Policy Documents

State and Federal Individual Capital Gains Tax Rates: How High Could They Go?

ACCF Center for Policy Research –
March 1, 2012

As the debate on federal tax reform continues, the ACCF Center for Policy Research (CPR) presents this Special Report to further the debate and highlight the effect of increased federal tax rates on long-term individual capital gains tax rates when both the federal, state and, in some cases, local tax rates are combined. Long-term individual capital gains contribute significant amounts to state’s taxable income. Thus important questions are whether higher federal rates, combined with state capital gains taxes may reduce state’s budget receipts as well as overall
investment and job growth.