I live in a state that has state income tax, and I am in the 28 % tax bracket. That being said I am aware I pay long term capital gains at 20 %, and short term capital gains at my normal tax bracket, 28 %. My question is do I pay state taxes as well on short term gains, what about on long term gains? Thanks for the helpful board, WP
This varies from state to state. In Massachusetts, there is a sliding scale of excruciating complication, where taxes range from 5% of gains to 2%, depending on the length of time you have held. As I recall, in New York, it's just ordinary income.
What state do you live in?