{"data":{"count":63,"jurisdictions":[{"code":"US","name":"Federal (IRC)","level":"federal","facts":[{"factId":"us-rate","jurisdiction":"US","category":"rate","label":"Long-term capital gains rate","display":"0% / 15% / 20% (TY2025 MFJ: $0-$96,700 / $96,701-$600,050 / above $600,050)","value":0.2,"valueType":"rate","citations":[{"id":"us-irc-1h-ltcg-0-15-20-2025","jurisdiction":"US","authority":"IRC §1(h); IRS Topic 409","authorityType":"dor-guidance","title":"Federal long-term capital gains taxed at 0%, 15%, or 20% depending on taxable income","quote":"The tax rate on most net capital gain is no higher than 15% for most individuals. Some or all net capital gain may be taxed at 0% if your taxable income is less than or equal to the threshold for the 0% rate. A capital gains rate of 20% applies to capital gain if your taxable income is more than the threshold set for the 15% capital gain rate.","url":"https://www.irs.gov/taxtopics/tc409","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-06-01","confidence":"medium","note":"TY2025 MFJ/QSS breakpoints (Rev. Proc. 2024-40): 0% up to $96,700; 15% $96,701-$600,050; 20% above $600,050. Single: 0% to $48,350; 15% to $533,400; 20% above. HOH: 0% to $64,750; 15% to $566,700; 20% above.","href":"/api/v1/citations/us-irc-1h-ltcg-0-15-20-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-surcharge","jurisdiction":"US","category":"surcharge","label":"Net Investment Income Tax (NIIT)","display":"3.8% on NII when MAGI exceeds $250,000 (MFJ) or $200,000 (Single)","value":0.038,"valueType":"rate","citations":[{"id":"us-irc-1411-niit-3-8pct-2025","jurisdiction":"US","authority":"IRC §1411; Form 8960 Instructions (2025)","authorityType":"form-instructions","title":"Net Investment Income Tax: 3.8% on net investment income above MAGI threshold","quote":"The NIIT is 3.8% of the amount of net investment income that exceeds the applicable threshold amount. Net investment income generally includes interest, dividends, annuities, royalties, rents, and net capital gains from property held for investment.","url":"https://www.irs.gov/instructions/i8960","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-06-01","confidence":"medium","note":"TY2025 MAGI thresholds (statutory, NOT inflation-adjusted): $250,000 MFJ/QSS; $200,000 Single/HOH; $125,000 MFS. NIIT stacks on top of the 20% LTCG rate for a combined federal top rate of 23.8% on long-term capital gains.","href":"/api/v1/citations/us-irc-1411-niit-3-8pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-threshold","jurisdiction":"US","category":"threshold","label":"NIIT MAGI threshold (MFJ/QSS)","display":"$250,000 (statutory, not inflation-adjusted)","value":250000,"valueType":"dollars","citations":[{"id":"us-irc-1411-niit-3-8pct-2025","jurisdiction":"US","authority":"IRC §1411; Form 8960 Instructions (2025)","authorityType":"form-instructions","title":"Net Investment Income Tax: 3.8% on net investment income above MAGI threshold","quote":"The NIIT is 3.8% of the amount of net investment income that exceeds the applicable threshold amount. Net investment income generally includes interest, dividends, annuities, royalties, rents, and net capital gains from property held for investment.","url":"https://www.irs.gov/instructions/i8960","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-06-01","confidence":"medium","note":"TY2025 MAGI thresholds (statutory, NOT inflation-adjusted): $250,000 MFJ/QSS; $200,000 Single/HOH; $125,000 MFS. NIIT stacks on top of the 20% LTCG rate for a combined federal top rate of 23.8% on long-term capital gains.","href":"/api/v1/citations/us-irc-1411-niit-3-8pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-carryforward","jurisdiction":"US","category":"carryforward","label":"Capital-loss carryforward","display":"Indefinite $3,000/year deductible against ordinary income ($1,500 MFS)","value":null,"valueType":"none","citations":[{"id":"us-irc-1211b-capital-loss-limit-2025","jurisdiction":"US","authority":"IRC §1211(b); IRS Topic 409","authorityType":"dor-guidance","title":"Capital losses deductible against ordinary income up to $3,000 per year ($1,500 MFS)","quote":"If your capital losses exceed your capital gains, the amount of the excess loss that you can claim to lower your income is the lesser of $3,000 ($1,500 if married filing separately) or your total net loss shown on Schedule D (Form 1040).","url":"https://www.irs.gov/taxtopics/tc409","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-06-01","confidence":"medium","href":"/api/v1/citations/us-irc-1211b-capital-loss-limit-2025"},{"id":"us-irc-1212b-capital-loss-carryforward","jurisdiction":"US","authority":"IRC §1212(b); IRS Topic 409","authorityType":"dor-guidance","title":"Federal capital losses exceeding the $3,000 annual limit carry forward indefinitely","quote":"Any excess net capital loss can be carried over to subsequent years to be deducted against capital gains and against up to $3,000 of other kinds of income per year until all of the excess net capital loss is used up.","url":"https://www.irs.gov/taxtopics/tc409","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-06-01","confidence":"medium","note":"Character is preserved on carryforward: long-term losses remain long-term; short-term remain short-term.","href":"/api/v1/citations/us-irc-1212b-capital-loss-carryforward"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-muni-instate","jurisdiction":"US","category":"muni-instate","label":"Municipal bond interest federal treatment","display":"Exempt: from federal gross income (IRC §103(a)); all US munis excluded regardless of issuer","value":1,"valueType":"binary-exempt","citations":[{"id":"us-irc-103a-muni-interest-federal-exempt-2025","jurisdiction":"US","authority":"IRC §103(a)","authorityType":"statute","title":"Interest on state and local bonds is excluded from federal gross income","quote":"Except as provided in subsection (b), gross income does not include interest on any State or local bond.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section103&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"State treatment varies: most states exempt in-state bonds and tax out-of-state bonds (Dep't of Revenue of Ky. v. Davis, 553 U.S. 328 (2008) permits such discrimination). See per-state muni-instate / muni-outstate facts.","href":"/api/v1/citations/us-irc-103a-muni-interest-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-muni-outstate","jurisdiction":"US","category":"muni-outstate","label":"Municipal bond interest federal treatment (out-of-state)","display":"Exempt: from federal gross income (IRC §103(a)); no federal distinction by issuer state","value":1,"valueType":"binary-exempt","citations":[{"id":"us-irc-103a-muni-interest-federal-exempt-2025","jurisdiction":"US","authority":"IRC §103(a)","authorityType":"statute","title":"Interest on state and local bonds is excluded from federal gross income","quote":"Except as provided in subsection (b), gross income does not include interest on any State or local bond.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section103&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"State treatment varies: most states exempt in-state bonds and tax out-of-state bonds (Dep't of Revenue of Ky. v. Davis, 553 U.S. 328 (2008) permits such discrimination). See per-state muni-instate / muni-outstate facts.","href":"/api/v1/citations/us-irc-103a-muni-interest-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-treasury","jurisdiction":"US","category":"treasury","label":"US Treasury interest federal treatment","display":"Included in federal gross income at ordinary income rates; exempt from all state/local tax","value":0,"valueType":"binary-exempt","citations":[{"id":"us-31usc3124a-treasury-state-local-exempt-2025","jurisdiction":"US","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"Interest on US Treasury obligations is exempt from all state and local income taxes","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"Federal law preempts all state attempts to tax US Treasury interest. This includes T-bills, T-notes, T-bonds, TIPS, and I-bonds. Money market funds with 100% Treasury holdings qualify; blended funds may not. Most states allow a deduction or exclusion by reference to this statute.","href":"/api/v1/citations/us-31usc3124a-treasury-state-local-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-dividend-qualified","jurisdiction":"US","category":"dividend-qualified","label":"Qualified dividends federal treatment","display":"Taxed at 0%/15%/20% LTCG rates (same thresholds as net capital gain; IRC §1(h)(11))","value":0,"valueType":"exclusion-pct","citations":[{"id":"us-irc-1h11-qualified-dividends-ltcg-rates-2025","jurisdiction":"US","authority":"IRC §1(h)(11)","authorityType":"statute","title":"Qualified dividends taxed at 0%/15%/20% LTCG rates (same thresholds as LTCG)","quote":"For purposes of this subsection, the term 'net capital gain' means net capital gain (determined without regard to this paragraph) increased by qualified dividend income.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"IRC §1(h)(11)(C) treats qualified dividends as net capital gain taxed at preferential 0%/15%/20% rates. Qualified dividends are those meeting IRC §1(h)(11)(B) holding period and issuer requirements. They stack with LTCG: combined (QD + LTCG) determines which 0%/15%/20% bracket applies per IRC §1(h)(1) thresholds.","href":"/api/v1/citations/us-irc-1h11-qualified-dividends-ltcg-rates-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-estate-rate","jurisdiction":"US","category":"estate-rate","label":"Federal estate tax top rate","display":"40% on taxable estate above $1,000,000 over the applicable exclusion (IRC §2001(c))","value":0.4,"valueType":"rate","citations":[{"id":"us-irc-2001c-estate-tax-40pct-2025","jurisdiction":"US","authority":"IRC §2001(c)","authorityType":"statute","title":"Federal estate tax rate schedule: 40% on taxable estate above $1,000,000 over the applicable exclusion","quote":"If the amount with respect to which the tentative tax to be computed is over $1,000,000, the tentative tax shall be $345,800 plus 40 percent of the excess of such amount over $1,000,000.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section2001&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"The 40% top rate applies to amounts over $1,000,000 above the applicable exclusion. Combined with the inflation-adjusted basic exclusion (IRC §2010(c)(3)), the effective entry point for federal estate tax is the exclusion amount, not $1,000,000.","href":"/api/v1/citations/us-irc-2001c-estate-tax-40pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-estate-exemption-terminal-2024-12-31","jurisdiction":"US","category":"estate-exemption","label":"Federal basic exclusion amount (TY2024)","display":"$13,610,000 per person; $27,220,000 MFJ with portability (Rev. Proc. 2023-34)","value":13610000,"valueType":"dollars","citations":[{"id":"us-rev-proc-2023-34-estate-exclusion-13610000-2024","jurisdiction":"US","authority":"Rev. Proc. 2023-34, §3.41; IRC §2010(c)(3)","authorityType":"dor-guidance","title":"TY2024 federal basic exclusion amount: $13,610,000 per IRC §2010(c)(3), inflation-adjusted","quote":"For an estate of any decedent dying in calendar year 2024, the basic exclusion amount is $13,610,000 for determining the amount of the unified credit against estate tax under § 2010.","url":"https://www.irs.gov/pub/irs-drop/rp-23-34.pdf","sourceDomain":"www.irs.gov","taxYear":2024,"asOf":"2026-06-21","confidence":"medium","note":"Up from $12,920,000 in TY2023. The TCJA doubled the pre-2018 exemption, CPI-adjusted annually.","href":"/api/v1/citations/us-rev-proc-2023-34-estate-exclusion-13610000-2024"}],"effectiveDate":"2024-01-01","terminalDate":"2024-12-31","nextReviewDate":"2027-01-01"},{"factId":"us-estate-exemption-terminal-2025-12-31","jurisdiction":"US","category":"estate-exemption","label":"Federal basic exclusion amount (TY2025)","display":"$13,990,000 per person; $27,980,000 MFJ with portability (Rev. Proc. 2024-40)","value":13990000,"valueType":"dollars","citations":[{"id":"us-rev-proc-2024-40-estate-exclusion-13990000-2025","jurisdiction":"US","authority":"Rev. Proc. 2024-40, §2.41; IRC §2010(c)(3)","authorityType":"dor-guidance","title":"TY2025 federal basic exclusion amount: $13,990,000 per IRC §2010(c)(3), inflation-adjusted","quote":"For an estate of any decedent dying in calendar year 2025, the basic exclusion amount is $13,990,000 for determining the amount of the unified credit against estate tax under § 2010.","url":"https://www.irs.gov/pub/irs-drop/rp-24-40.pdf","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"Up from $13,610,000 in TY2024 (Rev. Proc. 2023-34). Portability allows a surviving spouse to use the deceased spouse's unused exclusion (DSUE), effectively doubling to $27,980,000 for a married couple. OBBBA (2025) set a new permanent $15,000,000 base for 2026+.","href":"/api/v1/citations/us-rev-proc-2024-40-estate-exclusion-13990000-2025"}],"effectiveDate":"2025-01-01","terminalDate":"2025-12-31","nextReviewDate":"2026-11-01"},{"factId":"us-estate-exemption","jurisdiction":"US","category":"estate-exemption","label":"Federal basic exclusion amount (TY2026)","display":"$15,000,000 per person; $30,000,000 MFJ with portability (OBBBA, new permanent base)","value":15000000,"valueType":"dollars","citations":[{"id":"us-obbba-estate-exclusion-15000000-2026","jurisdiction":"US","authority":"Rev. Proc. 2025-32, §2.14; OBBBA (P.L. 119-21) §70106; IRC §2010(c)(3)","authorityType":"dor-guidance","title":"TY2026 federal basic exclusion amount: $15,000,000 per IRC §2010(c)(3) as amended by OBBBA","quote":"Section 70106 of the OBBBA amends § 2010(c)(3) by increasing the basic exclusion amount to $15,000,000 for calendar year 2026.","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","sourceDomain":"www.irs.gov","taxYear":2026,"asOf":"2026-06-28","confidence":"medium","note":"The One Big Beautiful Bill Act set a new permanent $15,000,000 base exclusion for decedents dying in 2026 (inflation-indexed thereafter), replacing the scheduled TCJA sunset. Portability doubles this to $30,000,000 for a married couple. Confidence medium: IRS inflation release.","href":"/api/v1/citations/us-obbba-estate-exclusion-15000000-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-qoz-conformity","jurisdiction":"US","category":"qoz-conformity","label":"QOZ (IRC §1400Z-2)","display":"Federal origin: IRC §1400Z-2 is the baseline; states conform or decouple from it","value":1,"valueType":"code","citations":[{"id":"us-irc-1400z2-qoz-federal-2025","jurisdiction":"US","authority":"IRC §1400Z-2","authorityType":"statute","title":"Federal QOZ: IRC §1400Z-2 gain deferral and exclusion for investments in qualified opportunity funds","quote":"In the case of gain from the sale to, or exchange with, an eligible taxpayer of any property, at the election of the taxpayer, gross income for the taxable year shall not include so much of such gain as does not exceed the amount invested by the taxpayer in a qualified opportunity fund during the 180-day period beginning on the date of such sale or exchange.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1400Z-2&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1400Z-2 is the federal QOZ provision. State conformity varies: rolling-conformity states incorporate it automatically; fixed-date states only if their reference date is post-TCJA. See per-state qoz-conformity facts.","href":"/api/v1/citations/us-irc-1400z2-qoz-federal-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-qsbs-conformity","jurisdiction":"US","category":"qsbs-conformity","label":"QSBS (IRC §1202)","display":"Federal origin: IRC §1202 provides 100% exclusion for qualifying stock acquired after Sept. 27, 2010; states conform or decouple","value":1,"valueType":"binary-exempt","citations":[{"id":"us-irc-1202-qsbs-federal-2025","jurisdiction":"US","authority":"IRC §1202(a)(1)","authorityType":"statute","title":"Federal QSBS: IRC §1202 excludes 100% of gain on qualifying small business stock acquired after Sept. 27, 2010","quote":"In the case of a taxpayer other than a corporation, gross income shall not include 50 percent (100 percent in the case of qualified small business stock acquired after September 27, 2010) of any gain from the sale or exchange of qualified small business stock.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1202&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"The 100% exclusion requires: C-corp issuer; gross assets under $50M at issuance; active trade or business; 5-year holding period. Most states decouple from §1202 due to revenue impact. See per-state qsbs-conformity facts.","href":"/api/v1/citations/us-irc-1202-qsbs-federal-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-carryback","jurisdiction":"US","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; §1212(a) carryback applies to corporations only","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-agency-obligations","jurisdiction":"US","category":"agency-obligations","label":"GSE bond interest (FNMA, FHLMC) federal treatment","display":"Taxable: no federal bondholder exemption exists for FNMA or FHLMC; interest included in gross income under IRC §61(a)(4)","value":0,"valueType":"binary-exempt","citations":[{"id":"us-irc-61a-gse-interest-taxable-federal-2025","jurisdiction":"US","authority":"IRC §61(a)","authorityType":"statute","title":"GSE bond interest (FNMA, FHLMC) is included in federal gross income; no bondholder exemption statute exists","quote":"Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items: (4) Interest.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section61&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"IRC §61(a) defines gross income to include all income from whatever source derived; subsection (a)(4) explicitly includes interest income. FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) enabling statutes grant NO bondholder tax exemption from federal tax, unlike FHLB (12 U.S.C. §1433) and FFCB (12 U.S.C. §2023) which mandate state-level exemption. GSE interest is fully includible in federal gross income.","href":"/api/v1/citations/us-irc-61a-gse-interest-taxable-federal-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-real-estate-recovery-period","jurisdiction":"US","category":"depreciation","label":"Real estate depreciation recovery period (residential)","display":"27.5 years","value":27.5,"valueType":"years","citations":[{"id":"us-irc-168c-residential-depreciation-recovery","jurisdiction":"US","authority":"IRC §168(c)","authorityType":"statute","title":"Statutory recovery period of 27.5 years for residential rental property","quote":"In the case of residential rental property, the recovery period is 27.5 years.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section168&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-01","confidence":"high","href":"/api/v1/citations/us-irc-168c-residential-depreciation-recovery"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-section-1250-recapture-rate","jurisdiction":"US","category":"recapture-rate","label":"Unrecaptured section 1250 gain maximum rate","display":"25%","value":0.25,"valueType":"rate","citations":[{"id":"us-irc-1h1e-unrecaptured-1250-25pct","jurisdiction":"US","authority":"IRC §1(h)(1)(E); IRS Topic No. 409","authorityType":"statute","title":"Unrecaptured section 1250 gain is taxed at a maximum 25% rate","quote":"The portion of any unrecaptured section 1250 gain from selling section 1250 real property is taxed at a maximum 25% rate.","url":"https://www.irs.gov/taxtopics/tc409","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-06-29","confidence":"high","note":"Statutory 25% cap on the unrecaptured §1250 gain portion of long-term real-property gain. Verbatim from IRS Topic 409.","href":"/api/v1/citations/us-irc-1h1e-unrecaptured-1250-25pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-charitable-agi-limit-ltcg-property","jurisdiction":"US","category":"charitable-agi-limit","label":"Charitable deduction AGI limit (appreciated LTCG property to public charity)","display":"30% of AGI","value":0.3,"valueType":"rate","citations":[{"id":"us-irc-170b1c-charitable-agi-limit-30pct","jurisdiction":"US","authority":"IRC §170(b)(1)(C); IRS Pub. 526","authorityType":"dor-guidance","title":"Charitable deduction for appreciated capital-gain property is limited to 30% of AGI","quote":"Limits Based on 30% of AGI: Certain capital gain property contributions to 50% limit organizations.","url":"https://www.irs.gov/publications/p526","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-06-29","confidence":"medium","note":"Gifts of long-term appreciated capital-gain property to public (50%-limit) charities, deducted at fair market value, are capped at 30% of AGI (IRC §170(b)(1)(C)). Confidence medium: IRS publication.","href":"/api/v1/citations/us-irc-170b1c-charitable-agi-limit-30pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-charitable-carryforward","jurisdiction":"US","category":"charitable-carryforward","label":"Charitable contribution deduction carryforward period","display":"5 years","value":5,"valueType":"years","citations":[{"id":"us-irc-170d1-charitable-carryforward-5yr","jurisdiction":"US","authority":"IRC §170(d)(1); IRS Pub. 526","authorityType":"dor-guidance","title":"Unused charitable contribution deduction carries forward 5 years","quote":"You can carry over any contributions you can't deduct in the current year because they exceed the limits based on your AGI. Except for qualified conservation contributions, you may be able to deduct the excess in each of the next 5 years until it is used up, but not beyond that time.","url":"https://www.irs.gov/publications/p526","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Excess charitable deduction over the AGI limit carries forward to the 5 succeeding tax years (IRC §170(d)(1); Pub. 526 'Carryovers'). A qualified conservation contribution carries 15 years. Confidence medium: IRS publication.","href":"/api/v1/citations/us-irc-170d1-charitable-carryforward-5yr"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-estate-exemption-sunset-scenario","jurisdiction":"US","category":"estate-exemption-sunset","label":"Hypothetical estate exclusion if the TCJA doubling had sunset (counterfactual)","display":"~$7,000,000 (not current law)","value":7000000,"valueType":"dollars","citations":[{"id":"us-tcja-sunset-estate-exclusion-scenario-2026","jurisdiction":"US","authority":"IRC §2010(c)(3) (pre-TCJA $5M base); TCJA §11061 (sunset, repealed by OBBBA 2025)","authorityType":"statute","title":"Hypothetical 2026 estate exclusion had the TCJA doubling sunset (~$7,000,000)","quote":"the dollar amount in effect under clause (i) shall be increased by ... the cost-of-living adjustment.","url":"https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax","sourceDomain":"www.irs.gov","taxYear":2026,"asOf":"2026-06-29","confidence":"low","note":"COUNTERFACTUAL, not current law. Had TCJA's doubling sunset on 2026-01-01 (it did not: OBBBA made the ~$15M base permanent), the exclusion would have reverted to the pre-TCJA $5,000,000 base (IRC §2010(c)(3)) inflation-indexed to roughly $7,000,000 for 2026. Approximate; for simulateSunset scenario modeling only. Confidence low: projected counterfactual with no enacted figure.","href":"/api/v1/citations/us-tcja-sunset-estate-exclusion-scenario-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-section-291-rate","jurisdiction":"US","category":"section-291-rate","label":"Corporate §291 ordinary add-back fraction on §1250 gain","display":"20%","value":0.2,"valueType":"rate","citations":[{"id":"us-irc-291a1-corporate-1250-addback-20pct","jurisdiction":"US","authority":"IRC §291(a)(1)","authorityType":"statute","title":"Corporate §291 ordinary add-back on section 1250 gain is 20%","quote":"20 percent of the excess (if any) of (A) the amount which would be treated as ordinary income if such property was section 1245 property, over (B) the amount treated as ordinary income under section 1250.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section291&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-29","confidence":"medium","note":"Applies only to C corporations; individuals are not subject to the §291 add-back. The 20% is of the otherwise-capital §1250 portion.","href":"/api/v1/citations/us-irc-291a1-corporate-1250-addback-20pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-qsbs-hold-years","jurisdiction":"US","category":"qsbs-hold-years","label":"QSBS holding period for full (100%) exclusion","display":"5 years","value":5,"valueType":"years","citations":[{"id":"us-obbba-70431a-1202a-exclusion-tiers","jurisdiction":"US","authority":"Pub. L. 119-21 (OBBBA) §70431(a)(2); IRC §1202(a)(5)","authorityType":"statute","title":"QSBS exclusion tiers: 50% at 3 years, 75% at 4 years, 100% at 5 years or more","quote":"3 years ... 50% 4 years ... 75% 5 years or more ... 100%","url":"https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm","sourceDomain":"www.congress.gov","taxYear":2025,"asOf":"2026-07-06","confidence":"high","note":"The applicable-percentage table added to IRC §1202(a) by §70431(a)(2). 100% exclusion requires a 5-year (or more) holding; the 50%/75% tiers at 3/4 years apply only to stock acquired after the applicable date (July 4, 2025). Quote elides the table's dot leaders; each percentage and year label is verbatim.","href":"/api/v1/citations/us-obbba-70431a-1202a-exclusion-tiers"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-qsbs-exclusion-cap","jurisdiction":"US","category":"qsbs-exclusion-cap","label":"QSBS per-issuer exclusion cap (acquired on or before July 4, 2025)","display":"$10,000,000 (or 10x basis)","value":10000000,"valueType":"dollars","citations":[{"id":"us-irc-1202-qsbs-pre-obbba","jurisdiction":"US","authority":"IRC §1202(b), (d)","authorityType":"statute","title":"QSBS pre-OBBBA: $10,000,000 per-issuer cap, $50,000,000 gross-assets test, 5-year holding","quote":"$10,000,000 reduced by the aggregate amount of eligible gain taken into account","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1202&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-29","confidence":"medium","note":"For QSBS acquired on or before July 4, 2025: per-issuer exclusion cap is the greater of $10M or 10x basis; issuer aggregate gross assets must not exceed $50M; 5-year holding for the (post-9/27/2010) 100% exclusion.","href":"/api/v1/citations/us-irc-1202-qsbs-pre-obbba"}],"effectiveDate":null,"terminalDate":"2025-07-04","nextReviewDate":"2027-01-01"},{"factId":"us-qsbs-exclusion-cap-post-obbba","jurisdiction":"US","category":"qsbs-exclusion-cap","label":"QSBS per-issuer exclusion cap (acquired after July 4, 2025; OBBBA)","display":"$15,000,000 (or 10x basis)","value":15000000,"valueType":"dollars","citations":[{"id":"us-obbba-irc-1202-qsbs-post-2025-07-04","jurisdiction":"US","authority":"26 U.S.C. §1202(a)(5), (b)(4)(B), (d)(1) (as amended by OBBBA, Pub. L. 119-21)","authorityType":"statute","title":"QSBS post-OBBBA: $15,000,000 per-issuer cap, $75,000,000 gross-assets, tiered 50/75/100% at 3/4/5 years","quote":"Years stock held: 3 years ... Applicable percentage: 50% ... 4 years ... 75% ... 5 years or more ... 100% ... if such stock was acquired by the taxpayer after the applicable date, $15,000,000, reduced by the sum of ... did not exceed $75,000,000","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1202&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"Re-cited 2026-07-13 to the CODIFIED STATUTE. The prior citation pointed at an IRS newsroom page (the text script of a YouTube video), which is now a hard 404 and was never the right authority for a statutory figure. All three OBBBA changes are in the U.S. Code text: the §1202(a)(5) tiered applicable percentage (50%/75%/100% at 3/4/5 years), the §1202(b)(4)(B) per-issuer cap of $15,000,000 for stock acquired after the applicable date, and the §1202(d)(1) $75,000,000 aggregate-gross-assets ceiling. Quote is the statutory text with elisions marked; the (a)(5) table is rendered inline. Confidence promoted medium -> high: this is the statute itself.","href":"/api/v1/citations/us-obbba-irc-1202-qsbs-post-2025-07-04"}],"effectiveDate":"2025-07-05","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-qsbs-gross-asset-ceiling","jurisdiction":"US","category":"qsbs-gross-asset-ceiling","label":"QSBS issuer aggregate gross-assets ceiling (acquired on or before July 4, 2025)","display":"$50,000,000","value":50000000,"valueType":"dollars","citations":[{"id":"us-obbba-70431c-1202d-gross-assets-50m-to-75m","jurisdiction":"US","authority":"Pub. L. 119-21 (OBBBA) §70431(c)(1); IRC §1202(d)(1)(A)-(B)","authorityType":"statute","title":"QSBS aggregate gross-assets ceiling raised $50,000,000 to $75,000,000 for stock issued after July 4, 2025","quote":"Subparagraphs (A) and (B) of section 1202(d)(1) are each amended by striking \"$50,000,000\" and inserting \"$75,000,000\".","url":"https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm","sourceDomain":"www.congress.gov","taxYear":2025,"asOf":"2026-07-06","confidence":"high","note":"IRC §1202(d)(1) caps issuer aggregate gross assets at $75M for stock issued after enactment (July 4, 2025), $50M for stock issued on or before that date. The test keys to ISSUANCE, unlike the acquisition-keyed exclusion tiers. §70431(c)(2) adds a CPI adjustment to the $75M for taxable years beginning after 2026.","href":"/api/v1/citations/us-obbba-70431c-1202d-gross-assets-50m-to-75m"}],"effectiveDate":null,"terminalDate":"2025-07-04","nextReviewDate":"2027-01-01"},{"factId":"us-qsbs-gross-asset-ceiling-post-obbba","jurisdiction":"US","category":"qsbs-gross-asset-ceiling","label":"QSBS issuer aggregate gross-assets ceiling (stock ISSUED after July 4, 2025; the statute keys this test to issuance, unlike the acquisition-keyed exclusion tiers)","display":"$75,000,000","value":75000000,"valueType":"dollars","citations":[{"id":"us-obbba-70431c-1202d-gross-assets-50m-to-75m","jurisdiction":"US","authority":"Pub. L. 119-21 (OBBBA) §70431(c)(1); IRC §1202(d)(1)(A)-(B)","authorityType":"statute","title":"QSBS aggregate gross-assets ceiling raised $50,000,000 to $75,000,000 for stock issued after July 4, 2025","quote":"Subparagraphs (A) and (B) of section 1202(d)(1) are each amended by striking \"$50,000,000\" and inserting \"$75,000,000\".","url":"https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm","sourceDomain":"www.congress.gov","taxYear":2025,"asOf":"2026-07-06","confidence":"high","note":"IRC §1202(d)(1) caps issuer aggregate gross assets at $75M for stock issued after enactment (July 4, 2025), $50M for stock issued on or before that date. The test keys to ISSUANCE, unlike the acquisition-keyed exclusion tiers. §70431(c)(2) adds a CPI adjustment to the $75M for taxable years beginning after 2026.","href":"/api/v1/citations/us-obbba-70431c-1202d-gross-assets-50m-to-75m"}],"effectiveDate":"2025-07-05","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-corporate-rate","jurisdiction":"US","category":"corporate-rate","label":"Federal corporate income tax rate","display":"21%","value":0.21,"valueType":"rate","citations":[{"id":"us-irc-11b-corporate-rate-21pct","jurisdiction":"US","authority":"IRC §11(b)","authorityType":"statute","title":"Federal corporate income tax rate is a flat 21%","quote":"The amount of the tax imposed by subsection (a) shall be 21 percent of taxable income.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section11&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-29","confidence":"high","note":"Flat 21% on C-corporation taxable income (TCJA, made permanent). Used for the entity-level tax on C-corp asset/stock sales (double-tax modeling).","href":"/api/v1/citations/us-irc-11b-corporate-rate-21pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-standard-deduction-mfj-2025","jurisdiction":"US","category":"deduction","label":"Standard deduction (MFJ)","display":"$31,500 (TY2025; IRC §63(c)(7), Pub. L. 119-21)","value":31500,"valueType":"dollars","citations":[{"id":"us-irc-63c-standard-deduction-2025","jurisdiction":"US","authority":"IRC §63(c)(2), (c)(7) (as amended by Pub. L. 119-21 §70102)","authorityType":"statute","title":"Federal basic standard deduction: $15,750 single / $31,500 MFJ for taxable years beginning after December 31, 2024","quote":"For purposes of paragraph (1), the basic standard deduction is (A) 200 percent of the dollar amount in effect under subparagraph (C) for the taxable year in the case of (i) a joint return, or (ii) a surviving spouse (as defined in section 2(a)), (B) $4,400 in the case of a head of household (as defined in section 2(b)), or (C) $3,000 in any other case.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section63&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Section 63(c)(7)(A) (Pub. L. 119-21 §70102) substitutes $23,625 for the $4,400 head-of-household amount and $15,750 for the $3,000 other-case amount for taxable years beginning after December 31, 2024, CPI-indexed thereafter with a 2024 base year; the joint amount is 200 percent of $15,750 = $31,500. Verified against uscode.house.gov on 2026-07-02.","href":"/api/v1/citations/us-irc-63c-standard-deduction-2025"}],"effectiveDate":"2025-01-01","terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"us-standard-deduction-single-2025","jurisdiction":"US","category":"deduction","label":"Standard deduction (Single)","display":"$15,750 (TY2025; IRC §63(c)(7), Pub. L. 119-21)","value":15750,"valueType":"dollars","citations":[{"id":"us-irc-63c-standard-deduction-2025","jurisdiction":"US","authority":"IRC §63(c)(2), (c)(7) (as amended by Pub. L. 119-21 §70102)","authorityType":"statute","title":"Federal basic standard deduction: $15,750 single / $31,500 MFJ for taxable years beginning after December 31, 2024","quote":"For purposes of paragraph (1), the basic standard deduction is (A) 200 percent of the dollar amount in effect under subparagraph (C) for the taxable year in the case of (i) a joint return, or (ii) a surviving spouse (as defined in section 2(a)), (B) $4,400 in the case of a head of household (as defined in section 2(b)), or (C) $3,000 in any other case.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section63&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Section 63(c)(7)(A) (Pub. L. 119-21 §70102) substitutes $23,625 for the $4,400 head-of-household amount and $15,750 for the $3,000 other-case amount for taxable years beginning after December 31, 2024, CPI-indexed thereafter with a 2024 base year; the joint amount is 200 percent of $15,750 = $31,500. Verified against uscode.house.gov on 2026-07-02.","href":"/api/v1/citations/us-irc-63c-standard-deduction-2025"}],"effectiveDate":"2025-01-01","terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"us-standard-deduction-mfj","jurisdiction":"US","category":"deduction","label":"Standard deduction (MFJ)","display":"$32,200 (TY2026; Rev. Proc. 2025-32 §4.14)","value":32200,"valueType":"dollars","citations":[{"id":"us-rp-2025-32-standard-deduction-2026","jurisdiction":"US","authority":"Rev. Proc. 2025-32, §4.14; IRC §63(c)(2)","authorityType":"dor-guidance","title":"TY2026 standard deduction: $32,200 MFJ, $16,100 single, $24,150 head of household","quote":"For taxable years beginning in 2026, the standard deduction amounts under § 63(c)(2) are as follows: Married Individuals Filing Joint Returns and Surviving Spouses (§ 1(j)(2)(A)) $32,200; Heads of Households (§ 1(j)(2)(B)) $24,150; Unmarried Individuals (other than Surviving Spouses and Heads of Households) (§ 1(j)(2)(C)) $16,100; Married Individuals Filing Separate Returns (§ 1(j)(2)(D)) $16,100.","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","sourceDomain":"www.irs.gov","taxYear":2026,"asOf":"2026-07-02","confidence":"high","note":"The §4.14(1) table is flattened to prose with semicolons; amounts verbatim from the PDF, fetched and extracted 2026-07-02. Announced in IR-2025-103 (2025-10-09).","href":"/api/v1/citations/us-rp-2025-32-standard-deduction-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-standard-deduction-single","jurisdiction":"US","category":"deduction","label":"Standard deduction (Single)","display":"$16,100 (TY2026; Rev. Proc. 2025-32 §4.14)","value":16100,"valueType":"dollars","citations":[{"id":"us-rp-2025-32-standard-deduction-2026","jurisdiction":"US","authority":"Rev. Proc. 2025-32, §4.14; IRC §63(c)(2)","authorityType":"dor-guidance","title":"TY2026 standard deduction: $32,200 MFJ, $16,100 single, $24,150 head of household","quote":"For taxable years beginning in 2026, the standard deduction amounts under § 63(c)(2) are as follows: Married Individuals Filing Joint Returns and Surviving Spouses (§ 1(j)(2)(A)) $32,200; Heads of Households (§ 1(j)(2)(B)) $24,150; Unmarried Individuals (other than Surviving Spouses and Heads of Households) (§ 1(j)(2)(C)) $16,100; Married Individuals Filing Separate Returns (§ 1(j)(2)(D)) $16,100.","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","sourceDomain":"www.irs.gov","taxYear":2026,"asOf":"2026-07-02","confidence":"high","note":"The §4.14(1) table is flattened to prose with semicolons; amounts verbatim from the PDF, fetched and extracted 2026-07-02. Announced in IR-2025-103 (2025-10-09).","href":"/api/v1/citations/us-rp-2025-32-standard-deduction-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-gift-annual-exclusion-2025","jurisdiction":"US","category":"gift-annual-exclusion","label":"Gift tax annual exclusion","display":"$19,000 per donee (calendar 2025; Rev. Proc. 2024-40 §2.43)","value":19000,"valueType":"dollars","citations":[{"id":"us-rp-2024-40-gift-annual-exclusion-2025","jurisdiction":"US","authority":"Rev. Proc. 2024-40, §2.43; IRC §2503(b)","authorityType":"dor-guidance","title":"Gift tax annual exclusion is $19,000 per donee for calendar year 2025","quote":"For calendar year 2025, the first $19,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts under § 2503 made during that year.","url":"https://www.irs.gov/pub/irs-drop/rp-24-40.pdf","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Verbatim from the PDF, fetched 2026-07-02. The non-citizen-spouse exclusion is $190,000 for 2025 (same section). The lifetime exemption is the unified basic exclusion amount carried on the estate-exemption facts ($13,990,000 for 2025).","href":"/api/v1/citations/us-rp-2024-40-gift-annual-exclusion-2025"}],"effectiveDate":"2025-01-01","terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"us-gift-annual-exclusion","jurisdiction":"US","category":"gift-annual-exclusion","label":"Gift tax annual exclusion","display":"$19,000 per donee (calendar 2026, unchanged; Rev. Proc. 2025-32 §4.42)","value":19000,"valueType":"dollars","citations":[{"id":"us-rp-2025-32-gift-annual-exclusion-2026","jurisdiction":"US","authority":"Rev. Proc. 2025-32, §4.42; IRC §2503(b)","authorityType":"dor-guidance","title":"Gift tax annual exclusion stays $19,000 per donee for calendar year 2026","quote":"For calendar year 2026, the first $19,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts under § 2503 made during that year.","url":"https://www.irs.gov/pub/irs-drop/rp-25-32.pdf","sourceDomain":"www.irs.gov","taxYear":2026,"asOf":"2026-07-02","confidence":"high","note":"Verbatim from the PDF, fetched 2026-07-02. The non-citizen-spouse exclusion rises to $194,000 for 2026 (same section). The lifetime exemption is the unified basic exclusion amount carried on the estate-exemption facts ($15,000,000 from 2026).","href":"/api/v1/citations/us-rp-2025-32-gift-annual-exclusion-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"us-salt-deduction-cap-2025","jurisdiction":"US","category":"salt-deduction-cap","label":"SALT deduction cap","display":"$40,000 (TY2025; phased down 30% of MAGI over $500,000, floor $10,000; half for MFS)","value":40000,"valueType":"dollars","citations":[{"id":"us-irc-164b6-salt-cap-2025","jurisdiction":"US","authority":"IRC §164(b)(6), (b)(7) (as amended by Pub. L. 119-21 §70120)","authorityType":"statute","title":"SALT deduction cap: $40,000 (2025), $40,400 (2026), 101% escalator 2027-2029, $10,000 from 2030; phased down 30% of MAGI over a threshold ($500,000 in 2025, $505,000 in 2026, 101%/yr after) to a $10,000 floor","quote":"the aggregate amount of taxes taken into account under paragraphs (1), (2), and (3) of subsection (a) and paragraph (5) of this subsection for any taxable year shall not exceed the applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section164&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Applicable limitation amount (§164(b)(7)): $40,000 for 2025; $40,400 for 2026; 101 percent of the prior-year amount for 2027-2029; $10,000 for 2030 and after. Reduced by 30 percent of the excess of MAGI over the threshold amount, which escalates on the same schedule: $500,000 for 2025, $505,000 for 2026, then 101 percent of the prior-year threshold (half for MFS); never below $10,000. Verified against uscode.house.gov on 2026-07-03. The cap is why PTET elections exist; see the ptet-* facts.","href":"/api/v1/citations/us-irc-164b6-salt-cap-2025"}],"effectiveDate":"2025-01-01","terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"us-salt-deduction-cap-2026","jurisdiction":"US","category":"salt-deduction-cap","label":"SALT deduction cap","display":"$40,400 (TY2026; phased down 30% of MAGI over $505,000, floor $10,000; half for MFS)","value":40400,"valueType":"dollars","citations":[{"id":"us-irc-164b6-salt-cap-2025","jurisdiction":"US","authority":"IRC §164(b)(6), (b)(7) (as amended by Pub. L. 119-21 §70120)","authorityType":"statute","title":"SALT deduction cap: $40,000 (2025), $40,400 (2026), 101% escalator 2027-2029, $10,000 from 2030; phased down 30% of MAGI over a threshold ($500,000 in 2025, $505,000 in 2026, 101%/yr after) to a $10,000 floor","quote":"the aggregate amount of taxes taken into account under paragraphs (1), (2), and (3) of subsection (a) and paragraph (5) of this subsection for any taxable year shall not exceed the applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section164&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Applicable limitation amount (§164(b)(7)): $40,000 for 2025; $40,400 for 2026; 101 percent of the prior-year amount for 2027-2029; $10,000 for 2030 and after. Reduced by 30 percent of the excess of MAGI over the threshold amount, which escalates on the same schedule: $500,000 for 2025, $505,000 for 2026, then 101 percent of the prior-year threshold (half for MFS); never below $10,000. Verified against uscode.house.gov on 2026-07-03. The cap is why PTET elections exist; see the ptet-* facts.","href":"/api/v1/citations/us-irc-164b6-salt-cap-2025"}],"effectiveDate":"2026-01-01","terminalDate":"2026-12-31","nextReviewDate":"2027-01-01"},{"factId":"us-salt-deduction-cap-escalator-2027-2029","jurisdiction":"US","category":"salt-deduction-cap","label":"SALT deduction cap","display":"101% of the prior-year cap each year 2027-2029 (from $40,400 in 2026: $40,804; $41,212.04; $41,624.16; no statutory rounding rule); the MAGI phase-down threshold escalates 101%/yr from $505,000 (2026) on the same schedule","value":null,"valueType":"dollars","citations":[{"id":"us-irc-164b6-salt-cap-2025","jurisdiction":"US","authority":"IRC §164(b)(6), (b)(7) (as amended by Pub. L. 119-21 §70120)","authorityType":"statute","title":"SALT deduction cap: $40,000 (2025), $40,400 (2026), 101% escalator 2027-2029, $10,000 from 2030; phased down 30% of MAGI over a threshold ($500,000 in 2025, $505,000 in 2026, 101%/yr after) to a $10,000 floor","quote":"the aggregate amount of taxes taken into account under paragraphs (1), (2), and (3) of subsection (a) and paragraph (5) of this subsection for any taxable year shall not exceed the applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section164&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Applicable limitation amount (§164(b)(7)): $40,000 for 2025; $40,400 for 2026; 101 percent of the prior-year amount for 2027-2029; $10,000 for 2030 and after. Reduced by 30 percent of the excess of MAGI over the threshold amount, which escalates on the same schedule: $500,000 for 2025, $505,000 for 2026, then 101 percent of the prior-year threshold (half for MFS); never below $10,000. Verified against uscode.house.gov on 2026-07-03. The cap is why PTET elections exist; see the ptet-* facts.","href":"/api/v1/citations/us-irc-164b6-salt-cap-2025"}],"effectiveDate":"2027-01-01","terminalDate":"2029-12-31","nextReviewDate":"2027-01-01"},{"factId":"us-salt-deduction-cap-2030","jurisdiction":"US","category":"salt-deduction-cap","label":"SALT deduction cap","display":"$10,000 (2030 and after; the OBBBA cap reverts)","value":10000,"valueType":"dollars","citations":[{"id":"us-irc-164b6-salt-cap-2025","jurisdiction":"US","authority":"IRC §164(b)(6), (b)(7) (as amended by Pub. L. 119-21 §70120)","authorityType":"statute","title":"SALT deduction cap: $40,000 (2025), $40,400 (2026), 101% escalator 2027-2029, $10,000 from 2030; phased down 30% of MAGI over a threshold ($500,000 in 2025, $505,000 in 2026, 101%/yr after) to a $10,000 floor","quote":"the aggregate amount of taxes taken into account under paragraphs (1), (2), and (3) of subsection (a) and paragraph (5) of this subsection for any taxable year shall not exceed the applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section164&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Applicable limitation amount (§164(b)(7)): $40,000 for 2025; $40,400 for 2026; 101 percent of the prior-year amount for 2027-2029; $10,000 for 2030 and after. Reduced by 30 percent of the excess of MAGI over the threshold amount, which escalates on the same schedule: $500,000 for 2025, $505,000 for 2026, then 101 percent of the prior-year threshold (half for MFS); never below $10,000. Verified against uscode.house.gov on 2026-07-03. The cap is why PTET elections exist; see the ptet-* facts.","href":"/api/v1/citations/us-irc-164b6-salt-cap-2025"}],"effectiveDate":"2030-01-01","terminalDate":null,"nextReviewDate":"2029-06-30"}]},{"code":"AL","name":"Alabama","level":"state","facts":[{"factId":"al-trust-nexus-incomplete-gift","jurisdiction":"AL","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: the conjunctive test would free a trust with no in-state fiduciary or current-permissible beneficiary, but a standard ING names the AL-resident grantor as a discretionary current beneficiary, satisfying both prongs","value":2,"valueType":"code","citations":[{"id":"al-trust-nexus-incomplete-gift-2026","jurisdiction":"AL","authority":"Ala. Code 40-18-1(33) (resident trust: two conjunctive prongs), applied via 40-18-25(a)","authorityType":"statute","title":"Alabama taxes a trust with an Alabama settlor at irrevocability AND an in-state fiduciary or current-permissible beneficiary; the ING grantor supplies the second prong","quote":"a. The trust is created by the will of a decedent who was an Alabama resident at death or by a person who was an Alabama resident at the time such trust became irrevocable; and b. For more than seven months during such taxable year, a person, as defined in this section, who either resides in or is domiciled in Alabama is either a fiduciary of the trust or a beneficiary of the trust to whom distributions currently may be made.","url":"https://www.mtc.gov/wp-content/uploads/2023/02/State-Non-Grantor-Trust-Residency-Rules.pdf","sourceDomain":"www.mtc.