What is the California capital gains tax rate in 2022?

Regardless of the year, the California capital gains tax rate of 2022 is based on the type of asset that made profitable gains that need to be assessed. If it was a short-term holding such as a stock or a real estate “flip,” you may be taxed as high as 15% on the profits of the sale.

How much are capital gains taxes in California?

It does not recognize the distinction between short-term and long-term capital gains. This means your capital gains taxes will run between 1% up to 13.3%, depending on your overall income and corresponding California tax bracket. California taxpayers are subject to nice progress marginal tax rate brackets.

Does California tax long-term capital gains?

Unlike the federal government, California makes no distinction between short-term and long-term capital gains. It taxes all capital gains as income, using the same rates and brackets as the regular state income tax. The following table shows the tax rates that apply to both income and capital gains in California: