Calculate your federal and California capital gains tax liability
Calculate Your
California Capital Gains Tax
California taxes capital gains as ordinary income at rates up to 13.3% (includes 1% mental health tax on income over $1M).
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California Capital Gains Tax Highlights
Enter Your Investment Details
Calculate your capital gains tax for California
📊 Enter your annual taxable income before including this capital gain. This determines your capital gains tax bracket.
📊 Choose your investment holding period
Calculator optimized for California tax rates
Tax Calculation Results
How California Taxes Capital Gains
California taxes capital gains as ordinary income at rates up to 13.3% (includes 1% mental health tax on income over $1M).
2025 Tax Brackets
California Tax Details
Tax Rate Structure
Capital gains are taxed as ordinary income using progressive tax brackets.
Key Requirements
California Tax Strategies
- • Consider timing of asset sales for tax efficiency
- • Coordinate with federal capital gains strategies
- • Review loss harvesting opportunities
• Consult with California tax professional for complex situations
Related Tax Services
Real Estate in California
Real estate capital gains in California are subject to both federal and state tax considerations:
California Real Estate Tax Rate
Real estate capital gains in California are taxed as ordinary income up to 13.3%.
Primary Residence
Federal Rules
California State Rules
State tax applies to gain above federal exclusion
Must file state return if gain exceeds exclusion
Additional Requirements:
- • Must be primary residence
- • Can use once every 2 years
- • Follows federal IRC Section 121
Investment Property
Tax Deferral Strategies
1031 Like-Kind Exchanges
Defer federal taxes on investment property exchanges
Transfer Costs
Transfer Tax
Local Variations:
- • SF: $7.50-$30 per $1000 depending on value
- • LA: $1.10 per $1000
- • Oakland: $15 per $1000
Available Exemptions:
- • Gifts between family
- • Foreclosure sales
- • Transfers due to divorce
Recording Fees
Additional Fees:
- • Documentary transfer tax varies by county
Special Deductions & Notes:
- • CA disallows federal bonus depreciation
- • Must use CA depreciation schedules
Investment & Tax Services
Property Tax Exemptions
Homestead
$700K
Maximum exemption
Senior (65+)
$7K
Additional exemption
California Real Estate Specifics
Mental Health Services Tax: 1% on income over $1M (over $1000K)
• Proposition 13 limits property tax increases to 2% annually
• Transfer tax varies significantly by locality
• Some cities have mansion taxes on high-value properties
Real Estate & Investment Services
California Filing Requirements
Due Dates
Required Forms
- • Form 540
- • Schedule D (540)
- • Federal Form 8949 & Schedule D
Payment Options
- • Online payment portal
- • Electronic funds transfer
- • Check or money order
Tax Professional Services
Tax Calculation Results
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