Updated October 4, 2026. Quick answer: Yes. “Your New York adjusted gross income is your federal adjusted gross income” (with New York’s modifications), so a capital gain is part of New York income and is taxed on the same graduated schedule as other income. The 2025 instructions print rates from 4% to 10.9%, and no separate rate for gains.
Selling your home? How the state taxes the profit, from its own tax documents: Does New York tax the profit from selling your home?.
The same question for dividends and interest: does New York tax dividends and interest.
How New York treats capital gains
| Item | What the documents say |
|---|---|
| Treatment | Part of New York adjusted gross income; no separate rate or deduction for gains in the instructions |
| 2025 rates | 4%, 4.5%, 5.25%, 5.5%, 6%, 6.85%, 9.65%, 10.3% and 10.9% |
| Top rate | 10.9% on income over $25,000,000 |
A $50,000 long-term gain
A $50,000 gain taxed wholly at the lowest 2025 rate, 4%, would add $2,000; taxed wholly at the top rate, 10.9%, $5,450. Your own figure depends on the bracket your total income puts the gain in.
What changes in 2026
The 2025 instructions are the latest New York documents read, and they print no 2026 rates.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal tax on gains in Topic no. 409, Capital Gains and Losses and Publication 550, Investment Income and Expenses.
Related: whether New York taxes pensions, how New York taxes retirement income, the capital gains tax by state table, and the federal capital gains tax calculator.
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Answer againSources
- IT-201-I Instructions for Form IT-201, Resident Income Tax Return: https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf
- IT-225-I Instructions for Form IT-225, New York State Modifications: https://www.tax.ny.gov/pdf/current_forms/it/it225i.pdf
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.