How does Pennsylvania tax capital gains?

Pennsylvania taxes all capital gains — both short-term and long-term — as ordinary income at its flat 3.07% personal income tax rate. There is no preferential or reduced rate for long-held investments, unlike the federal system.

What are the federal long-term capital gains rates?

For 2024 the long-term rate is 0%, 15%, or 20% depending on your taxable income and filing status. Low earners pay 0%, most middle earners pay 15%, and high earners pay 20%. Short-term gains are taxed at ordinary income rates instead.

Does Pennsylvania offer a long-term capital gains discount?

No. Pennsylvania makes no distinction between short-term and long-term gains. Whether you held a stock for a week or a decade, the state taxes the gain at the same flat 3.07% rate.

Is the sale of my home taxable in Pennsylvania?

Pennsylvania generally follows the federal home-sale exclusion: gain on a principal residence is exempt up to $250,000 (single) or $500,000 (married) if you meet the ownership and use tests. This calculator computes tax on a taxable gain you supply.

Does this calculator include the Net Investment Income Tax?

No. High earners may owe an additional 3.8% federal Net Investment Income Tax (NIIT) above $200,000 (single) or $250,000 (joint). This tool covers the base federal capital gains rate plus PA's 3.07%; add NIIT separately if it applies.

Pennsylvania Capital Gains Tax Calculator

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The Pennsylvania Capital Gains Tax Calculator estimates the total tax on profit from selling stocks, funds, property, or other investments while living in Pennsylvania. The key thing to know: Pennsylvania does not give long-term gains a discount. Where the federal system rewards holding an asset over a year with lower rates, Pennsylvania taxes every capital gain at its flat 3.07% ordinary-income rate.

How it works

The tool computes two layers.

Federal tax depends on your holding period:

Long-term (held more than one year) uses the preferential brackets — 0%, 15%, or 20% based on your taxable income and filing status.
Short-term (held one year or less) is taxed at your ordinary income rate; this tool lets you supply that marginal rate.

Pennsylvania tax is simple and the same in both cases:

PA capital gains tax = gain x 0.0307

The combined liability is the federal tax plus the PA tax:

Total tax = federal tax + (gain x 0.0307)
Net proceeds = gain - total tax

For 2024 the federal long-term 0% bracket runs up to about $47,025 (single) / $94,050 (joint) of taxable income, the 15% bracket up to about $518,900 (single) / $583,750 (joint), and 20% above that.

Tips and notes

Holding period matters federally, not for PA. Crossing the one-year mark can cut your federal rate sharply, but your 3.07% PA tax is unchanged.
Home sales: the federal $250k/$500k principal-residence exclusion generally applies for PA too — enter only the taxable portion of any gain.
High earners: an extra 3.8% Net Investment Income Tax may apply on top of these figures.
Every calculation runs in your browser; your figures are never stored or sent anywhere.