Capital Gains Tax in Florida (2026)
Florida has no state income tax and does not tax capital gains — so a Florida resident owes federal only: 0/15/20% on long-term gains plus the 3.8% NIIT. Run the federal number below; the state line is $0.
Reviewed & updated · 2026 tax-year figures · Federal only (no Florida state tax)
Florida does not tax capital gains. Florida has no state individual income tax — Article VII, Section 5 of the Florida Constitution bars a personal income tax — and since a capital gain is income, there is nothing to tax at the state level. Your Florida state capital gains tax is $0. You still owe federal tax: 0/15/20% on long-term gains under IRC §1(h), plus the 3.8% NIIT (§1411) for high earners. Short-term gains are federal ordinary income. Because there is no state layer, your combined rate equals your federal rate.
Net proceeds $185,000$15,000
Show our work federal + FL, step by step
Estimates only, for the 2026 tax year. Not tax advice. Florida imposes no individual income tax, so the state capital gains line is $0; only the federal figures move. Federal bracket thresholds and standard deductions are inflation-indexed each year by the IRS; the figures used here are marked est. as projected 2026 amounts, owner-verifiable against the final IRS release.
Does Florida tax capital gains?
No. Florida is one of the handful of states with no individual income tax at all, and a capital gain is simply a form of income — so there is nothing for the state to tax. The rule is constitutional, not merely statutory: Article VII, Section 5 of the Florida Constitution prohibits the state from levying a tax on the income of natural persons. There is no Florida equivalent of California's ordinary-income treatment, no state long-term rate, and no state short-term rate. Whether you held the asset a week or a decade, and whether it is stock, crypto, or real estate, Florida's tax on the gain is $0.
Florida funds its government through other channels — a statewide sales tax, local property taxes, and a corporate income tax administered by the Florida Department of Revenue. None of those reach an individual's investment gains. That is why the calculator above shows a state line of $0 and a combined effective rate equal to your federal rate.
What do Florida residents still owe on capital gains?
The absence of a state tax removes only the state layer — the federal tax is unchanged. For a long-term gain, a Florida resident owes:
- Federal: 0%, 15%, or 20% depending on where the gain stacks on your taxable income, under IRC §1(h);
- Federal NIIT: an extra 3.8% on net investment income once MAGI passes $200,000 (single) / $250,000 (joint), under IRC §1411; and
- Florida: nothing — $0, because there is no state income tax.
So a top-bracket Florida resident with a long-term gain pays roughly 20% + 3.8% ≈ 23.8% — the federal ceiling — with no state add-on. Contrast that with California, where the same taxpayer stacks up to 13.3% in state tax for a combined rate above 37%. A short-term gain is worse federally, because it is taxed at ordinary rates (up to 37%) instead of 20%, but Florida still adds nothing. The calculator above computes each federal layer and confirms the state figure is zero.
What federal capital gains brackets apply in Florida? (est.)
Because Florida has no state schedule, the only brackets that matter are the federal long-term bands, shown here for a single filer. These are the 0/15/20% thresholds the calculator stacks your gain across. All figures are projected 2026 amounts (est.), owner-verifiable against the final IRS release.
| Taxable income (single, est.) | Federal LT rate |
|---|---|
| $0 – $49,450 | 0% |
| $49,450 – $545,500 | 15% |
| $545,500+ | 20% |
| MAGI over $200,000 (single) / $250,000 (joint) | +3.8% NIIT · §1411 |
| Florida state tax on the gain | 0% · Fla. Const. art. VII §5 |
How this calculator works & where the numbers come from
No black box. The federal side uses the same unit-tested engine as our main calculator: net gain = proceeds − basis; classify by holding period; for long-term gains, subtract the standard deduction and stack the gain across the 0/15/20% bands per IRC §1(h); add 3.8% NIIT where modified AGI crosses the §1411 threshold; short-term gains are computed as the true marginal difference in ordinary tax. The Florida side is trivial: because Article VII, Section 5 of the Florida Constitution bars a state income tax, the state tax on any capital gain is $0. There is no state bracket to stack, so the total equals the federal amount alone.
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Primary sources (linked, not just named)
- Fla. Const. art. VII, §5 — no personal income tax
- Florida Department of Revenue — taxes overview
- 26 U.S.C. §1(h) — federal capital gains rates
- 26 U.S.C. §1411 — 3.8% NIIT
- 26 U.S.C. §121 — home-sale exclusion
- IRS Topic No. 409 — Capital Gains and Losses
- IRS Publication 550 — Investment Income
- IRS Publication 523 — Selling Your Home
Florida capital gains tax, answered
Does Florida have a capital gains tax?
No. Florida has no state capital gains tax. Florida levies no individual income tax — Article VII, Section 5 of the Florida Constitution prohibits it — and since a capital gain is income, there is nothing to tax at the state level. A Florida resident owes only federal tax: 0/15/20% on long-term gains under IRC §1(h), plus the 3.8% NIIT for high earners. Short-term gains are federal ordinary income.
How much is capital gains tax in Florida for 2026?
Your Florida state tax is $0; the only tax you owe is federal. A long-term gain is taxed at 0/15/20% (IRC §1(h)) plus 3.8% NIIT for high earners; a short-term gain is ordinary income federally. Because there is no Florida income tax, your combined rate equals your federal rate — a mid-income seller might pay 15% total, a top earner near 20% + 3.8% ≈ 23.8%. Use the calculator above for your exact figure.
Why does Florida not tax capital gains?
Because Florida has no personal income tax. Article VII, Section 5 of the Florida Constitution bars the state from taxing the income of natural persons. A capital gain is income, so there is no legal mechanism to reach it. Florida raises revenue instead through sales tax, property tax, and a corporate income tax that does not apply to individuals' investment gains.
Do I still owe federal capital gains tax if I live in Florida?
Yes — federal tax applies in every state. Living in a no-income-tax state removes only the state layer. Federally, long-term gains are taxed at 0/15/20% under IRC §1(h), short-term gains at ordinary rates, and the 3.8% NIIT under §1411 hits high earners. A Florida resident's total capital gains tax equals the federal amount, with nothing added on top.
Does Florida tax capital gains on a second home or snowbird property?
Florida adds nothing, but the sale is still a federal event. With no state income tax, Florida imposes no tax on the gain from any property. Federally, the IRC §121 exclusion ($250k single / $500k joint) covers only a home you owned and used as your main residence for two of the last five years — a pure second home or rental generally does not qualify, so the full federal gain is taxable. And if the property sits in a state that does tax income, that state may tax the gain even though you live in Florida. See our home-sale hub for the §121 mechanics.
Is Florida better than California for capital gains?
On capital gains alone, yes. California taxes gains as ordinary income at 1%–13.3% on top of federal tax, while Florida adds $0. On a large long-term gain, a top-bracket earner could pay roughly 13.3% more in California than in Florida for the same sale — a difference high earners frequently cite when relocating. Compare the two directly on our California hub, and note that residency rules, property tax, and sales tax all belong in the full comparison.
More state hubs are coming
Florida is one of our first state hubs — part of the template we'll clone across all 50 states and D.C. Every state page combines the same unit-tested federal engine with that state's own rules, so you always see the full combined number. For a contrast, see how California stacks up to 13.3% on top of federal, or compare the other no-income-tax and high-tax hubs: Texas and New York. Until your state's page is live, the main Capital Gains Tax Calculator lets you fold any state's top marginal rate into your federal receipt.