ARIZONA CAPITAL GAINS TAX · TAX YEAR 2026
Arizona capital gains tax calculator
Arizona subtracts 25% of a net long-term capital gain on assets acquired after 2011, and taxes the rest, and all short-term gains, at its flat 2.5% rate. On a $50,000 long-term gain with $75,000 of wages, a single filer owes $938 of Arizona tax and $7,500 of federal income tax, $8,438 in all, and keeps $41,563.
Tax on your gain
- Total tax on the gain
- $8,437.50
- Federal income tax
- $7,500.00
- Net investment income tax
- $0.00
- Arizona tax
- $937.50
- After-tax gain
- $41,562.50
- Effective rate
- 16.88%
- Gain Arizona excludes
- $12,500.00
Arizona tax by size of gain
What a single filer with $75,000 of wages owes on a long-term gain, and the state tax if the same gain were short-term. Federal tax includes the net investment income tax.
| Gain | Federal tax | State tax | State tax if short-term |
|---|---|---|---|
| $10,000 | $1,500 | $188 | $250 |
| $50,000 | $7,500 | $938 | $1,250 |
| $100,000 | $15,000 | $1,875 | $2,500 |
| $250,000 | $42,250 | $4,688 | $6,250 |
| $1,000,000 | $208,920 | $18,750 | $25,000 |
Arizona capital gains tax questions
Does Arizona tax capital gains?
Yes. Arizona subtracts 25% of a net long-term capital gain on assets acquired after 2011, and taxes the rest, and all short-term gains, at its flat 2.5% rate.
How much Arizona tax is due on a capital gain?
A single filer with $75,000 of wages owes $938 of Arizona tax on a $50,000 long-term gain, 1.88% of the gain, and $4,688, 1.88%, on a $250,000 gain. Federal tax on the same gains is $7,500 and $42,250.
Does Arizona tax short-term capital gains differently?
Yes. A $10,000 short-term gain owes $250 of Arizona tax, against $188 on a long-term gain. Federal tax on it is $2,200, against $1,500.
Which gains get Arizona's 25% subtraction?
Net long-term capital gain included in federal AGI, on assets acquired after December 31, 2011. A gifted or inherited asset takes the giver's acquisition date, and no subtraction is allowed when that date cannot be verified. On a $50,000 long-term gain the subtraction is $12,500.
What the calculator leaves out
- The calculator assumes the asset was acquired after 2011, as the 25% subtraction requires.
- Arizona also subtracts net capital gain from an investment in a qualified small business certified by the Arizona Commerce Authority, and gain from exchanging one kind of legal tender for another.
Federal tax stacks the gain on wages after the 2026 standard deduction, taxes a long-term gain at the long-term capital gains rates and a short-term gain at the ordinary brackets, and adds the net investment income tax. The gain is the only investment income. Capital losses and carryovers, qualified dividends, the collectibles and section 1250 rates, the alternative minimum tax and credits are left out; enter a home sale's gain after any federal exclusion.