CALCMONEY // CAPITAL GAINS // NY
New York adds 8.8% state tax on top of the 23.8% federal rate. On a $1M gain, total tax: $326,200.
Calculate Your Gain8.8%
32.6%
$163,100
$326,200
| Tax Component | Rate | On $500K Gain | On $1M Gain |
|---|---|---|---|
| Federal Long-Term Rate | 20.0% | $100,000 | $200,000 |
| Net Investment Income Tax (NIIT) | 3.8% | $19,000 | $38,000 |
| New York State Tax | 8.8% | $44,100 | $88,200 |
| Total Tax Owed | 32.6% | $163,100 | $326,200 |
| Net Proceeds (after tax) | $336,900 | $673,800 |
Federal rate assumes income in the 20% long-term bracket. NIIT applies to investors with MAGI above $200K (single) or $250K (married). State rate shown is the top applicable rate.
| Gain Amount | NY Total Tax | Zero-Tax State | NY Premium |
|---|---|---|---|
| $250,000 | $81,550 | $59,500 | +$22,050 |
| $500,000 | $163,100 | $119,000 | +$44,100 |
| $1,000,000 | $326,200 | $238,000 | +$88,200 |
| $2,500,000 | $815,500 | $595,000 | +$220,500 |
| $5,000,000 | $1,631,000 | $1,190,000 | +$441,000 |
New York taxes long-term capital gains at up to 8.8%. Combined with the 20% federal rate and 3.8% NIIT, a high-income NY investor faces 32.6% on a large capital event. On a $1M gain, that is $326,200 in total tax, leaving $673,800 after tax.
New York taxes capital gains as ordinary income. Combined state and NYC local tax can push the effective rate above 14% for New York City residents.
The difference between realizing a gain in New York versus a zero-tax state like Texas or Florida is $88,200 per $1M in gains. For a $5M exit, the gap is $441,000. Domicile planning is a key lever for HNW investors ahead of a major liquidity event.
The NIIT adds 3.8% on top of the federal rate for investors with Modified Adjusted Gross Income above $200,000 (single) or $250,000 (married filing jointly). This threshold is not indexed to inflation, so it captures most HNW capital gain transactions regardless of state.
| Alaska | None |
| Florida | None |
| Nevada | None |
| New Hampshire | None |
| South Dakota | None |
| California | 13.3% |
| New Jersey | 10.8% |
| District of Columbia | 10.8% |
| Oregon | 9.9% |
| Minnesota | 9.8% |