United States capital gains tax: federal rate, extra investment tax and state differences
The United States receives 50 out of 100 points for the capital gains tax indicator. The mid-range result reflects a system where long-term gains from listed investments receive better federal treatment than ordinary income, but the final burden can be changed by the net investment income tax, state taxes and status questions.
For investors, the U.S. system cannot be reduced to one simple headline. Long-term gains on stocks, funds and similar investments have their own federal treatment. Short-term gains are generally pulled into ordinary income taxation. Higher-income investors may also face the net investment income tax, and several states can add a separate personal tax layer.
The indicator therefore focuses on the comparable core case: a long-term realised gain from listed securities or funds for a resident private individual. Real estate, collectibles, crypto, retirement accounts, private company exits and expatriation cases can follow different rules.
What the measured value means
The measured value describes the maintained U.S. federal burden on long-term capital gains from typical listed investments. It is not a complete tax calculation and does not replace analysis of security type, holding period, loss offsets or state residence.
The distinction between long-term and short-term is central. In the ordinary case, an asset must be held for more than one year to be long-term. Short-term gains are generally taxed through the ordinary income tax system rather than the preferred long-term capital gain framework.
Internationally mobile investors also need to separate resident and nonresident treatment. Citizenship, green-card status, physical presence, treaty position, U.S.-source income and state residence can all affect the answer.
Rules, thresholds and responsible authorities
The Internal Revenue Service explains capital gains and losses as the difference between adjusted basis and the amount realised on sale. For an investor, this means the purchase price is only the starting point; basis adjustments, fees, reinvestments, splits, gifts, inheritance and prior losses can all matter.
Long-term net capital gains often receive lower federal rates than ordinary income. Depending on taxable income, a preferred rate can apply, while higher-income taxpayers reach the upper long-term federal level. Nomadino uses that upper federal framework together with the investment surtax for the country comparison.
The net investment income tax is an additional federal tax for higher-income taxpayers with certain investment income. It can apply to gains from stocks, bonds, mutual funds and real estate when those gains are included in taxable income. That is why the U.S. federal burden for affluent investors is higher than the basic long-term capital gain rate alone suggests.
The U.S. Treasury also publishes tax treaties. These can matter for foreign persons, but they do not automatically change the normal result for a U.S.-resident investor. Treaties should be read as part of a broader status and residence analysis.
Practical consequences for newcomers
For newcomers, the first question is tax status. U.S. citizens, green-card holders, resident aliens and nonresident aliens can be treated differently. A visa label or job title is not enough to classify capital gains taxation.
The second question is the state. Nomadino measures the federal framework, but California, New York, New Jersey and other states can add significant tax. Other states do not levy a personal income tax. The real burden can therefore diverge sharply by residence.
The third question is the account and asset type. A regular brokerage account is not treated like a retirement account, tax-favoured account, employee stock plan, option package, fund distribution or private company interest. Newcomers should also check whether foreign funds, reporting forms or passive investment rules create problems.
For founders and employees with equity compensation, the indicator is important but incomplete. Restricted stock, options, qualified small business stock, holding periods, state sourcing and exit timing can drive the tax result more than the standard listed-securities rate.
Boundaries around tax residence and special cases
The indicator assumes a resident private individual with a long-term listed-securities gain. Nonresident persons can be treated differently, especially when U.S.-source income, real estate, business activity or treaty protection is involved.
Real estate is a separate case. Main-home exclusions, unrecaptured section 1250 gain, withholding for foreign sellers and state rules can all change the outcome. Those property-specific questions are outside the core indicator.
Collectibles, certain small-business stock, crypto assets, fund structure, wash-sale rules and loss carryovers also require separate review. The Nomadino value is meant to make the ordinary long-term listed-investment case comparable across countries.
Leaving the United States, giving up a green card or changing long-term international status can create additional rules. Larger unrealised gains should be reviewed before a status change, not after it.
What this indicator does not measure
The rating does not include state taxes, local taxes, retirement accounts, real estate, crypto, private company sales, inheritance, gifts, reporting forms, broker fees or the general attractiveness of U.S. capital markets.
It also does not measure return potential. The United States offers deep markets, broad fund access, high liquidity and many brokers. Those advantages can be valuable, but they do not reduce the tax score on a realised gain.
Individual loss offsets, basis calculations, family status, foreign tax credits, treaty positions and the U.S. treatment of foreign funds are not included in the headline value.
How the rating is built
Nomadino uses the measured value 23.8 % for the United States. It represents the modelled federal framework for a long-term realised gain from listed securities or funds, including the relevant investment surtax, but excluding state taxes.
The rating is only mid-range because many jurisdictions tax long-term capital gains at lower rates or not at all. At the same time, the United States is not in the weakest group because long-term gains still receive preferred federal treatment compared with ordinary income, and lower-income cases can be lighter.
In practice, this value should be read together with the top income tax rate, dividend tax, tax-filing effort, state choice and residence status. The combination shows whether the United States is workable for a specific investor profile.
Frequently Asked Questions
Is the U.S. capital gains tax always the same?
No. Holding period, income, asset type, state, status and the investment surtax can change the actual burden.
Why does Nomadino use long-term listed securities?
They are more comparable internationally than real estate, private company exits or retirement accounts, so the indicator uses that core case.
Are state taxes included?
No. The country value uses the federal framework. State and local rules must be checked separately for real planning.
What is especially risky for newcomers?
Unclear tax status, foreign funds, equity compensation, large unrealised gains and residence in a high-tax state.
Related indicators
- 💳 Effective Income Tax Rate in the United States
- 💰 Top Personal Income Tax Rate in the United States
- 🛡️ Social Security Contributions in the United States
- 🧾 VAT / GST / Sales Tax Rate in the United States
- 💹 Dividend Tax Rate in the United States
Sources
- Internal Revenue Service - capital gains and losses
- Internal Revenue Service - net investment income tax
- Internal Revenue Service - investment income and expenses
- U.S. Department of the Treasury - tax treaties
This article was created on July 16, 2026
