@Critter-3 wrote:
Just like any other income it is taxed by both the state & the feds at the tax rates they determine ... so yes, you could be paying 15% to both taxing authorities.
Hawaii Capital Gains Tax
You will pay either 0%, 15% or 20% in tax on long-term capital gains (which are gains that are realized from the sale of investment you held for at least one year). Short-term capital gains are taxed at the full income tax rates listed above.
Where do you get 15% and 20% for Hawaii capital gains tax? Did you copy the BS from smartasset.com's fake calculator?
If you work through the instructions to form N-11, it appears that capital gains are taxed at Hawaii's ordinary income tax rate (5-11% depending on your income). There is an alternative capital gains tax calculation that may cap long term capital gains at 7.25%, although the calculation method is obscure and I haven't worked through it. (Perhaps not coincidentally, that is the mandatory withholding rate that must be collected from non-residents who sell property in Hawaii.)
See more at https://files.hawaii.gov/tax/legal/taxfacts/tf2010-1.pdf
https://choicehi.com/hawaii-capital-gains-tax/
