How Much Is Capital Gains Tax in Florida?

Capital gains refer to the profit realized from the sale of an asset, such as stocks, real estate, or other investments. When an asset is sold for more than its original purchase price, the difference is considered a capital gain. This gain becomes subject to taxation once the asset is sold, not while it is merely held.

Florida’s Capital Gains Tax

Florida does not impose a state-level capital gains tax. Residents of Florida, and those who sell assets located in Florida, are not subject to any state income tax on these profits. While Florida provides this state-level tax advantage, capital gains are still subject to federal taxation.

Federal Capital Gains Tax Overview

Capital gains are subject to federal income tax, with the rate depending on how long the asset was held. The IRS classifies capital gains as short-term (assets held for one year or less) or long-term (assets held for more than one year).

Short-term capital gains are taxed at ordinary income tax rates, ranging from 10% to 37% for the 2025 tax year. These gains are added to an individual’s regular income and taxed according to their income tax bracket. Long-term capital gains receive preferential tax treatment with lower rates.

For 2025, long-term capital gains are generally taxed at 0%, 15%, or 20%, depending on the taxpayer’s overall taxable income. Filers with taxable income of $48,350 or less pay a 0% rate. The rate increases to 15% for those with taxable income between $48,351 and $533,400, and 20% for income exceeding $533,400.

In addition, higher-income individuals may also be subject to the Net Investment Income Tax (NIIT). This is an additional 3.8% tax on certain investment income, including capital gains. The NIIT applies to individuals whose modified adjusted gross income (MAGI) exceeds $200,000 for single filers or $250,000 for those married filing jointly.

Calculating Federal Capital Gains Tax

Calculating a capital gain or loss is determined by subtracting the asset’s basis and any selling expenses from its sale price. The basis generally refers to the original cost of the asset, including commissions and any improvements made, while selling expenses are costs incurred during the sale, such as broker fees or legal costs.

If the sale price exceeds the adjusted basis and selling expenses, a capital gain results. Conversely, if the sale price is less than the adjusted basis and selling expenses, it results in a capital loss. Capital losses can be used to offset capital gains, reducing the overall taxable amount.

If capital losses exceed capital gains, a limited amount of these losses can be deducted against ordinary income, up to $3,000 per year ($1,500 if married filing separately). Any remaining capital losses that exceed this limit can be carried forward to offset gains or ordinary income in future tax years.