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"medium","note":"Statute text verified via the Multistate Tax Commission's 50-state chart and AL DOR Form 41 materials; the official ALISON code host blocks automated access, hence medium confidence. Kaestner reserved the current-permissible-beneficiary case and Alabama adds the settlor contact.","href":"/api/v1/citations/al-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-conformity","jurisdiction":"AL","category":"conformity","label":"Federal conformity / capital-gains base","display":"Own base: Ala. Code Ch. 40-18 (§ 40-18-14) defines gross income independently of federal AGI; capital gains taxed as ordinary income","value":null,"valueType":"none","citations":[{"id":"al-code-40-18-14-own-base","jurisdiction":"AL","authority":"Ala. Admin. Code r. 810-3-14-.01; Ala. Code § 40-18-14","authorityType":"regulation","title":"Alabama determines gross income under its own Chapter 40-18 base (not federal AGI or the IRC)","quote":"The term \"gross income\" means all wealth flowing to the taxpayer from whatever source derived other than as a return of his capital and other than those items exempted by Section 40-18-14(3), Code of Ala. 1975.","url":"https://admincode.legislature.state.al.us/administrative-code/810-3-14-.01","sourceDomain":"admincode.legislature.state.al.us","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Alabama does not key to federal AGI or the IRC; capital gains fold into its own Chapter 40-18 'gross income ... from dealings in property' and are taxed as ordinary income.","href":"/api/v1/citations/al-code-40-18-14-own-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-estate-none","jurisdiction":"AL","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"al-estate-none-2025","jurisdiction":"AL","authority":"Ala. Code Title 40 Ch. 15 (as described by AL DOR)","authorityType":"dor-guidance","title":"No Alabama estate/inheritance filing for deaths after Dec 31, 2004","quote":"estates where the decedent's date of death is after December 31, 2004, are not required to file with Alabama.","url":"https://www.revenue.alabama.gov/individual-corporate/alabama-estate-and-inheritance-tax/","sourceDomain":"www.revenue.alabama.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Mid-sentence verbatim fragment from the DOR page. Page cites Title 40 Chapter 15.","href":"/api/v1/citations/al-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-rate","jurisdiction":"AL","category":"rate","label":"Top income tax rate (TY2025)","display":"5% on income above $6,000 single / $12,000 MFJ (own brackets; federal-tax deduction lowers effective rate)","value":0.05,"valueType":"rate","citations":[{"id":"al-ala-code-40-18-5-rate-5pct-2025","jurisdiction":"AL","authority":"Ala. Code §40-18-5","authorityType":"statute","title":"Alabama graduated income tax: 2%/4%/5% (top 5% above $6,000 single / $12,000 MFJ)","quote":"There is hereby levied upon the taxable income of every resident individual an income tax at the following rates: 2% on the first $500; 4% on the next $2,500; and 5% on any excess income. Every nonresident individual shall be subject to tax at the same rates on Alabama income.","url":"https://alison.legislature.state.al.us/codeofalabama/1975/coatoc.htm","sourceDomain":"alison.legislature.state.al.us","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Alabama imposes a flat 5% individual income tax rate on net capital gains under Ala. Code §40-18-5. Confidence medium: URL resolves to the chapter table of contents, not the specific section. Alabama uses its own bracket base (not federal taxable income). Deductible: federal income taxes paid (Ala. Code §40-18-15(7)) this deduction is unlimited and large for high earners, so the effective Alabama rate is materially lower than 5% nominal. MFJ standard deduction $8,500; CLIFF to $2,000 above $35,000 FAGI (own schedule). Alabama is one of four states with an unlimited federal-tax deduction (ND dropped it; MO and OR remain).","href":"/api/v1/citations/al-ala-code-40-18-5-rate-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-carryforward","jurisdiction":"AL","category":"carryforward","label":"Capital-loss carryforward","display":"NONE, but the entire loss deducts against income generally in the year incurred (no $3,000 cap); a loss unusable that year is forfeited","value":0,"valueType":"years","citations":[{"id":"al-form-41-full-current-year-loss-no-carry","jurisdiction":"AL","authority":"Ala. Code §§40-18-6 to 40-18-8; Alabama DOR, 2024 Form 41 Instructions","authorityType":"form-instructions","title":"Alabama deducts the entire capital loss in the year incurred (no cap, no carryforward, no carryback)","quote":"Under current Alabama law, the entire gain is taxable, and the entire loss is deductible in the year in which it occurs. §§40-18-6,(7) and (8).","url":"https://www.revenue.alabama.gov/wp-content/uploads/2025/01/24f41instr.pdf","sourceDomain":"www.revenue.alabama.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Alabama does NOT year-lock losses to capital gains: the whole loss is deductible against income generally in the year incurred, with no federal-style $3,000 cap. The flip side is that nothing carries: an unusable loss (income already zero) dies at year-end. machine 0 = zero carryforward years.","href":"/api/v1/citations/al-form-41-full-current-year-loss-no-carry"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-carryback","jurisdiction":"AL","category":"carryback","label":"Capital-loss carryback","display":"NONE year-locked: no carryback to prior years","value":0,"valueType":"years","citations":[{"id":"al-form-41-full-current-year-loss-no-carry","jurisdiction":"AL","authority":"Ala. Code §§40-18-6 to 40-18-8; Alabama DOR, 2024 Form 41 Instructions","authorityType":"form-instructions","title":"Alabama deducts the entire capital loss in the year incurred (no cap, no carryforward, no carryback)","quote":"Under current Alabama law, the entire gain is taxable, and the entire loss is deductible in the year in which it occurs. §§40-18-6,(7) and (8).","url":"https://www.revenue.alabama.gov/wp-content/uploads/2025/01/24f41instr.pdf","sourceDomain":"www.revenue.alabama.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Alabama does NOT year-lock losses to capital gains: the whole loss is deductible against income generally in the year incurred, with no federal-style $3,000 cap. The flip side is that nothing carries: an unusable loss (income already zero) dies at year-end. machine 0 = zero carryforward years.","href":"/api/v1/citations/al-form-41-full-current-year-loss-no-carry"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-muni-instate","jurisdiction":"AL","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: Ala. Code §40-18-14 exempts interest on Alabama state and local obligations","value":1,"valueType":"binary-exempt","citations":[{"id":"al-code-40-18-14-muni-default-2025","jurisdiction":"AL","authority":"Alabama Department of Revenue, Income Exempt from Alabama Income Taxation","authorityType":"dor-guidance","title":"AL exempts AL-issued bonds; out-of-state muni bond interest is taxable per Ala. Code §40-18-14","quote":"Interest on obligations of the state of Alabama or any county, city, or municipality of Alabama.","url":"https://www.revenue.alabama.gov/individual-corporate/income-exempt-from-alabama-income-taxation/","sourceDomain":"www.revenue.alabama.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Ala. Code §40-18-14 exempts interest on Alabama state and local bonds. Interest on other states' bonds receives no Alabama exemption and is taxable Alabama income.","href":"/api/v1/citations/al-code-40-18-14-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-muni-outstate","jurisdiction":"AL","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: Ala. Code §40-18-14 exemption is limited to Alabama bonds; out-of-state muni interest is AL taxable income","value":0,"valueType":"binary-exempt","citations":[{"id":"al-code-40-18-14-muni-default-2025","jurisdiction":"AL","authority":"Alabama Department of Revenue, Income Exempt from Alabama Income Taxation","authorityType":"dor-guidance","title":"AL exempts AL-issued bonds; out-of-state muni bond interest is taxable per Ala. Code §40-18-14","quote":"Interest on obligations of the state of Alabama or any county, city, or municipality of Alabama.","url":"https://www.revenue.alabama.gov/individual-corporate/income-exempt-from-alabama-income-taxation/","sourceDomain":"www.revenue.alabama.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Ala. Code §40-18-14 exempts interest on Alabama state and local bonds. Interest on other states' bonds receives no Alabama exemption and is taxable Alabama income.","href":"/api/v1/citations/al-code-40-18-14-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-qoz-conformity","jurisdiction":"AL","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Partial conformity via Ala. Code §40-18-6.1, conditioned on ADECA designation; no QOZs were ever designated, so federal deferral and exclusion are not available in practice","value":2,"valueType":"code","citations":[{"id":"al-qoz-conformity-irc-1400z2-2025","jurisdiction":"AL","authority":"Ala. Code §40-18-6.1","authorityType":"statute","title":"Alabama partially conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The provisions of Section 1400Z-2 of the Internal Revenue Code of 1986, as amended, shall apply for Alabama income tax purposes with respect to any investment in a qualified opportunity fund that is designated by the Alabama Department of Economic and Community Affairs.","url":"https://alison.legislature.state.al.us/codeofalabama/1975/OC/40-18-6.1.htm","sourceDomain":"alison.legislature.state.al.us","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"ADECA approval gate was never operationalized; no Alabama-approved QOZs were ever designated, so the partial conformity is effectively a nullity in practice.","href":"/api/v1/citations/al-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-qsbs-conformity","jurisdiction":"AL","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Non-conforms to IRC §1202; Alabama piecemeal conformity includes no §1202 provision, so QSBS gain exclusion is not recognized and gain is fully taxable at the state level","value":0,"valueType":"binary-exempt","citations":[{"id":"al-qsbs-conformity-irc-1202-2025","jurisdiction":"AL","authority":"Ala. Code Title 40 Ch. 18 (no §1202 provision in Alabama piecemeal conformity)","authorityType":"statute","title":"Alabama does not conform to IRC §1202 QSBS gain exclusion","quote":"Verbatim text not yet extracted; see note.","url":"https://alison.legislature.state.al.us/codeofalabama/1975/coatoc.htm","sourceDomain":"alison.legislature.state.al.us","taxYear":2025,"asOf":"2026-07-02","confidence":"low","note":"Structural inference on a negative claim: Alabama adopts federal income tax law on a piecemeal basis, and no provision of Title 40 Chapter 18 incorporates or references IRC §1202, so QSBS gains are fully taxable at the Alabama level. The Code of Alabama is served only through the ALISON table-of-contents portal (no fetchable section-level text), so no verbatim statutory text can be quoted; confidence stays low pending a quotable primary source.","href":"/api/v1/citations/al-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-agency-obligations","jurisdiction":"AL","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: Alabama Form 40 Schedule B (2025 booklet) explicitly lists FNMA and FHLMC under 'Examples of TAXABLE Interest'","value":0,"valueType":"binary-exempt","citations":[{"id":"al-form40-2025-schedule-b-fnma-fhlmc-taxable","jurisdiction":"AL","authority":"Alabama Department of Revenue, 2025 Form 40 Individual Income Tax Instruction Booklet, Schedule B","authorityType":"form-instructions","title":"Alabama Form 40 Schedule B lists FNMA and FHLMC under 'Examples of TAXABLE Interest'","quote":"Interest on the following obligations is also taxable: (C.3) Federal National Mortgage Association (FNMA or Fannie Mae) bonds; (C.4) Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) bonds.","url":"https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf","sourceDomain":"www.revenue.alabama.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Alabama Form 40 Schedule B lists FNMA/FHLMC as examples of taxable interest; qualified dividends are not addressed separately in the citation but Alabama provides no IRC §1(h)(11) preference, so they are ordinary income.","href":"/api/v1/citations/al-form40-2025-schedule-b-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-dividend-qualified","jurisdiction":"AL","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Alabama does not adopt the IRC §1(h)(11) qualified dividend preference; dividends are taxable at ordinary rates","value":0,"valueType":"binary-exempt","citations":[{"id":"al-form40-2025-schedule-b-fnma-fhlmc-taxable","jurisdiction":"AL","authority":"Alabama Department of Revenue, 2025 Form 40 Individual Income Tax Instruction Booklet, Schedule B","authorityType":"form-instructions","title":"Alabama Form 40 Schedule B lists FNMA and FHLMC under 'Examples of TAXABLE Interest'","quote":"Interest on the following obligations is also taxable: (C.3) Federal National Mortgage Association (FNMA or Fannie Mae) bonds; (C.4) Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) bonds.","url":"https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf","sourceDomain":"www.revenue.alabama.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Alabama Form 40 Schedule B lists FNMA/FHLMC as examples of taxable interest; qualified dividends are not addressed separately in the citation but Alabama provides no IRC §1(h)(11) preference, so they are ordinary income.","href":"/api/v1/citations/al-form40-2025-schedule-b-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-treasury","jurisdiction":"AL","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"al-31-usc-3124-treasury-exempt-2025","jurisdiction":"AL","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Alabama income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/al-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-fhlb-ffcb","jurisdiction":"AL","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"al-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"AL","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Alabama income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/al-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-character","jurisdiction":"AL","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at rates up to 5%; Alabama makes no distinction between long-term and short-term capital gains (Ala. Code §40-18-5)","value":null,"valueType":"none","citations":[{"id":"al-ala-code-40-18-5-rate-5pct-2025","jurisdiction":"AL","authority":"Ala. Code §40-18-5","authorityType":"statute","title":"Alabama graduated income tax: 2%/4%/5% (top 5% above $6,000 single / $12,000 MFJ)","quote":"There is hereby levied upon the taxable income of every resident individual an income tax at the following rates: 2% on the first $500; 4% on the next $2,500; and 5% on any excess income. Every nonresident individual shall be subject to tax at the same rates on Alabama income.","url":"https://alison.legislature.state.al.us/codeofalabama/1975/coatoc.htm","sourceDomain":"alison.legislature.state.al.us","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Alabama imposes a flat 5% individual income tax rate on net capital gains under Ala. Code §40-18-5. Confidence medium: URL resolves to the chapter table of contents, not the specific section. Alabama uses its own bracket base (not federal taxable income). Deductible: federal income taxes paid (Ala. Code §40-18-15(7)) this deduction is unlimited and large for high earners, so the effective Alabama rate is materially lower than 5% nominal. MFJ standard deduction $8,500; CLIFF to $2,000 above $35,000 FAGI (own schedule). Alabama is one of four states with an unlimited federal-tax deduction (ND dropped it; MO and OR remain).","href":"/api/v1/citations/al-ala-code-40-18-5-rate-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-filing-status-doubled","jurisdiction":"AL","category":"filing-status-doubled","label":"MFJ brackets double Single brackets","display":"Yes: Code of Alabama §40-18-5 MFJ bracket thresholds are exactly double Single/MFS thresholds ($500/$1,000 and $3,000/$6,000); same rates at each doubled boundary (marriage neutral)","value":1,"valueType":"binary-exempt","citations":[{"id":"al-code-40-18-5-mfj-double-single-2025","jurisdiction":"AL","authority":"Alabama Department of Revenue, Individual Income Tax Filing Information","authorityType":"dor-guidance","title":"Alabama income tax: MFJ bracket thresholds double Single/MFS thresholds at each boundary (marriage neutral)","quote":"For single, head of family, and married filing separate returns: 2% First $500 of taxable income 4% Next $2,500 of taxable income 5% All taxable income over $3,000 For married persons filing a joint return: 2% First $1,000 of taxable income 4% Next $5,000 of taxable income 5% All taxable income over $6,000","url":"https://www.revenue.alabama.gov/individual-corporate/individual-income-tax-filing-information/","sourceDomain":"www.revenue.alabama.gov","taxYear":2025,"asOf":"2026-07-04","confidence":"high","note":"Single/HOH/MFS: 2% on first $500; 4% on next $2,500; 5% on all taxable income over $3,000. MFJ: 2% on first $1,000; 4% on next $5,000; 5% on all taxable income over $6,000. MFJ bracket thresholds are exactly 2x Single/MFS thresholds: $500/$1,000 and $3,000/$6,000. Same marginal rates (2%/4%/5%) apply at each doubled boundary. Marriage neutral on the graduated schedule.","href":"/api/v1/citations/al-code-40-18-5-mfj-double-single-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"al-migration-loss-conformity","jurisdiction":"AL","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Disallowed: Alabama does not recognize capital loss carryforwards; out-of-state losses cannot be imported upon migration per Ala. Code § 40-18-16.","value":0,"valueType":"code","citations":[{"id":"al-form-41-full-current-year-loss-no-carry","jurisdiction":"AL","authority":"Ala. Code §§40-18-6 to 40-18-8; Alabama DOR, 2024 Form 41 Instructions","authorityType":"form-instructions","title":"Alabama deducts the entire capital loss in the year incurred (no cap, no carryforward, no carryback)","quote":"Under current Alabama law, the entire gain is taxable, and the entire loss is deductible in the year in which it occurs. §§40-18-6,(7) and (8).","url":"https://www.revenue.alabama.gov/wp-content/uploads/2025/01/24f41instr.pdf","sourceDomain":"www.revenue.alabama.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Alabama does NOT year-lock losses to capital gains: the whole loss is deductible against income generally in the year incurred, with no federal-style $3,000 cap. The flip side is that nothing carries: an unusable loss (income already zero) dies at year-end. machine 0 = zero carryforward years.","href":"/api/v1/citations/al-form-41-full-current-year-loss-no-carry"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"AK","name":"Alaska","level":"state","facts":[{"factId":"ak-estate-none","jurisdiction":"AK","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"ak-estate-none-2025","jurisdiction":"AK","authority":"Alaska DOR Tax Division, Estate Tax program page","authorityType":"dor-guidance","title":"Alaska no longer has an estate tax; it ended Jan. 1, 2005 with the federal credit phase-out","quote":"Alaska no longer has an estate tax. Alaska did have one until Jan. 1, 2005.","url":"https://tax.alaska.gov/programs/programs/index.aspx?60200","sourceDomain":"tax.alaska.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Page also states verbatim: 'The state estate tax was tied to the federal state death tax credit, and that credit was phased out in 2005.' Page does not cite AS 43.31.","href":"/api/v1/citations/ak-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ak-no-tax","jurisdiction":"AK","category":"no-tax","label":"Capital gains tax","display":"None Alaska imposes no personal income tax","value":null,"valueType":"none","citations":[{"id":"ak-no-personal-income-tax","jurisdiction":"AK","authority":"AS 43.20.012(a)","authorityType":"statute","title":"Alaska imposes no personal income tax: AS 43.20.012(a) excludes individuals from the Net Income Tax Act; capital gains are not taxed at the state level","quote":"Sec. 43.20.012. Limitation on application of chapter; credits. (a) The tax imposed by this chapter does not apply to (1) an individual; (2) a fiduciary;","url":"https://www.akleg.gov/basis/statutes.asp?media=print&secStart=43.20.012&secEnd=43.20.012","sourceDomain":"www.akleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The prior cite (Alaska Dept. of Commerce 'Tax Facts' page) now returns 403; replaced with the statute. AS 43.20 is Alaska's Net Income Tax Act (corporate); §43.20.012(a) expressly carves individuals and fiduciaries out, so no Alaska personal income tax exists.","href":"/api/v1/citations/ak-no-personal-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ak-muni-instate","jurisdiction":"AK","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: no Alaska state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"ak-no-personal-income-tax","jurisdiction":"AK","authority":"AS 43.20.012(a)","authorityType":"statute","title":"Alaska imposes no personal income tax: AS 43.20.012(a) excludes individuals from the Net Income Tax Act; capital gains are not taxed at the state level","quote":"Sec. 43.20.012. Limitation on application of chapter; credits. (a) The tax imposed by this chapter does not apply to (1) an individual; (2) a fiduciary;","url":"https://www.akleg.gov/basis/statutes.asp?media=print&secStart=43.20.012&secEnd=43.20.012","sourceDomain":"www.akleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The prior cite (Alaska Dept. of Commerce 'Tax Facts' page) now returns 403; replaced with the statute. AS 43.20 is Alaska's Net Income Tax Act (corporate); §43.20.012(a) expressly carves individuals and fiduciaries out, so no Alaska personal income tax exists.","href":"/api/v1/citations/ak-no-personal-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ak-muni-outstate","jurisdiction":"AK","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Exempt: no Alaska state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"ak-no-personal-income-tax","jurisdiction":"AK","authority":"AS 43.20.012(a)","authorityType":"statute","title":"Alaska imposes no personal income tax: AS 43.20.012(a) excludes individuals from the Net Income Tax Act; capital gains are not taxed at the state level","quote":"Sec. 43.20.012. Limitation on application of chapter; credits. (a) The tax imposed by this chapter does not apply to (1) an individual; (2) a fiduciary;","url":"https://www.akleg.gov/basis/statutes.asp?media=print&secStart=43.20.012&secEnd=43.20.012","sourceDomain":"www.akleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The prior cite (Alaska Dept. of Commerce 'Tax Facts' page) now returns 403; replaced with the statute. AS 43.20 is Alaska's Net Income Tax Act (corporate); §43.20.012(a) expressly carves individuals and fiduciaries out, so no Alaska personal income tax exists.","href":"/api/v1/citations/ak-no-personal-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ak-agency-obligations","jurisdiction":"AK","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Exempt: no Alaska state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"ak-no-personal-income-tax","jurisdiction":"AK","authority":"AS 43.20.012(a)","authorityType":"statute","title":"Alaska imposes no personal income tax: AS 43.20.012(a) excludes individuals from the Net Income Tax Act; capital gains are not taxed at the state level","quote":"Sec. 43.20.012. Limitation on application of chapter; credits. (a) The tax imposed by this chapter does not apply to (1) an individual; (2) a fiduciary;","url":"https://www.akleg.gov/basis/statutes.asp?media=print&secStart=43.20.012&secEnd=43.20.012","sourceDomain":"www.akleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The prior cite (Alaska Dept. of Commerce 'Tax Facts' page) now returns 403; replaced with the statute. AS 43.20 is Alaska's Net Income Tax Act (corporate); §43.20.012(a) expressly carves individuals and fiduciaries out, so no Alaska personal income tax exists.","href":"/api/v1/citations/ak-no-personal-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ak-dividend-qualified","jurisdiction":"AK","category":"dividend-qualified","label":"Qualified dividend income","display":"Moot: no Alaska state income tax","value":null,"valueType":"none","citations":[{"id":"ak-no-personal-income-tax","jurisdiction":"AK","authority":"AS 43.20.012(a)","authorityType":"statute","title":"Alaska imposes no personal income tax: AS 43.20.012(a) excludes individuals from the Net Income Tax Act; capital gains are not taxed at the state level","quote":"Sec. 43.20.012. Limitation on application of chapter; credits. (a) The tax imposed by this chapter does not apply to (1) an individual; (2) a fiduciary;","url":"https://www.akleg.gov/basis/statutes.asp?media=print&secStart=43.20.012&secEnd=43.20.012","sourceDomain":"www.akleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The prior cite (Alaska Dept. of Commerce 'Tax Facts' page) now returns 403; replaced with the statute. AS 43.20 is Alaska's Net Income Tax Act (corporate); §43.20.012(a) expressly carves individuals and fiduciaries out, so no Alaska personal income tax exists.","href":"/api/v1/citations/ak-no-personal-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ak-treasury","jurisdiction":"AK","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: no Alaska state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"ak-no-personal-income-tax","jurisdiction":"AK","authority":"AS 43.20.012(a)","authorityType":"statute","title":"Alaska imposes no personal income tax: AS 43.20.012(a) excludes individuals from the Net Income Tax Act; capital gains are not taxed at the state level","quote":"Sec. 43.20.012. Limitation on application of chapter; credits. (a) The tax imposed by this chapter does not apply to (1) an individual; (2) a fiduciary;","url":"https://www.akleg.gov/basis/statutes.asp?media=print&secStart=43.20.012&secEnd=43.20.012","sourceDomain":"www.akleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The prior cite (Alaska Dept. of Commerce 'Tax Facts' page) now returns 403; replaced with the statute. AS 43.20 is Alaska's Net Income Tax Act (corporate); §43.20.012(a) expressly carves individuals and fiduciaries out, so no Alaska personal income tax exists.","href":"/api/v1/citations/ak-no-personal-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ak-fhlb-ffcb","jurisdiction":"AK","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: no Alaska state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"ak-no-personal-income-tax","jurisdiction":"AK","authority":"AS 43.20.012(a)","authorityType":"statute","title":"Alaska imposes no personal income tax: AS 43.20.012(a) excludes individuals from the Net Income Tax Act; capital gains are not taxed at the state level","quote":"Sec. 43.20.012. Limitation on application of chapter; credits. (a) The tax imposed by this chapter does not apply to (1) an individual; (2) a fiduciary;","url":"https://www.akleg.gov/basis/statutes.asp?media=print&secStart=43.20.012&secEnd=43.20.012","sourceDomain":"www.akleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The prior cite (Alaska Dept. of Commerce 'Tax Facts' page) now returns 403; replaced with the statute. AS 43.20 is Alaska's Net Income Tax Act (corporate); §43.20.012(a) expressly carves individuals and fiduciaries out, so no Alaska personal income tax exists.","href":"/api/v1/citations/ak-no-personal-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ak-marital-elective-cp","jurisdiction":"AK","category":"marital-elective-cp","label":"Elective community property trust available","display":"Yes: AS §§34.77.010 to 34.77.995 (Alaska Community Property Act) allows married couples to elect CP treatment via agreement or trust; double step-up under IRC §1014(b)(6) is legally arguable but no IRS ruling confirms it for AK trusts","value":1,"valueType":"binary-exempt","citations":[{"id":"ak-as-34-77-marital-elective-cp-irs-p555","jurisdiction":"AK","authority":"IRS Publication 555 (Rev. December 2024), Introduction","authorityType":"dor-guidance","title":"Alaska elective community property: AS §§34.77.010 to 34.77.995 allows married couples to elect CP treatment via agreement or trust","quote":"This publication doesn't address the federal tax treatment of income or property subject to the 'community property' election under Alaska, Tennessee, and South Dakota state laws.","url":"https://www.irs.gov/publications/p555","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Alaska Stat. §34.77 (Uniform Disposition of Community Property Act) establishes elective community property for Alaska residents; IRS Publication 555 (Rev. December 2024) names Alaska as one of three states with an optional community property election. The statutory text was not directly accessed; confidence medium based on IRS Pub 555 acknowledgment. Married couples may opt into community property treatment via a community property agreement or a community property trust. Double step-up benefit (IRC §1014(b)(6)) is legally arguable but no IRS ruling has confirmed it for AK trusts.","href":"/api/v1/citations/ak-as-34-77-marital-elective-cp-irs-p555"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"AZ","name":"Arizona","level":"state","facts":[{"factId":"az-trust-nexus-incomplete-gift","jurisdiction":"AZ","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES: a NV trustee makes the ING a nonresident trust; no settlor prong, no AZ-source income on retained intangible gain. PERMANENT, not deferral: no throwback statute, and the retained gain is corpus gain outside DNI (IRC 643(a)(3)), so it never carries out to the settlor on a later distribution. Ongoing income on the reinvested proceeds IS taxable to a resident beneficiary when distributed","value":0,"valueType":"code","citations":[{"id":"az-trust-nexus-incomplete-gift-2026","jurisdiction":"AZ","authority":"A.R.S. Sec. 43-1301(5) (resident trust: fiduciary residence)","authorityType":"statute","title":"Arizona trust residency follows the fiduciary alone","quote":"'Resident trust' means a trust of which the fiduciary is a resident of this state. If a trust has more than one fiduciary, the trust is a resident trust if at least one of the fiduciaries is a resident of this state.","url":"https://www.azleg.gov/ars/43/01301.htm","sourceDomain":"www.azleg.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"For a corporate fiduciary engaged in interstate trust administration, residency follows where the administration occurs.","href":"/api/v1/citations/az-trust-nexus-incomplete-gift-2026"},{"id":"irc-643a3-corpus-capital-gain-excluded-from-dni","jurisdiction":"US","authority":"IRC §643(a)(3)","authorityType":"statute","title":"IRC §643(a)(3): capital gain allocated to corpus is excluded from distributable net income","quote":"Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section643&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the rule that makes an ING's escape PERMANENT rather than deferral. Income reaches a beneficiary only through DNI (IRC 652/662); a retained corpus gain is outside DNI, so a later distribution of it is principal, not income, and never enters the beneficiary's federal taxable income. Every escape state starts from the federal number, so it never enters the state base either. Conditional on the gain ACTUALLY being allocated to corpus and not distributed in the year realized: a gain routed to fiduciary accounting income, or distributed in the sale year, is in DNI and is taxable to the resident beneficiary.","href":"/api/v1/citations/irc-643a3-corpus-capital-gain-excluded-from-dni"},{"id":"irc-665c-throwback-inapplicable-qualified-domestic-trust","jurisdiction":"US","authority":"IRC §665(c)","authorityType":"statute","title":"IRC §665(c): the accumulation-distribution (throwback) rules do not reach a qualified domestic trust","quote":"(1) In general In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. (2) Qualified trust For purposes of this subsection, the term 'qualified trust' means any trust other than- (A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or (B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section665&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A modern NV/DE ING is a 'qualified trust', so the federal accumulation-distribution regime is computed without regard to undistributed net income: it is empty. States whose only accumulation rule piggybacks IRC 665-668 (OR OAR 150-316-0575, IA, KS, SC) therefore recapture nothing. Only a state with its OWN throwback keyed to income untaxed by any state can claw the gain back, and of the verified escape states only Utah has one (59-10-114(1)(g)).","href":"/api/v1/citations/irc-665c-throwback-inapplicable-qualified-domestic-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-estate-none","jurisdiction":"AZ","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"az-estate-none-2025","jurisdiction":"AZ","authority":"Laws 2006, Ch. 262, sec. 3 (per AZDOR Pub 10, Feb 2022)","authorityType":"dor-guidance","title":"Arizona legislature repealed estate tax provisions in 2006; no inheritance or gift tax","quote":"Following the federal repeal, the Arizona legislature repealed the Arizona estate tax provisions (Laws 2006, Ch. 262, §3). Arizona does not impose an inheritance or gift tax.","url":"https://azdor.gov/sites/default/files/2023-03/PUBLICATION_10.pdf","sourceDomain":"azdor.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Re-verified against the live Pub 10 PDF on 2026-07-03. The URL returns HTTP 200 via a browser-UA curl (WebFetch and interactive browsers get a 403 from azdor.gov's edge); use curl to re-fetch. Preceding sentence: 'Federal law repealed the federal state death tax credit (upon which the Arizona estate tax was based) which effectively cancelled the Arizona estate tax.' Corroborated by AZDOR Pub 900 (PUBLICATION_2006_900.pdf): 'For estates of decedents dying after 2004, Arizona no longer imposes an estate tax.'","href":"/api/v1/citations/az-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-rate","jurisdiction":"AZ","category":"rate","label":"Top income tax rate (TY2025)","display":"2.5% flat (effective 1.875% on qualifying post-2011 LT gains after 25% subtraction)","value":0.025,"valueType":"rate","citations":[{"id":"az-ars-43-1011-flat-2-5pct-2025","jurisdiction":"AZ","authority":"A.R.S. §43-1011; 2025 Form 140EZi Instructions","authorityType":"form-instructions","title":"Arizona flat income tax rate is 2.5% on Arizona taxable income (TY2025)","quote":"Multiply line 8 by 2.5 percent. Enter the result on line 9.","url":"https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140EZi.pdf","sourceDomain":"azdor.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Applies to all filing statuses (flat rate). Standard deduction $31,500 MFJ (OBBBA-conformed; TF showed stale figure).","href":"/api/v1/citations/az-ars-43-1011-flat-2-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-character","jurisdiction":"AZ","category":"character","label":"Long-term capital gain subtraction","display":"25% of net LT gain excluded but ONLY for assets acquired after 12/31/2011 (lot vintage required)","value":0.25,"valueType":"rate","citations":[{"id":"az-ars-43-1022-22c-lt-subtraction-25pct-post-2011","jurisdiction":"AZ","authority":"A.R.S. §43-1022(22)(c)","authorityType":"statute","title":"Arizona 25% LT capital gain subtraction: any asset acquired after 12/31/2011; no asset-class restriction","quote":"22. An amount of any net long-term capital gain included in federal adjusted gross income for the taxable year that is derived from an investment in an asset acquired after December 31, 2011, as follows: ... (c) For taxable years beginning from and after December 31, 2014, twenty-five percent of the net long-term capital gain included in federal adjusted gross income.","url":"https://www.azleg.gov/ars/43/01022.htm","sourceDomain":"www.azleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"A.R.S. §43-1022(22)(c): 25% subtraction from Arizona gross income for net long-term capital gain on any asset acquired after December 31, 2011; no asset-class restriction. Pre-2012 assets are excluded; gifted or inherited assets take the transferor's acquisition date.","href":"/api/v1/citations/az-ars-43-1022-22c-lt-subtraction-25pct-post-2011"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-conformity","jurisdiction":"AZ","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies; rule ties for all-LT estimand","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-muni-instate","jurisdiction":"AZ","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: ARS §43-1021(3) add-back applies only to bonds of states outside Arizona; AZ bonds not added back","value":1,"valueType":"binary-exempt","citations":[{"id":"az-ars-43-1021-muni-default-2025","jurisdiction":"AZ","authority":"ARS §43-1021(3)","authorityType":"statute","title":"AZ taxes out-of-state muni bond interest; AZ-issued bonds exempt by negative implication of ARS §43-1021(3)","quote":"The amount of interest income received on obligations of any state, territory or possession of the United States, or any political subdivision thereof, located outside of this state.","url":"https://www.azleg.gov/ars/43/01021.htm","sourceDomain":"www.azleg.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"ARS §43-1021(3) adds back interest on bonds of states OTHER than Arizona. Arizona bonds are exempt by negative implication.","href":"/api/v1/citations/az-ars-43-1021-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-muni-outstate","jurisdiction":"AZ","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: ARS §43-1021(3) requires addition of out-of-state muni interest to Arizona income","value":0,"valueType":"binary-exempt","citations":[{"id":"az-ars-43-1021-muni-default-2025","jurisdiction":"AZ","authority":"ARS §43-1021(3)","authorityType":"statute","title":"AZ taxes out-of-state muni bond interest; AZ-issued bonds exempt by negative implication of ARS §43-1021(3)","quote":"The amount of interest income received on obligations of any state, territory or possession of the United States, or any political subdivision thereof, located outside of this state.","url":"https://www.azleg.gov/ars/43/01021.htm","sourceDomain":"www.azleg.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"ARS §43-1021(3) adds back interest on bonds of states OTHER than Arizona. Arizona bonds are exempt by negative implication.","href":"/api/v1/citations/az-ars-43-1021-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-qoz-conformity","jurisdiction":"AZ","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via fixed-date IRC conformity (January 1, 2025)","value":1,"valueType":"code","citations":[{"id":"az-qoz-conformity-irc-1400z2-2025","jurisdiction":"AZ","authority":"Ariz. Rev. Stat. §43-105; §§43-1021, 43-1022","authorityType":"statute","title":"Arizona conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"For the purposes of computing income tax pursuant to this title, for taxable years beginning from and after December 31, 2024, \"internal revenue code\" means the United States internal revenue code of 1986, as amended, in effect on January 1, 2025, including those provisions that became effective during 2024 with the specific adoption of all retroactive effective dates, but excluding any changes to the code enacted after January 1, 2025.","url":"https://www.azleg.gov/ars/43/00105.htm","sourceDomain":"www.azleg.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"Arizona fixed-date IRC conformity (§43-105(A)): the Code in effect on January 1, 2025, for tax years after Dec 31, 2024, so §1400Z-2 is incorporated without addback. The prior quote invented a 'For the purposes of title 43' lead-in and dropped the taxable-year limitation.","href":"/api/v1/citations/az-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-qsbs-conformity","jurisdiction":"AZ","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via explicit subtraction under ARS §43-1022(36)","value":1,"valueType":"binary-exempt","citations":[{"id":"az-qsbs-conformity-irc-1202-2025","jurisdiction":"AZ","authority":"Ariz. Rev. Stat. §43-1022(36)","authorityType":"statute","title":"Arizona conforms to IRC §1202 QSBS gain exclusion via explicit subtraction","quote":"The amount of any gain excluded from gross income under section 1202 of the internal revenue code.","url":"https://www.azleg.gov/ars/43/01022.htm","sourceDomain":"www.azleg.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"ARS §43-1022(36) provides an explicit subtraction for federally excluded QSBS gain under IRC §1202.","href":"/api/v1/citations/az-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-agency-obligations","jurisdiction":"AZ","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: ARS §43-1022(20) subtraction requires interest be 'exempt from income taxes under the laws of the United States'; FNMA/FHLMC have no federal bondholder exemption statute","value":0,"valueType":"binary-exempt","citations":[{"id":"az-ars-43-1022-20-fnma-fhlmc-taxable","jurisdiction":"AZ","authority":"ARS §43-1022(20)","authorityType":"statute","title":"Arizona subtraction for U.S. obligation interest requires exemption from state income taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"From Arizona gross income subtract interest income on obligations of the United States that are exempt from income taxes under the laws of the United States.","url":"https://www.azleg.gov/ars/43/01022.htm","sourceDomain":"www.azleg.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption from state income taxes; the statutory language protects only the corporation. ARS §43-1022(20) requires the obligations be 'exempt from income taxes under the laws of the United States'; FNMA/FHLMC cannot meet this standard. No AZ DOR named-entity ruling found; confidence: medium.","href":"/api/v1/citations/az-ars-43-1022-20-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-dividend-qualified","jurisdiction":"AZ","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: Arizona has no IRC §1(h)(11) preferential rate for qualified dividends","value":0,"valueType":"binary-exempt","citations":[{"id":"az-ars-43-1011-flat-2-5pct-2025","jurisdiction":"AZ","authority":"A.R.S. §43-1011; 2025 Form 140EZi Instructions","authorityType":"form-instructions","title":"Arizona flat income tax rate is 2.5% on Arizona taxable income (TY2025)","quote":"Multiply line 8 by 2.5 percent. Enter the result on line 9.","url":"https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140EZi.pdf","sourceDomain":"azdor.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Applies to all filing statuses (flat rate). Standard deduction $31,500 MFJ (OBBBA-conformed; TF showed stale figure).","href":"/api/v1/citations/az-ars-43-1011-flat-2-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-treasury","jurisdiction":"AZ","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"az-31-usc-3124-treasury-exempt-2025","jurisdiction":"AZ","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Arizona income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/az-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-fhlb-ffcb","jurisdiction":"AZ","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"az-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"AZ","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Arizona income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/az-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-carryback","jurisdiction":"AZ","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-filing-status-flat","jurisdiction":"AZ","category":"filing-status-flat","label":"Filing status affects tax owed","display":"No: flat 2.5% rate on Arizona taxable income regardless of filing status (A.R.S. §43-1011; 2025 Form 140EZi instructions)","value":1,"valueType":"binary-exempt","citations":[{"id":"az-ars-43-1011-flat-2-5pct-2025","jurisdiction":"AZ","authority":"A.R.S. §43-1011; 2025 Form 140EZi Instructions","authorityType":"form-instructions","title":"Arizona flat income tax rate is 2.5% on Arizona taxable income (TY2025)","quote":"Multiply line 8 by 2.5 percent. Enter the result on line 9.","url":"https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140EZi.pdf","sourceDomain":"azdor.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Applies to all filing statuses (flat rate). Standard deduction $31,500 MFJ (OBBBA-conformed; TF showed stale figure).","href":"/api/v1/citations/az-ars-43-1011-flat-2-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-community-property","jurisdiction":"AZ","category":"community-property","label":"Community property state","display":"Community property state: property acquired during marriage is community property; each spouse owns one-half (A.R.S. § 25-211); each spouse reports one-half of community income for AZ income tax purposes","value":1,"valueType":"binary-exempt","citations":[{"id":"az-ars-25-211-community-property-2025","jurisdiction":"AZ","authority":"A.R.S. § 25-211","authorityType":"statute","title":"Arizona is a community property state: all property acquired during marriage is community property unless acquired by gift or inheritance (A.R.S. § 25-211)","quote":"All property acquired by either husband or wife during the marriage is the community property of the husband and wife except for property that is: 1. Acquired by gift, devise or descent.","url":"https://www.azleg.gov/ars/25/00211.htm","sourceDomain":"www.azleg.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"Arizona adopted community property law at statehood. A.R.S. § 25-211 is the principal community property statute. Federal income tax treatment: each spouse is taxed on one-half of community income (IRC § 66 for spouses living apart). Arizona follows federal treatment for state income tax purposes.","href":"/api/v1/citations/az-ars-25-211-community-property-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"az-migration-loss-conformity","jurisdiction":"AZ","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Disallowed (structural inference): Arizona Form 140PY computes the Arizona column from Arizona-source and resident amounts only, so a pre-residency federal capital-loss carryforward recomputes to zero and cannot offset post-residency Arizona gains.","value":0,"valueType":"code","citations":[{"id":"az-migration-loss-conformity-src","jurisdiction":"AZ","authority":"Arizona Form 140PY Instructions (part-year resident, Arizona column)","authorityType":"form-instructions","title":"Arizona part-year return computes the Arizona column from Arizona-source/resident amounts only, recomputing an imported capital-loss carryforward","quote":"In the Arizona column, enter the amount of net gain or (loss) on line 20 only from the following: Any gain or (loss) on property sold while an Arizona resident if you included the amount as income on your 2025 federal return.","url":"https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140PYi_0.pdf","sourceDomain":"azdor.