Simple answer: yes. Your capital gains are just part of your total income that both the feds and the states tax.
"Capital gains tax" is somewhat of a misnomer. There is no capital gains tax that is separate from income tax. It's just that long term capital gains are taxed a a separate tax rate from the tax rate on ordinary income, on the federal return. Most states do not have a special, lower, tax rate for capital gains. But, some do. The capital gains rate, on the federal return, can be as low as 0% for lower income people.
