CALCMONEY // CAPITAL GAINS // SD
South Dakota has no state capital gains tax. You owe only the federal rate: 20% + 3.8% NIIT = 23.8% on large long-term gains.
Calculate Your GainNone
23.8%
$119,000
$238,000
| 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 |
| South Dakota State TaxNo tax | 0.0% | $0 | $0 |
| Total Tax Owed | 23.8% | $119,000 | $238,000 |
| Net Proceeds (after tax) | $381,000 | $762,000 |
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.
South Dakota imposes no state tax on capital gains. South Dakota has no state income tax or capital gains tax. The state also offers trust-friendly laws popular for HNW estate planning.
South Dakota has no state income tax or capital gains tax. The state also offers trust-friendly laws popular for HNW estate planning.
On a $1M long-term gain, a SD investor owes $238,000 total versus $371,000 in California or $326,200 in New York. The SD advantage scales significantly on larger exits.
The NIIT (3.8%) still applies regardless of state for investors with MAGI above $200K single or $250K married filing jointly.
| Alaska | None |
| Florida | None |
| Nevada | None |
| New Hampshire | None |
| Tennessee | None |
| California | 13.3% |
| New Jersey | 10.8% |
| District of Columbia | 10.8% |
| Oregon | 9.9% |
| Minnesota | 9.8% |
North Carolina
4.5% state rate
MIMichigan
4.3% state rate
VTVermont
8.8% state rate
KSKansas
5.7% state rate