Gains Tax on Home Sale
New Hampshire generally does not impose a broad state tax on capital gains.

New Jersey Capital Gains Tax on Home Sale
See how New Jersey taxes home sale gains as income.

New Mexico Capital Gains Tax on Home Sale
Review New Mexico home sale tax rules and available deductions.

New York Capital Gains Tax on Home Sale
Understand New York home sale gain rules and planning strategies.

North Carolina Capital Gains Tax on Home Sale
Learn how North Carolina taxes gains under its flat tax system.

North Dakota Capital Gains Tax on Home Sale
Explore North Dakota home sale gain rules and exclusions.

Ohio Capital Gains Tax on Home Sale
See Ohio treatment of gains from selling a home.

Oklahoma Capital Gains Tax on Home Sale
Review Oklahoma rules, including certain deduction opportunities.

Oregon Capital Gains Tax on Home Sale
Understand Oregon home sale gain tax planning considerations.

Pennsylvania Capital Gains Tax on Home Sale
Learn how Pennsylvania taxes gains under its flat-rate system.

Rhode Island Capital Gains Tax on Home Sale
Explore Rhode Island home sale gain treatment and filing rules.

South Carolina Capital Gains Tax on Home Sale
See South Carolina rules and long-term gain deductions.

South Dakota Capital Gains Tax on Home Sale
South Dakota has no state income tax, so most residents owe no state tax on home sale gains.

Tennessee Capital Gains Tax on Home Sale
Tennessee has no broad state income tax, so most residents owe no state tax on home sale gains.

Texas Capital Gains Tax on Home Sale
Texas has no state income tax, so most residents owe no state tax on home sale gains.

Utah Capital Gains Tax on Home Sale
Learn how Utah taxes gains under its flat-rate system.

Vermont Capital Gains Tax on Home Sale
Review Vermont home sale gain rules and deductions for qualifying gains.

Virginia Capital Gains Tax on Home Sale
See Virginia tax treatment for profits from selling a home.

Washington Capital Gains Tax on Home Sale
Washington has a separate state capital gains tax in some cases, subject to exemptions and thresholds.

West Virginia Capital Gains Tax on Home Sale
Understand West Virginia home sale gain treatment.

Wisconsin Capital Gains Tax on Home Sale
Learn how Wisconsin taxes gains and available deductions for some assets.

Wyoming Capital Gains Tax on Home Sale
Wyoming has no state income tax, so most residents owe no state tax on home sale gains.

Related Tax Resources

State Tax Brackets by State
Compare income tax rates across all 50 states.

State Tax Deductions by State
Find deductions that may lower taxable income.

Federal Capital Gains Tax Rates
See current federal long-term and short-term gain rules.

Electronic Filing Recommendation 💻

• Review both federal and state tax rules before selling a home
• Keep records of purchase price and major improvements
• Check eligibility for the home sale exclusion
• Consider estimated payments if gains are large
• Use e-file for faster processing
• Get tax advice for rental, inherited, or multi-state property sales

Summary

State capital gains tax on home sales varies dramatically across the country. Some states charge no tax, some tax gains as ordinary income, and others provide special deductions. Use this guide to compare your state, plan ahead, and reduce surprises when selling a home.