Does Ohio have a special capital gains tax rate?

No. Ohio taxes capital gains as ordinary income on your state return. There is no reduced state rate for long-term gains, so the gain is taxed alongside your other income at Ohio's graduated rates topping out around 3.5%.

How are long-term federal capital gains taxed?

Long-term gains use preferential federal rates of 0%, 15%, or 20% depending on your total taxable income. The gain stacks on top of your ordinary income, so part of it may fall in the 0% band while the rest is taxed at 15% or 20%.

What is the net investment income tax?

The NIIT is an extra 3.8% federal surtax on investment income, including capital gains, for taxpayers with modified adjusted gross income above $200,000 single or $250,000 married filing jointly. It applies only to the income above that threshold.

How are short-term gains taxed?

Assets held one year or less produce short-term gains, which are taxed as ordinary income at your federal marginal rate (10% to 37%) plus Ohio's ordinary rates. Short-term gains usually cost considerably more than long-term gains.

Does Ohio exempt any capital gains?

Ohio does not offer a broad capital-gains exclusion, though low-income filers below the roughly $26,050 nontaxable threshold owe no state tax. This tool estimates the standard treatment and is not personalized tax advice.

Ohio Capital Gains Tax Calculator

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Selling an investment as an Ohio resident triggers two taxes: the federal capital gains tax and Ohio’s state income tax. Because Ohio gives no special break for long-term gains, the state side is simply your ordinary rate. This calculator combines both so you can see the full cost of a sale.

How it works

The federal treatment depends on how long you held the asset. Long-term gains (held more than a year) use preferential rates that stack on your other taxable income:

0%  up to $47,025 single / $94,050 joint of total income
15% from there up to $518,900 / $583,750
20% above those thresholds

Short-term gains (held a year or less) are taxed at your ordinary federal rate. A 3.8 percent net investment income tax applies to gains above 200,000 dollars single or 250,000 dollars joint of modified AGI. Ohio then taxes the entire gain as ordinary income, stacked on your other income, at its graduated rates — no state tax below about 26,050 dollars, then roughly 2.75 percent rising to a top rate near 3.5 percent.

Example

A single filer with 80,000 dollars of other income and a 20,000 dollar long-term gain has already used the 0 percent federal band, so the federal gain is taxed at 15 percent (3,000 dollars). Ohio adds about 3.5 percent (700 dollars). Total tax on the gain is roughly 3,700 dollars, leaving about 16,300 dollars after tax.

Notes

This is a simplified model. Real returns involve loss carryovers, the exact NIIT calculation, qualified dividends, the Ohio business income deduction, and local municipal taxes, none of which are fully modeled here. Use it for planning and confirm against current rules at irs.gov and tax.ohio.gov.