How much is capital gains tax in California?

Capital Gains Tax Rate in California for 2023

The capital gains tax rate in California for the year 2023 is treated the same as ordinary income tax rates. California does not offer a separate capital gains rate, which means that capital gains are taxed at the same rate as regular income.

Here are the key points regarding capital gains taxation in California:

- Capital gains are the profits from the sale of an asset sold for a price higher than the purchase price.

- All capital gains are taxed as ordinary income in California.

- Taxpayers must report both gains and losses from the sale or exchange of capital assets.

- To report capital gains and losses, taxpayers use the U.S. Individual Income Tax Return (IRS Form 1040) and the Capital Gains and Losses, Schedule D (IRS Form 1040).

- If there is a difference in the treatment of federal and state capital gains, taxpayers must file the California Capital Gain or Loss Schedule D (540).

Please note that the actual tax rate applied to your capital gains in California will depend on your total taxable income and filing status, as capital gains are simply added to your income and taxed at the applicable state income tax rate.

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Sources:

Capital gains and losses | FTB.ca.gov 2024-08-01

Taxation of Nonresidents and Individuals Who Change Residency 2024-07-31

2022 Instructions for Schedule CA (540) | FTB.ca.gov - Franchise Tax Board 2024-08-02

Part-year resident and nonresident | FTB.ca.gov - Franchise Tax Board 2024-07-30

2023 Personal Income Tax Booklet | California Forms & Instructions 540 ... 2024-07-30

2023 Form 540 2EZ: Personal Income Tax Booklet | California Forms ... 2024-07-31

2022 540NR Booklet | FTB.ca.gov - Franchise Tax Board 2024-08-01

Residents | FTB.ca.gov - Franchise Tax Board 2024-07-31

Income from the sale of your home | FTB.ca.gov - Franchise Tax Board 2024-08-02