Use this interactive Federal & East Coast State Capital Gains + 3.8% NIIT Calculator (2026) to model your exact 2026 tax, mortgage, or closing cost position across New York City, New York State, New Jersey, Connecticut, Massachusetts, Pennsylvania, and Florida. Click any 1-Click Benchmark pill inside the simulator to load verified East Coast scenarios, or click Copy Custom Scenario Link to share a deep-linked calculation.
Federal & East Coast State Capital Gains + 3.8% NIIT Calculator
Calculates combined Federal long/short-term capital gains tax, the 3.8% Net Investment Income Tax, and state surtaxes (including NYC 14.776% and Mass. 9% Millionaire Tax).
For a 2,000-word line-by-line legal breakdown, worked household examples, and filing instructions, read our companion pillar report: Complete 2026 Statutory Guide & Case Studies →
2026 Statutory Parameters, Rates & Legal Citations
| Statutory Component | 2026 Rate / Limit | Application & Thresholds | Primary Authority |
|---|---|---|---|
| Federal Long-Term Capital Gains (>12 Mos) | 0% / 15% / 20% | 20% rate begins at $533,400 Single / $600,050 Married | IRC § 1(h) |
| Net Investment Income Tax (NIIT) | 3.80% Surtax | Applies when MAGI exceeds $200,000 Single / $250,000 Married | IRC § 1411 |
| New York City Combined Capital Gains | Up to 14.776% | NY and NYC tax long-term capital gains at ordinary income rates | NYS Form IT-201 |
| Massachusetts Millionaire Surtax | 5.0% Base + 4.0% Surtax | 9.0% long-term rate above $1M; 8.5%–12.5% short-term rate | MA DOR Art. 44 |
| New Jersey Capital Gains Tax | Up to 10.75% | Taxed as ordinary gross income; capital losses cannot offset wages | NJ-1040 Schedule B |
Frequently Asked Questions & Statutory Rules (2026)
Does New York State or New York City give a lower tax rate for long-term capital gains?
No. Unlike the Federal tax code (which caps long-term capital gains at 15% or 20%), New York State, New York City, New Jersey, Connecticut, and Pennsylvania tax long-term capital gains at the exact same rate as ordinary W-2 wages.
When does the 3.8% Net Investment Income Tax (NIIT) apply?
Under IRC § 1411, the 3.8% NIIT applies to the lesser of your net investment income or the amount by which your Modified Adjusted Gross Income (MAGI) exceeds $200,000 (Single) or $250,000 (Married Filing Jointly). Those thresholds are not indexed for inflation.
Why can’t I deduct a $3,000 capital loss against my W-2 salary on my New Jersey or Pennsylvania tax return?
Unlike the IRS and New York (which allow up to $3,000 of net capital losses to offset ordinary income and carry forward unused losses indefinitely), New Jersey and Pennsylvania ring-fence investment gains and do not permit net capital losses to reduce wage income.
How does Massachusetts tax short-term vs. long-term capital gains in 2026?
Massachusetts taxes long-term capital gains at 5.0% (plus the 4.0% Millionaire Surtax above $1M, totaling 9.0%) and short-term capital gains at 8.5% (12.5% above $1M).