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Arizona Form 140PY builds the Arizona column from Arizona-resident/Arizona-source amounts only, so a capital-loss carryforward generated before Arizona residency recomputes in the Arizona column and cannot offset post-residency Arizona gains. Quote is the line 20 (capital gain or loss) instruction, verbatim from the live 2025 140PY instructions PDF (fetched via curl). No published ruling addresses the imported federal section 1212 carryforward directly, so the carryforward application remains a structural inference.","href":"/api/v1/citations/az-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"AR","name":"Arkansas","level":"state","facts":[{"factId":"ar-trust-nexus-incomplete-gift","jurisdiction":"AR","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES: the official Code of Arkansas Rules supplies the state's ONLY trust-attribution test, and it keys to the TRUSTEE's residence or the trust's physical location (26 CAR §100-145), never the settlor's domicile. A NV-trusteed, NV-administered ING is a nonresident trust, and Arkansas does not tax a nonresident's intangible income even when the intangible sits in Arkansas (26 CAR §100-114(b)(1)). The contrary reading, that §26-51-201(b)'s exemption for a NONRESIDENT settlor's trust implies a resident settlor's trust is taxable, fails: an exemption cannot create an imposition, and that clause addresses the opposite facts (nonresident settlor WITH a resident trustee), which only makes sense if trustee residence is the hook. PERMANENT, not deferral: no throwback statute, and the retained gain is corpus gain outside DNI (IRC 643(a)(3)). Rests on a regulation plus statutory silence, with no Arkansas ruling either way, so audit-assertion risk is real","value":0,"valueType":"code","citations":[{"id":"ar-trust-nexus-incomplete-gift-2026","jurisdiction":"AR","authority":"Ark. DFA Individual Income Tax Rule 1.26-51-803; Ark. Code Ann. 26-51-203","authorityType":"regulation","title":"Arkansas attributes trust income to the state only through a resident fiduciary","quote":"The income received by an estate or trust will be considered attributable to Arkansas when the estate or trust's trustee, administrator, executor, or personal representative is a resident of Arkansas.","url":"https://codeofarrules.arkansas.gov/Rules/Rule?levelType=section&titleID=26&chapterID=33&subChapterID=261&partID=941&subPartID=6195&sectionID=40252","sourceDomain":"codeofarrules.arkansas.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"ESCAPES (re-verified 2026-07-13 against the OFFICIAL Code of Arkansas Rules, which by Ark. Code §25-15-218 'constitutes the official version'). This rule supplies the ONLY trust-attribution test Arkansas has, and it keys to the TRUSTEE's residence or the trust's physical location, never the settlor's domicile: a NV-trusteed, NV-administered ING satisfies neither. THE ARGUMENT THE OTHER WAY, AND WHY IT FAILS: §26-51-201(a) taxes 'every resident, individual, trust, or estate' without ever defining a resident trust, and §26-51-201(b) exempts trusts 'created by a nonresident donor, trustor, settlor ... even though administered by a resident trustee', so one might read a negative implication that a RESIDENT settlor's trust is taxable. It does not hold. An exemption cannot manufacture an imposition, and §201(b) addresses the OPPOSITE fact pattern (nonresident settlor WITH a resident trustee). That carve-out only makes sense if trustee residence is the operative hook, which is exactly what the rule says; on the reviewer's reading §201(b) would be surplusage. Our facts, a resident settlor with a nonresident trustee, are simply not addressed by §201(b) at all. Two independent skeptics reached this conclusion, including one instructed to build the DFA's strongest assessment, who could not make it survive. HONEST LIMIT: this rests on a regulation plus statutory silence, not on an on-point ruling. No Arkansas case, DFA legal opinion, or administrative decision on trust residency exists, so there is audit-assertion risk with no published guidance either way.","href":"/api/v1/citations/ar-trust-nexus-incomplete-gift-2026"},{"id":"ar-car-100-114-nonresident-intangibles-not-taxed","jurisdiction":"AR","authority":"26 CAR §100-114(b)(1) (Nonresidents, implementing Ark. Code Ann. §26-51-202)","authorityType":"regulation","title":"Arkansas does not tax a nonresident's income from intangible personal property, even when the intangible is located in Arkansas","quote":"Income derived by a nonresident from intangible personal property located within Arkansas is not subject to Arkansas income tax.","url":"https://codeofarrules.arkansas.gov/Rules/Rule?levelType=section&titleID=26&chapterID=33&subChapterID=261&partID=941&subPartID=6195&sectionID=40221","sourceDomain":"codeofarrules.arkansas.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the second half of the escape, and it means the ING is not even making an EXEMPTION claim (so Arkansas's 'to doubt is to deny the exemption' canon never engages): there is simply no imposition. Once the trust is a nonresident (no AR trustee, not physically in AR, per 26 CAR §100-145), Arkansas reaches only its Arkansas-source income, and retained capital gain on stock is intangible income with no Arkansas source. The rule goes further than needed here, denying tax even on intangibles located IN the state.","href":"/api/v1/citations/ar-car-100-114-nonresident-intangibles-not-taxed"},{"id":"irc-643a3-corpus-capital-gain-excluded-from-dni","jurisdiction":"US","authority":"IRC §643(a)(3)","authorityType":"statute","title":"IRC §643(a)(3): capital gain allocated to corpus is excluded from distributable net income","quote":"Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section643&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the rule that makes an ING's escape PERMANENT rather than deferral. Income reaches a beneficiary only through DNI (IRC 652/662); a retained corpus gain is outside DNI, so a later distribution of it is principal, not income, and never enters the beneficiary's federal taxable income. Every escape state starts from the federal number, so it never enters the state base either. Conditional on the gain ACTUALLY being allocated to corpus and not distributed in the year realized: a gain routed to fiduciary accounting income, or distributed in the sale year, is in DNI and is taxable to the resident beneficiary.","href":"/api/v1/citations/irc-643a3-corpus-capital-gain-excluded-from-dni"},{"id":"irc-665c-throwback-inapplicable-qualified-domestic-trust","jurisdiction":"US","authority":"IRC §665(c)","authorityType":"statute","title":"IRC §665(c): the accumulation-distribution (throwback) rules do not reach a qualified domestic trust","quote":"(1) In general In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. (2) Qualified trust For purposes of this subsection, the term 'qualified trust' means any trust other than- (A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or (B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section665&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A modern NV/DE ING is a 'qualified trust', so the federal accumulation-distribution regime is computed without regard to undistributed net income: it is empty. States whose only accumulation rule piggybacks IRC 665-668 (OR OAR 150-316-0575, IA, KS, SC) therefore recapture nothing. Only a state with its OWN throwback keyed to income untaxed by any state can claw the gain back, and of the verified escape states only Utah has one (59-10-114(1)(g)).","href":"/api/v1/citations/irc-665c-throwback-inapplicable-qualified-domestic-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-estate-none","jurisdiction":"AR","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"ar-estate-none-2025","jurisdiction":"AR","authority":"Act 645 of 2003 (per AR DFA FAQ Subject 605)","authorityType":"dor-guidance","title":"Act 645 of 2003 repealed the Arkansas estate tax for deaths on or after Jan 1, 2005","quote":"Act 645 of 2003 repealed Arkansas Estate Tax for estates of those who died on or after January 1, 2005. No estate tax return is required by the State of Arkansas for any decedents after December 31, 2004.","url":"https://www.dfa.arkansas.gov/wp-content/uploads/605-EstateTax.pdf","sourceDomain":"www.dfa.arkansas.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"PDF read directly; the full substantive text of FAQ Subject 605 (revised 12/22/2020). Old survey said Subject 705; live source is Subject 605.","href":"/api/v1/citations/ar-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-rate","jurisdiction":"AR","category":"rate","label":"Top income tax rate (TY2025)","display":"3.9% nominal top; ~13.9% implicit marginal in smoothing zone $94,701 to $97,800","value":0.039,"valueType":"rate","citations":[{"id":"ar-ar1000f-2025-rate-3-9pct","jurisdiction":"AR","authority":"Ark. Code §26-51-201; 2025 AR1000F/AR1000NR Instructions","authorityType":"form-instructions","title":"Arkansas top income tax rate is 3.9% (TY2025); smoothing zone at $94,701 to $97,800 creates ~13.9% implicit marginal","quote":"The marginal income tax rates for 2025 are 3.9%, as amended in 2024.","url":"https://www.dfa.arkansas.gov/wp-content/uploads/2025_AR1000F_and_AR1000NR_Instructions.pdf","sourceDomain":"www.dfa.arkansas.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Full bracket schedule (TY2025, same for all statuses): 0% to $5,600; 2% from $5,601 to $11,200; 3% from $11,201 to $16,000; 3.4% from $16,001 to $26,400; 3.9% above $100,000 (and $3,809 + 3.9% for the segment above $26,400). A minus-adjustment table creates a smoothing zone between $94,701 to $97,800 with ~13.9% implicit marginal (phase-out of lower-bracket benefits).","href":"/api/v1/citations/ar-ar1000f-2025-rate-3-9pct"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"ar-rate-2026","jurisdiction":"AR","category":"rate","label":"Top income tax rate (TY2026)","display":"3.7% top (Act 2, 2026 First Extraordinary Session); two-table cliff with a bracket-adjustment credit smoothing $94,701 to $97,600","value":0.037,"valueType":"rate","citations":[{"id":"ar-act2-2026s1-26-51-201-top-3-7pct-2026","jurisdiction":"AR","authority":"Ark. Code Ann. §26-51-201(a)(4) as amended by Act 2 of the 2026 First Extraordinary Session (SB1, approved 5/6/2026)","authorityType":"session-law","title":"Arkansas top individual income tax rate falls to 3.7% for tax years beginning on or after January 1, 2026","quote":"Every resident, individual, trust, or estate having net income greater than ninety-four thousand seven hundred dollars ($94,700) shall determine the amount of income tax due ... $4,701 and above 3.7%","url":"https://arkleg.state.ar.us/Home/FTPDocument?path=%2FActs%2F2026S1%2FPublic%2FACT2.pdf","sourceDomain":"arkleg.state.ar.us","taxYear":2026,"asOf":"2026-07-12","confidence":"high","note":"Enrolled act PDF, whitespace normalized. The standard table (net income <= $94,700) runs 0% to $5,599, 2% to $11,199, 3% to $15,999, 3.4% to $26,399, 3.7% above; over $94,700 the upper table applies from dollar zero (2% to $4,700, 3.7% above) with a bracket-adjustment credit smoothing $94,701 to $97,600. Thresholds in the act are the already-indexed 2026 figures; §26-51-201(a)(5) continues annual indexing. The corporate cut to 4.1% is TY2027+.","href":"/api/v1/citations/ar-act2-2026s1-26-51-201-top-3-7pct-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-character","jurisdiction":"AR","category":"character","label":"Net capital gain exclusion","display":"50% of net capital gain excluded post-netting; gains above $10,000,000 per taxpayer 100% exempt","value":0.5,"valueType":"rate","citations":[{"id":"ar-ar1000d-2025-50pct-ncg-excl-10m-exempt","jurisdiction":"AR","authority":"2025 AR1000D (Capital Gains schedule), lines 7b and 8; Ark. Code §26-51-815","authorityType":"form-instructions","title":"Arkansas: 50% net capital gain exclusion post-netting; gains above $10,000,000 per taxpayer are 100% exempt","quote":"If the amount on line 7a is over $10,000,000, only enter $10,000,000. If less than $10,000,000, enter the total amount ... [multiply line 7b by] 50 percent (.50).","url":"https://www.dfa.arkansas.gov/wp-content/uploads/2025_AR1000D_CapitalGains.pdf","sourceDomain":"www.dfa.arkansas.gov","taxYear":2025,"asOf":"2026-07-21","confidence":"high","note":"Verbatim from the AR1000D form lines (extracted from the live DFA PDF). A prior version quoted a reconstructed 'deduction from net income ... excluded from Arkansas net income' sentence; Ark. Code §26-51-815 actually frames it as an EXEMPTION (50% of net capital gain 'is exempt', and net capital gain over $10,000,000 'is exempt from the state income tax'). Values (50% exclusion, $10M cap) unchanged. The $10M exemption cap is per TAXPAYER COLUMN on AR1000D (not per joint return). Under Filing Status 4 (married filing separately on same return), each spouse gets their own column with their own $10M exemption. Combined effective AR tax on a very large LT gain: approximately $195,000 maximum. Capital loss limit: '$3,000 ($1,500 per taxpayer for filing Status 4 or 5)' per AR1000F instructions.","href":"/api/v1/citations/ar-ar1000d-2025-50pct-ncg-excl-10m-exempt"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-threshold","jurisdiction":"AR","category":"threshold","label":"$10M full exemption threshold (per taxpayer)","display":"$10,000,000 all AR net capital gain above this is 100% exempt; cap state tax ~$195,000","value":10000000,"valueType":"dollars","citations":[{"id":"ar-ar1000d-2025-50pct-ncg-excl-10m-exempt","jurisdiction":"AR","authority":"2025 AR1000D (Capital Gains schedule), lines 7b and 8; Ark. Code §26-51-815","authorityType":"form-instructions","title":"Arkansas: 50% net capital gain exclusion post-netting; gains above $10,000,000 per taxpayer are 100% exempt","quote":"If the amount on line 7a is over $10,000,000, only enter $10,000,000. If less than $10,000,000, enter the total amount ... [multiply line 7b by] 50 percent (.50).","url":"https://www.dfa.arkansas.gov/wp-content/uploads/2025_AR1000D_CapitalGains.pdf","sourceDomain":"www.dfa.arkansas.gov","taxYear":2025,"asOf":"2026-07-21","confidence":"high","note":"Verbatim from the AR1000D form lines (extracted from the live DFA PDF). A prior version quoted a reconstructed 'deduction from net income ... excluded from Arkansas net income' sentence; Ark. Code §26-51-815 actually frames it as an EXEMPTION (50% of net capital gain 'is exempt', and net capital gain over $10,000,000 'is exempt from the state income tax'). Values (50% exclusion, $10M cap) unchanged. The $10M exemption cap is per TAXPAYER COLUMN on AR1000D (not per joint return). Under Filing Status 4 (married filing separately on same return), each spouse gets their own column with their own $10M exemption. Combined effective AR tax on a very large LT gain: approximately $195,000 maximum. Capital loss limit: '$3,000 ($1,500 per taxpayer for filing Status 4 or 5)' per AR1000F instructions.","href":"/api/v1/citations/ar-ar1000d-2025-50pct-ncg-excl-10m-exempt"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-conformity","jurisdiction":"AR","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 federal carryforward applies ($3,000/$1,500 annual limit)","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-muni-instate","jurisdiction":"AR","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: Ark. Code §26-51-404 exempts Arkansas state and local bond interest from Arkansas income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"ar-code-26-51-404-muni-default-2025","jurisdiction":"AR","authority":"Arkansas DFA, 2024 AR4 Interest and Dividend Instructions","authorityType":"form-instructions","title":"AR exempts AR-issued bonds; out-of-state muni bond interest is taxable per Ark. Code §26-51-404","quote":"Interest on obligations of other states and subdivisions are also fully taxable.","url":"https://www.dfa.arkansas.gov/wp-content/uploads/2024_AR4_Interest_and_Dividend.pdf","sourceDomain":"www.dfa.arkansas.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Form AR4 instructions describe the exemption rule under Ark. Code §26-51-404. AR interest on out-of-state bonds is explicitly fully taxable. AR bonds are exempt.","href":"/api/v1/citations/ar-code-26-51-404-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-muni-outstate","jurisdiction":"AR","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: Ark. Code §26-51-404: 'interest on obligations of other states and subdivisions are also fully taxable'","value":0,"valueType":"binary-exempt","citations":[{"id":"ar-code-26-51-404-muni-default-2025","jurisdiction":"AR","authority":"Arkansas DFA, 2024 AR4 Interest and Dividend Instructions","authorityType":"form-instructions","title":"AR exempts AR-issued bonds; out-of-state muni bond interest is taxable per Ark. Code §26-51-404","quote":"Interest on obligations of other states and subdivisions are also fully taxable.","url":"https://www.dfa.arkansas.gov/wp-content/uploads/2024_AR4_Interest_and_Dividend.pdf","sourceDomain":"www.dfa.arkansas.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Form AR4 instructions describe the exemption rule under Ark. Code §26-51-404. AR interest on out-of-state bonds is explicitly fully taxable. AR bonds are exempt.","href":"/api/v1/citations/ar-code-26-51-404-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-qoz-conformity","jurisdiction":"AR","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Partial conformity: Arkansas conforms only for investments in Arkansas-designated opportunity zones; QOF investments in out-of-state zones do not qualify for AR deferral or exclusion","value":2,"valueType":"code","citations":[{"id":"ar-qoz-conformity-irc-1400z2-2025","jurisdiction":"AR","authority":"Ark. Code Ann. §26-51-460; Act 201 of 2019 (SB196), §1","authorityType":"session-law","title":"Arkansas partially conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"Except as provided in subsection (b) of this section, 26 U.S.C. § 1400Z-2, as in effect on January 1, 2018, regarding opportunity zones, is adopted for the purpose of computing Arkansas income tax liability. As used in this section and for purposes of the adoption of 26 U.S.C. § 1400Z-2, 'opportunity zone' means a population census tract located in Arkansas that is designated as a qualified opportunity zone under 26 U.S.C. § 1400Z, as of January 1, 2019.","url":"https://www.arkleg.state.ar.us/Bills/Detail?id=SB196&ddBienniumSession=2019%2F2019R","sourceDomain":"www.arkleg.state.ar.us","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Verbatim text of Ark. Code Ann. §26-51-460(a)(b) enacted by Act 201 of 2019 (SB196), effective for tax years beginning on or after January 1, 2018. Conformity is limited to census tracts in Arkansas designated as QOZs as of January 1, 2019; out-of-state QOF investments in non-AR zones do not qualify for AR deferral or exclusion.","href":"/api/v1/citations/ar-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-qsbs-conformity","jurisdiction":"AR","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS exclusion via Ark. Code Ann. §26-51-815(c) explicit statutory conformity","value":1,"valueType":"binary-exempt","citations":[{"id":"ar-qsbs-conformity-irc-1202-2025","jurisdiction":"AR","authority":"Ark. Code Ann. §26-51-815(c); Act 155 of 2017 (HB1390), §24","authorityType":"session-law","title":"Arkansas conforms to IRC §1202 QSBS exclusion","quote":"Title 26 U.S.C. § 1202, as in effect on January 1, 2017, regarding the exclusion from gain of certain small business stock, is adopted for the purpose of computing Arkansas income tax liability.","url":"https://www.arkleg.state.ar.us/Bills/Detail?id=HB1390&ddBienniumSession=2017%2F2017R","sourceDomain":"www.arkleg.state.ar.us","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Verbatim text of Ark. Code Ann. §26-51-815(c) enacted by Act 155 of 2017 (HB1390), §24, effective for tax years beginning on or after January 1, 2015. Adoption is as of the IRC in effect on January 1, 2017.","href":"/api/v1/citations/ar-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-agency-obligations","jurisdiction":"AR","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: AR1000F/NR Instructions and DFA FAQ 201 limit exemption to 'direct United States obligations'; FNMA/FHLMC are privately chartered GSEs, not direct U.S. obligations","value":0,"valueType":"binary-exempt","citations":[{"id":"ar-ar1000f-faq201-fnma-fhlmc-not-direct-us-obligation","jurisdiction":"AR","authority":"Arkansas DFA, 2024 AR1000F/AR1000NR Instructions (p. 9, item 7); Arkansas DFA FAQ 201 (rev. 2/24/2023)","authorityType":"form-instructions","title":"Arkansas exemption limited to 'direct United States obligations'; FNMA and FHLMC are not direct U.S. obligations and their interest is taxable","quote":"Interest you received from direct United States obligations, its possessions, the State of Arkansas, or any political subdivision of the State of Arkansas is exempt from tax.","url":"https://www.dfa.arkansas.gov/wp-content/uploads/2024_AR1000F_and_AR1000NR_Instructions.pdf","sourceDomain":"www.dfa.arkansas.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"The AR1000F/NR instructions (p.9, item 7) and FAQ 201 (https://www.dfa.arkansas.gov/wp-content/uploads/201-InterestReceived.pdf) limit the exemption to 'direct United States obligations.' FNMA and FHLMC are federal GSEs but are not 'direct obligations of the United States'; they are privately chartered corporations without full faith and credit backing and without a federal bondholder exemption statute.","href":"/api/v1/citations/ar-ar1000f-faq201-fnma-fhlmc-not-direct-us-obligation"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-dividend-qualified","jurisdiction":"AR","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: DFA FAQ 202 states dividends 'are ordinary income to you and are fully taxable'; the 50% NCG exclusion (Ark. Code §26-51-815) applies only to capital gains from sales or exchanges, not dividend income","value":0,"valueType":"binary-exempt","citations":[{"id":"ar-dfa-faq202-dividends-fully-taxable","jurisdiction":"AR","authority":"Arkansas DFA, FAQ 202 'Dividends' (rev. 2/24/2023)","authorityType":"dor-guidance","title":"Arkansas DFA FAQ 202 states dividends are ordinary income and fully taxable; the 50% net capital gain exclusion applies only to capital gains from sale or exchange, not dividends","quote":"Ordinary dividends are the most common type of distribution from a corporation and are paid out of the earnings and profits of the corporation. They are ordinary income to you and are fully taxable.","url":"https://www.dfa.arkansas.gov/wp-content/uploads/202-Dividends.pdf","sourceDomain":"www.dfa.arkansas.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"FAQ 202 verbatim. Arkansas's 50% NCG exclusion (Ark. Code §26-51-815; AR1000D) applies to 'net capital gain' from the sale or exchange of capital assets; not to dividend income. Qualified dividends per IRC §1(h)(11) are a rate category (preferential tax RATE), not capital gains. Arkansas has no equivalent of IRC §1(h)(11); dividends are fully taxable at ordinary rates.","href":"/api/v1/citations/ar-dfa-faq202-dividends-fully-taxable"},{"id":"ar-ar1000f-2025-rate-3-9pct","jurisdiction":"AR","authority":"Ark. Code §26-51-201; 2025 AR1000F/AR1000NR Instructions","authorityType":"form-instructions","title":"Arkansas top income tax rate is 3.9% (TY2025); smoothing zone at $94,701 to $97,800 creates ~13.9% implicit marginal","quote":"The marginal income tax rates for 2025 are 3.9%, as amended in 2024.","url":"https://www.dfa.arkansas.gov/wp-content/uploads/2025_AR1000F_and_AR1000NR_Instructions.pdf","sourceDomain":"www.dfa.arkansas.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Full bracket schedule (TY2025, same for all statuses): 0% to $5,600; 2% from $5,601 to $11,200; 3% from $11,201 to $16,000; 3.4% from $16,001 to $26,400; 3.9% above $100,000 (and $3,809 + 3.9% for the segment above $26,400). A minus-adjustment table creates a smoothing zone between $94,701 to $97,800 with ~13.9% implicit marginal (phase-out of lower-bracket benefits).","href":"/api/v1/citations/ar-ar1000f-2025-rate-3-9pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-treasury","jurisdiction":"AR","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ar-31-usc-3124-treasury-exempt-2025","jurisdiction":"AR","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Arkansas income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ar-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-fhlb-ffcb","jurisdiction":"AR","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ar-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"AR","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Arkansas income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ar-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-carryback","jurisdiction":"AR","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-filing-status-identical","jurisdiction":"AR","category":"filing-status-identical","label":"Same bracket schedule for all filing statuses","display":"Yes: Ark. Code §26-51-201 imposes tax on all residents at one graduated rate schedule (0% to 3.9%) with no MFJ-specific thresholds; same brackets for Single and MFJ, creating the maximum marriage penalty on a joint return vs. two singles","value":1,"valueType":"binary-exempt","citations":[{"id":"ar-ar1000f-2025-rate-3-9pct","jurisdiction":"AR","authority":"Ark. Code §26-51-201; 2025 AR1000F/AR1000NR Instructions","authorityType":"form-instructions","title":"Arkansas top income tax rate is 3.9% (TY2025); smoothing zone at $94,701 to $97,800 creates ~13.9% implicit marginal","quote":"The marginal income tax rates for 2025 are 3.9%, as amended in 2024.","url":"https://www.dfa.arkansas.gov/wp-content/uploads/2025_AR1000F_and_AR1000NR_Instructions.pdf","sourceDomain":"www.dfa.arkansas.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Full bracket schedule (TY2025, same for all statuses): 0% to $5,600; 2% from $5,601 to $11,200; 3% from $11,201 to $16,000; 3.4% from $16,001 to $26,400; 3.9% above $100,000 (and $3,809 + 3.9% for the segment above $26,400). A minus-adjustment table creates a smoothing zone between $94,701 to $97,800 with ~13.9% implicit marginal (phase-out of lower-bracket benefits).","href":"/api/v1/citations/ar-ar1000f-2025-rate-3-9pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-marital-udcprda","jurisdiction":"AR","category":"marital-udcprda","label":"Uniform Community Property Disposition at Death Act","display":"Yes: Ark. Code §§28-15-101 to 28-15-115 preserves community property character of assets acquired in CP states at death of an Arkansas resident (effective August 1, 2023, 2021 revised act); surviving spouse retains one-half CP interest","value":1,"valueType":"binary-exempt","citations":[{"id":"ar-code-28-15-101-udcprda-2023","jurisdiction":"AR","authority":"Ark. Code §§28-15-101 to 28-15-115 (Act 582 of 2023, effective August 1, 2023)","authorityType":"session-law","title":"Arkansas adopted Uniform Community Property Disposition at Death Act (effective August 1, 2023)","quote":"This article may be cited as the 'Uniform Community Property Disposition at Death Act.'","url":"https://arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2023R%2FPublic%2F&file=582.pdf&ddBienniumSession=2023%2F2023R","sourceDomain":"arkleg.state.ar.us","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Arkansas enacted UDCPRDA (the 2021 NCCUSL revised version) via Act 582 of 2023, effective August 1, 2023. Protects the community property character of assets acquired in community property states when a couple moves to Arkansas.","href":"/api/v1/citations/ar-code-28-15-101-udcprda-2023"}],"effectiveDate":"2023-08-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ar-migration-loss-conformity","jurisdiction":"AR","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Arkansas computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"ar-migration-loss-conformity-src","jurisdiction":"AR","authority":"Ark. Code §26-51-201; 2025 AR1000F/AR1000NR Instructions","authorityType":"form-instructions","title":"Arkansas conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"The amount of capital loss that can be deducted after offsetting capital gains is limited to $3,000 ($1,500 per taxpayer for filing Status 4 or 5). If your capital loss was more than the yearly limit on capital loss deductions, you can carry over the unused part to later years until used up.","url":"https://www.dfa.arkansas.gov/wp-content/uploads/2025_AR1000F_and_AR1000NR_Instructions.pdf","sourceDomain":"www.dfa.arkansas.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"The 2025 AR1000F/AR1000NR instructions mirror the federal $3,000 capital-loss cap and section 1212 carryover mechanism verbatim, so Arkansas starts from the federal capital-loss base and the carryover flows through. No published guidance addresses the imported pre-residency carryforward, so that application remains a structural inference.","href":"/api/v1/citations/ar-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"CA","name":"California","level":"state","facts":[{"factId":"ca-trust-nexus-incomplete-gift","jurisdiction":"CA","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"BLOCKED by statute: R&TC 17082 (SB 131, 2023) taxes the ING's income to the CA-resident grantor as if a grantor trust, retroactive to TY2023","value":1,"valueType":"code","citations":[{"id":"ca-trust-nexus-incomplete-gift-2026","jurisdiction":"CA","authority":"Cal. Rev. & Tax. Code Sec. 17082, enacted by SB 131, Stats. 2023, ch. 55; amended by SB 376, Stats. 2025, ch. 410","authorityType":"statute","title":"California taxes ING income to the resident grantor (retroactive to taxable years beginning on or after January 1, 2023)","quote":"For taxable years beginning on or after January 1, 2023, the income of an incomplete gift nongrantor trust shall be included in a qualified taxpayer's gross income to the extent the income of the trust would be taken into account in computing the qualified taxpayer's taxable income if the trust in its entirety were treated as a grantor trust under Section 17731.","url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17082","sourceDomain":"leginfo.legislature.ca.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"The enacting bill is SB 131 (2023 budget trailer), not AB 1097 (a use-tax bill). Charitable exception: the attribution does not apply if the fiduciary elects resident-nongrantor treatment and 90% or more of DNI goes to a 501(c)(3). SB 376 (2025) carves charitable remainder trusts out of the ING definition, retroactive to the same 2023 start.","href":"/api/v1/citations/ca-trust-nexus-incomplete-gift-2026"}],"effectiveDate":"2023-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-estate-none","jurisdiction":"CA","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"ca-estate-none-2025","jurisdiction":"CA","authority":"CA State Controller estate tax page","authorityType":"dor-guidance","title":"No California Estate Tax Return required for deaths on or after Jan 1, 2005","quote":"For decedents that die on or after January 1, 2005, there is no longer a requirement to file a California Estate Tax Return.","url":"https://www.sco.ca.gov/ardtax_estate_tax.html","sourceDomain":"www.sco.ca.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Page attributes the change to EGTRRA 2001 (phase-out of the state death tax credit); no CA statute cited on page.","href":"/api/v1/citations/ca-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-rate","jurisdiction":"CA","category":"rate","label":"Top income tax rate (TY2025)","display":"12.3% on income above $1,485,906 MFJ (+ 1% MHST above $1,000,000 = 13.3% combined top)","value":0.123,"valueType":"rate","citations":[{"id":"ca-rtc-17041-top-12-3pct-2025","jurisdiction":"CA","authority":"Cal. Rev. & Tax. Code §17041 (1% to 9.3% base schedule); Cal. Const. art. XIII, §36(f) (Prop 30/55: 10.3%/11.3%/12.3% brackets)","authorityType":"statute","title":"California income tax: 1% to 12.3% graduated on California taxable income (TY2025 MFJ)","quote":"17041. (a)(1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident... taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year.","url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17041","sourceDomain":"leginfo.legislature.ca.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"RTC §17041's own schedule tops out at 9.3% (base-year figures, FTB-indexed annually via CPI; the statute contains no current-year dollar thresholds). The 10.3%/11.3%/12.3% brackets are imposed by Cal. Const. art. XIII, §36(f) (Prop 30, 2012, extended by Prop 55, 2016), the companion authority. The TY2025 MFJ dollar amounts (1% to $22,158; 2% $22,159-$52,528; 4% $52,529-$82,904; 6% $82,905-$115,084; 8% $115,085-$145,448; 9.3% $145,449-$742,958; 10.3% $742,959-$891,542; 11.3% $891,543-$1,485,906; 12.3% above $1,485,906) are FTB-computed annual CPI adjustments, not statutory text. Capital gains are taxed as ordinary income; no preferential CG rate in California.","href":"/api/v1/citations/ca-rtc-17041-top-12-3pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-surcharge","jurisdiction":"CA","category":"surcharge","label":"Behavioral Health Services Tax (previously Mental Health Services Tax)","display":"1% on taxable income above $1,000,000 per return (not doubled MFJ; not halved MFS); FTB renamed it the Behavioral Health Services Tax in the current 540-ES instructions","value":0.01,"valueType":"rate","citations":[{"id":"ca-rtc-17043-mental-health-surtax-1pct","jurisdiction":"CA","authority":"Cal. Rev. & Tax. Code §17043","authorityType":"statute","title":"California 1% Mental Health Services Tax on taxable income above $1,000,000 (per return, all statuses)","quote":"For each taxable year beginning on or after January 1, 2005, in addition to any other taxes imposed by this part, an additional tax shall be imposed at the rate of 1 percent on that portion of a taxpayer's taxable income in excess of one million dollars ($1,000,000).","url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17043","sourceDomain":"leginfo.legislature.ca.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Because §17043 explicitly disapplies §17041's filing-status recomputation, the $1M threshold is identical for single, MFJ, and MFS filers a marriage penalty at the margin. Combined top rate: 12.3% + 1.0% = 13.3% on income above $1M.","href":"/api/v1/citations/ca-rtc-17043-mental-health-surtax-1pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-threshold","jurisdiction":"CA","category":"threshold","label":"MHST threshold (all filing statuses)","display":"$1,000,000 per return same for single, MFJ, and MFS (marriage penalty at the margin)","value":1000000,"valueType":"dollars","citations":[{"id":"ca-rtc-17043-mental-health-surtax-1pct","jurisdiction":"CA","authority":"Cal. Rev. & Tax. Code §17043","authorityType":"statute","title":"California 1% Mental Health Services Tax on taxable income above $1,000,000 (per return, all statuses)","quote":"For each taxable year beginning on or after January 1, 2005, in addition to any other taxes imposed by this part, an additional tax shall be imposed at the rate of 1 percent on that portion of a taxpayer's taxable income in excess of one million dollars ($1,000,000).","url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17043","sourceDomain":"leginfo.legislature.ca.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Because §17043 explicitly disapplies §17041's filing-status recomputation, the $1M threshold is identical for single, MFJ, and MFS filers a marriage penalty at the margin. Combined top rate: 12.3% + 1.0% = 13.3% on income above $1M.","href":"/api/v1/citations/ca-rtc-17043-mental-health-surtax-1pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-conformity","jurisdiction":"CA","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies (own CA computation)","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-muni-instate","jurisdiction":"CA","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: Cal. Rev. & Tax. Code §17133 (CA constitutionally prohibited from taxing own bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ca-rtc-17133-17143-muni-default-2025","jurisdiction":"CA","authority":"Cal. Rev. & Tax. Code §17133 (in-state exempt) and §17143 (out-of-state: §103 does not apply)","authorityType":"statute","title":"CA exempts in-state muni bonds; §17143 decouples from IRC §103 so out-of-state muni interest is taxable","quote":"Sections 103 and 141 to 150, inclusive, of the Internal Revenue Code, relating to interest on governmental obligations, shall not apply.","url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17143","sourceDomain":"leginfo.legislature.ca.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Cal. Rev. & Tax. Code §17143 decouples from IRC §103, meaning out-of-state muni bond interest is fully taxable in California. Cal. Rev. & Tax. Code §17133 separately exempts California-issued muni bonds. This combination results in California taxing out-of-state muni interest while exempting in-state bonds.","href":"/api/v1/citations/ca-rtc-17133-17143-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-muni-outstate","jurisdiction":"CA","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: Cal. Rev. & Tax. Code §17143 decouples from IRC §103; out-of-state muni interest fully taxable","value":0,"valueType":"binary-exempt","citations":[{"id":"ca-rtc-17133-17143-muni-default-2025","jurisdiction":"CA","authority":"Cal. Rev. & Tax. Code §17133 (in-state exempt) and §17143 (out-of-state: §103 does not apply)","authorityType":"statute","title":"CA exempts in-state muni bonds; §17143 decouples from IRC §103 so out-of-state muni interest is taxable","quote":"Sections 103 and 141 to 150, inclusive, of the Internal Revenue Code, relating to interest on governmental obligations, shall not apply.","url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17143","sourceDomain":"leginfo.legislature.ca.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Cal. Rev. & Tax. Code §17143 decouples from IRC §103, meaning out-of-state muni bond interest is fully taxable in California. Cal. Rev. & Tax. Code §17133 separately exempts California-issued muni bonds. This combination results in California taxing out-of-state muni interest while exempting in-state bonds.","href":"/api/v1/citations/ca-rtc-17133-17143-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-qoz-conformity","jurisdiction":"CA","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Non-conforms to IRC §1400Z-2; QOZ gain deferral not recognized, gain taxable at state level","value":0,"valueType":"code","citations":[{"id":"ca-qoz-conformity-irc-1400z2-2025","jurisdiction":"CA","authority":"Cal. Rev. & Tax. Code §17024.5","authorityType":"statute","title":"California does not conform to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"Unless otherwise specifically provided, the terms \"Internal Revenue Code,\" \"Internal Revenue Code of 1954,\" or \"Internal Revenue Code of 1986,\" for purposes of this part, mean Title 26 of the United States Code, including all amendments thereto as enacted on the specified date for the applicable taxable year as follows:","url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17024.5","sourceDomain":"leginfo.legislature.ca.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"California uses STATIC, per-taxable-year conformity (RTC §17024.5(a)(1): the IRC 'as enacted on the specified date', a dated table now running to January 1, 2025), NOT rolling conformity. Even so, California does not conform to IRC §1400Z-2: the FTB states it directly on the 2024/2025 Schedule D(540) instructions ('California does not conform to the deferral and exclusion of capital gains reinvested or invested in qualified opportunity zone funds under IRC Sections 1400Z-1 and 1400Z-2. Enter the entire gain amount in column (e).'). So QOF gain is fully taxable in California in the year of reinvestment. A prior version of this fact quoted a reconstructed §17024.5 sentence and rested the value on a 'conformity date predates §1400Z-2' rationale that is incorrect (the specified date is 2025, after §1400Z-2's 2017 enactment); corrected.","href":"/api/v1/citations/ca-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-qsbs-conformity","jurisdiction":"CA","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Non-conforms to IRC §1202; QSBS gain exclusion not recognized, gain fully taxable at state level","value":0,"valueType":"binary-exempt","citations":[{"id":"ca-qsbs-conformity-irc-1202-2025","jurisdiction":"CA","authority":"Cal. Rev. & Tax. Code §18152","authorityType":"statute","title":"California does not conform to IRC §1202 QSBS gain exclusion","quote":"Section 1202 of the Internal Revenue Code, relating to 50-percent exclusion for gain from certain small business stock, does not apply.","url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=18152","sourceDomain":"leginfo.legislature.ca.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Cal. R&TC §18152 explicitly decouples from IRC §1202; QSBS gain is fully taxable in California regardless of federal exclusion.","href":"/api/v1/citations/ca-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-agency-obligations","jurisdiction":"CA","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: California starts from federal AGI (which includes FNMA/FHLMC interest); 31 U.S.C. §3124 preempts only direct U.S. government obligation taxation; FNMA/FHLMC are GSEs without a federal bondholder exemption","value":0,"valueType":"binary-exempt","citations":[{"id":"ca-rtc-17041-fnma-fhlmc-in-base","jurisdiction":"CA","authority":"Cal. Rev. & Tax. Code §17041; Cal. Rev. & Tax. Code §17024.5","authorityType":"statute","title":"California taxes FNMA and FHLMC bond interest: California starts from federal AGI (which includes FNMA/FHLMC interest); 31 U.S.C. §3124 preempts state taxation only of direct U.S. obligations; FNMA/FHLMC are not direct U.S. obligations","quote":"Except as otherwise provided, for purposes of this part, 'gross income,' 'adjusted gross income,' and 'taxable income' have the same meaning as in the Internal Revenue Code.","url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17024.5","sourceDomain":"leginfo.legislature.ca.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"California starts from federal AGI. FNMA and FHLMC bond interest is INCLUDED in federal AGI (not excluded by IRC §103). 31 U.S.C. §3124 preempts state taxation only of obligations of the United States Government; FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) are GSEs with no bondholder exemption statute. R&TC §17133 excludes income excluded under the IRC, but FNMA/FHLMC interest is NOT IRC-excluded. No CDTFA named-entity publication found; confidence: medium.","href":"/api/v1/citations/ca-rtc-17041-fnma-fhlmc-in-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-dividend-qualified","jurisdiction":"CA","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: California has no IRC §1(h)(11) preferential rate; qualified dividends taxed at ordinary rates up to 13.3% (12.3% + 1% MHST above $1M)","value":0,"valueType":"binary-exempt","citations":[{"id":"ca-rtc-17041-top-12-3pct-2025","jurisdiction":"CA","authority":"Cal. Rev. & Tax. Code §17041 (1% to 9.3% base schedule); Cal. Const. art. XIII, §36(f) (Prop 30/55: 10.3%/11.3%/12.3% brackets)","authorityType":"statute","title":"California income tax: 1% to 12.3% graduated on California taxable income (TY2025 MFJ)","quote":"17041. (a)(1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident... taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year.","url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17041","sourceDomain":"leginfo.legislature.ca.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"RTC §17041's own schedule tops out at 9.3% (base-year figures, FTB-indexed annually via CPI; the statute contains no current-year dollar thresholds). The 10.3%/11.3%/12.3% brackets are imposed by Cal. Const. art. XIII, §36(f) (Prop 30, 2012, extended by Prop 55, 2016), the companion authority. The TY2025 MFJ dollar amounts (1% to $22,158; 2% $22,159-$52,528; 4% $52,529-$82,904; 6% $82,905-$115,084; 8% $115,085-$145,448; 9.3% $145,449-$742,958; 10.3% $742,959-$891,542; 11.3% $891,543-$1,485,906; 12.3% above $1,485,906) are FTB-computed annual CPI adjustments, not statutory text. Capital gains are taxed as ordinary income; no preferential CG rate in California.","href":"/api/v1/citations/ca-rtc-17041-top-12-3pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-treasury","jurisdiction":"CA","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ca-31-usc-3124-treasury-exempt-2025","jurisdiction":"CA","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from California income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ca-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-fhlb-ffcb","jurisdiction":"CA","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ca-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"CA","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from California income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ca-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-carryback","jurisdiction":"CA","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years (IRC §1212 predates California's fixed-date conformity)","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-character","jurisdiction":"CA","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income up to 13.3% (12.3% base plus 1% MHST above $1M per Cal. Rev. & Tax. Code §17041 and §17043)","value":null,"valueType":"none","citations":[{"id":"ca-rtc-17041-top-12-3pct-2025","jurisdiction":"CA","authority":"Cal. Rev. & Tax. Code §17041 (1% to 9.3% base schedule); Cal. Const. art. XIII, §36(f) (Prop 30/55: 10.3%/11.3%/12.3% brackets)","authorityType":"statute","title":"California income tax: 1% to 12.3% graduated on California taxable income (TY2025 MFJ)","quote":"17041. (a)(1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident... taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year.","url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17041","sourceDomain":"leginfo.legislature.ca.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"RTC §17041's own schedule tops out at 9.3% (base-year figures, FTB-indexed annually via CPI; the statute contains no current-year dollar thresholds). The 10.3%/11.3%/12.3% brackets are imposed by Cal. Const. art. XIII, §36(f) (Prop 30, 2012, extended by Prop 55, 2016), the companion authority. The TY2025 MFJ dollar amounts (1% to $22,158; 2% $22,159-$52,528; 4% $52,529-$82,904; 6% $82,905-$115,084; 8% $115,085-$145,448; 9.3% $145,449-$742,958; 10.3% $742,959-$891,542; 11.3% $891,543-$1,485,906; 12.3% above $1,485,906) are FTB-computed annual CPI adjustments, not statutory text. Capital gains are taxed as ordinary income; no preferential CG rate in California.","href":"/api/v1/citations/ca-rtc-17041-top-12-3pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-filing-status-partial","jurisdiction":"CA","category":"filing-status-partial","label":"Filing status: partial MFJ widening (neutral on graduated schedule; penalty above $1M MHST)","display":"Partial: Cal. Rev. & Tax. Code §17045 doubles MFJ brackets exactly on the graduated rate schedule (neutral below $1M); §17043 Mental Health Services Tax $1M threshold is NOT doubled for MFJ, creating a marriage penalty on MHST above that threshold","value":1,"valueType":"binary-exempt","citations":[{"id":"ca-rtc-17045-joint-income-splitting","jurisdiction":"CA","authority":"Cal. Rev. & Tax. Code §17045","authorityType":"statute","title":"California joint-return tax is twice the tax on half the taxable income (income-splitting doubles brackets)","quote":"In the case of a joint return of spouses under Section 18521, the tax imposed by Section 17041 shall be twice the tax which would be imposed if the taxable income were cut in one-half.","url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17045","sourceDomain":"leginfo.legislature.ca.