Long-term gains get their own federal rates, but most states tax them as ordinary income. These pieces cover the state patchwork, the net investment income tax, home sales and harvesting losses.
· 7 min read
Before December 31, 2026, an extra $5,000 of 401(k) deferral cuts the $65,000 single filer's federal tax by $600 and the $185,000 filer's by $1,200; harvesting $18,000 of losses saves the second filer $2,970. Pennsylvania taxes the deferral anyway; Illinois does not.
· 9 min read
Missouri now subtracts 100% of federally reported capital gains, the first full exemption in a state that still taxes wages. Nine states give a gain a defined discount, eight tax nothing at all, Washington taxes only gains above its deduction, and California stacks up to 13.3% on top of the federal 23.8% ceiling.
· 5 min read
SB 6346, signed March 30, 2026, taxes individual income above a $1 million household deduction at 9.9% beginning January 1, 2028, with the first returns due in 2029. Initiative 645, certified to the November 3, 2026 ballot, asks voters to repeal it before the first dollar is collected.