Illinois taxes capital gains as ordinary income. California has a reduced rate.
"Unlike the federal government, Illinois makes no distinction between short-term and long-term capital gains – or even between capital gains and ordinary income. Instead, it taxes all capital gains as ordinary income, using the same rates and brackets as the regular state income tax.
Illinois is one of the states with a flat income tax rate. In the case of Illinois, no matter the amount of taxable ordinary income, the state tax rate will always be 4.95%." Reference: https://learn.valur.io/illinois-capital-gains-tax/#:~:text=Instead%2C%20it%20taxes%20all%20capital,r....
Guide to the California Capital Gains Tax
| Rate |
Single |
Married Filing Jointly |
| 1% |
$0 – $8,932 |
$0 – $17,864 |
| 2% |
$8,933 – $21,175 |
$17,865 – $42,350 |
| 4% |
$21,176 – $33,421 |
$42,351 – $66,842 |
| 6% |
$33,422 – $46,394 |
$66,843 – $92,788 |
Reference: https://www.roberthalltaxes.com/blog/news/guide-to-the-california-capital-gains-tax/