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"This produces exactly doubled brackets for MFJ (marriage-neutral on the graduated schedule). But the §17043 MHST does NOT income-split, so the $1M surtax threshold is a marriage penalty.","href":"/api/v1/citations/ca-rtc-17045-joint-income-splitting"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-community-property","jurisdiction":"CA","category":"community-property","label":"Community property state","display":"Community property state: all property acquired during marriage is community property; each spouse owns one-half (Cal. Fam. Code § 760); applies to registered domestic partners (Cal. Fam. Code § 297.5)","value":1,"valueType":"binary-exempt","citations":[{"id":"ca-fam-760-community-property-2025","jurisdiction":"CA","authority":"Cal. Fam. Code § 760","authorityType":"statute","title":"California is a community property state: all property acquired during marriage is community property (Cal. Fam. Code § 760)","quote":"Except as otherwise provided by statute, all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in this state is community property.","url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=760.&lawCode=FAC","sourceDomain":"leginfo.legislature.ca.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"California community property law dates to statehood (1850). Cal. Fam. Code § 760 is the primary definition. California also recognizes registered domestic partners as having community property rights (Cal. Fam. Code § 297.5). Federal IRC § 66 applies for spouses living apart.","href":"/api/v1/citations/ca-fam-760-community-property-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-migration-loss-conformity","jurisdiction":"CA","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Recalculate: California requires recalculating the capital loss carryforward bank using California rules as if the taxpayer had been a California resident in all prior years per FTB Pub 1031.","value":2,"valueType":"code","citations":[{"id":"ca-migration-loss-carryforward-pub1031","jurisdiction":"CA","authority":"FTB Publication 1031 (Section G)","authorityType":"dor-guidance","title":"Guidelines for Determining Resident Status - Capital Losses","quote":"Nonresidents or part-year residents who have capital losses from out-of-state sources before becoming a California resident cannot carry forward those losses to California. You must recalculate your capital loss carryover using California rules as if you were a resident in all prior years.","url":"https://www.ftb.ca.gov/forms/2024/2024-1031-publication.pdf","sourceDomain":"www.ftb.ca.gov","taxYear":2025,"asOf":"2026-06-26","confidence":"high","href":"/api/v1/citations/ca-migration-loss-carryforward-pub1031"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ca-ptet-available","jurisdiction":"CA","category":"ptet-available","label":"Pass-through entity tax (SALT-cap workaround) available","display":"Yes (R&TC §19900; 2021-2030)","value":1,"valueType":"binary-exempt","citations":[{"id":"ca-rtc-19900-ptet-elective-9-3pct","jurisdiction":"CA","authority":"Cal. R&TC §19900-19906","authorityType":"statute","title":"California pass-through entity elective tax is 9.3%; qualified owners receive a credit","quote":"annually pay an elective tax computed at 9.3 percent","url":"https://www.ftb.ca.gov/file/business/credits/pass-through-entity-elective-tax/index.html","sourceDomain":"www.ftb.ca.gov","taxYear":2025,"asOf":"2026-06-29","confidence":"medium","note":"SALT-cap workaround: a qualifying entity (partnership/S-corp) elects to pay 9.3% on qualified net income at the entity level; qualified owners take a California credit (Form FTB 3804-CR). Effective taxable years 2021 through 2030 (sunsets before 1/1/2031). Confidence medium: FTB guidance page.","href":"/api/v1/citations/ca-rtc-19900-ptet-elective-9-3pct"}],"effectiveDate":"2021-01-01","terminalDate":"2030-12-31","nextReviewDate":"2027-01-01"},{"factId":"ca-ptet-rate","jurisdiction":"CA","category":"ptet-rate","label":"Pass-through entity elective tax rate","display":"9.3%","value":0.093,"valueType":"rate","citations":[{"id":"ca-rtc-19900-ptet-elective-9-3pct","jurisdiction":"CA","authority":"Cal. R&TC §19900-19906","authorityType":"statute","title":"California pass-through entity elective tax is 9.3%; qualified owners receive a credit","quote":"annually pay an elective tax computed at 9.3 percent","url":"https://www.ftb.ca.gov/file/business/credits/pass-through-entity-elective-tax/index.html","sourceDomain":"www.ftb.ca.gov","taxYear":2025,"asOf":"2026-06-29","confidence":"medium","note":"SALT-cap workaround: a qualifying entity (partnership/S-corp) elects to pay 9.3% on qualified net income at the entity level; qualified owners take a California credit (Form FTB 3804-CR). Effective taxable years 2021 through 2030 (sunsets before 1/1/2031). Confidence medium: FTB guidance page.","href":"/api/v1/citations/ca-rtc-19900-ptet-elective-9-3pct"}],"effectiveDate":"2021-01-01","terminalDate":"2030-12-31","nextReviewDate":"2027-01-01"},{"factId":"ca-ptet-credit-mechanism","jurisdiction":"CA","category":"ptet-credit-mechanism","label":"PTET owner recovery mechanism","display":"Credit (Form FTB 3804-CR)","value":0,"valueType":"code","citations":[{"id":"ca-rtc-19900-ptet-elective-9-3pct","jurisdiction":"CA","authority":"Cal. R&TC §19900-19906","authorityType":"statute","title":"California pass-through entity elective tax is 9.3%; qualified owners receive a credit","quote":"annually pay an elective tax computed at 9.3 percent","url":"https://www.ftb.ca.gov/file/business/credits/pass-through-entity-elective-tax/index.html","sourceDomain":"www.ftb.ca.gov","taxYear":2025,"asOf":"2026-06-29","confidence":"medium","note":"SALT-cap workaround: a qualifying entity (partnership/S-corp) elects to pay 9.3% on qualified net income at the entity level; qualified owners take a California credit (Form FTB 3804-CR). Effective taxable years 2021 through 2030 (sunsets before 1/1/2031). Confidence medium: FTB guidance page.","href":"/api/v1/citations/ca-rtc-19900-ptet-elective-9-3pct"}],"effectiveDate":"2021-01-01","terminalDate":"2030-12-31","nextReviewDate":"2027-01-01"}]},{"code":"CO","name":"Colorado","level":"state","facts":[{"factId":"co-trust-nexus-incomplete-gift","jurisdiction":"CO","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES: administration-only test; a NV-administered ING is a nonresident trust and the retained intangible gain has no CO source. PERMANENT, not deferral: no throwback statute, and the retained gain is corpus gain outside DNI (IRC 643(a)(3)), so it never carries out to the settlor on a later distribution. Ongoing income on the reinvested proceeds IS taxable to a resident beneficiary when distributed","value":0,"valueType":"code","citations":[{"id":"co-trust-nexus-incomplete-gift-2026","jurisdiction":"CO","authority":"C.R.S. Sec. 39-22-103(10) (resident trust: administered in the state)","authorityType":"statute","title":"Colorado trust residency is administration-only","quote":"'Resident trust' means a trust which is administered in this state.","url":"https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.pdf","sourceDomain":"leg.colorado.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","href":"/api/v1/citations/co-trust-nexus-incomplete-gift-2026"},{"id":"irc-643a3-corpus-capital-gain-excluded-from-dni","jurisdiction":"US","authority":"IRC §643(a)(3)","authorityType":"statute","title":"IRC §643(a)(3): capital gain allocated to corpus is excluded from distributable net income","quote":"Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section643&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the rule that makes an ING's escape PERMANENT rather than deferral. Income reaches a beneficiary only through DNI (IRC 652/662); a retained corpus gain is outside DNI, so a later distribution of it is principal, not income, and never enters the beneficiary's federal taxable income. Every escape state starts from the federal number, so it never enters the state base either. Conditional on the gain ACTUALLY being allocated to corpus and not distributed in the year realized: a gain routed to fiduciary accounting income, or distributed in the sale year, is in DNI and is taxable to the resident beneficiary.","href":"/api/v1/citations/irc-643a3-corpus-capital-gain-excluded-from-dni"},{"id":"irc-665c-throwback-inapplicable-qualified-domestic-trust","jurisdiction":"US","authority":"IRC §665(c)","authorityType":"statute","title":"IRC §665(c): the accumulation-distribution (throwback) rules do not reach a qualified domestic trust","quote":"(1) In general In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. (2) Qualified trust For purposes of this subsection, the term 'qualified trust' means any trust other than- (A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or (B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section665&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A modern NV/DE ING is a 'qualified trust', so the federal accumulation-distribution regime is computed without regard to undistributed net income: it is empty. States whose only accumulation rule piggybacks IRC 665-668 (OR OAR 150-316-0575, IA, KS, SC) therefore recapture nothing. Only a state with its OWN throwback keyed to income untaxed by any state can claw the gain back, and of the verified escape states only Utah has one (59-10-114(1)(g)).","href":"/api/v1/citations/irc-665c-throwback-inapplicable-qualified-domestic-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-estate-none","jurisdiction":"CO","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"co-estate-none-2025","jurisdiction":"CO","authority":"Colo. General Assembly Legislative Council Staff, Estate Tax memo (citing Art. 23.5, Title 39, C.R.S.)","authorityType":"dor-guidance","title":"No Colorado estate tax filing required for deaths after Dec 31, 2004","quote":"Under current law, no Colorado estate tax filing is required for estates of individuals who die after December 31, 2004.","url":"https://content.leg.colorado.gov/agencies/legislative-council-staff/estate-tax","sourceDomain":"content.leg.colorado.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Legislature page; cites Article 23.5, Title 39, C.R.S. (the CRS 39-23.5 pickup statute).","href":"/api/v1/citations/co-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-rate","jurisdiction":"CO","category":"rate","label":"Top income tax rate (TY2025)","display":"4.4% flat on federal taxable income","value":0.044,"valueType":"rate","citations":[{"id":"co-crs-39-22-301-flat-4-4pct-2025","jurisdiction":"CO","authority":"CRS §39-22-104(1.7)","authorityType":"statute","title":"Colorado flat income tax rate is 4.4% for TY2025 (TABOR reduction expired after TY2024)","quote":"with respect to taxable years commencing on or after January 1, 2022, a tax of four and forty one-hundredths percent is imposed on the federal taxable income, as determined pursuant to section 63 of the internal revenue code, of every individual, estate, and trust.","url":"https://content.leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.pdf","sourceDomain":"content.leg.colorado.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"C.R.S. §39-22-104(1.7) imposes a 4.4% Colorado income tax rate for TY2025. The TABOR ratchet mechanism reduced the rate to 4.25% for TY2024 (a surplus year); TY2025 is back at 4.4% absent a new TABOR reduction. Colorado begins with federal taxable income, so the MFJ federal standard deduction shelters gains automatically.","href":"/api/v1/citations/co-crs-39-22-301-flat-4-4pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-conformity","jurisdiction":"CO","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-muni-instate","jurisdiction":"CO","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: CRS §39-22-104(3)(b): CO bond interest excluded from the federal-AGI add-back requirement","value":1,"valueType":"binary-exempt","citations":[{"id":"co-crs-39-22-104-muni-default-2025","jurisdiction":"CO","authority":"CRS §39-22-104(3)(b)","authorityType":"statute","title":"CO exempts CO-issued bonds; out-of-state muni bond interest included in CO income per CRS §39-22-104(3)(b)","quote":"There shall be added to the federal taxable income: ... An amount equal to the interest income which is excluded from gross income for federal income tax purposes pursuant to section 103 (a) of the internal revenue code less amortization of premium on obligations of any state or any political subdivision thereof, other than interest income on obligations of the state of Colorado or any political subdivision thereof which are issued on or after May 1, 1980.","url":"https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.pdf","sourceDomain":"leg.colorado.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"CRS §39-22-104(3)(b) adds back muni interest excluded from federal gross income under IRC §103(a), except interest on obligations of the state of Colorado or its political subdivisions. Out-of-state muni interest is taxed; Colorado bonds are exempt. Quote verbatim from the live CRS 2024 Title 39 PDF (fetched via curl).","href":"/api/v1/citations/co-crs-39-22-104-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-muni-outstate","jurisdiction":"CO","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: CRS §39-22-104(3)(b) requires add-back of out-of-state muni interest; only CO bonds excepted","value":0,"valueType":"binary-exempt","citations":[{"id":"co-crs-39-22-104-muni-default-2025","jurisdiction":"CO","authority":"CRS §39-22-104(3)(b)","authorityType":"statute","title":"CO exempts CO-issued bonds; out-of-state muni bond interest included in CO income per CRS §39-22-104(3)(b)","quote":"There shall be added to the federal taxable income: ... An amount equal to the interest income which is excluded from gross income for federal income tax purposes pursuant to section 103 (a) of the internal revenue code less amortization of premium on obligations of any state or any political subdivision thereof, other than interest income on obligations of the state of Colorado or any political subdivision thereof which are issued on or after May 1, 1980.","url":"https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.pdf","sourceDomain":"leg.colorado.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"CRS §39-22-104(3)(b) adds back muni interest excluded from federal gross income under IRC §103(a), except interest on obligations of the state of Colorado or its political subdivisions. Out-of-state muni interest is taxed; Colorado bonds are exempt. Quote verbatim from the live CRS 2024 Title 39 PDF (fetched via curl).","href":"/api/v1/citations/co-crs-39-22-104-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-qoz-conformity","jurisdiction":"CO","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Partial conformity: TY2025 conforms fully to federal QOZ deferral and exclusion. From TY2027, addback required for gains deferred/excluded via QOF investments in non-Colorado opportunity zones; only in-state CO QOF investments retain the federal benefit.","value":1,"valueType":"code","citations":[{"id":"co-qoz-conformity-irc-1400z2-2025","jurisdiction":"CO","authority":"CRS §39-22-104(3) as amended by HB26-1289","authorityType":"session-law","title":"Colorado partially conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"For income tax years beginning on and after January 1, 2027, the excess of any gain excluded from federal gross income pursuant to section 1400Z-2 (a)(1)(A) of the internal revenue code over the amount of that gain invested by the taxpayer in a Colorado qualified opportunity fund in a manner that qualifies for exclusion from federal gross income pursuant to section 1400Z-2 (a)(1)(A) of the internal revenue code.","url":"https://leg.colorado.gov/bills/hb26-1289","sourceDomain":"leg.colorado.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"medium","note":"HB26-1289 (2026) added CRS §39-22-104(3)(v)(I), a Colorado addback effective TY2027 of the EXCESS of federally excluded §1400Z-2(a)(1)(A) gain over the amount reinvested in a COLORADO QOF (not a categorical addback of all deferred/excluded gain, as a prior version of this fact paraphrased). For TY2025-2026, Colorado conforms to all federal QOZ treatment. Medium: quote from the enacted bill text; the leg.colorado.gov summary page renders a paraphrase, the enrolled bill file is verbatim.","href":"/api/v1/citations/co-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-qsbs-conformity","jurisdiction":"CO","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms via rolling IRC conformity; no Colorado addback for QSBS gain.","value":1,"valueType":"binary-exempt","citations":[{"id":"co-qsbs-conformity-irc-1202-2025","jurisdiction":"CO","authority":"CRS §39-22-104","authorityType":"statute","title":"Colorado rolling IRC conformity incorporates IRC §1202 QSBS gain exclusion","quote":"with respect to taxable years commencing on or after January 1, 2022, a tax of four and forty one-hundredths percent is imposed on the federal taxable income, as determined pursuant to section 63 of the internal revenue code, of every individual, estate, and trust.","url":"https://content.leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.pdf","sourceDomain":"content.leg.colorado.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Colorado rolling IRC conformity (CRS §39-22-104) incorporates IRC §1202; no addback for QSBS gain. Colorado conforms to the full IRC as updated annually, which includes the 100% QSBS exclusion.","href":"/api/v1/citations/co-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-agency-obligations","jurisdiction":"CO","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: Colorado starts from federal taxable income; FNMA/FHLMC interest is in that base; CRS §39-22-104(3)(b) add-back applies only to IRC §103-excluded muni interest; no Colorado subtraction available for FNMA/FHLMC","value":0,"valueType":"binary-exempt","citations":[{"id":"co-crs-39-22-104-fnma-fhlmc-in-base","jurisdiction":"CO","authority":"CRS §39-22-104","authorityType":"statute","title":"Colorado taxes FNMA and FHLMC bond interest: Colorado starts from federal taxable income (which includes FNMA/FHLMC interest); the §39-22-104(3)(b) add-back applies only to IRC §103-excluded muni interest","quote":"with respect to taxable years commencing on or after January 1, 2022, a tax of four and forty one-hundredths percent is imposed on the federal taxable income, as determined pursuant to section 63 of the internal revenue code, of every individual, estate, and trust. ... There shall be added to the federal taxable income: ... An amount equal to the interest income which is excluded from gross income for federal income tax purposes pursuant to section 103 (a) of the internal revenue code less amortization of premium on obligations of any state or any political subdivision thereof, other than interest income on obligations of the state of Colorado or any political subdivision thereof.","url":"https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.pdf","sourceDomain":"leg.colorado.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"CRS §39-22-104(1.7)(c) imposes the tax on federal taxable income; the §39-22-104(3)(b) add-back reaches only interest excluded from federal gross income under IRC §103(a) (muni interest). FNMA/FHLMC interest is in federal taxable income and is not §103-excluded, so it stays taxed. Quote verbatim from the live CRS 2024 Title 39 PDF (fetched via curl).","href":"/api/v1/citations/co-crs-39-22-104-fnma-fhlmc-in-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-dividend-qualified","jurisdiction":"CO","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Colorado has no modification creating a preferential rate for qualified dividends; taxed at the flat 4.4% rate on federal taxable income (IRC §1(h)(11) preference not adopted)","value":0,"valueType":"binary-exempt","citations":[{"id":"co-crs-39-22-301-flat-4-4pct-2025","jurisdiction":"CO","authority":"CRS §39-22-104(1.7)","authorityType":"statute","title":"Colorado flat income tax rate is 4.4% for TY2025 (TABOR reduction expired after TY2024)","quote":"with respect to taxable years commencing on or after January 1, 2022, a tax of four and forty one-hundredths percent is imposed on the federal taxable income, as determined pursuant to section 63 of the internal revenue code, of every individual, estate, and trust.","url":"https://content.leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.pdf","sourceDomain":"content.leg.colorado.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"C.R.S. §39-22-104(1.7) imposes a 4.4% Colorado income tax rate for TY2025. The TABOR ratchet mechanism reduced the rate to 4.25% for TY2024 (a surplus year); TY2025 is back at 4.4% absent a new TABOR reduction. Colorado begins with federal taxable income, so the MFJ federal standard deduction shelters gains automatically.","href":"/api/v1/citations/co-crs-39-22-301-flat-4-4pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-treasury","jurisdiction":"CO","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"co-31-usc-3124-treasury-exempt-2025","jurisdiction":"CO","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Colorado income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/co-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-fhlb-ffcb","jurisdiction":"CO","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"co-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"CO","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Colorado income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/co-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-carryback","jurisdiction":"CO","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-character","jurisdiction":"CO","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed at the flat 4.4% Colorado rate (CRS §39-22-104)","value":null,"valueType":"none","citations":[{"id":"co-crs-39-22-301-flat-4-4pct-2025","jurisdiction":"CO","authority":"CRS §39-22-104(1.7)","authorityType":"statute","title":"Colorado flat income tax rate is 4.4% for TY2025 (TABOR reduction expired after TY2024)","quote":"with respect to taxable years commencing on or after January 1, 2022, a tax of four and forty one-hundredths percent is imposed on the federal taxable income, as determined pursuant to section 63 of the internal revenue code, of every individual, estate, and trust.","url":"https://content.leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.pdf","sourceDomain":"content.leg.colorado.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"C.R.S. §39-22-104(1.7) imposes a 4.4% Colorado income tax rate for TY2025. The TABOR ratchet mechanism reduced the rate to 4.25% for TY2024 (a surplus year); TY2025 is back at 4.4% absent a new TABOR reduction. Colorado begins with federal taxable income, so the MFJ federal standard deduction shelters gains automatically.","href":"/api/v1/citations/co-crs-39-22-301-flat-4-4pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-filing-status-flat","jurisdiction":"CO","category":"filing-status-flat","label":"Filing status irrelevant: flat rate state","display":"Yes: flat 4.4% rate on federal taxable income regardless of filing status (CRS §39-22-104)","value":1,"valueType":"binary-exempt","citations":[{"id":"co-crs-39-22-301-flat-4-4pct-2025","jurisdiction":"CO","authority":"CRS §39-22-104(1.7)","authorityType":"statute","title":"Colorado flat income tax rate is 4.4% for TY2025 (TABOR reduction expired after TY2024)","quote":"with respect to taxable years commencing on or after January 1, 2022, a tax of four and forty one-hundredths percent is imposed on the federal taxable income, as determined pursuant to section 63 of the internal revenue code, of every individual, estate, and trust.","url":"https://content.leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.pdf","sourceDomain":"content.leg.colorado.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"C.R.S. §39-22-104(1.7) imposes a 4.4% Colorado income tax rate for TY2025. The TABOR ratchet mechanism reduced the rate to 4.25% for TY2024 (a surplus year); TY2025 is back at 4.4% absent a new TABOR reduction. Colorado begins with federal taxable income, so the MFJ federal standard deduction shelters gains automatically.","href":"/api/v1/citations/co-crs-39-22-301-flat-4-4pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-marital-udcprda","jurisdiction":"CO","category":"marital-udcprda","label":"Uniform Community Property Disposition at Death Act","display":"Yes: C.R.S. §§15-20-101 to 15-20-116 preserves community property character of assets acquired in CP states at death of a Colorado resident (effective July 1, 2023, 2021 revised act); surviving spouse retains one-half CP interest","value":1,"valueType":"binary-exempt","citations":[{"id":"co-crs-15-20-101-udcprda-2023","jurisdiction":"CO","authority":"C.R.S. §§15-20-101 to 15-20-116 (SB 23-100, effective July 1, 2023)","authorityType":"statute","title":"Colorado adopted Uniform Community Property Disposition at Death Act (effective July 1, 2023)","quote":"This article 20 shall be known and may be cited as the 'Uniform Community Property Disposition at Death Act', which is also referred to as 'this act' or 'act' within this article 20.","url":"https://content.leg.colorado.gov/sites/default/files/images/olls/crs2024-title-15.pdf","sourceDomain":"content.leg.colorado.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Colorado enacted UDCPRDA (the 2021 NCCUSL revised version) via SB 23-100, effective July 1, 2023. Protects the community property character of assets acquired in community property states when a couple moves to Colorado. URL resolves to the full C.R.S. Title 15 PDF; §§15-20-101 to 15-20-116 are within this title.","href":"/api/v1/citations/co-crs-15-20-101-udcprda-2023"}],"effectiveDate":"2023-07-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"co-migration-loss-conformity","jurisdiction":"CO","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Colorado computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"co-migration-loss-conformity-src","jurisdiction":"CO","authority":"CRS §39-22-104(1.7)","authorityType":"statute","title":"Colorado conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"with respect to taxable years commencing on or after January 1, 2022, a tax of four and forty one-hundredths percent is imposed on the federal taxable income, as determined pursuant to section 63 of the internal revenue code, of every individual, estate, and trust. ... Prior to the application of the rate of tax prescribed in subsection (1), (1.5), or (1.7) of this section, the federal taxable income shall be modified as provided in subsections (3) and (4) of this section.","url":"https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.pdf","sourceDomain":"leg.colorado.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"CRS §39-22-104(1.7)(c) imposes the tax on federal taxable income with only the modifications in subsections (3) and (4), so the federal section 1212 capital-loss carryover flows through. Quote verbatim from the live CRS 2024 Title 39 PDF (fetched via curl). No published guidance addresses the imported pre-residency carryforward, so that application remains a structural inference.","href":"/api/v1/citations/co-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"CT","name":"Connecticut","level":"state","facts":[{"factId":"ct-trust-nexus-incomplete-gift","jurisdiction":"CT","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: settlor-based resident trust (12-701(a)(4)(D)); the 12-714 modification zeroes tax only if ALL noncontingent beneficiaries are nonresident, and DRS treats the CT-resident grantor in the discretionary class as noncontingent. Gavin upholds constitutionality","value":2,"valueType":"code","citations":[{"id":"ct-trust-nexus-incomplete-gift-2026","jurisdiction":"CT","authority":"Conn. Gen. Stat. 12-701(a)(4)(D) (resident trust); 12-714(a) (nonresident-beneficiary modification); Chase Manhattan Bank v. Gavin, 249 Conn. 172 (1999)","authorityType":"dor-guidance","title":"Connecticut taxes a resident settlor's irrevocable inter vivos trust; the beneficiary modification fails for a self-settled ING","quote":"Resident trust means: ... An inter vivos trust or a portion of the trust consisting of the property of: A person who was a resident of this state at the time the property was transferred to the trust if the trust was then irrevocable","url":"https://portal.ct.gov/drs/taxes/trust-and-estates/tax-information","sourceDomain":"portal.ct.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"medium","note":"The kill switch is the SELF-SETTLED structure: a completed-gift trust with no CT beneficiaries would escape via 12-714. Quote paraphrases the statute as restated in DRS guidance; cga.ct.gov was unreachable (TLS failure) at verification, hence medium.","href":"/api/v1/citations/ct-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-rate","jurisdiction":"CT","category":"rate","label":"Top income tax rate (TY2025)","display":"6.99% nominal top bracket; effectively flat 6.99% on all taxable income above CT AGI $1,080,000 (recapture)","value":0.0699,"valueType":"rate","citations":[{"id":"ct-1040-2025-table-bd-6-99pct-flat","jurisdiction":"CT","authority":"Conn. Gen. Stat. §12-700(b); 2025 Form CT-1040 Instructions, Tables B to D","authorityType":"form-instructions","title":"Connecticut income tax: 2% to 6.99% graduated, effectively flat 6.99% above CT AGI $1,080,000","quote":"Married Filing Jointly/Qualifying Surviving Spouse ... Less than or equal to: $20,000 2.00% ... More than $1,000,000 $62,500 plus 6.99% of the excess over $1,000,000 ... Table D - Tax Recapture ... Use the filing status shown on the front of your Connecticut income tax return and your Connecticut AGI (Tax Calculation Schedule, Line 1) to determine your recapture amount.","url":"https://portal.ct.gov/-/media/drs/forms/2025/income/2025-ct-1040-instructions_1225.pdf","sourceDomain":"portal.ct.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Quoted from the CT-1040 TY2025 Table B bracket schedule and Table D recapture instructions. The personal exemption ($24,000 MFJ) phases to $0 above $48,000 MFJ CT AGI. The Table C 2% add-back phase-out starts at $100,500 MFJ; cap $500. Above ~$1.08M CT AGI, tax = 6.99% × all taxable income (same recapture shape as NY). The MFJ schedule is exactly double the single/MFS schedule. No capital gains preference.","href":"/api/v1/citations/ct-1040-2025-table-bd-6-99pct-flat"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-conformity","jurisdiction":"CT","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-muni-instate","jurisdiction":"CT","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: Conn. Gen. Stat. §12-701(a)(20): CT bonds excluded from the add-back to CT income","value":1,"valueType":"binary-exempt","citations":[{"id":"ct-gen-stat-12-701a20-muni-default-2025","jurisdiction":"CT","authority":"Conn. Gen. Stat. §12-701(a)(20)","authorityType":"form-instructions","title":"CT exempts CT muni bonds; out-of-state muni bond interest added back per Conn. Gen. Stat. §12-701(a)(20)","quote":"Enter the total amount of interest income derived from state and municipal government obligations (other than obligations of the State of Connecticut or its municipalities) which is not taxed for federal income tax purposes.","url":"https://portal.ct.gov/-/media/drs/forms/2025/income/2025-ct-1040-instructions_1225.pdf","sourceDomain":"portal.ct.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Conn. Gen. Stat. §12-701(a)(20) (2025 CT-1040 Schedule 1 Line 31). CT-issued bonds are excluded from the add-back; all other state/local muni interest is added to CT income.","href":"/api/v1/citations/ct-gen-stat-12-701a20-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-muni-outstate","jurisdiction":"CT","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: Conn. Gen. Stat. §12-701(a)(20) adds back out-of-state muni interest to CT income (CT-1040 Schedule 1 Line 31)","value":0,"valueType":"binary-exempt","citations":[{"id":"ct-gen-stat-12-701a20-muni-default-2025","jurisdiction":"CT","authority":"Conn. Gen. Stat. §12-701(a)(20)","authorityType":"form-instructions","title":"CT exempts CT muni bonds; out-of-state muni bond interest added back per Conn. Gen. Stat. §12-701(a)(20)","quote":"Enter the total amount of interest income derived from state and municipal government obligations (other than obligations of the State of Connecticut or its municipalities) which is not taxed for federal income tax purposes.","url":"https://portal.ct.gov/-/media/drs/forms/2025/income/2025-ct-1040-instructions_1225.pdf","sourceDomain":"portal.ct.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Conn. Gen. Stat. §12-701(a)(20) (2025 CT-1040 Schedule 1 Line 31). CT-issued bonds are excluded from the add-back; all other state/local muni interest is added to CT income.","href":"/api/v1/citations/ct-gen-stat-12-701a20-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-qoz-conformity","jurisdiction":"CT","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"ct-qoz-conformity-irc-1400z2-2025","jurisdiction":"CT","authority":"Conn. Gen. Stat. §12-701; Conn. Agencies Regs. §12-701(a)(20)-2","authorityType":"statute","title":"Connecticut conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"Connecticut taxable income of a resident trust or estate means federal taxable income of such trust or estate, as determined for federal income tax purposes under the Internal Revenue Code, with the modifications provided in this chapter.","url":"https://www.cga.ct.gov/current/pub/chap_229.htm","sourceDomain":"www.cga.ct.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"URL resolves to the Chapter 229 table of contents; §12-701 is within this chapter. Connecticut has rolling IRC conformity (Conn. Gen. Stat. §12-701) and no Schedule 1 addback for §1400Z-2. No CT DRS ruling explicitly names §1400Z-2, so conformity is inferred from the absence of a decoupling provision. Quote is verbatim from §12-701; editorial commentary removed from quote field.","href":"/api/v1/citations/ct-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-qsbs-conformity","jurisdiction":"CT","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity","value":1,"valueType":"binary-exempt","citations":[{"id":"ct-qsbs-conformity-irc-1202-2025","jurisdiction":"CT","authority":"Conn. Gen. Stat. §12-701","authorityType":"statute","title":"Connecticut conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity","quote":"Connecticut taxable income of a resident trust or estate means federal taxable income of such trust or estate, as determined for federal income tax purposes under the Internal Revenue Code, with the modifications provided in this chapter.","url":"https://www.cga.ct.gov/current/pub/chap_229.htm","sourceDomain":"www.cga.ct.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"URL resolves to the Chapter 229 table of contents; §12-701 is within this chapter. Connecticut has rolling IRC conformity (Conn. Gen. Stat. §12-701) and no addback for §1202. Conformity inferred from absence of decoupling; no CT DRS ruling explicitly names §1202. Quote is verbatim from §12-701; editorial commentary removed from quote field.","href":"/api/v1/citations/ct-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-agency-obligations","jurisdiction":"CT","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: CT PS 2005(2) List C explicitly names FNMA and FHLMC; no modification to Connecticut AGI required (interest flows through as taxable income)","value":0,"valueType":"binary-exempt","citations":[{"id":"ct-ps-2005-2-fnma-fhlmc-taxable","jurisdiction":"CT","authority":"CT DRS Policy Statement PS 2005(2) 'Connecticut Income Tax on Bonds or Obligations Issued by the United States Government'","authorityType":"dor-guidance","title":"CT PS 2005(2) List C: FNMA and FHLMC are taxable Connecticut income; no modification to CT AGI required","quote":"C.3. Federal Home Loan Mortgage Corporation (Freddie Mac) - Mortgages, certificates, and other securities guaranteed by the Federal Home Loan Mortgage Corporation (12 U.S.C. §1452(e)); C.4. Federal National Mortgage Association (Fannie Mae) - Participation certificates and other obligations guaranteed by the Federal National Mortgage Association (12 U.S.C. §1719(d))","url":"https://portal.ct.gov/drs/publications/policy-statements/2005/ps-20052-connecticut-income-tax-on-bonds-or-obligations-issued-by-the-united-states-government-by-st","sourceDomain":"portal.ct.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Connecticut DRS Policy Statement PS 2005(2) explicitly lists FNMA and FHLMC on List C as taxable obligations (the interest from which is includable in federal gross income, therefore no addition is made to federal adjusted gross income in computing Connecticut adjusted gross income). List A (exempt, including FHLB/FFCB) is explicitly distinguished from List C (taxable), establishing that GSE interest is fully taxable Connecticut income.","href":"/api/v1/citations/ct-ps-2005-2-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-dividend-qualified","jurisdiction":"CT","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Conn. Gen. Stat. §12-701 modifications do not include any subtraction or reduced rate for qualified dividends; IRC §1(h)(11) preference not adopted","value":0,"valueType":"binary-exempt","citations":[{"id":"ct-1040-2025-table-bd-6-99pct-flat","jurisdiction":"CT","authority":"Conn. Gen. Stat. §12-700(b); 2025 Form CT-1040 Instructions, Tables B to D","authorityType":"form-instructions","title":"Connecticut income tax: 2% to 6.99% graduated, effectively flat 6.99% above CT AGI $1,080,000","quote":"Married Filing Jointly/Qualifying Surviving Spouse ... Less than or equal to: $20,000 2.00% ... More than $1,000,000 $62,500 plus 6.99% of the excess over $1,000,000 ... Table D - Tax Recapture ... Use the filing status shown on the front of your Connecticut income tax return and your Connecticut AGI (Tax Calculation Schedule, Line 1) to determine your recapture amount.","url":"https://portal.ct.gov/-/media/drs/forms/2025/income/2025-ct-1040-instructions_1225.pdf","sourceDomain":"portal.ct.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Quoted from the CT-1040 TY2025 Table B bracket schedule and Table D recapture instructions. The personal exemption ($24,000 MFJ) phases to $0 above $48,000 MFJ CT AGI. The Table C 2% add-back phase-out starts at $100,500 MFJ; cap $500. Above ~$1.08M CT AGI, tax = 6.99% × all taxable income (same recapture shape as NY). The MFJ schedule is exactly double the single/MFS schedule. No capital gains preference.","href":"/api/v1/citations/ct-1040-2025-table-bd-6-99pct-flat"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-treasury","jurisdiction":"CT","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ct-31-usc-3124-treasury-exempt-2025","jurisdiction":"CT","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Connecticut income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ct-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-fhlb-ffcb","jurisdiction":"CT","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ct-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"CT","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Connecticut income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ct-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-carryback","jurisdiction":"CT","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-character","jurisdiction":"CT","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed at ordinary income rates up to 6.99% (Conn. Gen. Stat. §12-700)","value":null,"valueType":"none","citations":[{"id":"ct-1040-2025-table-bd-6-99pct-flat","jurisdiction":"CT","authority":"Conn. Gen. Stat. §12-700(b); 2025 Form CT-1040 Instructions, Tables B to D","authorityType":"form-instructions","title":"Connecticut income tax: 2% to 6.99% graduated, effectively flat 6.99% above CT AGI $1,080,000","quote":"Married Filing Jointly/Qualifying Surviving Spouse ... Less than or equal to: $20,000 2.00% ... More than $1,000,000 $62,500 plus 6.99% of the excess over $1,000,000 ... Table D - Tax Recapture ... Use the filing status shown on the front of your Connecticut income tax return and your Connecticut AGI (Tax Calculation Schedule, Line 1) to determine your recapture amount.","url":"https://portal.ct.gov/-/media/drs/forms/2025/income/2025-ct-1040-instructions_1225.pdf","sourceDomain":"portal.ct.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Quoted from the CT-1040 TY2025 Table B bracket schedule and Table D recapture instructions. The personal exemption ($24,000 MFJ) phases to $0 above $48,000 MFJ CT AGI. The Table C 2% add-back phase-out starts at $100,500 MFJ; cap $500. Above ~$1.08M CT AGI, tax = 6.99% × all taxable income (same recapture shape as NY). The MFJ schedule is exactly double the single/MFS schedule. No capital gains preference.","href":"/api/v1/citations/ct-1040-2025-table-bd-6-99pct-flat"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-estate-rate","jurisdiction":"CT","category":"estate-rate","label":"Estate tax rate","display":"12% flat on the CT taxable estate above the federal basic exclusion amount (the dated estate-exemption fact); total CT gift + estate tax capped at $15,000,000 (Conn. Gen. Stat. § 12-391)","value":0.12,"valueType":"rate","citations":[{"id":"ct-gen-stat-12-391-estate-tax-2025","jurisdiction":"CT","authority":"Conn. Gen. Stat. § 12-391; CT DRS (Estate and Gift Taxes)","authorityType":"dor-guidance","title":"Connecticut estate tax: 12% flat rate on taxable estate; $13,990,000 exemption for TY2025","quote":"For estates of decedents dying during 2025, the Connecticut estate tax exemption amount is $13.99 million.","url":"https://portal.ct.gov/DRS/Individuals/Individual-Income-Tax-Portal/Estate-and-Gift-Taxes/Tax-Information","sourceDomain":"portal.ct.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"12% flat rate applies to CT taxable estate above the exemption, which tracks the federal basic exclusion amount. Total CT gift + estate tax capped at $15,000,000 per Conn. Gen. Stat. § 12-391 (DRS: 'the aggregate amount of Connecticut gift and estate tax payable shall not exceed $15 million'; the cap's subsection placement is unverified because cga.ct.gov blocks fetch).","href":"/api/v1/citations/ct-gen-stat-12-391-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-estate-exemption","jurisdiction":"CT","category":"estate-exemption","label":"Estate tax exemption (TY2025)","display":"$13,990,000 for TY2025 (tracks the federal basic exclusion amount)","value":13990000,"valueType":"dollars","citations":[{"id":"ct-gen-stat-12-391-estate-tax-2025","jurisdiction":"CT","authority":"Conn. Gen. Stat. § 12-391; CT DRS (Estate and Gift Taxes)","authorityType":"dor-guidance","title":"Connecticut estate tax: 12% flat rate on taxable estate; $13,990,000 exemption for TY2025","quote":"For estates of decedents dying during 2025, the Connecticut estate tax exemption amount is $13.99 million.","url":"https://portal.ct.gov/DRS/Individuals/Individual-Income-Tax-Portal/Estate-and-Gift-Taxes/Tax-Information","sourceDomain":"portal.ct.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"12% flat rate applies to CT taxable estate above the exemption, which tracks the federal basic exclusion amount. Total CT gift + estate tax capped at $15,000,000 per Conn. Gen. Stat. § 12-391 (DRS: 'the aggregate amount of Connecticut gift and estate tax payable shall not exceed $15 million'; the cap's subsection placement is unverified because cga.ct.gov blocks fetch).","href":"/api/v1/citations/ct-gen-stat-12-391-estate-tax-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2026-11-01"},{"factId":"ct-estate-exemption-terminal-2026-12-31","jurisdiction":"CT","category":"estate-exemption","label":"Estate tax exemption (TY2026)","display":"$15,000,000 for deaths during 2026 (tracks the post-OBBBA federal basic exclusion amount)","value":15000000,"valueType":"dollars","citations":[{"id":"ct-drs-estate-exemption-15000000-2026","jurisdiction":"CT","authority":"CT DRS (Estate and Gift Taxes); Conn. Gen. Stat. § 12-391(c)(4) (federal basic exclusion amount)","authorityType":"dor-guidance","title":"Connecticut estate tax exemption $15,000,000 for deaths during 2026","quote":"For estates of decedents dying during 2026, the Connecticut estate tax exemption amount is $15 million.","url":"https://portal.ct.gov/DRS/Individuals/Individual-Income-Tax-Portal/Estate-and-Gift-Taxes/Tax-Information","sourceDomain":"portal.ct.gov","taxYear":2026,"asOf":"2026-07-03","confidence":"medium","note":"CT tracks the federal basic exclusion amount, so the OBBBA $15,000,000 flows through for 2026. The same DRS page confirms the aggregate CT gift and estate tax payable cap: 'For calendar years beginning on or after January 1, 2019, the aggregate amount of Connecticut gift and estate tax payable shall not exceed $15 million.'","href":"/api/v1/citations/ct-drs-estate-exemption-15000000-2026"}],"effectiveDate":"2026-01-01","terminalDate":"2026-12-31","nextReviewDate":"2026-11-01"},{"factId":"ct-filing-status-doubled","jurisdiction":"CT","category":"filing-status-doubled","label":"MFJ brackets double Single brackets","display":"Yes: Connecticut Form CT-1040 TCS Table B shows MFJ bracket thresholds exactly double Single thresholds at every bracket boundary (marriage neutral on all 7 graduated brackets)","value":1,"valueType":"binary-exempt","citations":[{"id":"ct-1040-tcs-1225-mfj-double-single-2025","jurisdiction":"CT","authority":"Connecticut Form CT-1040 TCS (Rev. 12/25), Table B: Tax Calculation Schedule","authorityType":"form-instructions","title":"Connecticut income tax: MFJ bracket thresholds double Single thresholds at every bracket boundary (marriage neutral)","quote":"Single: not over $10,000: 2.00%; over $10,000 to $50,000: $200 plus 4.5%; over $50,000 to $100,000: $2,000 plus 5.5%.","url":"https://portal.ct.gov/-/media/drs/forms/2025/income/ct-1040-tcs_1225.pdf","sourceDomain":"portal.ct.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Quote is from the Single filer portion of Table B. Corresponding MFJ rows: not over $20,000: 2.00%; over $20,000 to $100,000: $400 plus 4.5%; over $100,000 to $200,000: $4,000 plus 5.5%. Every MFJ bracket threshold is exactly 2x the corresponding Single threshold: $10K/$20K, $50K/$100K, $100K/$200K, $200K/$400K, $250K/$500K, $500K/$1M. Same marginal rates at each doubled boundary. Produces marriage-neutral treatment on all graduated brackets.","href":"/api/v1/citations/ct-1040-tcs-1225-mfj-double-single-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-marital-udcprda","jurisdiction":"CT","category":"marital-udcprda","label":"Uniform Disposition of Community Property Rights at Death Act (UDCPRDA)","display":"Yes: CGS §§45a-458 to 45a-466 preserves community property character of assets acquired in CP states at death of a Connecticut resident (enacted 1985); surviving spouse retains one-half CP interest","value":1,"valueType":"binary-exempt","citations":[{"id":"ct-cgs-45a-458-udcprda-1985","jurisdiction":"CT","authority":"CGS §§45a-458 to 45a-466, Ch. 802b (P.A. 85-340, 1985; 1971 uniform act)","authorityType":"statute","title":"Connecticut adopted UDCPRDA (Uniform Disposition of Community Property Rights at Death Act) in 1985","quote":"Sections 45a-458 to 45a-466, inclusive, may be cited as the 'Connecticut Uniform Disposition of Community Property Rights at Death Act.'","url":"https://www.cga.ct.gov/current/pub/chap_802b.htm","sourceDomain":"www.cga.ct.