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Indiana Capital Gains Tax Calculator
Indiana taxes capital gains at 3.05% (flat rate). Calculate your combined federal and Indiana capital gains tax below.
Indiana state capital gains rate
3.05%
Treatment
Flat rate
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After standard/itemized deductions. Used to determine your bracket. 2026 standard deduction: $16,100 (single) · $32,200 (married jointly) · $24,150 (head of household)
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Rates updated for May 2026
This calculator is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional for your specific situation. Rates last verified May 2026.
Verify rates on IRS Topic No. 409 — Capital Gains and LossesCombined federal + Indiana capital gains rates
| Scenario | Federal rate | IN rate | Combined |
|---|---|---|---|
| Long-term (0% federal bracket) | 0% | 3.05% | 3.05% |
| Long-term (15% federal bracket) | 15% | 3.05% | 18.05% |
| Long-term (20% federal bracket) | 20% | 3.05% | 23.05% |
| Long-term + NIIT (20% + 3.8%) | 23.8% | 3.05% | 26.85% |
2026 federal long-term capital gains brackets
0%
Single: Up to $49,450
Married jointly: Up to $98,900
15%
Single: $49,451–$545,500
Married jointly: $98,901–$613,700
20%
Single: Over $545,500
Married jointly: Over $613,700
Frequently asked questions
Does Indiana have a capital gains tax?
Yes. Indiana taxes capital gains as part of its flat 3.05% state income tax rate. All income including capital gains is taxed at the same flat rate.
What is the combined federal and Indiana capital gains tax rate?
For Indiana residents, the combined maximum long-term rate is approximately 23.05% — the 20% federal rate plus 3.05% Indiana state rate. High earners may also owe the 3.8% NIIT, bringing the effective top combined rate to approximately 26.85%.
What are the 2026 long-term capital gains tax rates?
For 2026, the federal long-term capital gains tax rates are 0%, 15%, and 20%, depending on your taxable income and filing status. Single filers pay 0% on income up to $49,450, 15% from $49,451 to $545,500, and 20% above $545,500. Married filing jointly pays 0% up to $98,900 and 20% above $613,700. These rates apply to assets held more than 12 months.
What is the difference between short-term and long-term capital gains?
Short-term capital gains apply to assets held 12 months or less and are taxed at ordinary income tax rates (10%–37%). Long-term capital gains apply to assets held more than 12 months and receive preferential federal rates of 0%, 15%, or 20%. The one-year holding threshold is one of the most important distinctions in US tax law.
What is the Net Investment Income Tax (NIIT)?
The NIIT is a 3.8% federal surtax on net investment income — including capital gains, dividends, and interest — for taxpayers whose Modified Adjusted Gross Income (MAGI) exceeds $200,000 for single filers or $250,000 for married filing jointly. These thresholds have not been adjusted for inflation since 2013, meaning more taxpayers are subject to the NIIT each year.
Which states have no capital gains tax?
Nine states have no state-level capital gains tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington (for gains under $262,000), and Wyoming. Note that New Hampshire repealed its Interest and Dividends Tax effective January 1, 2025, making it fully tax-free on capital gains.