Long term capital gains tax for Manhattan workers

I've spoken with numerous financially savvy people in past few months who think the long term capital gains in New York are ""somewhere 15% to 20%?".

It's actually 31%-33%. If you had significant gains in, say, a company's stock, and you have a high active income, you're going to get CRUSHED when you sell.

For a 400k annual active income earner your effective long term capital gains tax is 33.64%.

For rich trust fund people who don't work and earn W2 income, they pay 22.45%. But of course they wouldn't be dumb enough to declare Manhattan as their home base, they'd be in Miami, Florida where the long term capital gains tax is 12.75%.

Life isn't fair. don't be mad. But don't be dumb and sell your stock thinking it's a tax efficient diversification strategy. **Take a year off work, move to Miami, and dump it there.

**I'm not sure if the feds let you do this, if you earned it in NYC, they might still tax you as if you were in NYC when you sell it?

(above) NYC resident passive income only.


(above) Miami resident with passive income..


(above) NYC W2 earner with 400k active income.