Capital Gains Tax in New York (2026)
New York has no special capital gains rate — the state taxes your gain as ordinary income, 4% up to about 10.9% (est.), stacked on top of the federal 0/15/20% tax and the 3.8% NIIT. New York City residents add up to ~3.876% more. Run the combined number below.
Reviewed & updated · 2026 tax-year figures · Federal + New York State (+ optional NYC)
New York does not have a preferential long-term capital gains rate. Under N.Y. Tax Law Article 22 (§601), both short- and long-term gains are taxed as ordinary income at the state's marginal rates, which top out around 10.9% (est.). New York City residents pay an additional city income tax of up to ~3.876% (est.) under §1304. That state (and city) tax is added on top of the federal capital gains tax (0/15/20% long-term under IRC §1(h)) and the 3.8% NIIT (§1411). A top-bracket New York City resident can face a combined rate near 38% on a long-term gain.
Net proceeds $178,774$21,226
Show our work federal + NY, step by step
Estimates only, for the 2026 tax year. Not tax advice. New York bracket thresholds, standard deductions, and NYC rates are inflation-indexed and legislatively adjusted; the figures used here are marked est. as projected 2026 amounts, owner-verifiable against the final NYS Department of Taxation and Finance release.
How does New York tax capital gains?
New York is one of the states that gives capital gains no break at all. Under N.Y. Tax Law Article 22 (§601), a capital gain is simply part of your New York taxable income and is taxed at the same graduated rates as wages — 4% at the bottom to about 10.9% (est.) at the top. There is no equivalent of the federal 0/15/20% long-term schedule and no distinction between short-term and long-term at the state level. Whether you held the asset a week or a decade, New York taxes the whole gain as ordinary income.
New York's top brackets were raised in recent years and reach roughly 10.9% (est.) on very high incomes. A large one-time gain — selling a business, a long-held property, or a block of RSUs — is exactly the kind of event that can push a household into those upper brackets for a single year.
Do New York City residents pay more?
Yes. On top of New York State tax, N.Y. Tax Law §1304 lets New York City levy its own resident income tax, topping out around 3.876% (est.). Because the city treats capital gains as ordinary income just like the state does, an NYC resident pays that rate on the full gain in addition to state and federal tax. The calculator above has an optional NYC add-on line — flip it on if you're a city resident. (Yonkers residents pay a separate surcharge; the city tax does not apply to most non-residents.)
How does New York stack on top of federal?
The systems run in parallel and the amounts are added — New York does not replace or absorb the federal tax. For a long-term gain, you owe:
- 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;
- New York State: your marginal state rate, 4% up to ~10.9% (est.), on the full gain under Tax Law Article 22; and
- New York City (if a resident): up to ~3.876% (est.) more under §1304.
Add those together and a top-bracket New York City resident with a long-term gain can pay roughly 20% + 3.8% + 10.9% + 3.876% ≈ 38.6%. A short-term gain is worse, because the federal side jumps to ordinary rates (up to 37%) instead of 20%. The calculator above computes each layer separately and shows you the exact bands.
What are the 2026 New York income-tax brackets? (est.)
These are the marginal brackets New York applies to your gain, shown for a single filer. Married-filing-jointly brackets are wider; head-of-household has its own schedule. All figures are projected 2026 amounts (est.), owner-verifiable against the NYS Department of Taxation and Finance tax tables.
| Taxable income (single, est.) | Marginal rate |
|---|---|
| $0 – $8,500 | 4% |
| $8,500 – $11,700 | 4.5% |
| $11,700 – $13,900 | 5.25% |
| $13,900 – $80,650 | 5.5% |
| $80,650 – $215,400 | 6% |
| $215,400 – $1,077,550 | 6.85% |
| $1,077,550 – $5,000,000 | 9.65% |
| $5,000,000 – $25,000,000 | 10.3% |
| $25,000,000+ | 10.9% |
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 New York side takes the same taxable gain (after any §121 exclusion, since New York starts from federal AGI), subtracts the New York standard deduction from your ordinary income, and stacks the gain across the New York marginal brackets under Tax Law Article 22 (§601). If you flag yourself as a New York City resident, the calculator adds the NYC resident tax (§1304) as a separate line. The results are summed.
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Primary sources (linked, not just named)
- N.Y. Tax Law §601 — imposition of tax (Article 22)
- N.Y. Tax Law §1304 — New York City resident tax
- NYS Dept. of Taxation & Finance — tax rate tables
- 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
New York capital gains tax, answered
Does New York have a separate capital gains tax rate?
No. New York has no preferential capital gains rate. Under Tax Law Article 22 (§601), a capital gain — short-term or long-term — is taxed as ordinary income at the state's marginal rates, 4% up to about 10.9% (est.). New York City residents add up to ~3.876% (est.) under §1304. The federal short/long distinction does not exist at the New York level.
How much is capital gains tax in New York for 2026?
Your New York tax equals the gain taxed at your marginal state rate (4%–~10.9% est.), added to the federal capital gains tax — and city tax if you live in NYC. Federally, a long-term gain is taxed at 0/15/20% (IRC §1(h)) plus 3.8% NIIT for high earners. A mid-income New Yorker might pay roughly 15% federal + ~6.85% state; a top earner in NYC can pay near 20% + 3.8% + 10.9% + 3.876% ≈ 38% combined. Use the calculator above for your exact figure.
How does New York capital gains tax stack on top of federal?
They are computed separately and summed. The federal side taxes long-term gains at 0/15/20% and adds 3.8% NIIT for high earners; short-term gains are ordinary income. New York ignores the holding period and taxes the entire gain as ordinary income up to ~10.9% (est.). Your total tax is federal + NIIT + New York State + any New York City tax.
Do New York City residents pay extra capital gains tax?
Yes. NYC imposes its own resident income tax under Tax Law §1304, topping out around 3.876% (est.). Because the city treats capital gains as ordinary income just like the state, an NYC resident pays that rate on the full gain on top of state and federal tax. The calculator's optional NYC add-on line applies it once you flag yourself as a city resident. Yonkers has a separate surcharge; most non-residents of the city do not owe NYC tax on the gain.
Does the 3.8% federal NIIT apply to New Yorkers?
Yes — the NIIT is federal and applies in every state. Once modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly), the 3.8% surtax under IRC §1411 hits the lesser of your net investment income or the amount over the threshold. It is added to your federal capital gains tax and is entirely separate from New York State and New York City tax.
Does New York conform to the $250k/$500k home-sale exclusion?
Yes. New York generally starts from federal AGI, so the IRC §121 exclusion flows through. Up to $250,000 of gain ($500,000 married filing jointly) on a primary residence is excluded for both federal and New York purposes if you owned and used the home for two of the last five years. Only gain above the exclusion is taxed by New York, as ordinary income. See our home-sale hub for the mechanics.
More state hubs
New York shares its high-tax story with California — both tax gains as ordinary income with no long-term break, and both stack a hefty state layer on top of the federal number (California even reaches 13.3%). At the other end sit no-income-tax states like Texas and Florida, where the state adds nothing and you owe only the federal tax. Every state page combines the same unit-tested federal engine with that state's own rules, so you always see the full combined number, not just half of it. The main Capital Gains Tax Calculator lets you fold any state's top marginal rate into your federal receipt.