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Connecticut enacted UDCPRDA in 1985 (P.A. 85-340; 1971 original uniform act). Protects community property character of assets acquired in CP states when a couple moves to Connecticut.","href":"/api/v1/citations/ct-cgs-45a-458-udcprda-1985"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-migration-loss-conformity","jurisdiction":"CT","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform: Connecticut allows a part-year resident's capital-loss carryforward only to the extent it is includible in computing federal adjusted gross income (Conn. Agencies Regs. §12-717-1), so the imported federal section 1212 carryforward flows through.","value":1,"valueType":"code","citations":[{"id":"ct-migration-loss-conformity-src","jurisdiction":"CT","authority":"Conn. Agencies Regs. §12-717-1","authorityType":"regulation","title":"Connecticut allows a part-year resident's capital-loss carryforward only to the extent includible in computing federal adjusted gross income","quote":"effect shall be given in any subsequent year to any capital loss carryforward or suspended passive activity loss computed on the Connecticut income tax return for the period subsequent to the change of residence only to the extent such capital loss carryforward or suspended passive activity loss is includible in computing federal adjusted gross income.","url":"https://eregulations.ct.gov/eRegsPortal/Search/getDocument?guid=%7B36FCFDA8-837C-4332-BB3C-95D77B905788%7D","sourceDomain":"eregulations.ct.gov","taxYear":2025,"asOf":"2026-06-30","confidence":"high","note":"Conn. Agencies Regs. §12-717-1 allows a part-year resident's capital-loss carryforward only to the extent it is includible in computing federal adjusted gross income, so the imported federal section 1212 carryforward flows through to Connecticut. Verbatim text verified live 2026-06-30 against Conn. Agencies Regs. §12-717-1.","href":"/api/v1/citations/ct-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-ptet-available","jurisdiction":"CT","category":"ptet-available","label":"Pass-through entity tax (SALT-cap workaround) available","display":"Yes (Conn. Gen. Stat. §12-699; annual irrevocable election from TY2024, mandatory 2018-2023)","value":1,"valueType":"binary-exempt","citations":[{"id":"ct-pet-elective-from-ty2024","jurisdiction":"CT","authority":"Conn. Gen. Stat. §12-699 (as amended by PA 23-204)","authorityType":"form-instructions","title":"Connecticut PE Tax is elective (annual, irrevocable) for taxable years commencing on or after January 1, 2024; it was mandatory 2018-2023","quote":"Legislation makes the pass-through entity tax optional. The election is made annually and is irrevocable. Starting with taxable years commencing on and after January 1, 2024, any entity that elects to pay such tax must give the Commissioner of Revenue Services written notice for each tax year it makes the election","url":"https://portal.ct.gov/-/media/drs/forms/2024/pass-through/connecticut-pass-through-entity-tax---general-instructions-2024-ct-pet-series.pdf","sourceDomain":"portal.ct.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Connecticut's PE Tax was MANDATORY for 2018-2023 (the original 2018 SALT-cap response); PA 23-204 made it an annual irrevocable election from TY2024.","href":"/api/v1/citations/ct-pet-elective-from-ty2024"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-ptet-rate","jurisdiction":"CT","category":"ptet-rate","label":"Pass-through entity elective tax rate","display":"6.99%","value":0.0699,"valueType":"rate","citations":[{"id":"ct-pet-rate-6-99pct-2024","jurisdiction":"CT","authority":"Conn. Gen. Stat. §12-699 (as amended by PA 23-204)","authorityType":"form-instructions","title":"Connecticut Pass-Through Entity Tax (PE Tax) rate is 6.99%","quote":"Line 2: PE Tax due. Multiply Line 1 by 6.99%.","url":"https://portal.ct.gov/-/media/drs/forms/2024/pass-through/ct-pet-instructions_1224.pdf","sourceDomain":"portal.ct.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"SALT-cap workaround: the PE Tax rate matches Connecticut's top individual rate (6.99%). Cited from the 2024 Form CT-PET instructions; the cga.ct.gov statute site was unreachable (TLS failure) during verification, so confidence is medium.","href":"/api/v1/citations/ct-pet-rate-6-99pct-2024"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ct-ptet-credit-mechanism","jurisdiction":"CT","category":"ptet-credit-mechanism","label":"PTET owner recovery mechanism","display":"Partial credit: 87.5% of the member's share of the PE Tax paid (12.5% is never recovered)","value":0,"valueType":"code","citations":[{"id":"ct-pet-credit-87-5pct-2024","jurisdiction":"CT","authority":"Conn. Gen. Stat. §12-699 (as amended by PA 23-204)","authorityType":"form-instructions","title":"Connecticut PE Tax credit is 87.5% of the member's share of the tax paid (a partial credit)","quote":"Column I: PE Tax Credit. Multiply Column H by 87.5% (.875).","url":"https://portal.ct.gov/-/media/drs/forms/2024/pass-through/ct-pet-instructions_1224.pdf","sourceDomain":"portal.ct.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"The 87.5% haircut means 12.5% of the entity-level tax is never recovered by the member: Connecticut's PE Tax credit is partial, unlike the full-credit PTETs (CA, IL, NY).","href":"/api/v1/citations/ct-pet-credit-87-5pct-2024"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"DE","name":"Delaware","level":"state","facts":[{"factId":"de-trust-nexus-incomplete-gift","jurisdiction":"DE","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED for DE residents: settlor-based residency plus the 1636 deduction failing for the DE-resident settlor-beneficiary's share. NOTE the flip side: for a NON-Delaware settlor, DE situs itself imposes no tax (why DINGs are sited here)","value":2,"valueType":"code","citations":[{"id":"de-trust-nexus-incomplete-gift-2026","jurisdiction":"DE","authority":"30 Del. C. 1601(8)(b) (resident trust); 1636 (nonresident-beneficiary deduction)","authorityType":"statute","title":"Delaware taxes a DELAWARE RESIDENT settlor's ING share: the famous DE no-tax result requires no Delaware beneficiaries","quote":"'Resident trust' means a trust: a. Created by the will of a decedent who at death was domiciled in this State; b. Created by, or consisting of property of, a person domiciled in this State; or c. With respect to which the conditions of 1 of the following paragraphs are met during more than 1/2 of any taxable year","url":"https://delcode.delaware.gov/title30/c016/sc01/index.html","sourceDomain":"delcode.delaware.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"The 1636 deduction (delcode.delaware.gov/title30/c016/sc03) reaches only income set aside for future distribution to NONRESIDENT beneficiaries, computed as if the trust terminated at year-end with discretion presumed unexercised, so the DE-resident settlor-beneficiary's share stays taxable.","href":"/api/v1/citations/de-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"de-estate-none","jurisdiction":"DE","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"de-estate-none-2025","jurisdiction":"DE","authority":"30 Del. C. ch. 15 (repealed by 81 Del. Laws, c. 52)","authorityType":"statute","title":"Delaware estate tax statutes repealed effective Jan 1, 2018","quote":"Sec. 1502. Tax on transfers of resident estates [For application of this section, see 81 Del. Laws, c. 52, sec. 2] [Repealed] ... repealed by 81 Del. Laws, c. 52, sec. 1, effective Jan. 1, 2018.","url":"https://delcode.delaware.gov/title30/c015/index.html","sourceDomain":"delcode.delaware.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Official Delaware Code site shows every section of Title 30 ch. 15 with the same repeal note; the repealed text itself is not reproduced.","href":"/api/v1/citations/de-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"de-rate","jurisdiction":"DE","category":"rate","label":"Top income tax rate (TY2025)","display":"0% to 6.6% graduated; 6.6% above $60,000 (same schedule all filing statuses)","value":0.066,"valueType":"rate","citations":[{"id":"de-30-del-c-1102-top-6-6pct-2025","jurisdiction":"DE","authority":"30 Del. 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FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute; their bondholder interest income is not 'exempt from state income taxes pursuant to the laws of the United States.'","href":"/api/v1/citations/de-30-del-c-1106a1-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"de-dividend-qualified","jurisdiction":"DE","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: Delaware has no IRC §1(h)(11) preferential rate; qualified dividends taxed at ordinary rates up to 6.6%","value":0,"valueType":"binary-exempt","citations":[{"id":"de-30-del-c-1102-top-6-6pct-2025","jurisdiction":"DE","authority":"30 Del. 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Standard deduction $3,250 single / $6,500 MFJ.","href":"/api/v1/citations/de-30-del-c-1102-top-6-6pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"de-treasury","jurisdiction":"DE","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"de-31-usc-3124-treasury-exempt-2025","jurisdiction":"DE","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Delaware income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/de-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"de-fhlb-ffcb","jurisdiction":"DE","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"de-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"DE","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Delaware income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/de-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"de-carryback","jurisdiction":"DE","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). 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Pickup: federal credit zero since 2005, so no FL estate tax due.","href":"/api/v1/citations/fl-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"fl-no-tax","jurisdiction":"FL","category":"no-tax","label":"Capital gains tax","display":"None Florida Constitution bars a personal income tax","value":null,"valueType":"none","citations":[{"id":"fl-const-art7-s5a-no-income-tax","jurisdiction":"FL","authority":"Fla. Const. art. 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VII, §5(a)","authorityType":"constitution","title":"Florida Constitution bars a personal income tax; capital gains not taxed","quote":"No income tax shall be levied upon natural persons who are residents or citizens of this state.","url":"https://www.flsenate.gov/Laws/Constitution/Article7","sourceDomain":"www.flsenate.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"URL resolves to the Florida Constitution Article VII index; §5(a) is within this article.","href":"/api/v1/citations/fl-const-art7-s5a-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"fl-muni-outstate","jurisdiction":"FL","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Exempt: no Florida state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"fl-const-art7-s5a-no-income-tax","jurisdiction":"FL","authority":"Fla. Const. art. VII, §5(a)","authorityType":"constitution","title":"Florida Constitution bars a personal income tax; capital gains not taxed","quote":"No income tax shall be levied upon natural persons who are residents or citizens of this state.","url":"https://www.flsenate.gov/Laws/Constitution/Article7","sourceDomain":"www.flsenate.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"URL resolves to the Florida Constitution Article VII index; §5(a) is within this article.","href":"/api/v1/citations/fl-const-art7-s5a-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"fl-agency-obligations","jurisdiction":"FL","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Exempt: no Florida state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"fl-const-art7-s5a-no-income-tax","jurisdiction":"FL","authority":"Fla. Const. art. VII, §5(a)","authorityType":"constitution","title":"Florida Constitution bars a personal income tax; capital gains not taxed","quote":"No income tax shall be levied upon natural persons who are residents or citizens of this state.","url":"https://www.flsenate.gov/Laws/Constitution/Article7","sourceDomain":"www.flsenate.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"URL resolves to the Florida Constitution Article VII index; §5(a) is within this article.","href":"/api/v1/citations/fl-const-art7-s5a-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"fl-dividend-qualified","jurisdiction":"FL","category":"dividend-qualified","label":"Qualified dividend income","display":"Moot: no Florida state income tax","value":null,"valueType":"none","citations":[{"id":"fl-const-art7-s5a-no-income-tax","jurisdiction":"FL","authority":"Fla. Const. art. VII, §5(a)","authorityType":"constitution","title":"Florida Constitution bars a personal income tax; capital gains not taxed","quote":"No income tax shall be levied upon natural persons who are residents or citizens of this state.","url":"https://www.flsenate.gov/Laws/Constitution/Article7","sourceDomain":"www.flsenate.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"URL resolves to the Florida Constitution Article VII index; §5(a) is within this article.","href":"/api/v1/citations/fl-const-art7-s5a-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"fl-treasury","jurisdiction":"FL","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: no Florida state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"fl-const-art7-s5a-no-income-tax","jurisdiction":"FL","authority":"Fla. Const. art. VII, §5(a)","authorityType":"constitution","title":"Florida Constitution bars a personal income tax; capital gains not taxed","quote":"No income tax shall be levied upon natural persons who are residents or citizens of this state.","url":"https://www.flsenate.gov/Laws/Constitution/Article7","sourceDomain":"www.flsenate.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"URL resolves to the Florida Constitution Article VII index; §5(a) is within this article.","href":"/api/v1/citations/fl-const-art7-s5a-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"fl-fhlb-ffcb","jurisdiction":"FL","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: no Florida state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"fl-const-art7-s5a-no-income-tax","jurisdiction":"FL","authority":"Fla. Const. art. VII, §5(a)","authorityType":"constitution","title":"Florida Constitution bars a personal income tax; capital gains not taxed","quote":"No income tax shall be levied upon natural persons who are residents or citizens of this state.","url":"https://www.flsenate.gov/Laws/Constitution/Article7","sourceDomain":"www.flsenate.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"URL resolves to the Florida Constitution Article VII index; §5(a) is within this article.","href":"/api/v1/citations/fl-const-art7-s5a-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"fl-marital-elective-cp","jurisdiction":"FL","category":"marital-elective-cp","label":"Elective community property trust available","display":"Yes: Florida Community Property Trust Act (Fla. Stat. §§736.1501-736.1512, effective July 1, 2021) allows married couples to elect community property treatment for assets held in a qualifying trust","value":1,"valueType":"binary-exempt","citations":[{"id":"fl-stat-736-1502-cp-trust-act-settlor-spouses","jurisdiction":"FL","authority":"Fla. Stat. §736.1502","authorityType":"statute","title":"Florida Community Property Trust Act: married couple may establish a community property trust (effective July 1, 2021)","quote":"A married couple who establishes a community property trust pursuant to this part.","url":"https://www.flsenate.gov/Laws/Statutes/2025/736.1502","sourceDomain":"www.flsenate.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Fla. Stat. §736.1502 defines 'Settlor spouses' as a married couple who creates a community property trust under Part XV of Chapter 736 (ss. 736.1501-736.1512). The Act took effect July 1, 2021. Florida is not a mandatory community property state; this is an elective opt-in mechanism.","href":"/api/v1/citations/fl-stat-736-1502-cp-trust-act-settlor-spouses"}],"effectiveDate":"2021-07-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"fl-marital-udcprda","jurisdiction":"FL","category":"marital-udcprda","label":"Uniform Disposition of Community Property Rights at Death Act (UDCPRDA)","display":"Yes: Fla. Stat. §§732.216-732.228 preserves community property character of assets acquired in CP states at death of a Florida resident (enacted 1992); surviving spouse retains one-half CP interest","value":1,"valueType":"binary-exempt","citations":[{"id":"fl-stat-732-216-udcprda-1992","jurisdiction":"FL","authority":"Fla. Stat. §§732.216-732.228","authorityType":"statute","title":"Florida Uniform Disposition of Community Property Rights at Death Act (adopted 1992)","quote":"Sections 732.216-732.228 may be cited as the 'Florida Uniform Disposition of Community Property Rights at Death Act.'","url":"https://www.flsenate.gov/Laws/Statutes/2024/732.216","sourceDomain":"www.flsenate.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Florida enacted UDCPRDA in 1992 (ch. 92-200, Laws of Florida). Protects the community property character of assets acquired in community property states when a couple moves to Florida. At death, the surviving spouse retains their one-half community property interest. This is separate from the elective CP trust available under Fla. Stat. §§736.1501-736.1512.","href":"/api/v1/citations/fl-stat-732-216-udcprda-1992"}],"effectiveDate":"1992-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"GA","name":"Georgia","level":"state","facts":[{"factId":"ga-trust-nexus-incomplete-gift","jurisdiction":"GA","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"GRAY: 48-7-22(a)(1)(C) reaches a nonresident fiduciary 'managing funds or property for the benefit of a resident of this state' with zero GA situs; the DOR excuses only facts 'specifically like' Kaestner, and ING facts differ","value":3,"valueType":"code","citations":[{"id":"ga-trust-nexus-incomplete-gift-2026","jurisdiction":"GA","authority":"O.C.G.A. Sec. 48-7-22(a)(1)(C); Ga. DOR Policy Bulletin IT-2019-02 (Kaestner response)","authorityType":"dor-guidance","title":"Georgia taxes a nonresident fiduciary managing funds for the benefit of a Georgia resident; the DOR reads Kaestner narrowly","quote":"Therefore, with respect to facts that are specifically like those in Kaestner, a nonresident trust fiduciary would not be subject to Georgia taxation. Otherwise, the fiduciary would be subject to taxation under O.C.G.A. §48-7-22 and must file a return.","url":"https://dor.georgia.gov/document/policy-bulletin/policy-bulletin-2019-02pdf/download","sourceDomain":"dor.georgia.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"medium","note":"Georgia's hook is beneficiary-based, not administration-based: a Nevada trustee managing for a GA-resident grantor-beneficiary is inside the statute. Whether Kaestner protects a current-permissible grantor-beneficiary is untested; the DOR bulletin reads the case as narrowly as possible.","href":"/api/v1/citations/ga-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-estate-none","jurisdiction":"GA","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"ga-estate-none-2025","jurisdiction":"GA","authority":"O.C.G.A. 48-12-1 (as quoted on GA DOR Estate Tax FAQ)","authorityType":"dor-guidance","title":"No Georgia estate tax levied or returns required on and after July 1, 2014","quote":"On and after July 1, 2014, there shall be no estate taxes levied by the state and no estate tax returns shall be required by the state.","url":"https://dor.georgia.gov/estate-tax-faq","sourceDomain":"dor.georgia.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"DOR FAQ reproduces the statutory language and cites O.C.G.A. 48-12-1. Effective date July 1, 2014 (old survey said Jan 1).","href":"/api/v1/citations/ga-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-rate","jurisdiction":"GA","category":"rate","label":"Top income tax rate (through TY2025)","display":"5.19% flat","value":0.0519,"valueType":"rate","citations":[{"id":"ga-ocga-48-7-20-flat-5-19pct-2025","jurisdiction":"GA","authority":"Georgia Department of Revenue, Income Tax Rates page (dor.georgia.gov)","authorityType":"dor-guidance","title":"Georgia flat income tax rate is 5.19% for TY2025, falling to 4.99% for TY2026+","quote":"For taxable years beginning on or after January 1, 2025, the rate of tax imposed on the Georgia taxable net income of every individual shall be 5.19 percent.","url":"https://dor.georgia.gov/document/document/2024-it-511-individual-income-tax-booklet/download","sourceDomain":"dor.georgia.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"HB 111 established 5.19% retroactively for TY2025. The rate falls to 4.99% for TY2026+. Georgia uses fixed-date IRC conformity (1/1/2025), which does not incorporate the OBBBA. Age 65+ taxpayers get a $65,000/person exclusion that covers capital gains.","href":"/api/v1/citations/ga-ocga-48-7-20-flat-5-19pct-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"ga-rate-hb463-2026","jurisdiction":"GA","category":"rate","label":"Top income tax rate (TY2026+)","display":"4.99% flat (HB 463; further cuts are trigger-based 0.125-point steps toward 3.99%)","value":0.0499,"valueType":"rate","citations":[{"id":"ga-dor-hb463-flat-4-99pct-2026","jurisdiction":"GA","authority":"Georgia DOR, Important Tax Updates; HB 463 (2026); O.C.G.A. §48-7-20","authorityType":"dor-guidance","title":"Georgia flat individual income tax rate is 4.99% beginning January 1, 2026 (HB 463)","quote":"The Georgia income tax rate has been reduced to a flat rate of 4.99%.","url":"https://dor.georgia.gov/taxes/important-tax-updates","sourceDomain":"dor.georgia.gov","taxYear":2026,"asOf":"2026-07-03","confidence":"medium","note":"Governor's release (2026-05-11): 'HB 463 lowers Georgia's state income tax rate from 5.19% to 4.99%, beginning January 1, 2026.' HB 463 skipped the previously scheduled 5.09% step; further cuts are trigger-based 0.125-point steps toward 3.99%, not the old 0.10-point glide. The elective PTET tracks the flat individual rate (Ga. Comp. R. & Regs. 560-7-3-.03), so it is 4.99% for TY2026.","href":"/api/v1/citations/ga-dor-hb463-flat-4-99pct-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-conformity","jurisdiction":"GA","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-muni-instate","jurisdiction":"GA","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: O.C.G.A. §48-7-27 exempts interest on Georgia state and local obligations","value":1,"valueType":"binary-exempt","citations":[{"id":"ga-ocga-48-7-27-muni-default-2025","jurisdiction":"GA","authority":"Georgia Department of Revenue, 2024 IT-511 Individual Income Tax Booklet","authorityType":"form-instructions","title":"GA exempts GA-issued bonds; out-of-state muni bond interest is taxable per O.C.G.A. §48-7-27","quote":"Interest received from non-Georgia municipal bonds and dividends received from mutual funds that derive income from non-Georgia municipal bonds are subject to Georgia income tax.","url":"https://dor.georgia.gov/document/document/2024-it-511-individual-income-tax-booklet/download","sourceDomain":"dor.georgia.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Quote is from the Georgia DOR 2024 IT-511 Individual Income Tax Booklet form instructions, not from O.C.G.A. §48-7-27 statutory text. GA bonds exempt; all other state/local muni interest is taxable.","href":"/api/v1/citations/ga-ocga-48-7-27-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-muni-outstate","jurisdiction":"GA","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: O.C.G.A. §48-7-27: 'interest received from non-Georgia municipal bonds' is subject to Georgia income tax","value":0,"valueType":"binary-exempt","citations":[{"id":"ga-ocga-48-7-27-muni-default-2025","jurisdiction":"GA","authority":"Georgia Department of Revenue, 2024 IT-511 Individual Income Tax Booklet","authorityType":"form-instructions","title":"GA exempts GA-issued bonds; out-of-state muni bond interest is taxable per O.C.G.A. §48-7-27","quote":"Interest received from non-Georgia municipal bonds and dividends received from mutual funds that derive income from non-Georgia municipal bonds are subject to Georgia income tax.","url":"https://dor.georgia.gov/document/document/2024-it-511-individual-income-tax-booklet/download","sourceDomain":"dor.georgia.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Quote is from the Georgia DOR 2024 IT-511 Individual Income Tax Booklet form instructions, not from O.C.G.A. §48-7-27 statutory text. GA bonds exempt; all other state/local muni interest is taxable.","href":"/api/v1/citations/ga-ocga-48-7-27-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-qoz-conformity","jurisdiction":"GA","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via fixed-date IRC conformity","value":1,"valueType":"code","citations":[{"id":"ga-qoz-conformity-irc-1400z2-2025","jurisdiction":"GA","authority":"O.C.G.A. §48-1-2(14); Georgia HB 1199 (2026); HB 265 (2021)","authorityType":"session-law","title":"Georgia conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The term 'Internal Revenue Code' means the United States Internal Revenue Code of 1986, as amended, and in effect on January 1, 2025, including all laws enacted as of that date which affect the provisions of the Internal Revenue Code.","url":"https://www.legis.ga.gov/legislation/67019","sourceDomain":"www.legis.ga.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"Georgia HB 1199 (2026) and HB 265 (2021) updated the fixed IRC conformity date; §1400Z-2 is incorporated. No Georgia DOR letter ruling explicitly names §1400Z-2. URL points to HB 1199 (2026) at the Georgia General Assembly; O.C.G.A. §48-1-2 is published commercially only.","href":"/api/v1/citations/ga-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-qsbs-conformity","jurisdiction":"GA","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via fixed-date IRC conformity","value":1,"valueType":"binary-exempt","citations":[{"id":"ga-qsbs-conformity-irc-1202-2025","jurisdiction":"GA","authority":"O.C.G.A. §48-1-2(14); Georgia HB 1199 (2026)","authorityType":"session-law","title":"Georgia conforms to IRC §1202 QSBS gain exclusion","quote":"The term 'Internal Revenue Code' means the United States Internal Revenue Code of 1986, as amended, and in effect on January 1, 2025, including all laws enacted as of that date which affect the provisions of the Internal Revenue Code.","url":"https://www.legis.ga.gov/legislation/67019","sourceDomain":"www.legis.ga.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"Georgia's updated fixed-date IRC conformity incorporates §1202. No Georgia DOR ruling explicitly names §1202. URL points to HB 1199 (2026) at the Georgia General Assembly; O.C.G.A. §48-1-2 is published commercially only.","href":"/api/v1/citations/ga-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-agency-obligations","jurisdiction":"GA","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: Georgia IT-511 Schedule 1 lists FNMA, FHLMC, and GNMA interest as taxable; no federal bondholder exemption statute supports a Georgia subtraction","value":0,"valueType":"binary-exempt","citations":[{"id":"ga-it511-2024-schedule1-fnma-fhlmc-taxable","jurisdiction":"GA","authority":"Georgia Department of Revenue, 2024 IT-511 Individual Income Tax Booklet, Schedule 1 (Additions to Income)","authorityType":"form-instructions","title":"Georgia IT-511 Schedule 1 lists FNMA, FHLMC, and GNMA interest as taxable additions to Georgia income","quote":"Interest received from non-Georgia municipal bonds and dividends received from mutual funds that derive income from non-Georgia municipal bonds are subject to Georgia income tax. Interest income from Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, and Government National Mortgage Association obligations does not qualify for the federal interest deduction subtraction.","url":"https://dor.georgia.gov/document/document/2024-it-511-individual-income-tax-booklet/download","sourceDomain":"dor.georgia.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"The 2024 IT-511 booklet names FNMA, FHLMC, and GNMA explicitly per prior research. Structural basis: O.C.G.A. §48-7-27 subtraction for U.S. obligations requires federal preemption, which FNMA/FHLMC lack (no bondholder exemption statute).","href":"/api/v1/citations/ga-it511-2024-schedule1-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-dividend-qualified","jurisdiction":"GA","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Georgia has no modification or deduction creating a preferential rate for qualified dividends; taxed at the flat 5.19% rate (IRC §1(h)(11) preference not adopted)","value":0,"valueType":"binary-exempt","citations":[{"id":"ga-ocga-48-7-20-flat-5-19pct-2025","jurisdiction":"GA","authority":"Georgia Department of Revenue, Income Tax Rates page (dor.georgia.gov)","authorityType":"dor-guidance","title":"Georgia flat income tax rate is 5.19% for TY2025, falling to 4.99% for TY2026+","quote":"For taxable years beginning on or after January 1, 2025, the rate of tax imposed on the Georgia taxable net income of every individual shall be 5.19 percent.","url":"https://dor.georgia.gov/document/document/2024-it-511-individual-income-tax-booklet/download","sourceDomain":"dor.georgia.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"HB 111 established 5.19% retroactively for TY2025. The rate falls to 4.99% for TY2026+. Georgia uses fixed-date IRC conformity (1/1/2025), which does not incorporate the OBBBA. Age 65+ taxpayers get a $65,000/person exclusion that covers capital gains.","href":"/api/v1/citations/ga-ocga-48-7-20-flat-5-19pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-treasury","jurisdiction":"GA","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ga-31-usc-3124-treasury-exempt-2025","jurisdiction":"GA","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Georgia income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ga-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-fhlb-ffcb","jurisdiction":"GA","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ga-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"GA","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Georgia income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ga-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-carryback","jurisdiction":"GA","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-character","jurisdiction":"GA","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the flat 5.19% rate (O.C.G.A. §48-7-20)","value":null,"valueType":"none","citations":[{"id":"ga-ocga-48-7-20-flat-5-19pct-2025","jurisdiction":"GA","authority":"Georgia Department of Revenue, Income Tax Rates page (dor.georgia.gov)","authorityType":"dor-guidance","title":"Georgia flat income tax rate is 5.19% for TY2025, falling to 4.99% for TY2026+","quote":"For taxable years beginning on or after January 1, 2025, the rate of tax imposed on the Georgia taxable net income of every individual shall be 5.19 percent.","url":"https://dor.georgia.gov/document/document/2024-it-511-individual-income-tax-booklet/download","sourceDomain":"dor.georgia.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"HB 111 established 5.19% retroactively for TY2025. The rate falls to 4.99% for TY2026+. Georgia uses fixed-date IRC conformity (1/1/2025), which does not incorporate the OBBBA. Age 65+ taxpayers get a $65,000/person exclusion that covers capital gains.","href":"/api/v1/citations/ga-ocga-48-7-20-flat-5-19pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-filing-status-flat","jurisdiction":"GA","category":"filing-status-flat","label":"Filing status irrelevant: flat rate state","display":"Yes: flat 5.19% rate on Georgia taxable income regardless of filing status (O.C.G.A. §48-7-20; TY2025)","value":1,"valueType":"binary-exempt","citations":[{"id":"ga-ocga-48-7-20-flat-5-19pct-2025","jurisdiction":"GA","authority":"Georgia Department of Revenue, Income Tax Rates page (dor.georgia.gov)","authorityType":"dor-guidance","title":"Georgia flat income tax rate is 5.19% for TY2025, falling to 4.99% for TY2026+","quote":"For taxable years beginning on or after January 1, 2025, the rate of tax imposed on the Georgia taxable net income of every individual shall be 5.19 percent.","url":"https://dor.georgia.gov/document/document/2024-it-511-individual-income-tax-booklet/download","sourceDomain":"dor.georgia.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"HB 111 established 5.19% retroactively for TY2025. The rate falls to 4.99% for TY2026+. Georgia uses fixed-date IRC conformity (1/1/2025), which does not incorporate the OBBBA. Age 65+ taxpayers get a $65,000/person exclusion that covers capital gains.","href":"/api/v1/citations/ga-ocga-48-7-20-flat-5-19pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-migration-loss-conformity","jurisdiction":"GA","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Disallowed: Georgia adds back deductions and losses that resulted from transactions occurring in years in which the individual was not subject to Georgia income tax (Ga. Comp. R. & Regs. 560-7-4-.01), so an imported pre-residency capital-loss carryforward cannot offset Georgia gains.","value":0,"valueType":"code","citations":[{"id":"ga-migration-loss-conformity-src","jurisdiction":"GA","authority":"Ga. Comp. R. & Regs. 560-7-4-.01","authorityType":"regulation","title":"Georgia adds back losses from transactions occurring in years the individual was not subject to Georgia income tax","quote":"There shall be added to 'net income' the amount of deductions reflected therein which resulted from transactions occurring in years in which the individual was not subject to Georgia income tax. Such deductions shall include but not be limited to, contribution carryovers, capital loss carryovers, and net operating loss carryovers.","url":"https://rules.sos.ga.gov/GAC/560-7-4-.01","sourceDomain":"rules.sos.ga.gov","taxYear":2025,"asOf":"2026-06-30","confidence":"high","note":"Ga. Comp. R. & Regs. 560-7-4-.01 requires a nonresident or part-year resident to add back deductions and losses that resulted from transactions occurring in years in which the individual was not subject to Georgia income tax, so an imported pre-residency capital-loss carryforward cannot offset Georgia gains. Verbatim text verified live 2026-06-30 against Ga. Comp. R. & Regs. 560-7-4-.01(2).","href":"/api/v1/citations/ga-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-ptet-available","jurisdiction":"GA","category":"ptet-available","label":"Pass-through entity tax (SALT-cap workaround) available","display":"Yes (HB 149, 2021; O.C.G.A. §48-7-21(b)(7)(C), §48-7-23; annual election, irrevocable for the year)","value":1,"valueType":"binary-exempt","citations":[{"id":"ga-dor-ptet-rate-5-19pct-2025","jurisdiction":"GA","authority":"O.C.G.A. §48-7-21(b)(7)(C); §48-7-23 (HB 149, 2021); Ga. Comp. R. & Reg. §560-3-2-.26","authorityType":"dor-guidance","title":"Georgia elective pass-through entity tax rate tracks the flat individual rate: 5.19% for TY2025","quote":"There is a 5.19% income tax on Partnerships that own property, do business in Georgia or receive income form Georgia sources.","url":"https://dor.georgia.gov/taxes/taxes-partnerships","sourceDomain":"dor.georgia.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"SALT-cap workaround: HB 149 (2021) lets a partnership or S corporation elect (annually, irrevocably for the year) to pay Georgia income tax at the entity level at the flat individual rate. 'income form Georgia sources' [sic] is verbatim from the DOR page. The rate falls to 4.99% for TY2026 per dor.georgia.gov/taxes/important-tax-updates. Confidence medium: DOR guidance page.","href":"/api/v1/citations/ga-dor-ptet-rate-5-19pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-ptet-rate","jurisdiction":"GA","category":"ptet-rate","label":"Pass-through entity elective tax rate (through TY2025)","display":"5.19% (tracks Georgia's flat individual rate)","value":0.0519,"valueType":"rate","citations":[{"id":"ga-dor-ptet-rate-5-19pct-2025","jurisdiction":"GA","authority":"O.C.G.A. §48-7-21(b)(7)(C); §48-7-23 (HB 149, 2021); Ga. Comp. R. & Reg. §560-3-2-.26","authorityType":"dor-guidance","title":"Georgia elective pass-through entity tax rate tracks the flat individual rate: 5.19% for TY2025","quote":"There is a 5.19% income tax on Partnerships that own property, do business in Georgia or receive income form Georgia sources.","url":"https://dor.georgia.gov/taxes/taxes-partnerships","sourceDomain":"dor.georgia.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"SALT-cap workaround: HB 149 (2021) lets a partnership or S corporation elect (annually, irrevocably for the year) to pay Georgia income tax at the entity level at the flat individual rate. 'income form Georgia sources' [sic] is verbatim from the DOR page. The rate falls to 4.99% for TY2026 per dor.georgia.gov/taxes/important-tax-updates. Confidence medium: DOR guidance page.","href":"/api/v1/citations/ga-dor-ptet-rate-5-19pct-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"ga-ptet-rate-2026","jurisdiction":"GA","category":"ptet-rate","label":"Pass-through entity elective tax rate (TY2026+)","display":"4.99% (tracks the HB 463 flat individual rate per Ga. Comp. R. & Regs. 560-7-3-.03)","value":0.0499,"valueType":"rate","citations":[{"id":"ga-dor-hb463-flat-4-99pct-2026","jurisdiction":"GA","authority":"Georgia DOR, Important Tax Updates; HB 463 (2026); O.C.G.A. §48-7-20","authorityType":"dor-guidance","title":"Georgia flat individual income tax rate is 4.99% beginning January 1, 2026 (HB 463)","quote":"The Georgia income tax rate has been reduced to a flat rate of 4.99%.","url":"https://dor.georgia.gov/taxes/important-tax-updates","sourceDomain":"dor.georgia.gov","taxYear":2026,"asOf":"2026-07-03","confidence":"medium","note":"Governor's release (2026-05-11): 'HB 463 lowers Georgia's state income tax rate from 5.19% to 4.99%, beginning January 1, 2026.' HB 463 skipped the previously scheduled 5.09% step; further cuts are trigger-based 0.125-point steps toward 3.99%, not the old 0.10-point glide. The elective PTET tracks the flat individual rate (Ga. Comp. R. & Regs. 560-7-3-.03), so it is 4.99% for TY2026.","href":"/api/v1/citations/ga-dor-hb463-flat-4-99pct-2026"},{"id":"ga-dor-ptet-rate-5-19pct-2025","jurisdiction":"GA","authority":"O.C.G.A. §48-7-21(b)(7)(C); §48-7-23 (HB 149, 2021); Ga. Comp. R. & Reg. §560-3-2-.26","authorityType":"dor-guidance","title":"Georgia elective pass-through entity tax rate tracks the flat individual rate: 5.19% for TY2025","quote":"There is a 5.19% income tax on Partnerships that own property, do business in Georgia or receive income form Georgia sources.","url":"https://dor.georgia.gov/taxes/taxes-partnerships","sourceDomain":"dor.georgia.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"SALT-cap workaround: HB 149 (2021) lets a partnership or S corporation elect (annually, irrevocably for the year) to pay Georgia income tax at the entity level at the flat individual rate. 'income form Georgia sources' [sic] is verbatim from the DOR page. The rate falls to 4.99% for TY2026 per dor.georgia.gov/taxes/important-tax-updates. Confidence medium: DOR guidance page.","href":"/api/v1/citations/ga-dor-ptet-rate-5-19pct-2025"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ga-ptet-credit-mechanism","jurisdiction":"GA","category":"ptet-credit-mechanism","label":"PTET owner recovery mechanism","display":"Exclusion: the electing entity pays the tax and the income is not taxed to the owners; owners get NO credit for the entity-level Georgia tax","value":2,"valueType":"code","citations":[{"id":"ga-dor-hb149-faq-no-owner-credit-2025","jurisdiction":"GA","authority":"Georgia Department of Revenue, HB 149 Pass-Through Entity Tax FAQ","authorityType":"dor-guidance","title":"Georgia PTET owners are not eligible for a credit for the entity-level Georgia tax","quote":"The owners are not eligible to claim a credit for taxes paid to Georgia with respect to income taxed at the entity level by Georgia.","url":"https://dor.georgia.gov/hb-149-pass-through-entity-tax-faq","sourceDomain":"dor.georgia.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","href":"/api/v1/citations/ga-dor-hb149-faq-no-owner-credit-2025"},{"id":"ga-dor-hb149-faq-entity-pays-2025","jurisdiction":"GA","authority":"Georgia Department of Revenue, HB 149 Pass-Through Entity Tax FAQ","authorityType":"dor-guidance","title":"Georgia PTET mechanism is exclusion: the electing entity pays the tax and the income is not taxed again to the owners","quote":"When electing to pay tax at the entity level, the income tax is paid by the partnership and not by the partners.","url":"https://dor.georgia.gov/hb-149-pass-through-entity-tax-faq","sourceDomain":"dor.georgia.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","href":"/api/v1/citations/ga-dor-hb149-faq-entity-pays-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"HI","name":"Hawaii","level":"state","facts":[{"factId":"hi-trust-nexus-incomplete-gift","jurisdiction":"HI","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES: a NV-trusteed, NV-administered ING is a nonresident trust taxed only on HI-source income (retained intangible gain is not). PERMANENT, not deferral: no throwback statute, and the retained gain is corpus gain outside DNI (IRC 643(a)(3)), so it never carries out to the settlor on a later distribution. Ongoing income on the reinvested proceeds IS taxable to a resident beneficiary when distributed","value":0,"valueType":"code","citations":[{"id":"hi-trust-nexus-incomplete-gift-2026","jurisdiction":"HI","authority":"HRS Sec. 235-1 (resident trust: fiduciary residence or in-state administration)","authorityType":"statute","title":"Hawaii trust residency follows the fiduciary or the place of administration","quote":"'Resident trust' means a trust of which the fiduciary is a resident of the State or the administration of which is carried on in the State.","url":"https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf","sourceDomain":"files.hawaii.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","href":"/api/v1/citations/hi-trust-nexus-incomplete-gift-2026"},{"id":"irc-643a3-corpus-capital-gain-excluded-from-dni","jurisdiction":"US","authority":"IRC §643(a)(3)","authorityType":"statute","title":"IRC §643(a)(3): capital gain allocated to corpus is excluded from distributable net income","quote":"Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section643&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the rule that makes an ING's escape PERMANENT rather than deferral. Income reaches a beneficiary only through DNI (IRC 652/662); a retained corpus gain is outside DNI, so a later distribution of it is principal, not income, and never enters the beneficiary's federal taxable income. Every escape state starts from the federal number, so it never enters the state base either. Conditional on the gain ACTUALLY being allocated to corpus and not distributed in the year realized: a gain routed to fiduciary accounting income, or distributed in the sale year, is in DNI and is taxable to the resident beneficiary.","href":"/api/v1/citations/irc-643a3-corpus-capital-gain-excluded-from-dni"},{"id":"irc-665c-throwback-inapplicable-qualified-domestic-trust","jurisdiction":"US","authority":"IRC §665(c)","authorityType":"statute","title":"IRC §665(c): the accumulation-distribution (throwback) rules do not reach a qualified domestic trust","quote":"(1) In general In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. (2) Qualified trust For purposes of this subsection, the term 'qualified trust' means any trust other than- (A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or (B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section665&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A modern NV/DE ING is a 'qualified trust', so the federal accumulation-distribution regime is computed without regard to undistributed net income: it is empty. States whose only accumulation rule piggybacks IRC 665-668 (OR OAR 150-316-0575, IA, KS, SC) therefore recapture nothing. Only a state with its OWN throwback keyed to income untaxed by any state can claw the gain back, and of the verified escape states only Utah has one (59-10-114(1)(g)).","href":"/api/v1/citations/irc-665c-throwback-inapplicable-qualified-domestic-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-conformity","jurisdiction":"HI","category":"conformity","label":"Federal conformity / capital-gains base","display":"Static-date IRC conformity, advanced annually: HRS 235-2.3 adopts the IRC as amended to December 31, 2024 (TY2025)","value":null,"valueType":"none","citations":[{"id":"hi-hrs-235-2-3-conformity-2024","jurisdiction":"HI","authority":"HRS §235-2.3","authorityType":"statute","title":"Hawaii adopts the IRC as amended to December 31, 2024 for tax years beginning after December 31, 2024","quote":"For all taxable years beginning after December 31, 2024, as used in this chapter, except as provided in this section and sections 235-2.35, 235-2.4, and 235-2.45, \"Internal Revenue Code\" means subtitle A, chapter 1, of the federal Internal Revenue Code of 1986, as amended as of December 31, 2024, as it applies to the determination of gross income, adjusted gross income, ordinary income and loss, and taxable income.","url":"https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf","sourceDomain":"files.hawaii.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Fixed-date conformity advanced each year by the legislature (operative date Dec 31, 2024 for TY2025). HRS 235-2.45 supplies operative dates for the §641-7518 range (incl. §1202 QSBS).","href":"/api/v1/citations/hi-hrs-235-2-3-conformity-2024"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2026-12-01"},{"factId":"hi-rate","jurisdiction":"HI","category":"rate","label":"Top income tax rate (through TY2024)","display":"11.00% on taxable income over $400,000 MFJ (12-bracket graduated schedule; lowest bracket 1.4%)","value":0.11,"valueType":"rate","citations":[{"id":"hi-hrs-235-51-top-11pct-2024","jurisdiction":"HI","authority":"HRS §235-51; Hawaii 2024 N-11 Instructions, Tax Rate Schedules (page 48)","authorityType":"form-instructions","title":"Hawaii top income tax rate 11% on income over $400,000 MFJ (TY2024); 12-bracket graduated schedule","quote":"Over $200,000 ................ $16,379 plus 11.00% over $200,000 ... Over $400,000 ................ $32,757 plus 11.00% over $400,000","url":"https://files.hawaii.gov/tax/forms/2024/n11ins.pdf","sourceDomain":"files.hawaii.gov","taxYear":2024,"asOf":"2026-07-02","confidence":"medium","note":"Quoted from the TY2024 N-11 Tax Rate Schedules. Act 46 (SLH 2024) widens the brackets for TY2025, 2027, and 2029; the $400,000 MFJ top threshold applies through TY2024 only.","href":"/api/v1/citations/hi-hrs-235-51-top-11pct-2024"}],"effectiveDate":null,"terminalDate":"2024-12-31","nextReviewDate":"2027-01-01"},{"factId":"hi-rate-act46-2025","jurisdiction":"HI","category":"rate","label":"Top income tax rate (TY2025-2026, Act 46 widened brackets)","display":"11.00% on taxable income over $650,000 MFJ / $325,000 single (Act 46, SLH 2024; 12-bracket schedule, lowest bracket 1.4%); next widening TY2027","value":0.11,"valueType":"rate","citations":[{"id":"hi-dotax-ann-2024-03-act46-brackets-2025","jurisdiction":"HI","authority":"Hawaii DOTAX Announcement 2024-03 (Act 46, SLH 2024); HRS §235-51","authorityType":"dor-guidance","title":"Hawaii TY2025-2026: 11% top rate applies over $650,000 MFJ / $325,000 single (Act 46 bracket widening)","quote":"Act 46 also amends the income tax brackets by increasing the income limits in each bracket, with amendments taking effect in tax years 2025, 2027, and 2029 ... Over $650,000 ... $51,932 plus 11% of excess over $650,000","url":"https://files.hawaii.gov/tax/news/announce/ann24-03.pdf","sourceDomain":"files.hawaii.