Is capital gains paid at the state level as well?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
fantasytensai
Posts: 414
Joined: Fri Sep 30, 2016 3:30 pm

Is capital gains paid at the state level as well?

Post by fantasytensai » Mon Apr 16, 2018 9:15 am

Hi, I'm trying to estimate my quarterly taxes for 2018. It dawned upon me that I do not know if capital gains on the sale of stock is paid on the state level as well. I already figured it (15%) into my federal quarterly liabilities, but I did not know if it is for the state too. Thanks!

Edit: the state is New York, sorry!

Edit 2: found the answer after specifically googling NY State. It is taxed as regular income, thanks folks!
Last edited by fantasytensai on Mon Apr 16, 2018 9:24 am, edited 2 times in total.

jebmke
Posts: 7617
Joined: Thu Apr 05, 2007 2:44 pm

Re: Is capital gains paid at the state level as well?

Post by jebmke » Mon Apr 16, 2018 9:18 am

The answer lies in the instructions for preparing your state income tax return.

In Maryland, with one minor exception, Capital Gains included in Federal AGI get carried over to the state return and are considered ordinary income for state income tax purposes.
When you discover that you are riding a dead horse, the best strategy is to dismount.

Chip
Posts: 1971
Joined: Wed Feb 21, 2007 4:57 am

Re: Is capital gains paid at the state level as well?

Post by Chip » Mon Apr 16, 2018 9:18 am

It depends on your state. Many (most?) start with Federal AGI, which includes capital gains, and therefore tax capital gains at your full state tax rate.

Chris K Jones
Posts: 49
Joined: Sat Jan 20, 2018 6:54 pm

Re: Is capital gains paid at the state level as well?

Post by Chris K Jones » Mon Apr 16, 2018 9:18 am

It depends on the state. In Georgia, it is.

User avatar
Pajamas
Posts: 4617
Joined: Sun Jun 03, 2012 6:32 pm

Re: Is capital gains paid at the state level as well?

Post by Pajamas » Mon Apr 16, 2018 9:19 am

No, not in Nevada.

craimund
Posts: 42
Joined: Thu Feb 15, 2018 3:39 pm
Location: Virginia

Re: Is capital gains paid at the state level as well?

Post by craimund » Mon Apr 16, 2018 9:19 am

fantasytensai wrote:
Mon Apr 16, 2018 9:15 am
Hi, I'm trying to estimate my quarterly taxes for 2018. It dawned upon me that I do not know if capital gains on the sale of stock is paid on the state level as well. I already figured it (15%) into my federal quarterly liabilities, but I did not know if it is for the state too. Thanks!
Cap gains also taxed as ordinary income in Virginia. Check your state's tax code.
"When you ain't got nothing, you got nothing to lose"-Bob Dylan 1965. "When you think that you've lost everything, you find out you can always lose a little more"-Dylan 1997

fantasytensai
Posts: 414
Joined: Fri Sep 30, 2016 3:30 pm

Re: Is capital gains paid at the state level as well?

Post by fantasytensai » Mon Apr 16, 2018 9:22 am

fantasytensai wrote:
Mon Apr 16, 2018 9:15 am
Hi, I'm trying to estimate my quarterly taxes for 2018. It dawned upon me that I do not know if capital gains on the sale of stock is paid on the state level as well. I already figured it (15%) into my federal quarterly liabilities, but I did not know if it is for the state too. Thanks!
State is New York, sorry!

User avatar
Peter Foley
Posts: 4284
Joined: Fri Nov 23, 2007 10:34 am
Location: Lake Wobegon

Re: Is capital gains paid at the state level as well?

Post by Peter Foley » Mon Apr 16, 2018 9:23 am

Following up on earlier answers. Obviously some state do not have an income tax. Of those that do there are different starting points, two of the most common being Federal Adjusted Gross Income or Federal Taxable income. After those starting points states then apply their own rules.

dbr
Posts: 26141
Joined: Sun Mar 04, 2007 9:50 am

Re: Is capital gains paid at the state level as well?

Post by dbr » Mon Apr 16, 2018 9:53 am

jebmke wrote:
Mon Apr 16, 2018 9:18 am
The answer lies in the instructions for preparing your state income tax return.
This is the answer. Or, someone who knows the NY tax law can say yes or no. People have already pointed out that many states start with AGI which includes capital gains. Whether or not CGs will get a preferential tax rate is another question. Often they do not.

Post Reply