New York Capital Gains Tax (2026)
New York capital gains tax rate: Taxed as ordinary income at up to 10.9% (14.776% for NYC residents)
New York taxes capital gains as ordinary income — no preferential rate for long-term gains. NYC residents face up to 14.776% combined state + city rate on capital gains, making New York one of the most expensive states for capital gains.
Federal Capital Gains Rates Still Apply to New York Residents
All New York residents also owe federal capital gains tax. Federal long-term capital gains rates are 0% (income up to ~$47,025 single), 15% (income up to ~$518,900 single), or 20% (above). High earners may also owe the 3.8% Net Investment Income Tax (NIIT).
Short-Term vs. Long-Term Capital Gains in New York
Assets held less than one year are taxed as ordinary income at federal rates (10%–37%). Assets held over one year qualify for the preferential 0%/15%/20% federal rates. New York taxes capital gains as ordinary income — no preferential rate for long-term gains. NYC residents face up to 14.776% combined state + city rate on capital gains, making New York one of the most expensive states for capital gains.
Planning Considerations for New York Investors
- Tax-loss harvesting can offset gains at both state and federal levels
- Timing asset sales to control income year and bracket placement
- New York taxes capital gains at Taxed as ordinary income at up to 10.9% (14.776% for NYC residents) — factor this into net-of-tax return calculations
- Qualified Opportunity Zone investments can defer federal and potentially state gains
Frequently Asked Questions
What is the capital gains tax rate in New York?
New York taxes capital gains as ordinary income — no preferential rate for long-term gains. NYC residents face up to 14.776% combined state + city rate on capital gains, making New York one of the most expensive states for capital gains. Federal rates (0%, 15%, 20% for long-term gains) also apply regardless of state.
Does New York have a different rate for long-term vs. short-term capital gains?
New York does not distinguish between short- and long-term capital gains — both are taxed as ordinary income at up to 10.9%. Only federal law provides preferential long-term capital gains rates.
How do I reduce capital gains tax in New York?
Strategies include: holding assets over one year for federal long-term rates, tax-loss harvesting to offset gains, contributing to retirement accounts (401k, IRA), investing in Qualified Opportunity Zones, and timing sales across tax years. In New York, capital gains are taxed at up to Taxed as ordinary income at up to 10.9% (14.776% for NYC residents), so these strategies reduce both federal and state tax.
Is this capital gains tax calculator free for New York?
Yes. Enter your gain amount, holding period, and annual income. The calculator applies both federal rates (0%/15%/20% long-term) and New York's Taxed as ordinary income at up to 10.9% (14.776% for NYC residents) state rate to estimate your total tax owed.