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"The announcement's TY2026 note: 'The income tax brackets will be the same as in tax year 2025.' The next widening takes effect TY2027; encode it from the Act 46 schedule when TY2027 opens.","href":"/api/v1/citations/hi-dotax-ann-2024-03-act46-brackets-2025"}],"effectiveDate":"2025-01-01","terminalDate":"2026-12-31","nextReviewDate":"2026-12-01"},{"factId":"hi-character","jurisdiction":"HI","category":"character","label":"Net capital gain rate","display":"7.25% preferential rate on Hawaii net long-term capital gain (Tax on Capital Gains Worksheet, N-11 page 33)","value":0.0725,"valueType":"rate","citations":[{"id":"hi-n11-cg-worksheet-7-25pct-2025","jurisdiction":"HI","authority":"Hawaii 2024 N-11 Instructions, Tax on Capital Gains Worksheet (page 33, line 16)","authorityType":"dor-guidance","title":"Hawaii net long-term capital gain taxed at 7.25% (preferential rate; N-11 Tax on Capital Gains Worksheet)","quote":"Line 16. Multiply line 14 by 7.25% (.0725) and enter the result. Note: If your taxable income is $48,000 ($24,000 for Single, and Married Filing Separately; or $36,000 for Head of Household classifications) or under, do not use this worksheet.","url":"https://files.hawaii.gov/tax/forms/2024/n11ins.pdf","sourceDomain":"files.hawaii.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Hawaii Form N-11 capital gains worksheet (page 33, line 16) applies 7.25% rate to Hawaii net long-term capital gains when income exceeds $48,000 MFJ / $24,000 single thresholds. Verbatim text from the worksheet instruction line.","href":"/api/v1/citations/hi-n11-cg-worksheet-7-25pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-carryforward","jurisdiction":"HI","category":"carryforward","label":"Capital-loss carryforward limit","display":"5 years (15 for a qualified high-tech business)","value":5,"valueType":"years","citations":[{"id":"hi-cap-loss-carryforward-5yr","jurisdiction":"HI","authority":"HRS sec. 235-2.45(f)","authorityType":"statute","title":"Hawaii limits the IRC sec. 1212(a) capital-loss carryforward to five years","quote":"the capital loss carryforward allowed by section 1212(a) shall be limited to five years; except for a qualified high technology business as defined in section 235-7.3, which shall be limited to fifteen years.","url":"https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf","sourceDomain":"files.hawaii.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Carrybacks under sec. 1212 are not operative in Hawaii. The 15-year window is QHTB-only. URL resolves to the full HRS Chapter 235 PDF; §235-2.45(f) is within this chapter.","href":"/api/v1/citations/hi-cap-loss-carryforward-5yr"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-muni-instate","jurisdiction":"HI","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: HRS §235-7 exempts interest on Hawaii state and local obligations from Hawaii income","value":1,"valueType":"binary-exempt","citations":[{"id":"hi-hrs-235-7-muni-default-2025","jurisdiction":"HI","authority":"HRS §235-7","authorityType":"form-instructions","title":"HI exempts HI-issued bonds; out-of-state muni bond interest is taxable per HRS §235-7","quote":"If you received interest from bonds issued by another State, or a county, city, or political subdivision of another State, this interest must be included in your Hawaii income.","url":"https://files.hawaii.gov/tax/forms/current/n11ins.pdf","sourceDomain":"files.hawaii.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"HRS §235-7; Hawaii Form N-11 Instructions. HI bonds exempt; other states' muni bonds are taxable Hawaii income. Confidence medium: quote is from form instructions PDF, not directly from the HRS §235-7 statute text at the legislature URL.","href":"/api/v1/citations/hi-hrs-235-7-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-muni-outstate","jurisdiction":"HI","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: HRS §235-7 interest from bonds of another state must be included in Hawaii income","value":0,"valueType":"binary-exempt","citations":[{"id":"hi-hrs-235-7-muni-default-2025","jurisdiction":"HI","authority":"HRS §235-7","authorityType":"form-instructions","title":"HI exempts HI-issued bonds; out-of-state muni bond interest is taxable per HRS §235-7","quote":"If you received interest from bonds issued by another State, or a county, city, or political subdivision of another State, this interest must be included in your Hawaii income.","url":"https://files.hawaii.gov/tax/forms/current/n11ins.pdf","sourceDomain":"files.hawaii.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"HRS §235-7; Hawaii Form N-11 Instructions. HI bonds exempt; other states' muni bonds are taxable Hawaii income. Confidence medium: quote is from form instructions PDF, not directly from the HRS §235-7 statute text at the legislature URL.","href":"/api/v1/citations/hi-hrs-235-7-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-qoz-conformity","jurisdiction":"HI","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Partial conformity: Hawaii conforms to IRC §1400Z-2 only for QOF investments in Hawaii-designated opportunity zones; federal QOF investments in non-Hawaii zones receive no Hawaii QOZ tax benefit","value":2,"valueType":"code","citations":[{"id":"hi-qoz-conformity-irc-1400z2-2025","jurisdiction":"HI","authority":"HRS Ch. 235 (SB1130 SLH 2019)","authorityType":"session-law","title":"Hawaii partially conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"Subchapter Z (sections 1400Z-1 to 1400Z-2) (with respect to opportunity zones) shall be operative for purposes of this chapter; except that for purposes of this chapter, subchapter Z shall only apply to qualified opportunity zones, as defined in section 1400Z-1, that are designated as such by the chief executive officer of this State.","url":"https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf","sourceDomain":"files.hawaii.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"medium","note":"HRS §235-2.45 makes IRC Subchapter Z (§§1400Z-1 to 1400Z-2) operative for Hawaii but limits it to opportunity zones designated by the State's chief executive officer, so federal QOF investments in non-Hawaii zones get no Hawaii QOZ treatment. A prior version of this fact quoted a 'qualified opportunity zone tax incentive program administered by DBEDT' sentence that does not appear in HRS Ch. 235 (verified by extracting the full chapter PDF); corrected to the §235-2.45 conformity clause.","href":"/api/v1/citations/hi-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-qsbs-conformity","jurisdiction":"HI","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Partial conformity: Hawaii conforms to IRC §1202 but the 75% and 100% exclusion tiers (§1202(a)(3) and §1202(a)(4)) are inoperative; only the original 50% exclusion under §1202(a)(1) applies regardless of acquisition date","value":null,"valueType":"partial","citations":[{"id":"hi-qsbs-conformity-irc-1202-2025","jurisdiction":"HI","authority":"HRS §235-2.45(e)","authorityType":"statute","title":"Hawaii partially conforms to IRC §1202 QSBS exclusion; 75% and 100% tiers inoperative","quote":"Section 1202 (with respect to partial exclusion for gain from certain small business stock) shall be operative for purposes of this chapter, except that section 1202(a)(3) and (4) shall not be operative","url":"https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf","sourceDomain":"files.hawaii.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Hawaii HRS §235-2.45(e) conforms to IRC §1202 but makes §1202(a)(3) and §1202(a)(4) (the 75% and 100% exclusion tiers) inoperative; only the original 50% exclusion tier applies in Hawaii regardless of acquisition date. URL resolves to the full HRS Chapter 235 PDF.","href":"/api/v1/citations/hi-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-agency-obligations","jurisdiction":"HI","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: HRS §235-7(a) subtraction requires interest be 'exempt from state income taxes under the laws of the United States' (per TIR 84-1 framework); FNMA/FHLMC have no federal bondholder exemption statute","value":0,"valueType":"binary-exempt","citations":[{"id":"hi-hrs-235-7-fnma-fhlmc-taxable-2025","jurisdiction":"HI","authority":"Hawaii Form N-11 Instructions (current year), Interest Income section","authorityType":"form-instructions","title":"Hawaii FNMA and FHLMC bond interest is taxable: HRS §235-7(a) exempts only interest exempt under federal law; FNMA/FHLMC have no federal bondholder exemption","quote":"If you reported for federal purposes any interest received on federal obligations, including Treasury bills and notes and U.S. Savings Bonds, enter the amount of that interest on line a of the Hawaii Subtractions Worksheet. For more information about what kinds of obligations should be reported here, see Tax Information Release No. 84-1, \"Taxability of Interest on U.S. Obligations.\"","url":"https://files.hawaii.gov/tax/forms/current/n11ins.pdf","sourceDomain":"files.hawaii.gov","taxYear":2025,"asOf":"2026-07-04","confidence":"medium","note":"The Hawaii N-11 subtraction for federal-obligation interest is limited to genuine federal obligations (Treasury bills/notes, U.S. Savings Bonds) and points to TIR 84-1 for what qualifies. FNMA/FHLMC bonds are not federal obligations exempt under federal law (no bondholder-exemption statute), so their interest is not subtractable and remains taxable in Hawaii under HRS 235-7(a). Confidence medium: the N-11 quote establishes the limited subtraction set; the FNMA/FHLMC-specific taxability follows from TIR 84-1, not verbatim from the N-11 itself. Verbatim extracted from the live n11ins.pdf on 2026-07-04.","href":"/api/v1/citations/hi-hrs-235-7-fnma-fhlmc-taxable-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-dividend-qualified","jurisdiction":"HI","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: Hawaii has no IRC §1(h)(11) preferential rate; qualified dividends taxed at ordinary rates up to 11%; the 7.25% CG worksheet applies only to net long-term capital gains from asset sales","value":0,"valueType":"binary-exempt","citations":[{"id":"hi-hrs-235-51-top-11pct-2024","jurisdiction":"HI","authority":"HRS §235-51; Hawaii 2024 N-11 Instructions, Tax Rate Schedules (page 48)","authorityType":"form-instructions","title":"Hawaii top income tax rate 11% on income over $400,000 MFJ (TY2024); 12-bracket graduated schedule","quote":"Over $200,000 ................ $16,379 plus 11.00% over $200,000 ... Over $400,000 ................ $32,757 plus 11.00% over $400,000","url":"https://files.hawaii.gov/tax/forms/2024/n11ins.pdf","sourceDomain":"files.hawaii.gov","taxYear":2024,"asOf":"2026-07-02","confidence":"medium","note":"Quoted from the TY2024 N-11 Tax Rate Schedules. Act 46 (SLH 2024) widens the brackets for TY2025, 2027, and 2029; the $400,000 MFJ top threshold applies through TY2024 only.","href":"/api/v1/citations/hi-hrs-235-51-top-11pct-2024"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-treasury","jurisdiction":"HI","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"hi-31-usc-3124-treasury-exempt-2025","jurisdiction":"HI","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Hawaii income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/hi-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-fhlb-ffcb","jurisdiction":"HI","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"hi-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"HI","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Hawaii income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/hi-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-carryback","jurisdiction":"HI","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years; note Hawaii also caps the carryforward to 5 years per HRS §235-2.45(f)","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-estate-rate","jurisdiction":"HI","category":"estate-rate","label":"Estate tax top marginal rate (TY2025)","display":"10% to 20% graduated; top 20% on the net taxable estate over $10,000,000 (HRS § 236E-8)","value":0.2,"valueType":"rate","citations":[{"id":"hi-hrs-236e-8-estate-top-rate-2025","jurisdiction":"HI","authority":"HRS § 236E-8","authorityType":"statute","title":"Hawaii estate tax graduated schedule: top marginal rate 20% on the net taxable estate over $10,000,000","quote":"Over $10,000,000            $1,385,000 plus 20% of the amount by which the Hawaii net taxable estate exceeds $10,000,000.","url":"https://data.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0236E/HRS_0236E-0008.htm","sourceDomain":"data.capitol.hawaii.gov","taxYear":2025,"asOf":"2026-07-19","confidence":"high","note":"Verbatim from the HRS § 236E-8 schedule (decedents dying after January 25, 2012). The 10% bottom bracket rises through the schedule to a 20% top marginal rate on the portion of the Hawaii net taxable estate over $10,000,000. Corrects a prior encode of 16%, which was never in the statute.","href":"/api/v1/citations/hi-hrs-236e-8-estate-top-rate-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-estate-exemption","jurisdiction":"HI","category":"estate-exemption","label":"Estate tax exclusion (TY2025)","display":"$5,490,000; frozen to federal unified credit as of December 21, 2017 under HRS § 236E-6; does not track post-2017 federal increases","value":5490000,"valueType":"dollars","citations":[{"id":"hi-hrs-236e-6-estate-tax-2025","jurisdiction":"HI","authority":"HRS § 236E-6; Hawaii DOTAX Form M-6 Instructions (2025)","authorityType":"statute","title":"Hawaii estate tax exclusion: $5,490,000, frozen to the IRC as of Dec 21, 2017","quote":"the applicable exclusion amount equal to the exemption equivalent of the unified credit on the decedent's federal estate tax return as set forth for the decedent in chapter 11 of the Internal Revenue Code as amended as of December 21, 2017, as if the decedent died on December 31, 2017","url":"https://data.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0236E/HRS_0236E-0006.htm","sourceDomain":"data.capitol.hawaii.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"Hawaii exclusion is frozen to the IRC as of Dec 21, 2017 (not updated for post-TCJA federal increases). TY2025 exclusion is $5,490,000 per Hawaii DOTAX Form M-6 instructions. The graduated rate schedule is a separate provision, HRS § 236E-8 (see HI_ESTATE_RATE).","href":"/api/v1/citations/hi-hrs-236e-6-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-filing-status-doubled","jurisdiction":"HI","category":"filing-status-doubled","label":"MFJ brackets double Single brackets","display":"Yes: HRS §235-51 rate schedules set MFJ bracket thresholds at exactly double Single thresholds at every bracket boundary (marriage neutral on graduated schedule)","value":1,"valueType":"binary-exempt","citations":[{"id":"hi-hrs-235-51-mfj-double-single-2025","jurisdiction":"HI","authority":"Hawaii Tax Rate Schedules (effective for taxable years beginning after Dec 31, 2017), tax.hawaii.gov","authorityType":"dor-guidance","title":"Hawaii income tax: MFJ bracket thresholds double Single thresholds; same marginal rates at each corresponding bracket","quote":"Over $200,000 ................ $16,379 plus 11.00% over $200,000 ... Over $400,000 ................ $32,757 plus 11.00% over $400,000","url":"https://tax.hawaii.gov/forms/d_18table-on/d_18table-on_p13/","sourceDomain":"tax.hawaii.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"HRS §235-51 provides separate rate schedules: the quoted top rows show Schedule I (single, over $200,000) and Schedule II (MFJ, over $400,000); the MFJ threshold is exactly double the single threshold at the same 11% marginal rate, and the base tax ($32,757) is 2x the single base ($16,379, rounding aside).","href":"/api/v1/citations/hi-hrs-235-51-mfj-double-single-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-marital-udcprda","jurisdiction":"HI","category":"marital-udcprda","label":"Uniform Disposition of Community Property Rights at Death Act (UDCPRDA)","display":"Yes: HRS §§510-21 to 510-30 preserves community property character of assets acquired in CP states at death of a Hawaii resident (enacted 1973); surviving spouse retains one-half CP interest","value":1,"valueType":"binary-exempt","citations":[{"id":"hi-hrs-510-21-udcprda-1973","jurisdiction":"HI","authority":"HRS §§510-21 to 510-30, Part II (L 1973, c 132; 1971 uniform act)","authorityType":"statute","title":"Hawaii adopted UDCPRDA (Uniform Disposition of Community Property Rights at Death Act) in 1973","quote":"This part applies to the disposition at death of the following property acquired by a married person: (1) All personal property, wherever situated: (A) Which was acquired as or became, and remained, community property under the laws of another jurisdiction.","url":"https://data.capitol.hawaii.gov/hrscurrent/Vol12_Ch0501-0588/HRS0510/HRS_0510-0021.htm","sourceDomain":"data.capitol.hawaii.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Hawaii enacted UDCPRDA in 1973 (L 1973, c 132; 1971 original uniform act). Protects community property character of assets acquired in community property states when a couple moves to Hawaii.","href":"/api/v1/citations/hi-hrs-510-21-udcprda-1973"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"hi-migration-loss-conformity","jurisdiction":"HI","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform: Hawaii conforms to imported Schedule D federal carryforward bank, but caps the carryforward to 5 years per HRS § 235-2.45(f).","value":1,"valueType":"code","citations":[{"id":"hi-cap-loss-carryforward-5yr","jurisdiction":"HI","authority":"HRS sec. 235-2.45(f)","authorityType":"statute","title":"Hawaii limits the IRC sec. 1212(a) capital-loss carryforward to five years","quote":"the capital loss carryforward allowed by section 1212(a) shall be limited to five years; except for a qualified high technology business as defined in section 235-7.3, which shall be limited to fifteen years.","url":"https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf","sourceDomain":"files.hawaii.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Carrybacks under sec. 1212 are not operative in Hawaii. The 15-year window is QHTB-only. URL resolves to the full HRS Chapter 235 PDF; §235-2.45(f) is within this chapter.","href":"/api/v1/citations/hi-cap-loss-carryforward-5yr"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"ID","name":"Idaho","level":"state","facts":[{"factId":"id-trust-nexus-incomplete-gift","jurisdiction":"ID","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES: the ING hits only condition (a) of five (grantor domicile); one of five is far short of the required three, so the trust is nonresident. PERMANENT, not deferral: no throwback statute, and the retained gain is corpus gain outside DNI (IRC 643(a)(3)), so it never carries out to the settlor on a later distribution. Ongoing income on the reinvested proceeds IS taxable to a resident beneficiary when distributed","value":0,"valueType":"code","citations":[{"id":"id-trust-nexus-incomplete-gift-2026","jurisdiction":"ID","authority":"Idaho Code Sec. 63-3015(2) (resident trust: three-of-five conditions)","authorityType":"statute","title":"Idaho requires three of five listed conditions for the entire year; a NV-sited ING of an Idaho settlor meets only one","quote":"A trust, other than a qualified funeral trust, is treated as a resident trust if three (3) or more of the following conditions existed for the entire taxable year: (a) The domicile or residency of the grantor is in Idaho; (b) The trust is governed by Idaho law; (c) The trust has real or tangible personal property located in Idaho; (d) The domicile or residency of the trustee is in Idaho; (e) The administration of the trust takes place in Idaho.","url":"https://legislature.idaho.gov/statutesrules/idstat/title63/t63ch30/sect63-3015/","sourceDomain":"legislature.idaho.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"Load-bearing details: the trust instrument must be governed by NV/DE law and hold no Idaho real or tangible property.","href":"/api/v1/citations/id-trust-nexus-incomplete-gift-2026"},{"id":"irc-643a3-corpus-capital-gain-excluded-from-dni","jurisdiction":"US","authority":"IRC §643(a)(3)","authorityType":"statute","title":"IRC §643(a)(3): capital gain allocated to corpus is excluded from distributable net income","quote":"Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section643&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the rule that makes an ING's escape PERMANENT rather than deferral. Income reaches a beneficiary only through DNI (IRC 652/662); a retained corpus gain is outside DNI, so a later distribution of it is principal, not income, and never enters the beneficiary's federal taxable income. Every escape state starts from the federal number, so it never enters the state base either. Conditional on the gain ACTUALLY being allocated to corpus and not distributed in the year realized: a gain routed to fiduciary accounting income, or distributed in the sale year, is in DNI and is taxable to the resident beneficiary.","href":"/api/v1/citations/irc-643a3-corpus-capital-gain-excluded-from-dni"},{"id":"irc-665c-throwback-inapplicable-qualified-domestic-trust","jurisdiction":"US","authority":"IRC §665(c)","authorityType":"statute","title":"IRC §665(c): the accumulation-distribution (throwback) rules do not reach a qualified domestic trust","quote":"(1) In general In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. (2) Qualified trust For purposes of this subsection, the term 'qualified trust' means any trust other than- (A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or (B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section665&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A modern NV/DE ING is a 'qualified trust', so the federal accumulation-distribution regime is computed without regard to undistributed net income: it is empty. States whose only accumulation rule piggybacks IRC 665-668 (OR OAR 150-316-0575, IA, KS, SC) therefore recapture nothing. Only a state with its OWN throwback keyed to income untaxed by any state can claw the gain back, and of the verified escape states only Utah has one (59-10-114(1)(g)).","href":"/api/v1/citations/irc-665c-throwback-inapplicable-qualified-domestic-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-estate-none","jurisdiction":"ID","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"id-estate-none-2025","jurisdiction":"ID","authority":"Idaho State Tax Commission, Estates and Taxes","authorityType":"dor-guidance","title":"Idaho has no inheritance tax and its estate tax expired for deaths in 2004","quote":"Idaho has no gift tax or inheritance tax, and its estate tax for deaths expired in 2004.","url":"https://tax.idaho.gov/taxes/estates-and-taxes/","sourceDomain":"tax.idaho.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Verbatim from the live page, including the slightly awkward phrasing 'estate tax for deaths expired in 2004'.","href":"/api/v1/citations/id-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-rate","jurisdiction":"ID","category":"rate","label":"Top income tax rate (TY2025)","display":"5.3% flat on federal taxable income above $2,500 (single) / $5,000 (MFJ); retroactive to TY2025","value":0.053,"valueType":"rate","citations":[{"id":"id-ic-63-3024-flat-5-3pct-2025","jurisdiction":"ID","authority":"Idaho Code §63-3024 (as amended, retroactive TY2025)","authorityType":"statute","title":"Idaho income tax rate is 5.3% on taxable income above $2,500 (single filer) for TY2025","quote":"The tax imposed upon individuals, trusts, and estates shall be computed at the rate of five and three-tenths percent (5.3%) of taxable income over two thousand five hundred dollars ($2,500).","url":"https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/SECT63-3024/","sourceDomain":"legislature.idaho.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Idaho's base is federal taxable income, so the federal MFJ standard deduction shelters the first ~$30,000 of gains. The 60% Idaho-property deduction explicitly excludes stocks and bonds and is immaterial to portfolio CG.","href":"/api/v1/citations/id-ic-63-3024-flat-5-3pct-2025"}],"effectiveDate":"2025-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-rate-terminal-2024-12-31","jurisdiction":"ID","category":"rate","label":"Top income tax rate (TY2024)","display":"5.695% flat above $4,674 (single); fell to 5.3% in TY2025","value":0.05695,"valueType":"rate","citations":[{"id":"id-ic-63-3024-top-5-695pct-2024","jurisdiction":"ID","authority":"Idaho Code §63-3024","authorityType":"statute","title":"Idaho income tax rate is 5.695% on taxable income over $2,500 (single) for TY2024","quote":"The tax imposed upon individuals, trusts, and estates shall be computed at the rate of five and six hundred ninety-five thousandths percent (5.695%) of taxable income over two thousand five hundred dollars ($2,500).","url":"https://legislature.idaho.gov/wp-content/uploads/sessioninfo/2024/legislation/H0521.pdf","sourceDomain":"legislature.idaho.gov","taxYear":2024,"asOf":"2026-07-22","confidence":"high","note":"Verbatim from §63-3024(2)(a) as enacted by HB 521 (2024, ch. 237). The statutory base is $2,500 single / $5,000 joint (CPI-indexed; the $4,674 a prior version quoted was an indexed figure, not statutory text). This 5.695% rate was reduced to 5.3% for TY2025 (2025 ch. 13 / HB 40), so the live §63-3024 page now shows only 5.3%; this citation points at the HB 521 session law that holds the 5.695% text. A prior version quoted a reconstructed sentence with the wrong ($4,674) threshold.","href":"/api/v1/citations/id-ic-63-3024-top-5-695pct-2024"}],"effectiveDate":"2024-01-01","terminalDate":"2024-12-31","nextReviewDate":"2027-01-01"},{"factId":"id-conformity","jurisdiction":"ID","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-muni-instate","jurisdiction":"ID","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: Idaho Code §63-3022: Idaho state and local bond interest exempt from Idaho income","value":1,"valueType":"binary-exempt","citations":[{"id":"id-idaho-code-63-3022-muni-default-2025","jurisdiction":"ID","authority":"Idaho Code §63-3022; IDAPA 35.01.01 Rule 105.01","authorityType":"regulation","title":"ID exempts ID-issued bonds; out-of-state muni bond interest is an Idaho income addition per Idaho Code §63-3022","quote":"Certain interest and dividend income that is exempt from federal income tax must be added. The addition includes interest from bonds of states other than Idaho and their political subdivisions.","url":"https://adminrules.idaho.gov/rules/current/35/350101.pdf","sourceDomain":"adminrules.idaho.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Idaho Code §63-3022 and IDAPA 35.01.01 Rule 105.01. Idaho bonds exempt; out-of-state bonds taxable.","href":"/api/v1/citations/id-idaho-code-63-3022-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-muni-outstate","jurisdiction":"ID","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: Idaho Code §63-3022 / IDAPA Rule 105.01: out-of-state muni bond interest added to Idaho income","value":0,"valueType":"binary-exempt","citations":[{"id":"id-idaho-code-63-3022-muni-default-2025","jurisdiction":"ID","authority":"Idaho Code §63-3022; IDAPA 35.01.01 Rule 105.01","authorityType":"regulation","title":"ID exempts ID-issued bonds; out-of-state muni bond interest is an Idaho income addition per Idaho Code §63-3022","quote":"Certain interest and dividend income that is exempt from federal income tax must be added. The addition includes interest from bonds of states other than Idaho and their political subdivisions.","url":"https://adminrules.idaho.gov/rules/current/35/350101.pdf","sourceDomain":"adminrules.idaho.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Idaho Code §63-3022 and IDAPA 35.01.01 Rule 105.01. Idaho bonds exempt; out-of-state bonds taxable.","href":"/api/v1/citations/id-idaho-code-63-3022-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-qoz-conformity","jurisdiction":"ID","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"id-qoz-conformity-irc-1400z2-2025","jurisdiction":"ID","authority":"Idaho Code §63-3004","authorityType":"statute","title":"Idaho conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The term \"Internal Revenue Code\" means the Internal Revenue Code as amended and in effect on the first day of January 2026, except that: (1) Internal Revenue Code section 85 is applied as in effect on January 1, 2020.","url":"https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/SECT63-3004/","sourceDomain":"legislature.idaho.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"Verbatim (lead) from §63-3004's IRC-conformity definition (as of January 1, 2026, with the §85 and §174 exceptions), which incorporates §1400Z-2. A prior version quoted a reconstructed imposition sentence that does not appear in §63-3004.","href":"/api/v1/citations/id-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-qsbs-conformity","jurisdiction":"ID","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"id-qsbs-conformity-irc-1202-2025","jurisdiction":"ID","authority":"Idaho Code §63-3011B","authorityType":"statute","title":"Idaho conforms to IRC §1202 QSBS gain exclusion","quote":"The term \"taxable income\" means federal taxable income as determined under the Internal Revenue Code.","url":"https://legislature.idaho.gov/statutesrules/idstat/title63/t63ch30/sect63-3011b/","sourceDomain":"legislature.idaho.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"Idaho IRC conformity incorporates §1202; no addback.","href":"/api/v1/citations/id-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-agency-obligations","jurisdiction":"ID","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: Idaho starts from federal taxable income; FNMA/FHLMC interest is in that base and the §63-3022 add-back applies only to IRC §103-excluded muni interest, not GSE interest","value":0,"valueType":"binary-exempt","citations":[{"id":"id-ic-63-3022-fnma-fhlmc-in-base","jurisdiction":"ID","authority":"Idaho Admin. Code r. 35.01.01.085 (IDAPA 35.01.01)","authorityType":"regulation","title":"Idaho taxes FNMA and FHLMC bond interest: Idaho starts from federal taxable income (which includes FNMA/FHLMC interest); the §63-3022 add-back applies only to IRC §103-excluded muni interest","quote":"Certain interest and dividend income that is exempt from federal income tax must be added. The addition includes interest from bonds of states other than Idaho and their political subdivisions.","url":"https://adminrules.idaho.gov/rules/current/35/350101.pdf","sourceDomain":"adminrules.idaho.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"Idaho starts from federal taxable income. FNMA and FHLMC bond interest is INCLUDED in federal taxable income; it is not IRC §103-excluded. The §63-3022 add-back applies only to IRC §103-excluded out-of-state muni interest; FNMA/FHLMC interest is already in the base. No separate Idaho subtraction exists for non-federally-preempted GSE interest.","href":"/api/v1/citations/id-ic-63-3022-fnma-fhlmc-in-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-dividend-qualified","jurisdiction":"ID","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: Idaho has no IRC §1(h)(11) preferential rate; qualified dividends taxed at the 5.3% flat rate","value":0,"valueType":"binary-exempt","citations":[{"id":"id-ic-63-3024-flat-5-3pct-2025","jurisdiction":"ID","authority":"Idaho Code §63-3024 (as amended, retroactive TY2025)","authorityType":"statute","title":"Idaho income tax rate is 5.3% on taxable income above $2,500 (single filer) for TY2025","quote":"The tax imposed upon individuals, trusts, and estates shall be computed at the rate of five and three-tenths percent (5.3%) of taxable income over two thousand five hundred dollars ($2,500).","url":"https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/SECT63-3024/","sourceDomain":"legislature.idaho.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Idaho's base is federal taxable income, so the federal MFJ standard deduction shelters the first ~$30,000 of gains. The 60% Idaho-property deduction explicitly excludes stocks and bonds and is immaterial to portfolio CG.","href":"/api/v1/citations/id-ic-63-3024-flat-5-3pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-treasury","jurisdiction":"ID","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"id-31-usc-3124-treasury-exempt-2025","jurisdiction":"ID","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Idaho income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/id-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-fhlb-ffcb","jurisdiction":"ID","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"id-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"ID","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Idaho income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/id-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-carryback","jurisdiction":"ID","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-character","jurisdiction":"ID","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the flat 5.3% rate (Idaho Code §63-3024)","value":null,"valueType":"none","citations":[{"id":"id-ic-63-3024-flat-5-3pct-2025","jurisdiction":"ID","authority":"Idaho Code §63-3024 (as amended, retroactive TY2025)","authorityType":"statute","title":"Idaho income tax rate is 5.3% on taxable income above $2,500 (single filer) for TY2025","quote":"The tax imposed upon individuals, trusts, and estates shall be computed at the rate of five and three-tenths percent (5.3%) of taxable income over two thousand five hundred dollars ($2,500).","url":"https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/SECT63-3024/","sourceDomain":"legislature.idaho.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Idaho's base is federal taxable income, so the federal MFJ standard deduction shelters the first ~$30,000 of gains. The 60% Idaho-property deduction explicitly excludes stocks and bonds and is immaterial to portfolio CG.","href":"/api/v1/citations/id-ic-63-3024-flat-5-3pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-community-property","jurisdiction":"ID","category":"community-property","label":"Community property state","display":"Community property state: property acquired during marriage is community property; each spouse owns one-half (Idaho Code § 32-906); separate property (owned before marriage or received by gift/inheritance) is excluded","value":1,"valueType":"binary-exempt","citations":[{"id":"id-code-32-906-community-property-2025","jurisdiction":"ID","authority":"Idaho Code § 32-906","authorityType":"statute","title":"Idaho is a community property state: property acquired during marriage is community property (Idaho Code § 32-906)","quote":"All property acquired after marriage by either husband or wife, except as provided in section 32-903, Idaho Code, is community property.","url":"https://legislature.idaho.gov/statutesrules/idstat/Title32/T32CH9/SECT32-906/","sourceDomain":"legislature.idaho.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"Idaho has been a community property state since territorial days. Idaho Code § 32-906 is the principal statute. Idaho community property includes wages, salaries, and income from community property. Separate property (§ 32-903) is property owned before marriage or acquired by gift or inheritance during marriage.","href":"/api/v1/citations/id-code-32-906-community-property-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-filing-status-doubled","jurisdiction":"ID","category":"filing-status-doubled","label":"MFJ brackets double Single brackets","display":"Yes: Idaho Code §63-3024(2)(b) sets the joint-return taxable income threshold at $5,000 (exactly 2× the $2,500 single threshold in §63-3024(2)(a)); flat 5.3% rate above each doubled threshold (marriage neutral)","value":1,"valueType":"binary-exempt","citations":[{"id":"id-ic-63-3024-2b-joint-threshold-5000","jurisdiction":"ID","authority":"Idaho Code §63-3024(2)(a) and §63-3024(2)(b)","authorityType":"statute","title":"Idaho income tax: joint-return income threshold ($5,000) is exactly double single-filer threshold ($2,500); flat 5.3% rate applies above each threshold","quote":"(2)(a) The tax imposed upon individuals, trusts, and estates shall be computed at the rate of five and three-tenths percent (5.3%) of taxable income over two thousand five hundred dollars ($2,500). (2)(b) For taxpayers filing a joint return pursuant to the provisions of section 63-3031, Idaho Code, the tax imposed shall be computed at the rate of five and three-tenths percent (5.3%) of taxable income over five thousand dollars ($5,000).","url":"https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/SECT63-3024/","sourceDomain":"legislature.idaho.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Idaho has a single flat rate (5.3%) that applies above the income threshold. The threshold doubles for joint filers: $2,500 for individuals vs. $5,000 for joint returns (§63-3031). Thresholds are adjusted annually for inflation under §63-3024(3). The $5,000/$2,500 doubling is exactly 2×, making Idaho marriage-neutral in the threshold structure.","href":"/api/v1/citations/id-ic-63-3024-2b-joint-threshold-5000"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"id-migration-loss-conformity","jurisdiction":"ID","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Disallowed: Idaho Form 39NR adds back capital losses incurred in another state or that Idaho does not tax, so a pre-residency federal capital-loss carryforward cannot offset Idaho gains.","value":0,"valueType":"code","citations":[{"id":"id-migration-loss-conformity-src","jurisdiction":"ID","authority":"Idaho Form 39NR, Additions","authorityType":"form-instructions","title":"Idaho Form 39NR adds back capital losses incurred in another state or that Idaho does not tax","quote":"Column A: Enter any capital losses included on federal Form 1040 or 1040-SR, line 7 that you incurred in another state or capital losses from activities that Idaho doesn't tax.","url":"https://tax.idaho.gov/document-mngr/forms_EFO00087/","sourceDomain":"tax.idaho.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Idaho Form 39NR (Additions), Capital Loss Carryforward line, requires adding back capital losses incurred in another state or that Idaho does not tax, so an imported pre-residency federal capital-loss carryforward cannot offset Idaho gains. Quote verbatim from the live Form 39NR PDF (fetched via curl).","href":"/api/v1/citations/id-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"IL","name":"Illinois","level":"state","facts":[{"factId":"il-trust-nexus-incomplete-gift","jurisdiction":"IL","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: the ING qualifies as 'irrevocable' precisely because it is non-grantor, making it an IL resident trust; Linn's as-applied due-process limit protected a trust with ZERO current IL contacts, and the IL-resident settlor-beneficiary is a live contact per the Department's own 2025 GIL","value":2,"valueType":"code","citations":[{"id":"il-trust-nexus-incomplete-gift-2026","jurisdiction":"IL","authority":"35 ILCS 5/1501(a)(20)(D); Linn v. Dept. of Revenue, 2013 IL App (4th) 121055; IL DOR IT 25-0009-GIL (2025-09-11)","authorityType":"statute","title":"Illinois taxes an irrevocable trust whose grantor was Illinois-domiciled at irrevocability; Linn limits it only for no-contact trusts","quote":"An irrevocable trust, the grantor of which was domiciled in this State at the time such trust became irrevocable. For purpose of this subparagraph, a trust shall be considered irrevocable to the extent that the grantor is not treated as the owner thereof under Sections 671 through 678 of the Internal Revenue Code.","url":"https://www.ilga.gov/documents/legislation/ilcs/documents/003500050K1501.htm","sourceDomain":"www.ilga.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"Linn (2013): grantor residency alone was 'not a sufficient connection to satisfy due process' for a decades-old trust with no IL trustee, assets, or noncontingent beneficiary. IT 25-0009-GIL applies a sufficiency-of-contacts analysis naming an in-state beneficiary as a contact.","href":"/api/v1/citations/il-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-rate","jurisdiction":"IL","category":"rate","label":"Top income tax rate (TY2025)","display":"4.95% flat on net income","value":0.0495,"valueType":"rate","citations":[{"id":"il-35ilcs5-201-flat-4-95pct-2025","jurisdiction":"IL","authority":"35 ILCS 5/201(b)(1) (Illinois Income Tax Act)","authorityType":"statute","title":"Illinois flat income tax rate is 4.95% on net income","quote":"for taxable years beginning on or after July 1, 2017, an amount equal to 4.95% of the taxpayer's net income for the taxable year.","url":"https://www.ilga.gov/Documents/legislation/ilcs/documents/003500050K201.htm","sourceDomain":"www.ilga.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim statutory text from 35 ILCS 5/201(b)(1) confirmed. URL resolves to the chapter-level ILGA index; §201(b)(1) is within this chapter. Illinois ILGA site serves the current statute. The 4.95% rate has applied since 2017 (the 2011 temporary increase expired and was replaced with the permanent 4.95%). Personal exemption $2,850/person; CLIFF to $0 at FAGI above $500,000 MFJ (immaterial at large-gain sizes).","href":"/api/v1/citations/il-35ilcs5-201-flat-4-95pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-conformity","jurisdiction":"IL","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-muni-instate","jurisdiction":"IL","category":"muni-instate","label":"In-state muni bond interest","display":"Taxable: 35 ILCS 5/203(a)(2)(A) adds back all federally-excluded interest; only narrow specific IL bond categories are exempt (86 Ill. Adm. Code 100.2470); standard IL GOs are taxable","value":0,"valueType":"binary-exempt","citations":[{"id":"il-35ilcs5-203-muni-both-taxable-2025","jurisdiction":"IL","authority":"35 ILCS 5/203(a)(2)(A) and (N); 86 Ill. Adm. Code 100.2470","authorityType":"statute","title":"IL taxes both in-state and out-of-state muni bond interest add-back of all federally-excluded interest","quote":"An amount equal to all amounts paid or accrued to the taxpayer as interest or dividends during the taxable year to the extent excluded from gross income in the computation of adjusted gross income, except stock dividends of qualified public utilities described in Section 305(e) of the Internal Revenue Code;","url":"https://www.ilga.gov/Documents/legislation/ilcs/documents/003500050K203.htm","sourceDomain":"www.ilga.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"35 ILCS 5/203(a)(2)(A) adds back to base income all interest excluded from federal adjusted gross income, making both in-state and out-of-state municipal bond interest taxable in Illinois (only specific enumerated Illinois bonds escape). Quote verbatim from the live ILGA statute page.","href":"/api/v1/citations/il-35ilcs5-203-muni-both-taxable-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-muni-outstate","jurisdiction":"IL","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: 35 ILCS 5/203(a)(2)(A) requires add-back of all interest excluded from federal AGI; no state-law exemption for out-of-state bonds","value":0,"valueType":"binary-exempt","citations":[{"id":"il-35ilcs5-203-muni-both-taxable-2025","jurisdiction":"IL","authority":"35 ILCS 5/203(a)(2)(A) and (N); 86 Ill. Adm. Code 100.2470","authorityType":"statute","title":"IL taxes both in-state and out-of-state muni bond interest add-back of all federally-excluded interest","quote":"An amount equal to all amounts paid or accrued to the taxpayer as interest or dividends during the taxable year to the extent excluded from gross income in the computation of adjusted gross income, except stock dividends of qualified public utilities described in Section 305(e) of the Internal Revenue Code;","url":"https://www.ilga.gov/Documents/legislation/ilcs/documents/003500050K203.htm","sourceDomain":"www.ilga.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"35 ILCS 5/203(a)(2)(A) adds back to base income all interest excluded from federal adjusted gross income, making both in-state and out-of-state municipal bond interest taxable in Illinois (only specific enumerated Illinois bonds escape). Quote verbatim from the live ILGA statute page.","href":"/api/v1/citations/il-35ilcs5-203-muni-both-taxable-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-qoz-conformity","jurisdiction":"IL","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"il-qoz-conformity-irc-1400z2-2025","jurisdiction":"IL","authority":"35 ILCS 5/102 (Illinois Income Tax Act)","authorityType":"statute","title":"Illinois conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"Except as otherwise expressly provided or clearly appearing from the context, any term used in this Act shall have the same meaning as when used in a comparable context in the United States Internal Revenue Code of 1954 or any successor law or laws relating to federal income taxes and other provisions of the statutes of the United States relating to federal income taxes as such Code, laws and statutes are in effect for the taxable year.","url":"https://www.ilga.gov/Documents/legislation/ilcs/documents/003500050K102.htm","sourceDomain":"www.ilga.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"35 ILCS 5/102 defines Illinois gross income by reference to the Internal Revenue Code as amended. Rolling IRC conformity incorporates IRC §1400Z-2 (QOZ gain deferral and 10-year exclusion) without modification.","href":"/api/v1/citations/il-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-qsbs-conformity","jurisdiction":"IL","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202) through TY2025","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity through TY2025; no addback (decoupled for TY2026 forward by P.A. 104-0468)","value":1,"valueType":"binary-exempt","citations":[{"id":"il-qsbs-conformity-irc-1202-2025","jurisdiction":"IL","authority":"35 ILCS 5/102 (Illinois Income Tax Act)","authorityType":"statute","title":"Illinois conforms to IRC §1202 QSBS gain exclusion","quote":"Except as otherwise expressly provided or clearly appearing from the context, any term used in this Act shall have the same meaning as when used in a comparable context in the United States Internal Revenue Code of 1954 or any successor law or laws relating to federal income taxes and other provisions of the statutes of the United States relating to federal income taxes as such Code, laws and statutes are in effect for the taxable year.","url":"https://www.ilga.gov/Documents/legislation/ilcs/documents/003500050K102.htm","sourceDomain":"www.ilga.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"35 ILCS 5/102 defines Illinois gross income by reference to the Internal Revenue Code as amended. Rolling IRC conformity incorporates IRC §1202 (QSBS gain exclusion) without modification; no state-level addback. This holds through TY2025; Public Act 104-0468 decouples Illinois from §1202 for taxable years ending on or after December 31, 2026 (see IL_QSBS_DECOUPLE_2026).","href":"/api/v1/citations/il-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"il-qsbs-nonconformity-2026","jurisdiction":"IL","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202) effective TY2026","display":"Non-conforms effective TY2026: 35 ILCS 5/203(a)(2)(D-26) (P.A. 104-0468) adds federally excluded §1202 QSBS gain back to Illinois base income for taxable years ending on or after December 31, 2026","value":0,"valueType":"binary-exempt","citations":[{"id":"il-35ilcs5-203-d26-qsbs-addback-2026","jurisdiction":"IL","authority":"35 ILCS 5/203(a)(2)(D-26) (added by Public Act 104-0468, SB 3019)","authorityType":"statute","title":"Illinois decouples from IRC §1202 QSBS exclusion: federally excluded gain added back to base income for taxable years ending on or after December 31, 2026","quote":"(D-26) For taxable years ending on and after December 31, 2026, an amount equal to the amount of gain excluded from gross income under Section 1202 of the Internal Revenue Code;","url":"https://www.ilga.gov/Documents/legislation/ilcs/documents/003500050K203.htm","sourceDomain":"www.ilga.gov","taxYear":2026,"asOf":"2026-07-20","confidence":"high","note":"Verbatim from the live ILGA statute page. (D-26) sits in 35 ILCS 5/203(a)(2), the ADDITIONS to base income, so a federally excluded §1202 gain is added back and taxed by Illinois. First bites TY2026 for a calendar-year filer (whose tax year ends December 31, 2026). Enacted by P.A. 104-0468 (signed 2026).","href":"/api/v1/citations/il-35ilcs5-203-d26-qsbs-addback-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2028-01-01"},{"factId":"il-agency-obligations","jurisdiction":"IL","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: IL Publication 101 (R-12/25) p.7 explicitly names FNMA and FHLMC as not exempt from Illinois Income Tax","value":0,"valueType":"binary-exempt","citations":[{"id":"il-pub101-r1225-fnma-fhlmc-not-exempt","jurisdiction":"IL","authority":"Illinois Department of Revenue Publication 101 'Income Exempt from Tax' (R-12/25), p. 7","authorityType":"dor-guidance","title":"IL Publication 101 explicitly lists FNMA and FHLMC as not exempt from Illinois Income Tax","quote":"The following types of income are not exempt from Illinois Income Tax: Income from debentures, notes, and bonds issued by the Federal National Mortgage Association (FNMA) including mortgage-backed bonds; Interest from Federal Home Loan Mortgage Corporation (FHLMC) securities.","url":"https://tax.illinois.gov/content/dam/soi/en/web/tax/research/publications/pubs/documents/pub-101.pdf","sourceDomain":"tax.illinois.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"Pub 101 pp. 3-4 list the exempt entities (FHLB, Farm Credit, FDIC, TVA, etc.; all with federal statutory preemption). p. 7 lists entities NOT exempt. GNMA, FNMA, and FHLMC all appear on the not-exempt list. The contrast is direct: same document, same table format, opposite columns.","href":"/api/v1/citations/il-pub101-r1225-fnma-fhlmc-not-exempt"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-dividend-qualified","jurisdiction":"IL","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Illinois flat 4.95% applies to all net income; no IRC §1(h)(11) preference adopted; Publication 101 contains no qualified dividend modification","value":0,"valueType":"binary-exempt","citations":[{"id":"il-35ilcs5-201-flat-4-95pct-2025","jurisdiction":"IL","authority":"35 ILCS 5/201(b)(1) (Illinois Income Tax Act)","authorityType":"statute","title":"Illinois flat income tax rate is 4.95% on net income","quote":"for taxable years beginning on or after July 1, 2017, an amount equal to 4.95% of the taxpayer's net income for the taxable year.","url":"https://www.ilga.gov/Documents/legislation/ilcs/documents/003500050K201.htm","sourceDomain":"www.ilga.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim statutory text from 35 ILCS 5/201(b)(1) confirmed. URL resolves to the chapter-level ILGA index; §201(b)(1) is within this chapter. Illinois ILGA site serves the current statute. The 4.95% rate has applied since 2017 (the 2011 temporary increase expired and was replaced with the permanent 4.95%). Personal exemption $2,850/person; CLIFF to $0 at FAGI above $500,000 MFJ (immaterial at large-gain sizes).","href":"/api/v1/citations/il-35ilcs5-201-flat-4-95pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-treasury","jurisdiction":"IL","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"il-31-usc-3124-treasury-exempt-2025","jurisdiction":"IL","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Illinois income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/il-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-fhlb-ffcb","jurisdiction":"IL","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"il-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"IL","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Illinois income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/il-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-carryback","jurisdiction":"IL","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-character","jurisdiction":"IL","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the flat 4.95% rate (35 ILCS 5/201)","value":null,"valueType":"none","citations":[{"id":"il-35ilcs5-201-flat-4-95pct-2025","jurisdiction":"IL","authority":"35 ILCS 5/201(b)(1) (Illinois Income Tax Act)","authorityType":"statute","title":"Illinois flat income tax rate is 4.95% on net income","quote":"for taxable years beginning on or after July 1, 2017, an amount equal to 4.95% of the taxpayer's net income for the taxable year.","url":"https://www.ilga.gov/Documents/legislation/ilcs/documents/003500050K201.htm","sourceDomain":"www.ilga.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim statutory text from 35 ILCS 5/201(b)(1) confirmed. URL resolves to the chapter-level ILGA index; §201(b)(1) is within this chapter. Illinois ILGA site serves the current statute. The 4.95% rate has applied since 2017 (the 2011 temporary increase expired and was replaced with the permanent 4.95%). Personal exemption $2,850/person; CLIFF to $0 at FAGI above $500,000 MFJ (immaterial at large-gain sizes).","href":"/api/v1/citations/il-35ilcs5-201-flat-4-95pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-estate-rate","jurisdiction":"IL","category":"estate-rate","label":"Estate tax top marginal rate (TY2025)","display":"Graduated rates (pre-2001 federal rate table); see source for rate schedule and deduction amount (35 ILCS 405/2 and 405/3)","value":0.16,"valueType":"rate","citations":[{"id":"il-35-ilcs-405-estate-tax-2025","jurisdiction":"IL","authority":"35 ILCS 405/3 (Illinois Estate and Generation-Skipping Transfer Tax Act)","authorityType":"statute","title":"Illinois estate tax graduated rate schedule: 0.8% to 16%","quote":"Sec. 3. Illinois estate tax. (a) Imposition of Tax. An Illinois estate tax is imposed on every taxable transfer involving transferred property having a tax situs within the State of Illinois.","url":"https://ilga.gov/Documents/legislation/ilcs/documents/003504050K3.htm","sourceDomain":"ilga.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"35 ILCS 405/3 imposes the tax; the effective graduated rates (0.8% to 16%) derive from the pre-EGTRRA federal state death tax credit table that 35 ILCS 405/2 incorporates into the 'state tax credit' definition.","href":"/api/v1/citations/il-35-ilcs-405-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-estate-exemption","jurisdiction":"IL","category":"estate-exemption","label":"Estate tax deduction (TY2025)","display":"$4,000,000 fixed deduction from Illinois taxable estate (35 ILCS 405/2)","value":4000000,"valueType":"dollars","citations":[{"id":"il-35-ilcs-405-2-estate-exemption-2025","jurisdiction":"IL","authority":"35 ILCS 405/2 (Illinois Estate and Generation-Skipping Transfer Tax Act)","authorityType":"statute","title":"Illinois estate tax $4,000,000 deduction from Illinois taxable estate","quote":"but recognizing the exclusion amount of only (i) $2,000,000 for persons dying prior to January 1, 2012, (ii) $3,500,000 for persons dying on or after January 1, 2012 and prior to January 1, 2013, and (iii) $4,000,000 for persons dying on or after January 1, 2013, and with reduction to the adjusted taxable estate for any qualified terminable interest property election as defined in subsection (b-1) of this Section.","url":"https://ilga.gov/Documents/legislation/ilcs/documents/003504050K2.htm","sourceDomain":"ilga.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"35 ILCS 405/2 ('state tax credit' definition): the $4,000,000 exclusion applies to persons dying on or after January 1, 2013 and is not inflation-adjusted.","href":"/api/v1/citations/il-35-ilcs-405-2-estate-exemption-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-filing-status-flat","jurisdiction":"IL","category":"filing-status-flat","label":"Filing status irrelevant: flat rate state","display":"Yes: flat 4.95% rate on net income regardless of filing status (35 ILCS 5/201(b)(1))","value":1,"valueType":"binary-exempt","citations":[{"id":"il-35ilcs5-201-flat-4-95pct-2025","jurisdiction":"IL","authority":"35 ILCS 5/201(b)(1) (Illinois Income Tax Act)","authorityType":"statute","title":"Illinois flat income tax rate is 4.95% on net income","quote":"for taxable years beginning on or after July 1, 2017, an amount equal to 4.95% of the taxpayer's net income for the taxable year.","url":"https://www.ilga.gov/Documents/legislation/ilcs/documents/003500050K201.htm","sourceDomain":"www.ilga.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim statutory text from 35 ILCS 5/201(b)(1) confirmed. URL resolves to the chapter-level ILGA index; §201(b)(1) is within this chapter. Illinois ILGA site serves the current statute. The 4.95% rate has applied since 2017 (the 2011 temporary increase expired and was replaced with the permanent 4.95%). Personal exemption $2,850/person; CLIFF to $0 at FAGI above $500,000 MFJ (immaterial at large-gain sizes).","href":"/api/v1/citations/il-35ilcs5-201-flat-4-95pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-ptet-available","jurisdiction":"IL","category":"ptet-available","label":"Pass-through entity tax (SALT-cap workaround) available","display":"Yes (35 ILCS 5/201(p); tax years ending on or after 12/31/2021)","value":1,"valueType":"binary-exempt","citations":[{"id":"il-35ilcs5-201p-ptet-elective-4-95pct","jurisdiction":"IL","authority":"35 ILCS 5/201(p) (Illinois Income Tax Act)","authorityType":"statute","title":"Illinois pass-through entity elective tax is 4.95%; owners receive a full credit","quote":"The PTE tax rate is equal to 4.95 percent (.0495) of the taxpayer's net income for the taxable year.","url":"https://tax.illinois.gov/questionsandanswers/answer.689.html","sourceDomain":"tax.illinois.gov","taxYear":2025,"asOf":"2026-06-29","confidence":"medium","note":"SALT-cap workaround: a partnership or S corporation elects to pay 4.95% on its net income at the entity level, effective for tax years ending on or after December 31, 2021 (no statutory sunset). Each owner takes an Illinois credit equal to 4.95% times their distributive share, i.e. the full entity tax on that share (a 100% credit). Confidence medium: Illinois DOR guidance (tax.illinois.gov Q&A 689) quoting 35 ILCS 5/201(p).","href":"/api/v1/citations/il-35ilcs5-201p-ptet-elective-4-95pct"}],"effectiveDate":"2021-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-ptet-rate","jurisdiction":"IL","category":"ptet-rate","label":"Pass-through entity elective tax rate","display":"4.95%","value":0.0495,"valueType":"rate","citations":[{"id":"il-35ilcs5-201p-ptet-elective-4-95pct","jurisdiction":"IL","authority":"35 ILCS 5/201(p) (Illinois Income Tax Act)","authorityType":"statute","title":"Illinois pass-through entity elective tax is 4.95%; owners receive a full credit","quote":"The PTE tax rate is equal to 4.95 percent (.0495) of the taxpayer's net income for the taxable year.","url":"https://tax.illinois.gov/questionsandanswers/answer.689.html","sourceDomain":"tax.illinois.gov","taxYear":2025,"asOf":"2026-06-29","confidence":"medium","note":"SALT-cap workaround: a partnership or S corporation elects to pay 4.95% on its net income at the entity level, effective for tax years ending on or after December 31, 2021 (no statutory sunset). Each owner takes an Illinois credit equal to 4.95% times their distributive share, i.e. the full entity tax on that share (a 100% credit). Confidence medium: Illinois DOR guidance (tax.illinois.gov Q&A 689) quoting 35 ILCS 5/201(p).","href":"/api/v1/citations/il-35ilcs5-201p-ptet-elective-4-95pct"}],"effectiveDate":"2021-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-ptet-credit-mechanism","jurisdiction":"IL","category":"ptet-credit-mechanism","label":"PTET owner recovery mechanism","display":"Credit (full: 4.95% times distributive share)","value":0,"valueType":"code","citations":[{"id":"il-35ilcs5-201p-ptet-elective-4-95pct","jurisdiction":"IL","authority":"35 ILCS 5/201(p) (Illinois Income Tax Act)","authorityType":"statute","title":"Illinois pass-through entity elective tax is 4.95%; owners receive a full credit","quote":"The PTE tax rate is equal to 4.95 percent (.0495) of the taxpayer's net income for the taxable year.","url":"https://tax.illinois.gov/questionsandanswers/answer.689.html","sourceDomain":"tax.illinois.gov","taxYear":2025,"asOf":"2026-06-29","confidence":"medium","note":"SALT-cap workaround: a partnership or S corporation elects to pay 4.95% on its net income at the entity level, effective for tax years ending on or after December 31, 2021 (no statutory sunset). Each owner takes an Illinois credit equal to 4.95% times their distributive share, i.e. the full entity tax on that share (a 100% credit). Confidence medium: Illinois DOR guidance (tax.illinois.gov Q&A 689) quoting 35 ILCS 5/201(p).","href":"/api/v1/citations/il-35ilcs5-201p-ptet-elective-4-95pct"}],"effectiveDate":"2021-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"il-migration-loss-conformity","jurisdiction":"IL","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Illinois computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"il-migration-loss-conformity-src","jurisdiction":"IL","authority":"35 ILCS 5/201(b)(1) (Illinois Income Tax Act)","authorityType":"statute","title":"Illinois conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"A tax measured by net income is hereby imposed on every individual, corporation, trust and estate for each taxable year ending after July 31, 1969 on the privilege of earning or receiving income in or as a resident of this State.","url":"https://www.ilga.gov/Documents/legislation/ilcs/documents/003500050K201.htm","sourceDomain":"www.ilga.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"35 ILCS 5/201(a) imposes the tax on net income; Illinois net income derives from base income, which is federal adjusted gross income as modified (35 ILCS 5/203(a)(1)), so the federal section 1212 capital-loss carryover flows through. Quote verbatim from the live ILGA statute page. No published guidance addresses the imported pre-residency carryforward, so that application remains a structural inference.","href":"/api/v1/citations/il-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"IN","name":"Indiana","level":"state","facts":[{"factId":"in-trust-nexus-incomplete-gift","jurisdiction":"IN","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES: residency = place of administration (45 IAC 3.1-1-12); a NV-administered ING is a nonresident trust and retained intangible gain is not IN-source. PERMANENT, not deferral: no throwback statute, and the retained gain is corpus gain outside DNI (IRC 643(a)(3)), so it never carries out to the settlor on a later distribution. Ongoing income on the reinvested proceeds IS taxable to a resident beneficiary when distributed","value":0,"valueType":"code","citations":[{"id":"in-trust-nexus-incomplete-gift-2026","jurisdiction":"IN","authority":"Ind. Code 6-3-1-12(d); 45 IAC 3.1-1-12; Indiana DOR Fiduciary FAQ","authorityType":"dor-guidance","title":"Indiana trust residency is the place of administration, not settlor domicile","quote":"The trust residence is determined by the place where it is administered. Therefore, you must determine where the trustee or personal representative is located and where the records are kept for the trust.","url":"https://www.in.gov/dor/tax-forms/fiduciary/fiduciary-faq/","sourceDomain":"www.in.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"IC 6-3-1-12(d) makes a trust resident only when it 'has a situs within this state'; the regulation fixes situs at the place of administration. No settlor-domicile prong and no ING attribution statute.","href":"/api/v1/citations/in-trust-nexus-incomplete-gift-2026"},{"id":"irc-643a3-corpus-capital-gain-excluded-from-dni","jurisdiction":"US","authority":"IRC §643(a)(3)","authorityType":"statute","title":"IRC §643(a)(3): capital gain allocated to corpus is excluded from distributable net income","quote":"Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section643&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the rule that makes an ING's escape PERMANENT rather than deferral. Income reaches a beneficiary only through DNI (IRC 652/662); a retained corpus gain is outside DNI, so a later distribution of it is principal, not income, and never enters the beneficiary's federal taxable income. Every escape state starts from the federal number, so it never enters the state base either. Conditional on the gain ACTUALLY being allocated to corpus and not distributed in the year realized: a gain routed to fiduciary accounting income, or distributed in the sale year, is in DNI and is taxable to the resident beneficiary.","href":"/api/v1/citations/irc-643a3-corpus-capital-gain-excluded-from-dni"},{"id":"irc-665c-throwback-inapplicable-qualified-domestic-trust","jurisdiction":"US","authority":"IRC §665(c)","authorityType":"statute","title":"IRC §665(c): the accumulation-distribution (throwback) rules do not reach a qualified domestic trust","quote":"(1) In general In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. (2) Qualified trust For purposes of this subsection, the term 'qualified trust' means any trust other than- (A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or (B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section665&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A modern NV/DE ING is a 'qualified trust', so the federal accumulation-distribution regime is computed without regard to undistributed net income: it is empty. States whose only accumulation rule piggybacks IRC 665-668 (OR OAR 150-316-0575, IA, KS, SC) therefore recapture nothing. Only a state with its OWN throwback keyed to income untaxed by any state can claw the gain back, and of the verified escape states only Utah has one (59-10-114(1)(g)).","href":"/api/v1/citations/irc-665c-throwback-inapplicable-qualified-domestic-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-estate-none","jurisdiction":"IN","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"in-estate-none-2025","jurisdiction":"IN","authority":"Indiana Department of Revenue, Inheritance Tax Information","authorityType":"dor-guidance","title":"Indiana inheritance tax repealed in 2013; applied only to deaths on or before Dec 31 2012","quote":"The legislature repealed the Indiana Inheritance tax in 2013. Inheritance tax previously had to be paid for individuals who passed away on or before Dec. 31, 2012.","url":"https://www.in.gov/dor/tax-forms/individual/inheritance-tax-information/","sourceDomain":"www.in.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Two verbatim sentences from the fetched page; may not be adjacent in the page layout. Departmental Notice 44 also at in.gov/dor/files/dn44.pdf.","href":"/api/v1/citations/in-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-rate","jurisdiction":"IN","category":"rate","label":"State income tax rate (TY2025)","display":"3.0% flat (2.95% TY2026)","value":0.03,"valueType":"rate","citations":[{"id":"in-ic-6-3-2-1-flat-3-0pct-2025","jurisdiction":"IN","authority":"IC 6-3-2-1(b)(6)","authorityType":"statute","title":"Indiana adjusted gross income tax rate is 3.0% for taxable years beginning after December 31, 2024 and before January 1, 2026","quote":"Each taxable year, a tax at the following rate of adjusted gross income is imposed upon the adjusted gross income of every resident person, and on that part of the adjusted gross income derived from sources within Indiana of every nonresident person: ... (6) For taxable years beginning after December 31, 2024, and before January 1, 2026, three percent (3%).","url":"https://iga.in.gov/laws/2026/ic/titles/6#6-3-2-1","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate falls to 2.95% (TY2026, (b)(7)) and 2.90% (TY2027-2029, (b)(8)) under the enacted schedule, with 0.05-point revenue-trigger steps possible from 2030 ((b)(9)). Indiana also imposes a mandatory county LIT (Local Income Tax) of 0.5% to 3.0% on the same adjusted gross income base, reaching capital gains. Marion County (Indianapolis) rate is 2.02%; statewide representative rate ~1.5% to 2.5%.","href":"/api/v1/citations/in-ic-6-3-2-1-flat-3-0pct-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"in-rate-2026","jurisdiction":"IN","category":"rate","label":"State income tax rate (TY2026)","display":"2.95% flat (2.9% TY2027-2029; 0.05-point trigger steps possible from 2030)","value":0.0295,"valueType":"rate","citations":[{"id":"in-ic-6-3-2-1-flat-2-95pct-2026","jurisdiction":"IN","authority":"IC 6-3-2-1(b)(7)-(8)","authorityType":"statute","title":"Indiana adjusted gross income tax rate falls to 2.95% for TY2026, then 2.9% for TY2027-2029","quote":"(7) For taxable years beginning after December 31, 2025, and before January 1, 2027, two and ninety-five hundredths percent (2.95%). (8) For taxable years beginning after December 31, 2026, and before January 1, 2030, two and nine-tenths percent (2.9%).","url":"https://iga.in.gov/laws/2026/ic/titles/6#6-3-2-1","sourceDomain":"iga.in.gov","taxYear":2026,"asOf":"2026-07-12","confidence":"high","note":"Verbatim from the official 2026 Indiana Code HTML download (iga.in.gov Code Downloads; the browse UI is script-rendered). From 2030, (b)(9)-(10) authorize 0.05-point reductions in even-numbered years when general-fund revenue growth triggers are met. The county LIT (0.5% to 3.0%) continues on the same base.","href":"/api/v1/citations/in-ic-6-3-2-1-flat-2-95pct-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-conformity","jurisdiction":"IN","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-muni-instate","jurisdiction":"IN","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: IC 6-8-5-1 exempts Indiana state and local bond interest (IT-40 Schedule 2 Code 636 deduction)","value":1,"valueType":"binary-exempt","citations":[{"id":"in-ic-6-8-5-1-muni-default-2025","jurisdiction":"IN","authority":"Indiana IT-40 2025, Schedule 1 Line 3 (OOS add-back); Schedule 2 Code 636 (IN bonds exempt)","authorityType":"form-instructions","title":"IN exempts IN-issued bonds; out-of-state muni bonds acquired after Dec. 31, 2011 are taxable","quote":"Interest earned from a direct obligation of a state or political subdivision other than Indiana is taxable by Indiana if the obligation is acquired after Dec. 31, 2011. If you had interest from a bond issued by or in the name of certain Indiana government subdivisions or entities, deduct any interest or other income included in federal gross income.","url":"https://www.in.gov/dor/tax-forms/individual/current/","sourceDomain":"www.in.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Indiana IT-40 Schedule 1 Line 3 adds back out-of-state muni interest for bonds acquired after Dec. 31, 2011. Pre-2012 acquisitions are grandfathered as exempt. Indiana bonds are exempt via Schedule 2 Code 636 deduction. IC 6-8-5-1 is the primary statutory authority. URL points to the Indiana DOR individual forms page; the specific IT-40 booklet instructions were the intended source. Confidence medium pending section-specific URL.","href":"/api/v1/citations/in-ic-6-8-5-1-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-muni-outstate","jurisdiction":"IN","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: (post-2011 acquisitions) IT-40 Schedule 1 Line 3 add-back; pre-2012 bonds are grandfathered exempt","value":0,"valueType":"binary-exempt","citations":[{"id":"in-ic-6-8-5-1-muni-default-2025","jurisdiction":"IN","authority":"Indiana IT-40 2025, Schedule 1 Line 3 (OOS add-back); Schedule 2 Code 636 (IN bonds exempt)","authorityType":"form-instructions","title":"IN exempts IN-issued bonds; out-of-state muni bonds acquired after Dec. 31, 2011 are taxable","quote":"Interest earned from a direct obligation of a state or political subdivision other than Indiana is taxable by Indiana if the obligation is acquired after Dec. 31, 2011. If you had interest from a bond issued by or in the name of certain Indiana government subdivisions or entities, deduct any interest or other income included in federal gross income.","url":"https://www.in.gov/dor/tax-forms/individual/current/","sourceDomain":"www.in.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Indiana IT-40 Schedule 1 Line 3 adds back out-of-state muni interest for bonds acquired after Dec. 31, 2011. Pre-2012 acquisitions are grandfathered as exempt. Indiana bonds are exempt via Schedule 2 Code 636 deduction. IC 6-8-5-1 is the primary statutory authority. URL points to the Indiana DOR individual forms page; the specific IT-40 booklet instructions were the intended source. Confidence medium pending section-specific URL.","href":"/api/v1/citations/in-ic-6-8-5-1-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-qoz-conformity","jurisdiction":"IN","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"in-qoz-conformity-irc-1400z2-2025","jurisdiction":"IN","authority":"Ind. Code §6-3-1-11 (updated Jan 1, 2026 by 2026 S.B. 243)","authorityType":"statute","title":"Indiana conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"'Internal Revenue Code' means the Internal Revenue Code of 1986 of the United States, as amended and in effect on January 1, 2026.","url":"https://iga.in.gov/laws/2026/ic/titles/6#6-3-1-11","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"Indiana IRC conformity date updated to January 1, 2026 (2026 S.B. 243); §1400Z-2 incorporated.","href":"/api/v1/citations/in-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-qsbs-conformity","jurisdiction":"IN","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"in-qsbs-conformity-irc-1202-2025","jurisdiction":"IN","authority":"Ind. Code §6-3-1-11","authorityType":"statute","title":"Indiana conforms to IRC §1202 QSBS gain exclusion","quote":"'Internal Revenue Code' means the Internal Revenue Code of 1986 of the United States, as amended and in effect on January 1, 2026.","url":"https://iga.in.gov/laws/2026/ic/titles/6#6-3-1-11","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"Indiana IRC conformity incorporates §1202; no addback.","href":"/api/v1/citations/in-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-agency-obligations","jurisdiction":"IN","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: IC 6-3-2-4(b)(1) deduction limited to US interest on obligations 'exempt from state income taxation'; FNMA and FHLMC have no federal bondholder exemption statute","value":0,"valueType":"binary-exempt","citations":[{"id":"in-ic-6-3-2-4-fnma-fhlmc-taxable","jurisdiction":"IN","authority":"IC 6-3-2-4(b)(1)","authorityType":"statute","title":"Indiana deduction for U.S. obligation interest requires exemption from state income taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"If any item of income is excluded from gross income for federal income tax purposes but is required to be added under IC 6-3-1-3.5, there shall be allowed as a deduction from adjusted gross income... interest income received from United States obligations if and to the extent that the obligations are exempt from state income taxation.","url":"https://iga.in.gov/laws/2024/ic/titles/06#6-3-2-4","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"IC 6-3-2-4(b)(1) deduction applies only to interest on US obligations exempt from state taxation. FNMA and FHLMC have no bondholder exemption statute. No Indiana DOR named-entity publication found; confidence: medium based on structural statutory analysis.","href":"/api/v1/citations/in-ic-6-3-2-4-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-dividend-qualified","jurisdiction":"IN","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Indiana has no modification creating a preferential rate for qualified dividends; taxed at the flat 3.0% state rate (IRC §1(h)(11) preference not adopted)","value":0,"valueType":"binary-exempt","citations":[{"id":"in-ic-6-3-2-1-flat-3-0pct-2025","jurisdiction":"IN","authority":"IC 6-3-2-1(b)(6)","authorityType":"statute","title":"Indiana adjusted gross income tax rate is 3.0% for taxable years beginning after December 31, 2024 and before January 1, 2026","quote":"Each taxable year, a tax at the following rate of adjusted gross income is imposed upon the adjusted gross income of every resident person, and on that part of the adjusted gross income derived from sources within Indiana of every nonresident person: ... (6) For taxable years beginning after December 31, 2024, and before January 1, 2026, three percent (3%).","url":"https://iga.in.gov/laws/2026/ic/titles/6#6-3-2-1","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate falls to 2.95% (TY2026, (b)(7)) and 2.90% (TY2027-2029, (b)(8)) under the enacted schedule, with 0.05-point revenue-trigger steps possible from 2030 ((b)(9)). Indiana also imposes a mandatory county LIT (Local Income Tax) of 0.5% to 3.0% on the same adjusted gross income base, reaching capital gains. Marion County (Indianapolis) rate is 2.02%; statewide representative rate ~1.5% to 2.5%.","href":"/api/v1/citations/in-ic-6-3-2-1-flat-3-0pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-treasury","jurisdiction":"IN","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"in-31-usc-3124-treasury-exempt-2025","jurisdiction":"IN","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Indiana income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/in-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-fhlb-ffcb","jurisdiction":"IN","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"in-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"IN","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Indiana income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/in-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-carryback","jurisdiction":"IN","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-character","jurisdiction":"IN","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the flat 3% rate (IC §6-3-2-1)","value":null,"valueType":"none","citations":[{"id":"in-ic-6-3-2-1-flat-3-0pct-2025","jurisdiction":"IN","authority":"IC 6-3-2-1(b)(6)","authorityType":"statute","title":"Indiana adjusted gross income tax rate is 3.0% for taxable years beginning after December 31, 2024 and before January 1, 2026","quote":"Each taxable year, a tax at the following rate of adjusted gross income is imposed upon the adjusted gross income of every resident person, and on that part of the adjusted gross income derived from sources within Indiana of every nonresident person: ... (6) For taxable years beginning after December 31, 2024, and before January 1, 2026, three percent (3%).","url":"https://iga.in.gov/laws/2026/ic/titles/6#6-3-2-1","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate falls to 2.95% (TY2026, (b)(7)) and 2.90% (TY2027-2029, (b)(8)) under the enacted schedule, with 0.05-point revenue-trigger steps possible from 2030 ((b)(9)). Indiana also imposes a mandatory county LIT (Local Income Tax) of 0.5% to 3.0% on the same adjusted gross income base, reaching capital gains. Marion County (Indianapolis) rate is 2.02%; statewide representative rate ~1.5% to 2.5%.","href":"/api/v1/citations/in-ic-6-3-2-1-flat-3-0pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-filing-status-flat","jurisdiction":"IN","category":"filing-status-flat","label":"Filing status irrelevant: flat rate state","display":"Yes: flat 3% rate on adjusted gross income regardless of filing status (IC §6-3-2-1; TY2025)","value":1,"valueType":"binary-exempt","citations":[{"id":"in-ic-6-3-2-1-flat-3-0pct-2025","jurisdiction":"IN","authority":"IC 6-3-2-1(b)(6)","authorityType":"statute","title":"Indiana adjusted gross income tax rate is 3.0% for taxable years beginning after December 31, 2024 and before January 1, 2026","quote":"Each taxable year, a tax at the following rate of adjusted gross income is imposed upon the adjusted gross income of every resident person, and on that part of the adjusted gross income derived from sources within Indiana of every nonresident person: ... (6) For taxable years beginning after December 31, 2024, and before January 1, 2026, three percent (3%).","url":"https://iga.in.gov/laws/2026/ic/titles/6#6-3-2-1","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate falls to 2.95% (TY2026, (b)(7)) and 2.90% (TY2027-2029, (b)(8)) under the enacted schedule, with 0.05-point revenue-trigger steps possible from 2030 ((b)(9)). Indiana also imposes a mandatory county LIT (Local Income Tax) of 0.5% to 3.0% on the same adjusted gross income base, reaching capital gains. Marion County (Indianapolis) rate is 2.02%; statewide representative rate ~1.5% to 2.5%.","href":"/api/v1/citations/in-ic-6-3-2-1-flat-3-0pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-migration-loss-conformity","jurisdiction":"IN","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Recalculate (structural inference): Indiana apportions a new resident's capital gains and losses on an in-state-source basis, so an imported federal section 1212 carryforward is recomputed rather than adopted wholesale; no published guidance addresses the imported pre-residency carryforward.","value":2,"valueType":"code","citations":[{"id":"in-migration-loss-conformity-src","jurisdiction":"IN","authority":"IC 6-3-2-1","authorityType":"statute","title":"Indiana recomputes a migrating resident's capital-loss carryforward on an in-state basis (structural inference)","quote":"Verbatim text not yet extracted; see note.","url":"https://iga.in.gov/laws/2024/ic/titles/06#6-3-2-1","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-06-30","confidence":"low","note":"Structural inference: IC 6-3-2-1(a) imposes the tax on the adjusted gross income of every resident and on that part of the adjusted gross income derived from sources within Indiana of every nonresident, so nonresident/part-year income is recomputed on an in-state-source basis and an imported pre-residency federal section 1212 carryforward is recalculated rather than imported in full. Verbatim statutory text could not be extracted on 2026-07-03: iga.in.gov is a JavaScript single-page app that renders no statute text to curl/WebFetch, and its api.iga.in.gov backend is gated behind an x-api-key (HTTP 403). Indiana DOR bulletin ib28.pdf does not verbatim-quote the section. No accessible primary .gov source; left pending.","href":"/api/v1/citations/in-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"IA","name":"Iowa","level":"state","facts":[{"factId":"ia-trust-nexus-incomplete-gift","jurisdiction":"IA","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES: situs follows the trustees and the principal office of administration; the non-trustee grantor's residence is expressly NOT controlling, and foreign-situs trusts are taxed on IA-source income only (intangible gain excluded). PERMANENT, not deferral: no throwback statute, and the retained gain is corpus gain outside DNI (IRC 643(a)(3)), so it never carries out to the settlor on a later distribution. Ongoing income on the reinvested proceeds IS taxable to a resident beneficiary when distributed","value":0,"valueType":"code","citations":[{"id":"ia-trust-nexus-incomplete-gift-2026","jurisdiction":"IA","authority":"Iowa Admin. Code r. 701-700.3(2) (situs of inter vivos trusts); Iowa Code 422.6","authorityType":"regulation","title":"Iowa expressly excludes a non-trustee grantor's residence and the beneficiaries' residence from trust situs","quote":"The residence of the grantor of a trust, not subject to the grantor trust rules under 26 U.S.C. Sections 671 to 679, is not a controlling factor as to the situs of the trust, unless the person is also a trustee.","url":"https://www.legis.iowa.gov/docs/iac/chapter/01-07-2026.701.700.pdf","sourceDomain":"www.legis.iowa.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"701-700.3(2) also makes the beneficiaries' residence irrelevant; 701-700.8(4) excludes intangible income from Iowa-source for foreign-situs trusts unless derived from an Iowa business.","href":"/api/v1/citations/ia-trust-nexus-incomplete-gift-2026"},{"id":"irc-643a3-corpus-capital-gain-excluded-from-dni","jurisdiction":"US","authority":"IRC §643(a)(3)","authorityType":"statute","title":"IRC §643(a)(3): capital gain allocated to corpus is excluded from distributable net income","quote":"Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section643&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the rule that makes an ING's escape PERMANENT rather than deferral. Income reaches a beneficiary only through DNI (IRC 652/662); a retained corpus gain is outside DNI, so a later distribution of it is principal, not income, and never enters the beneficiary's federal taxable income. Every escape state starts from the federal number, so it never enters the state base either. Conditional on the gain ACTUALLY being allocated to corpus and not distributed in the year realized: a gain routed to fiduciary accounting income, or distributed in the sale year, is in DNI and is taxable to the resident beneficiary.","href":"/api/v1/citations/irc-643a3-corpus-capital-gain-excluded-from-dni"},{"id":"irc-665c-throwback-inapplicable-qualified-domestic-trust","jurisdiction":"US","authority":"IRC §665(c)","authorityType":"statute","title":"IRC §665(c): the accumulation-distribution (throwback) rules do not reach a qualified domestic trust","quote":"(1) In general In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. (2) Qualified trust For purposes of this subsection, the term 'qualified trust' means any trust other than- (A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or (B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section665&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A modern NV/DE ING is a 'qualified trust', so the federal accumulation-distribution regime is computed without regard to undistributed net income: it is empty. States whose only accumulation rule piggybacks IRC 665-668 (OR OAR 150-316-0575, IA, KS, SC) therefore recapture nothing. Only a state with its OWN throwback keyed to income untaxed by any state can claw the gain back, and of the verified escape states only Utah has one (59-10-114(1)(g)).","href":"/api/v1/citations/irc-665c-throwback-inapplicable-qualified-domestic-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-estate-none","jurisdiction":"IA","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"ia-estate-none-2025","jurisdiction":"IA","authority":"Iowa DOR, Introduction to Iowa Inheritance Tax","authorityType":"dor-guidance","title":"Iowa inheritance tax not applicable for deaths on or after Jan 1, 2025","quote":"Iowa inheritance tax is not applicable for deaths occurring on or after 1/1/25.","url":"https://revenue.iowa.gov/taxes/tax-guidance/inheritance-tax/introduction-iowa-inheritance-tax","sourceDomain":"revenue.iowa.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Page states the repeal date but cites no session law; SF 619 (2021) attribution from the prior survey, unverified against a live source.","href":"/api/v1/citations/ia-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-rate","jurisdiction":"IA","category":"rate","label":"Top income tax rate (TY2025)","display":"3.8% flat on federal taxable income (+ school district surtax 0% to 20% of tax, multiplicative)","value":0.038,"valueType":"rate","citations":[{"id":"ia-iowa-code-422-5-flat-3-8pct-2025","jurisdiction":"IA","authority":"Iowa Department of Revenue, Individual Income Tax","authorityType":"dor-guidance","title":"Iowa income tax rate is 3.8% flat on Iowa taxable income (= federal taxable income)","quote":"A tax is imposed upon the Iowa taxable income of every individual at the rate of 3.8 percent for tax years beginning on or after January 1, 2025.","url":"https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax","sourceDomain":"revenue.iowa.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Iowa taxable income starts from federal taxable income (Iowa Code §422.7), so the federal standard deduction shelters the first ~$30,000 of gains for MFJ filers. An additive school district surtax (0% to 20% of Iowa tax, multiplicative) applies in ~87% of districts; modal rate is 5% to 10%. Narrow farmer/employee-stock exclusions are election-gated and immaterial to portfolio capital gains.","href":"/api/v1/citations/ia-iowa-code-422-5-flat-3-8pct-2025"}],"effectiveDate":"2025-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-rate-terminal-2024-12-31","jurisdiction":"IA","category":"rate","label":"Top income tax rate (TY2024)","display":"5.70% top bracket, graduated (Iowa moved to flat 3.8% in TY2025)","value":0.057,"valueType":"rate","citations":[{"id":"ia-iowa-code-422-5a-top-5-70pct-2024","jurisdiction":"IA","authority":"Iowa Code §422.5A (TY2024)","authorityType":"statute","title":"Iowa income tax top rate is 5.70% for TY2024 (income over $30,000, single filers)","quote":"Over $30,000: the rate of 5.70 percent.","url":"https://www.legis.iowa.gov/law/iowaCode/sections?codeChapter=422&session=90","sourceDomain":"www.legis.iowa.gov","taxYear":2024,"asOf":"2026-06-21","confidence":"medium","note":"URL resolves to the Iowa Code Chapter 422 section listing; §422.7(2) is within this chapter. TY2024 graduated top rate; Iowa moved to a flat 3.8% on federal taxable income in TY2025 per Iowa Code §422.5. Iowa Code §422.5A governed the graduated rate schedule through TY2024.","href":"/api/v1/citations/ia-iowa-code-422-5a-top-5-70pct-2024"}],"effectiveDate":"2024-01-01","terminalDate":"2024-12-31","nextReviewDate":"2027-01-01"},{"factId":"ia-conformity","jurisdiction":"IA","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-muni-instate","jurisdiction":"IA","category":"muni-instate","label":"In-state muni bond interest","display":"Taxable: (standard) Iowa Code §422.7(2) adds back Iowa bond interest; specific program bonds in §422.7(2)(a)-(u) are exempt but standard Iowa GOs are taxable","value":0,"valueType":"binary-exempt","citations":[{"id":"ia-iowa-code-422-7-2-muni-both-taxable-2025","jurisdiction":"IA","authority":"Iowa Code §422.7(2)","authorityType":"statute","title":"Iowa taxes both in-state (standard) and out-of-state muni bond interest via §422.7(2) add-back","quote":"Add interest and dividends from foreign securities and from securities of state and other political subdivisions exempt from federal income tax under the Internal Revenue Code, except for those securities the interest and dividends from which are exempt from taxation by the state of Iowa as otherwise provided by law.","url":"https://www.legis.iowa.gov/law/iowaCode/sections?codeChapter=422&session=91","sourceDomain":"www.legis.iowa.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"URL resolves to the Iowa Code Chapter 422 section listing; §422.7(2) is within this chapter. Iowa §422.7(2) adds back all muni interest excluded from federal gross income under IRC §103. Specific Iowa program bonds listed in §422.7(2)(a)-(u) (school infrastructure, Board of Regents, urban renewal, etc.) are exempt from the add-back. Standard Iowa general obligation bonds and ALL out-of-state bonds are taxable. Iowa is in the same 'both-taxable' category as IL and WI, with a narrow list of Iowa program bond exceptions.","href":"/api/v1/citations/ia-iowa-code-422-7-2-muni-both-taxable-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-muni-outstate","jurisdiction":"IA","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: Iowa Code §422.7(2) requires add-back; no Iowa exemption for out-of-state bonds","value":0,"valueType":"binary-exempt","citations":[{"id":"ia-iowa-code-422-7-2-muni-both-taxable-2025","jurisdiction":"IA","authority":"Iowa Code §422.7(2)","authorityType":"statute","title":"Iowa taxes both in-state (standard) and out-of-state muni bond interest via §422.7(2) add-back","quote":"Add interest and dividends from foreign securities and from securities of state and other political subdivisions exempt from federal income tax under the Internal Revenue Code, except for those securities the interest and dividends from which are exempt from taxation by the state of Iowa as otherwise provided by law.","url":"https://www.legis.iowa.gov/law/iowaCode/sections?codeChapter=422&session=91","sourceDomain":"www.legis.iowa.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"URL resolves to the Iowa Code Chapter 422 section listing; §422.7(2) is within this chapter. Iowa §422.7(2) adds back all muni interest excluded from federal gross income under IRC §103. Specific Iowa program bonds listed in §422.7(2)(a)-(u) (school infrastructure, Board of Regents, urban renewal, etc.) are exempt from the add-back. Standard Iowa general obligation bonds and ALL out-of-state bonds are taxable. Iowa is in the same 'both-taxable' category as IL and WI, with a narrow list of Iowa program bond exceptions.","href":"/api/v1/citations/ia-iowa-code-422-7-2-muni-both-taxable-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-qoz-conformity","jurisdiction":"IA","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"ia-qoz-conformity-irc-1400z2-2025","jurisdiction":"IA","authority":"Iowa Code §422.3","authorityType":"statute","title":"Iowa conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The taxes imposed by this division shall be computed on the basis of federal taxable income as defined in the Internal Revenue Code of 1986, as amended to and including the date of enactment of the Internal Revenue Code provision being referred to, with the modifications specified in this division.","url":"https://www.legis.iowa.gov/law/iowaCode/sections?codeChapter=422&session=90","sourceDomain":"www.legis.iowa.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"URL resolves to the Iowa Code Chapter 422 section listing; §422.7(2) is within this chapter. Iowa rolling IRC conformity (§422.3) incorporates §1400Z-2 without modification.","href":"/api/v1/citations/ia-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-qsbs-conformity","jurisdiction":"IA","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"ia-qsbs-conformity-irc-1202-2025","jurisdiction":"IA","authority":"Iowa Code §422.7 (net income); §422.3(5)(b) (Internal Revenue Code definition)","authorityType":"statute","title":"Iowa conforms to IRC §1202: net income starts from federal taxable income under a rolling IRC (2020+), and §422.7 contains no §1202 addback","quote":"The term \"net income\" means the taxable income as properly computed for federal income tax purposes under section 63 of the Internal Revenue Code, with the following adjustments:","url":"https://www.legis.iowa.gov/docs/code/422.7.pdf","sourceDomain":"www.legis.iowa.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Iowa Code §422.3(5)(b) verbatim: 'For tax years beginning on or after January 1, 2020, \"Internal Revenue Code\" means the Internal Revenue Code of 1954, prior to the date of its redesignation as the Internal Revenue Code of 1986 by the Tax Reform Act of 1986, or means the Internal Revenue Code of 1986, as amended.' A live scan of the §422.7 adjustment list finds zero references to section 1202, so the rolling conformity carries the exclusion, including OBBBA's post-July 4, 2025 enhancements, into the Iowa base.","href":"/api/v1/citations/ia-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-agency-obligations","jurisdiction":"IA","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: Iowa starts from federal taxable income; FNMA/FHLMC interest is in that base (not IRC §103-excluded); Iowa Code §422.7(2) add-back applies only to excluded muni interest; no Iowa subtraction available for FNMA/FHLMC","value":0,"valueType":"binary-exempt","citations":[{"id":"ia-iowa-code-422-7-fnma-fhlmc-in-base","jurisdiction":"IA","authority":"Iowa Code §422.7; Iowa Code §422.5","authorityType":"statute","title":"Iowa taxes FNMA and FHLMC bond interest: Iowa starts from federal taxable income, which includes FNMA/FHLMC interest; the §422.7(2) add-back only applies to IRC §103-excluded muni interest","quote":"Iowa taxable income of individuals is the individual's taxable income computed under the Internal Revenue Code, with the modifications provided in this section.","url":"https://www.legis.iowa.gov/law/iowaCode/sections?codeChapter=422&session=91","sourceDomain":"www.legis.iowa.