Minnesota Capital Gains Tax 2026
Estimate the state tax attributable to a gain, then separate it from the federal capital-gains calculation.
State-specific rule
Minnesota also imposes a 1% net investment income tax on net investment income above $1 million. The threshold is not reduced by filing status. Net investment income follows the federal definition, except that the net gain on the sale of class 2a property is excluded and gains in an opportunity zone are adjusted.
Calculate the Minnesota state layer
Enter other state taxable income so the calculator can measure the incremental tax created by the gain.
State tax on gain
State tax before gain
State tax after gain
Includes Minnesota’s 1% net investment income tax on modeled net investment income above $1 million. It treats the whole gain as net investment income; a gain on class 2a agricultural land is excluded from that tax. Other investment income and allocable deductions can change the result.
Frequently asked questions
Does Minnesota have a lower rate for long-term capital gains?
Minnesota includes taxable capital gains in ordinary state taxable income and uses progressive rates.
Does this include federal capital gains tax?
No. This page estimates the state layer. Use the federal capital gains calculator for the 0%, 15% or 20% long-term rate, ordinary short-term rates and possible 3.8% NIIT.
Why does other income change the result?
The gain can stack on top of other taxable income. In a progressive system, some or all of the gain may therefore fall into higher state brackets.
Sources
Related Calculators
State Capital Gains Tax Calculator
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Capital Gains Tax Calculator
LTCG 0/15/20% rates + 3.8% NIIT based on income brackets
NIIT Calculator
Net Investment Income Tax 3.8%, thresholds $200k / $250k MFJ
Tax-Loss Harvesting
Capital loss utilization, $3k annual deduction, carryforward
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