California Capital Gains Calculator

Calculate your federal and California capital gains tax liability

2025

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

Highest state rate at 13.3%
Taxes as ordinary income
1% mental health surcharge over $1M
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Enter Your Investment Details

Calculate your capital gains tax for California

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📊 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

Your capital gain is: $0.00
Estimated capital gains tax: $0.00
Federal Tax: $0.00
California Tax: $0.00
Net Proceeds After Tax: $0.00
Effective Tax Rate: 0.00%
Disclaimer: Estimate excludes NII taxes, deductions, credits, and losses. Consult a tax advisor.

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

0% Rate (Single): Up to $48,350
15% Rate (Single): $48,351 - $533,400
20% Rate (Single): Over $533,400

California Tax Details

Tax Rate Structure

Top Rate: 13.30%

Capital gains are taxed as ordinary income using progressive tax brackets.

Key Requirements

Filing Required: If gain exceeds threshold
State Due Date: April 15

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

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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

Federal Exclusion: $250K/$500K
Holding Period: 2 of 5 years

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

1031 Conformity: ✗ No
Bonus Depreciation: ✗ Not Allowed

Transfer Costs

Transfer Tax

State Rate: $0.55 per $500
Paid By: varies by locality
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

Deed Recording: $15 base fee plus additional charges
Mortgage Recording: $15 base fee plus additional charges
Additional Fees:
  • • Documentary transfer tax varies by county
Special Deductions & Notes:
  • • CA disallows federal bonus depreciation
  • • Must use CA depreciation schedules

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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

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California Filing Requirements

Due Dates
Annual Return: April 15
Extension: October 15
Quarterly Est.:
January 15
April 15
June 16
September 15
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

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Compare California to Other States

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© 2025 CapitalGainsTaxCalculator.us - For informational purposes only. Consult a tax professional for advice.