Capital Gains.

Most property owned by an individual for personal purposes is considered a capital asset, including houses, furniture, cars, stocks, and bonds.  The sale of these items may result in a capital loss or a capital gain.  Short-term capital gains or losses are gains or losses from assets held for one year or less.  Long-term capital gains or losses are gains or losses from assets held for more than one year.  These capital gains and losses may have federal and state tax implications for an individual.

The state imposes a 7 percent excise tax on the adjusted capital gains of an individual for the privilege of selling or exchanging long-term capital assets less a standard deduction for all filers, whether filing as an individual or jointly.  The standard deduction is adjusted annually for inflation and is $278,000 for tax year 2025.

The sale or exchange of certain assets is exempt from the state capital gains tax, including, real estate, common types of retirement assets, and timberlands.

There are credits and deductions available to reduce or eliminate a person's tax liability, including a deduction for qualified charitable donations.

Capital gains taxes are due and payable on April 15 for long-term capital gains realized during the immediately preceding calendar year.

Taxpayers may make capital gains tax payments up to six months before the due date.  Interest may not be assessed for the prepayment period if it is later determined that the taxpayer overpaid the taxes owed for that tax period and is entitled to receive a remittance.