The 20% rate applies to income above those thresholds. This top rate is one of the highest in the nation and directly applies to capital gains income.
California Capital Gains Tax 2024 Income Thresholds
California State Income Tax Rates California utilizes a nine-tiered progressive income tax system. While the federal government sets a baseline for long-term capital gains, the Golden State adds its own layer of complexity with top-tier state rates that can substantially impact the final profit.
The state rates range from 1% for the lowest income to 13. This means the rate you pay is determined by which federal tax bracket your income falls into, but it is calculated using the highest state marginal rate applicable to that bracket.
California Capital Gains Tax 2024 Income Thresholds
3% $296,796 to $372,977 11. Long-term gains, from assets held for more than a year, benefit from preferential federal rates, though they are still subject to the top California income tax rate.
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