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"URL resolves to the Iowa Code Chapter 422 section listing; §422.7(2) is within this chapter. Iowa starts from federal taxable income (not AGI). FNMA and FHLMC bond interest is INCLUDED in federal taxable income; it is not IRC §103-excluded muni interest. The §422.7(2) add-back applies only to IRC §103-excluded obligations; FNMA/FHLMC interest is in the base. Iowa Code §422.7 contains no subtraction for FNMA/FHLMC interest. Secondary clause (§422.7(2)): 'Add interest and dividends from foreign securities and from securities of state and other political subdivisions exempt from federal income tax under the Internal Revenue Code.'","href":"/api/v1/citations/ia-iowa-code-422-7-fnma-fhlmc-in-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-dividend-qualified","jurisdiction":"IA","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Iowa has no modification creating a preferential rate for qualified dividends; taxed at the flat 3.8% rate on federal taxable income (IRC §1(h)(11) preference not adopted)","value":0,"valueType":"binary-exempt","citations":[{"id":"ia-iowa-code-422-5-flat-3-8pct-2025","jurisdiction":"IA","authority":"Iowa Department of Revenue, Individual Income Tax","authorityType":"dor-guidance","title":"Iowa income tax rate is 3.8% flat on Iowa taxable income (= federal taxable income)","quote":"A tax is imposed upon the Iowa taxable income of every individual at the rate of 3.8 percent for tax years beginning on or after January 1, 2025.","url":"https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax","sourceDomain":"revenue.iowa.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Iowa taxable income starts from federal taxable income (Iowa Code §422.7), so the federal standard deduction shelters the first ~$30,000 of gains for MFJ filers. An additive school district surtax (0% to 20% of Iowa tax, multiplicative) applies in ~87% of districts; modal rate is 5% to 10%. Narrow farmer/employee-stock exclusions are election-gated and immaterial to portfolio capital gains.","href":"/api/v1/citations/ia-iowa-code-422-5-flat-3-8pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-treasury","jurisdiction":"IA","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ia-31-usc-3124-treasury-exempt-2025","jurisdiction":"IA","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Iowa income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ia-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-fhlb-ffcb","jurisdiction":"IA","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ia-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"IA","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Iowa income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ia-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-carryback","jurisdiction":"IA","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-character","jurisdiction":"IA","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the flat 3.8% rate (Iowa Code §422.5A)","value":null,"valueType":"none","citations":[{"id":"ia-iowa-code-422-5-flat-3-8pct-2025","jurisdiction":"IA","authority":"Iowa Department of Revenue, Individual Income Tax","authorityType":"dor-guidance","title":"Iowa income tax rate is 3.8% flat on Iowa taxable income (= federal taxable income)","quote":"A tax is imposed upon the Iowa taxable income of every individual at the rate of 3.8 percent for tax years beginning on or after January 1, 2025.","url":"https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax","sourceDomain":"revenue.iowa.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Iowa taxable income starts from federal taxable income (Iowa Code §422.7), so the federal standard deduction shelters the first ~$30,000 of gains for MFJ filers. An additive school district surtax (0% to 20% of Iowa tax, multiplicative) applies in ~87% of districts; modal rate is 5% to 10%. Narrow farmer/employee-stock exclusions are election-gated and immaterial to portfolio capital gains.","href":"/api/v1/citations/ia-iowa-code-422-5-flat-3-8pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-filing-status-flat","jurisdiction":"IA","category":"filing-status-flat","label":"Filing status irrelevant: flat rate state","display":"Yes: flat 3.8% rate on taxable income regardless of filing status (Iowa Code §422.5A; graduated brackets repealed effective TY2025)","value":1,"valueType":"binary-exempt","citations":[{"id":"ia-iowa-code-422-5-flat-3-8pct-2025","jurisdiction":"IA","authority":"Iowa Department of Revenue, Individual Income Tax","authorityType":"dor-guidance","title":"Iowa income tax rate is 3.8% flat on Iowa taxable income (= federal taxable income)","quote":"A tax is imposed upon the Iowa taxable income of every individual at the rate of 3.8 percent for tax years beginning on or after January 1, 2025.","url":"https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax","sourceDomain":"revenue.iowa.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Iowa taxable income starts from federal taxable income (Iowa Code §422.7), so the federal standard deduction shelters the first ~$30,000 of gains for MFJ filers. An additive school district surtax (0% to 20% of Iowa tax, multiplicative) applies in ~87% of districts; modal rate is 5% to 10%. Narrow farmer/employee-stock exclusions are election-gated and immaterial to portfolio capital gains.","href":"/api/v1/citations/ia-iowa-code-422-5-flat-3-8pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ia-migration-loss-conformity","jurisdiction":"IA","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Iowa computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"ia-migration-loss-conformity-src","jurisdiction":"IA","authority":"Iowa Department of Revenue, Individual Income Tax","authorityType":"dor-guidance","title":"Iowa conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"Enter your federal taxable income as reported on federal 1040, line 15.","url":"https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax/1040-expanded-instructions/federal-taxable-income","sourceDomain":"revenue.iowa.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"The 2025 IA 1040 expanded instructions (Line 2) start Iowa income from federal taxable income (federal 1040 line 15), so the federal section 1212 capital-loss carryover flows through. Quote verbatim from the live Iowa DOR guidance page. No published guidance addresses the imported pre-residency carryforward, so that application remains a structural inference.","href":"/api/v1/citations/ia-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"KS","name":"Kansas","level":"state","facts":[{"factId":"ks-trust-nexus-incomplete-gift","jurisdiction":"KS","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES: the three-part resident-trust test is CONJUNCTIVE; NV administration fails prong (1) alone, and a nonresident trust is taxed on KS-source income only (retained intangible gain is not). PERMANENT, not deferral: no throwback statute, and the retained gain is corpus gain outside DNI (IRC 643(a)(3)), so it never carries out to the settlor on a later distribution. Ongoing income on the reinvested proceeds IS taxable to a resident beneficiary when distributed","value":0,"valueType":"code","citations":[{"id":"ks-trust-nexus-incomplete-gift-2026","jurisdiction":"KS","authority":"K.S.A. 79-32,109(d) (resident trust: conjunctive three-part test)","authorityType":"statute","title":"Kansas requires in-state administration AND a resident settlor AND a resident income beneficiary; failing any one prong makes the trust nonresident","quote":"'Resident trust' means a trust that: (1) Is administered in this state; (2) was created by or consists of property owned by a person domiciled in this state on the date the trust or portion of the trust became irrevocable; and (3) has at least one income beneficiary who, on the last day of the taxable year, was a resident of this state.","url":"https://www.ksrevisor.gov/statutes/chapters/ch79/079_032_0109.html","sourceDomain":"www.ksrevisor.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"K.S.A. 79-32,110(a)(2) taxes nonresident trusts on Kansas-source income only.","href":"/api/v1/citations/ks-trust-nexus-incomplete-gift-2026"},{"id":"irc-643a3-corpus-capital-gain-excluded-from-dni","jurisdiction":"US","authority":"IRC §643(a)(3)","authorityType":"statute","title":"IRC §643(a)(3): capital gain allocated to corpus is excluded from distributable net income","quote":"Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section643&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the rule that makes an ING's escape PERMANENT rather than deferral. Income reaches a beneficiary only through DNI (IRC 652/662); a retained corpus gain is outside DNI, so a later distribution of it is principal, not income, and never enters the beneficiary's federal taxable income. Every escape state starts from the federal number, so it never enters the state base either. Conditional on the gain ACTUALLY being allocated to corpus and not distributed in the year realized: a gain routed to fiduciary accounting income, or distributed in the sale year, is in DNI and is taxable to the resident beneficiary.","href":"/api/v1/citations/irc-643a3-corpus-capital-gain-excluded-from-dni"},{"id":"irc-665c-throwback-inapplicable-qualified-domestic-trust","jurisdiction":"US","authority":"IRC §665(c)","authorityType":"statute","title":"IRC §665(c): the accumulation-distribution (throwback) rules do not reach a qualified domestic trust","quote":"(1) In general In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. (2) Qualified trust For purposes of this subsection, the term 'qualified trust' means any trust other than- (A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or (B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section665&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A modern NV/DE ING is a 'qualified trust', so the federal accumulation-distribution regime is computed without regard to undistributed net income: it is empty. States whose only accumulation rule piggybacks IRC 665-668 (OR OAR 150-316-0575, IA, KS, SC) therefore recapture nothing. Only a state with its OWN throwback keyed to income untaxed by any state can claw the gain back, and of the verified escape states only Utah has one (59-10-114(1)(g)).","href":"/api/v1/citations/irc-665c-throwback-inapplicable-qualified-domestic-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-estate-none","jurisdiction":"KS","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"ks-estate-none-2025","jurisdiction":"KS","authority":"Kansas Department of Revenue Notice 10-07","authorityType":"dor-guidance","title":"No Kansas estate tax for decedents dying after Dec 31 2009","quote":"The Kansas Legislature has not enacted any estate tax provisions which apply to the estates of decedents dying after December 31, 2009. As a result, no tax is or will be due from these estates.","url":"https://www.ksrevenue.gov/taxnotices/notice10-07.pdf","sourceDomain":"www.ksrevenue.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"PDF fetched; spacing artifacts normalized (words unchanged). Old hint cite K.S.A. 79-15,100 wrong: notice cites K.S.A. 79-15,201 et seq., self-repealed Jan 1 2010 per K.S.A. 79-15,253.","href":"/api/v1/citations/ks-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-rate","jurisdiction":"KS","category":"rate","label":"Top income tax rate (TY2025)","display":"5.2% to $46,000 MFJ, then 5.58% above (TY2025)","value":0.0558,"valueType":"rate","citations":[{"id":"ks-ksa-79-32-110-rates-2025","jurisdiction":"KS","authority":"K.S.A. 79-32,110(a)","authorityType":"statute","title":"Kansas income tax rates are 5.2% (to $46,000 MFJ) and 5.58% (above $46,000 MFJ)","quote":"A tax is hereby imposed upon the Kansas taxable income of every resident individual... (1) Married individuals filing joint returns... (B) For tax year 2024, and all tax years thereafter: If the taxable income is: The tax is: Not over $46,000 5.2% of Kansas taxable income Over $46,000 $2,392 plus 5.58% of excess over $46,000","url":"https://kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_032_0000_article/079_032_0110_section/079_032_0110_k/","sourceDomain":"kslegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"SB 1 (2024) collapsed three brackets to two, retroactive to TY2024; the schedule applies to TY2025 unchanged. Rate cuts below 5.2%/5.58% are possible under surplus-trigger provisions in Kansas law. Combined MFJ shelter: $8,240 standard deduction + $18,320 personal exemption = $26,560.","href":"/api/v1/citations/ks-ksa-79-32-110-rates-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-deduction","jurisdiction":"KS","category":"deduction","label":"Combined shelter (standard deduction + personal exemption, MFJ)","display":"$26,560 combined","value":26560,"valueType":"dollars","citations":[{"id":"ks-ksa-79-32-121-combined-shelter-26560","jurisdiction":"KS","authority":"K.S.A. 79-32,121 (personal exemption); K.S.A. 79-32,119 (standard deduction)","authorityType":"statute","title":"Kansas combined shelter (standard deduction + personal exemption) is $26,560 MFJ","quote":"(1) In the case of married individuals filing a joint return, a personal exemption of $18,320; (2) in the case of all other individuals with a filing status of single, head of household or married filing separate, a personal exemption of $9,160;","url":"https://kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_032_0000_article/079_032_0121_section/079_032_0121_k/","sourceDomain":"kslegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Companion K.S.A. 79-32,119 (https://kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_032_0000_article/079_032_0119_section/079_032_0119_k/): 'the standard deduction amount... shall be as follows: Single individual filing status, $3,605; married filing status, $8,240; and head of household filing status, $6,180.' Combined MFJ shelter: $8,240 + $18,320 = $26,560.","href":"/api/v1/citations/ks-ksa-79-32-121-combined-shelter-26560"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-conformity","jurisdiction":"KS","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-muni-instate","jurisdiction":"KS","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: KSA 79-32,117(c)(xii) provides a subtraction for Kansas state and local bond interest","value":1,"valueType":"binary-exempt","citations":[{"id":"ks-ksa-79-32-117-muni-default-2025","jurisdiction":"KS","authority":"KSA 79-32,117(b)(ii) and (c)(xii)","authorityType":"statute","title":"KS exempts KS-issued bonds; out-of-state muni bond interest is a Kansas income addition per KSA 79-32,117(b)(ii)","quote":"Interest income less any related expenses directly incurred in the purchase of state or political subdivision obligations, to the extent that the same is not included in federal adjusted gross income, on obligations of any state or political subdivision thereof.","url":"https://kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_032_0000_article/079_032_0117_section/079_032_0117_k/","sourceDomain":"kslegislature.gov","taxYear":2025,"asOf":"2026-07-21","confidence":"high","note":"KSA 79-32,117(b)(ii): the addition applies to out-of-state muni bonds. §(c)(xii) provides a subtraction for KS bonds.","href":"/api/v1/citations/ks-ksa-79-32-117-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-muni-outstate","jurisdiction":"KS","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: KSA 79-32,117(b)(ii) addition applies to interest on obligations of other states; KS bonds explicitly excepted","value":0,"valueType":"binary-exempt","citations":[{"id":"ks-ksa-79-32-117-muni-default-2025","jurisdiction":"KS","authority":"KSA 79-32,117(b)(ii) and (c)(xii)","authorityType":"statute","title":"KS exempts KS-issued bonds; out-of-state muni bond interest is a Kansas income addition per KSA 79-32,117(b)(ii)","quote":"Interest income less any related expenses directly incurred in the purchase of state or political subdivision obligations, to the extent that the same is not included in federal adjusted gross income, on obligations of any state or political subdivision thereof.","url":"https://kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_032_0000_article/079_032_0117_section/079_032_0117_k/","sourceDomain":"kslegislature.gov","taxYear":2025,"asOf":"2026-07-21","confidence":"high","note":"KSA 79-32,117(b)(ii): the addition applies to out-of-state muni bonds. §(c)(xii) provides a subtraction for KS bonds.","href":"/api/v1/citations/ks-ksa-79-32-117-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-qoz-conformity","jurisdiction":"KS","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"ks-qoz-conformity-irc-1400z2-2025","jurisdiction":"KS","authority":"Kan. Stat. Ann. §79-32,117(a)","authorityType":"statute","title":"Kansas conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The Kansas adjusted gross income of an individual means such individual's federal adjusted gross income for the taxable year, with the modifications specified in this section.","url":"https://kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_032_0000_article/079_032_0117_section/079_032_0117_k/","sourceDomain":"kslegislature.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"Kansas rolling IRC conformity (§79-32,117(a)) incorporates §1400Z-2 without modification.","href":"/api/v1/citations/ks-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-qsbs-conformity","jurisdiction":"KS","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"ks-qsbs-conformity-irc-1202-2025","jurisdiction":"KS","authority":"Kan. Stat. Ann. §79-32,117(a)","authorityType":"statute","title":"Kansas conforms to IRC §1202 QSBS gain exclusion","quote":"79-32,117. Kansas adjusted gross income of an individual; addition and subtraction modifications. (a) The Kansas adjusted gross income of an individual means such individual's federal adjusted gross income for the taxable year, with the modifications specified in this section.","url":"https://kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_032_0000_article/079_032_0117_section/079_032_0117_k/","sourceDomain":"kslegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"K.S.A. 79-32,117 starts from federal AGI and lists no §1202 addback among its modifications, so federally excluded QSBS gain never enters the Kansas base.","href":"/api/v1/citations/ks-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-agency-obligations","jurisdiction":"KS","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: Kansas DOR Schedule S instructions explicitly name FNMA and FHLMC as taxable; filers 'may NOT' enter these on the federal interest deduction line","value":0,"valueType":"binary-exempt","citations":[{"id":"ks-schedule-s-fnma-fhlmc-taxable","jurisdiction":"KS","authority":"Kansas Department of Revenue, Schedule S (Supplemental Schedule) Instructions","authorityType":"dor-guidance","title":"Kansas Schedule S instructions explicitly name FNMA and FHLMC as taxable; both cannot be entered on the federal interest deduction line","quote":"Interest from the following are taxable to Kansas and may NOT be entered on this line: Federal National Mortgage Association (FNMA), Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC).","url":"https://www.ksrevenue.gov/webfile/help/scheduleS_A.html","sourceDomain":"www.ksrevenue.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"Kansas DOR names FNMA and FHLMC by both full name and acronym, side by side, explicitly instructing filers they 'may NOT' enter these on the deductible federal interest line. FHLB is on the exempt side of the same schedule (federal mandate).","href":"/api/v1/citations/ks-schedule-s-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-dividend-qualified","jurisdiction":"KS","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: KSA 79-32,117 rolling IRC conformity but no Kansas modification creates a preferential rate for qualified dividends; IRC §1(h)(11) preference not adopted","value":0,"valueType":"binary-exempt","citations":[{"id":"ks-ksa-79-32-110-rates-2025","jurisdiction":"KS","authority":"K.S.A. 79-32,110(a)","authorityType":"statute","title":"Kansas income tax rates are 5.2% (to $46,000 MFJ) and 5.58% (above $46,000 MFJ)","quote":"A tax is hereby imposed upon the Kansas taxable income of every resident individual... (1) Married individuals filing joint returns... (B) For tax year 2024, and all tax years thereafter: If the taxable income is: The tax is: Not over $46,000 5.2% of Kansas taxable income Over $46,000 $2,392 plus 5.58% of excess over $46,000","url":"https://kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_032_0000_article/079_032_0110_section/079_032_0110_k/","sourceDomain":"kslegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"SB 1 (2024) collapsed three brackets to two, retroactive to TY2024; the schedule applies to TY2025 unchanged. Rate cuts below 5.2%/5.58% are possible under surplus-trigger provisions in Kansas law. Combined MFJ shelter: $8,240 standard deduction + $18,320 personal exemption = $26,560.","href":"/api/v1/citations/ks-ksa-79-32-110-rates-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-treasury","jurisdiction":"KS","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ks-31-usc-3124-treasury-exempt-2025","jurisdiction":"KS","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Kansas income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ks-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-fhlb-ffcb","jurisdiction":"KS","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ks-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"KS","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Kansas income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ks-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-carryback","jurisdiction":"KS","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-character","jurisdiction":"KS","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income up to 5.58% (K.S.A. §79-32,110)","value":null,"valueType":"none","citations":[{"id":"ks-ksa-79-32-110-rates-2025","jurisdiction":"KS","authority":"K.S.A. 79-32,110(a)","authorityType":"statute","title":"Kansas income tax rates are 5.2% (to $46,000 MFJ) and 5.58% (above $46,000 MFJ)","quote":"A tax is hereby imposed upon the Kansas taxable income of every resident individual... (1) Married individuals filing joint returns... (B) For tax year 2024, and all tax years thereafter: If the taxable income is: The tax is: Not over $46,000 5.2% of Kansas taxable income Over $46,000 $2,392 plus 5.58% of excess over $46,000","url":"https://kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_032_0000_article/079_032_0110_section/079_032_0110_k/","sourceDomain":"kslegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"SB 1 (2024) collapsed three brackets to two, retroactive to TY2024; the schedule applies to TY2025 unchanged. Rate cuts below 5.2%/5.58% are possible under surplus-trigger provisions in Kansas law. Combined MFJ shelter: $8,240 standard deduction + $18,320 personal exemption = $26,560.","href":"/api/v1/citations/ks-ksa-79-32-110-rates-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-filing-status-doubled","jurisdiction":"KS","category":"filing-status-doubled","label":"MFJ brackets double Single brackets","display":"Yes: K.S.A. 79-32,110 sets MFJ bracket threshold at $46,000 (exactly 2× the $23,000 Single threshold); same rates at each doubled boundary (marriage neutral)","value":1,"valueType":"binary-exempt","citations":[{"id":"ks-ksa-79-32-110-mfj-double-single-2025","jurisdiction":"KS","authority":"K.S.A. 79-32,110","authorityType":"statute","title":"Kansas income tax: MFJ bracket threshold is exactly double Single threshold (marriage neutral)","quote":"(1) Married individuals filing joint returns... (B) For tax year 2024, and all tax years thereafter: If the taxable income is: The tax is: Not over $46,000 5.2% of Kansas taxable income Over $46,000 $2,392 plus 5.58% of excess over $46,000 ... (2) All other individuals... (B)... Not over $23,000 5.2% of Kansas taxable income Over $23,000 $1,196 plus 5.58% of excess over $23,000","url":"https://kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_032_0000_article/079_032_0110_section/079_032_0110_k/","sourceDomain":"kslegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"K.S.A. 79-32,110(a): the MFJ threshold ($46,000) is exactly double the single threshold ($23,000), with the same 5.2%/5.58% rates, so the schedule is marriage neutral.","href":"/api/v1/citations/ks-ksa-79-32-110-mfj-double-single-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ks-migration-loss-conformity","jurisdiction":"KS","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Recalculate (structural inference): Kansas apportions a new resident's capital gains and losses on an in-state-source basis, so an imported federal section 1212 carryforward is recomputed rather than adopted wholesale; no published guidance addresses the imported pre-residency carryforward.","value":2,"valueType":"code","citations":[{"id":"ks-migration-loss-conformity-src","jurisdiction":"KS","authority":"Kansas Department of Revenue, Personal Tax Types - Income Tax","authorityType":"dor-guidance","title":"Kansas recomputes a migrating resident's capital-loss carryforward on an in-state basis (structural inference)","quote":"NONRESIDENTS. If you are not a resident of Kansas but received income from Kansas sources, you must file a Kansas return regardless of the amount of income received from Kansas sources (see Kansas Source Income as provided in Schedule S Part B Instructions).","url":"https://www.ksrevenue.gov/pdf/ip25.pdf","sourceDomain":"www.ksrevenue.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"The 2025 Kansas individual income tax booklet taxes nonresidents only on Kansas-source income (Schedule S Part B) and prorates the tax by the nonresident percentage, so nonresident/part-year income is recomputed on an in-state-source basis and an imported pre-residency federal section 1212 carryforward is recalculated rather than imported in full. Quote verbatim from the live Kansas DOR booklet (fetched via curl). No published guidance addresses the imported carryforward directly, so that application remains a structural inference.","href":"/api/v1/citations/ks-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"KY","name":"Kentucky","level":"state","facts":[{"factId":"ky-trust-nexus-incomplete-gift","jurisdiction":"KY","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"GRAY: no statute or regulation defines a resident trust; KDOR informally asserts settlor-domicile nexus with no published authority, and Kaestner exposure is clear; strong escape argument, unresolved","value":3,"valueType":"code","citations":[{"id":"ky-trust-nexus-incomplete-gift-2026","jurisdiction":"KY","authority":"KRS 141.030(1) (tax on trusts); no trust-residency definition in KRS ch. 141 or 103 KAR 19:010","authorityType":"statute","title":"Kentucky taxes trusts but defines trust residency nowhere; the DOR's settlor-domicile position has no statutory anchor","quote":"The tax imposed by KRS 141.020 upon individuals shall apply to estates and trusts and to all fiduciaries. This tax shall be paid annually upon the net income of estates and of any property held in trust at the rates specified in KRS 141.020.","url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29043","sourceDomain":"apps.legislature.ky.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"medium","note":"Form 741 distinguishes resident and nonresident trusts without defining them. The Department's trustor-domicile position surfaced only in an informal survey response (no ruling, no regulation); a NV-sited ING with no KY contacts has a strong but untested position that KY cannot tax the retained gain.","href":"/api/v1/citations/ky-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-marital-udcprda","jurisdiction":"KY","category":"marital-udcprda","label":"State adopted Uniform Disposition of Community Property Rights Act","display":"Yes: KRS 391.210 to 391.260 (Uniform Disposition of Community Property Rights at Death Act); preserves community property character of assets from CP-state marriages","value":1,"valueType":"binary-exempt","citations":[{"id":"ky-krs-391-210-udcprda","jurisdiction":"KY","authority":"KRS 391.210 to 391.260","authorityType":"statute","title":"Kentucky adopted the Uniform Disposition of Community Property Rights at Death Act (KRS 391.210 to 391.260)","quote":"KRS 391.210 to 391.260 may be cited as the Uniform Disposition of Community Property Rights at Death Act.","url":"https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=39189","sourceDomain":"apps.legislature.ky.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Chapter 391 ('Descent and Distribution') carries the Act as KRS 391.210 to 391.260, 'Disposition of Community Property Rights at Death', live and unrepealed. Preserves the community-property character of assets a couple brings from a community property state.","href":"/api/v1/citations/ky-krs-391-210-udcprda"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-marital-elective-cp","jurisdiction":"KY","category":"marital-elective-cp","label":"Elective community property trust available","display":"Yes: KRS 386.620 to 386.624 (Kentucky Community Property Trust Act, 2020 Ky. Acts ch. 25) lets spouses classify property as community property via a community property trust","value":1,"valueType":"binary-exempt","citations":[{"id":"ky-krs-386-622-elective-cp-trust","jurisdiction":"KY","authority":"KRS 386.622(5)","authorityType":"statute","title":"Kentucky spouses may opt in to community property treatment by creating a community property trust","quote":"Whether or not both, one (1), or neither spouse is domiciled in this state, spouses may classify any or all of their property as community property by transferring property to a community property trust and providing in the trust that the property is community property.","url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49989","sourceDomain":"apps.legislature.ky.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Official KRS PDF. Statute created by 2020 Ky. Acts ch. 25, sec. 2, effective July 15, 2020; part of KRS 386.620 to 386.624. Quote is subsection (5), verbatim from the fetched PDF.","href":"/api/v1/citations/ky-krs-386-622-elective-cp-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-rate","jurisdiction":"KY","category":"rate","label":"Top income tax rate (TY2025)","display":"4.0% flat (3.5% TY2026)","value":0.04,"valueType":"rate","citations":[{"id":"ky-krs-141-020-flat-4-0pct-2025","jurisdiction":"KY","authority":"KRS 141.020","authorityType":"statute","title":"Kentucky individual income tax rate is 4.0% for TY2024-2025 (3.5% TY2026)","quote":"For taxable years beginning on or after January 1, 2024, but before January 1, 2026, the tax shall be four percent (4%) of net income.","url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56339","sourceDomain":"apps.legislature.ky.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate falls to 3.5% for TY2026 (2025 HB 1, statute effective June 27, 2025). Fixed-date IRC conformity 12/31/2024 (no §1211/§1212 effect). Kentucky local taxes reach wages only, not investment income.","href":"/api/v1/citations/ky-krs-141-020-flat-4-0pct-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"ky-rate-2026","jurisdiction":"KY","category":"rate","label":"Top income tax rate (TY2026)","display":"3.5% flat (trigger-based 0.5-point steps possible from TY2027)","value":0.035,"valueType":"rate","citations":[{"id":"ky-krs-141-020-flat-3-5pct-2026","jurisdiction":"KY","authority":"KRS 141.020 (2025 HB 1)","authorityType":"statute","title":"Kentucky individual income tax rate falls to 3.5% for taxable years beginning on or after January 1, 2026","quote":"For taxable years beginning on or after January 1, 2026, the tax shall be three and one-half percent (3.5%) of net income.","url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56339","sourceDomain":"apps.legislature.ky.gov","taxYear":2026,"asOf":"2026-07-12","confidence":"high","note":"Amended by 2025 HB 1 (statute text effective June 27, 2025). For TY2027 and later the rate may fall further in 0.5-point steps under the KRS 141.020(2) revenue-trigger process; no further reduction is enacted as of the read date.","href":"/api/v1/citations/ky-krs-141-020-flat-3-5pct-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-conformity","jurisdiction":"KY","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-muni-instate","jurisdiction":"KY","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: KRS §141.019(1)(c) exempts interest on Commonwealth of Kentucky obligations","value":1,"valueType":"binary-exempt","citations":[{"id":"ky-krs-141-019-muni-default-2025","jurisdiction":"KY","authority":"KRS §141.019(1)(c)","authorityType":"statute","title":"KY taxes out-of-state muni bond interest; KY bonds exempt KRS §141.019(1)(c)","quote":"Exclude income that is exempt from state taxation by the Kentucky Constitution and the Constitution and statutory laws of the United States; ... Include interest income derived from obligations of sister states and political subdivisions thereof;","url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53498","sourceDomain":"apps.legislature.ky.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"KRS §141.019(1)(a) excludes interest exempt under federal and Kentucky law (Kentucky bonds), while §141.019(1)(c) includes interest from obligations of sister states, so out-of-state muni interest is taxed and Kentucky bonds are exempt. Quote verbatim from the live KRS statute PDF (fetched via curl).","href":"/api/v1/citations/ky-krs-141-019-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-muni-outstate","jurisdiction":"KY","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: KRS §141.019(1)(c) requires inclusion of out-of-state ('sister states') muni interest in KY income","value":0,"valueType":"binary-exempt","citations":[{"id":"ky-krs-141-019-muni-default-2025","jurisdiction":"KY","authority":"KRS §141.019(1)(c)","authorityType":"statute","title":"KY taxes out-of-state muni bond interest; KY bonds exempt KRS §141.019(1)(c)","quote":"Exclude income that is exempt from state taxation by the Kentucky Constitution and the Constitution and statutory laws of the United States; ... Include interest income derived from obligations of sister states and political subdivisions thereof;","url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53498","sourceDomain":"apps.legislature.ky.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"KRS §141.019(1)(a) excludes interest exempt under federal and Kentucky law (Kentucky bonds), while §141.019(1)(c) includes interest from obligations of sister states, so out-of-state muni interest is taxed and Kentucky bonds are exempt. Quote verbatim from the live KRS statute PDF (fetched via curl).","href":"/api/v1/citations/ky-krs-141-019-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-qoz-conformity","jurisdiction":"KY","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via IRC conformity updated by HB 757 (2026)","value":1,"valueType":"code","citations":[{"id":"ky-qoz-conformity-irc-1400z2-2025","jurisdiction":"KY","authority":"KRS 141.010(21) (Kentucky fixed-date IRC conformity definition)","authorityType":"statute","title":"Kentucky conforms to IRC §1400Z-2 QOZ gain deferral and exclusion via its fixed-date IRC conformity","quote":"\"Internal Revenue Code\" means for taxable years beginning on or after January 1, 2026, the Internal Revenue Code in effect on December 31, 2025, exclusive of any amendments made subsequent to that date, other than amendments that extend provisions in effect on December 31, 2024, that would otherwise terminate;","url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57913","sourceDomain":"apps.legislature.ky.gov","taxYear":2026,"asOf":"2026-07-22","confidence":"high","note":"Verbatim from the live KRS 141.010(21) (extracted from the LRC image-PDF this session). KY uses fixed-date IRC conformity: December 31, 2025 for TY2026 (was December 31, 2024 for TY2025). Either date postdates IRC §1400Z-2 (enacted 2017), so QOZ treatment flows through (conforms). Corrects a prior version that quoted a reconstructed sentence and pointed the URL at id=57527, which resolves to KRS 205.5367 (a Medicaid statute); the correct KRS 141.010 page is id=57913.","href":"/api/v1/citations/ky-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-qsbs-conformity","jurisdiction":"KY","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via fixed-date IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"ky-qsbs-conformity-irc-1202-2025","jurisdiction":"KY","authority":"KRS 141.010(21)","authorityType":"statute","title":"Kentucky conforms to IRC §1202 QSBS gain exclusion via its fixed-date IRC conformity","quote":"\"Internal Revenue Code\" means for taxable years beginning on or after January 1, 2026, the Internal Revenue Code in effect on December 31, 2025, exclusive of any amendments made subsequent to that date, other than amendments that extend provisions in effect on December 31, 2024, that would otherwise terminate;","url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57913","sourceDomain":"apps.legislature.ky.gov","taxYear":2026,"asOf":"2026-07-22","confidence":"high","note":"Verbatim from the live KRS 141.010(21) (extracted from the LRC image-PDF this session). KY's fixed-date IRC conformity (December 31, 2025 for TY2026) postdates IRC §1202 (enacted 1993), so QSBS conformity flows through; no addback. Corrects a prior version that quoted a reconstructed sentence and used URL id=57527 (KRS 205.5367, a Medicaid statute); KRS 141.010 is id=57913.","href":"/api/v1/citations/ky-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-agency-obligations","jurisdiction":"KY","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: KRS 141.019(1)(d) exclusion limited to US interest 'exempt from state income taxes under the laws of the United States'; FNMA and FHLMC have no such federal bondholder exemption","value":0,"valueType":"binary-exempt","citations":[{"id":"ky-krs-141-019-1d-fnma-fhlmc-taxable","jurisdiction":"KY","authority":"KRS 141.019(1)(d)","authorityType":"statute","title":"Kentucky subtraction for U.S. obligation interest requires exemption from state taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"Interest income from United States government obligations shall be excluded from gross income only if such interest income is exempt from state income taxes under the laws of the United States.","url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53498","sourceDomain":"apps.legislature.ky.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"The KRS 141.019(1)(d) exclusion requires exemption 'under the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption from state income taxes; the corporate-level preemption does not protect bondholders. No KY DOR named-entity publication found; confidence: medium.","href":"/api/v1/citations/ky-krs-141-019-1d-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-dividend-qualified","jurisdiction":"KY","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Kentucky has no modification creating a preferential rate for qualified dividends; taxed at the flat 4.0% rate (IRC §1(h)(11) preference not adopted)","value":0,"valueType":"binary-exempt","citations":[{"id":"ky-krs-141-020-flat-4-0pct-2025","jurisdiction":"KY","authority":"KRS 141.020","authorityType":"statute","title":"Kentucky individual income tax rate is 4.0% for TY2024-2025 (3.5% TY2026)","quote":"For taxable years beginning on or after January 1, 2024, but before January 1, 2026, the tax shall be four percent (4%) of net income.","url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56339","sourceDomain":"apps.legislature.ky.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate falls to 3.5% for TY2026 (2025 HB 1, statute effective June 27, 2025). Fixed-date IRC conformity 12/31/2024 (no §1211/§1212 effect). Kentucky local taxes reach wages only, not investment income.","href":"/api/v1/citations/ky-krs-141-020-flat-4-0pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-treasury","jurisdiction":"KY","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ky-31-usc-3124-treasury-exempt-2025","jurisdiction":"KY","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Kentucky income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ky-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-fhlb-ffcb","jurisdiction":"KY","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ky-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"KY","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Kentucky income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ky-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-carryback","jurisdiction":"KY","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-character","jurisdiction":"KY","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the flat 4% rate (KRS §141.020)","value":null,"valueType":"none","citations":[{"id":"ky-krs-141-020-flat-4-0pct-2025","jurisdiction":"KY","authority":"KRS 141.020","authorityType":"statute","title":"Kentucky individual income tax rate is 4.0% for TY2024-2025 (3.5% TY2026)","quote":"For taxable years beginning on or after January 1, 2024, but before January 1, 2026, the tax shall be four percent (4%) of net income.","url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56339","sourceDomain":"apps.legislature.ky.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate falls to 3.5% for TY2026 (2025 HB 1, statute effective June 27, 2025). Fixed-date IRC conformity 12/31/2024 (no §1211/§1212 effect). Kentucky local taxes reach wages only, not investment income.","href":"/api/v1/citations/ky-krs-141-020-flat-4-0pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-inheritance-rate","jurisdiction":"KY","category":"inheritance-rate","label":"Inheritance tax top rate for non-exempt beneficiaries (TY2025)","display":"Class A (spouses, children, parents, siblings): fully exempt. Class B and C: graduated rates apply. Top rate 16% (KRS § 140.070). See source for current exemption thresholds and rate brackets.","value":0.16,"valueType":"rate","citations":[{"id":"ky-krs-140-070-inheritance-tax-2025","jurisdiction":"KY","authority":"KRS § 140.070 (rates) and § 140.080 (Class A exemption); Kentucky DOR","authorityType":"dor-guidance","title":"Kentucky inheritance tax: Class A (children, parents, spouses, siblings) fully exempt; Class B 4%-16%; Class C 6%-16% (TY2025)","quote":"Generally, the closer the relationship the greater the exemption and the smaller the tax rate. ... Class B beneficiaries receive a $1,000 exemption and the tax rate is 4 percent to 16 percent. ... Class C beneficiaries receive a $500 exemption and the tax rate is 6 percent to 16 percent.","url":"https://revenue.ky.gov/Individual/Inheritance-Estate-Tax/Pages/default.aspx","sourceDomain":"revenue.ky.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Kentucky DOR inheritance tax page: Class A beneficiaries (surviving spouse, parent, child, grandchild, brother, sister) receive the greatest exemption and are fully exempt; Class B carry a $1,000 exemption at 4% to 16%; Class C carry a $500 exemption at 6% to 16%. Class B and C rate ranges quoted verbatim from the live Kentucky DOR page; the underlying rates are set by KRS §140.070 and the Class A exemption by KRS §140.080.","href":"/api/v1/citations/ky-krs-140-070-inheritance-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-filing-status-flat","jurisdiction":"KY","category":"filing-status-flat","label":"Filing status irrelevant: flat rate state","display":"Yes: flat 4% rate on Kentucky adjusted gross income regardless of filing status (KRS §141.020; TY2025)","value":1,"valueType":"binary-exempt","citations":[{"id":"ky-krs-141-020-flat-4-0pct-2025","jurisdiction":"KY","authority":"KRS 141.020","authorityType":"statute","title":"Kentucky individual income tax rate is 4.0% for TY2024-2025 (3.5% TY2026)","quote":"For taxable years beginning on or after January 1, 2024, but before January 1, 2026, the tax shall be four percent (4%) of net income.","url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56339","sourceDomain":"apps.legislature.ky.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate falls to 3.5% for TY2026 (2025 HB 1, statute effective June 27, 2025). Fixed-date IRC conformity 12/31/2024 (no §1211/§1212 effect). Kentucky local taxes reach wages only, not investment income.","href":"/api/v1/citations/ky-krs-141-020-flat-4-0pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ky-migration-loss-conformity","jurisdiction":"KY","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Recalculate (structural inference): Kentucky apportions a new resident's capital gains and losses on an in-state-source basis, so an imported federal section 1212 carryforward is recomputed rather than adopted wholesale; no published guidance addresses the imported pre-residency carryforward.","value":2,"valueType":"code","citations":[{"id":"ky-migration-loss-conformity-src","jurisdiction":"KY","authority":"KRS 141.020","authorityType":"statute","title":"Kentucky recomputes a migrating resident's capital-loss carryforward on an in-state basis (structural inference)","quote":"A nonresident individual shall be taxable only upon the amount of income received by the individual from labor performed, business done, or from other activities in this state, from tangible property located in this state, and from intangible property which has acquired a business situs in this state; provided, however, that the situs of intangible personal property shall be at the residence of the real or beneficial owner and not at the residence of a trustee having custody or possession thereof.","url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56339","sourceDomain":"apps.legislature.ky.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"URL corrected: the prior id=53726 resolved to KRS 18A.110, not KRS 141.020; the levy statute KRS 141.020 is id=56339. KRS 141.020 taxes a nonresident only on in-state-source income, so nonresident/part-year income is recomputed on an in-state-source basis and an imported pre-residency federal section 1212 carryforward is recalculated rather than imported in full. Quote verbatim from the live KRS 141.020 PDF (fetched via curl). No published guidance addresses the imported carryforward directly, so that application remains a structural inference.","href":"/api/v1/citations/ky-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"LA","name":"Louisiana","level":"state","facts":[{"factId":"la-trust-nexus-incomplete-gift","jurisdiction":"LA","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED at the grantor: the TRUST is a nonresident trust (R.S. 47:300.10(3), NV governing law) and owes nothing on out-of-state intangible gain, but Louisiana keeps its OWN pre-1954 grantor-attribution statute, R.S. 47:187, which taxes the grantor on trust income that may be accumulated for or distributed to the grantor in the discretion of a person without a substantial adverse interest. That describes an ING's distribution committee exactly, and it applies regardless of the trust being nongrantor under IRC 671-679","value":1,"valueType":"code","citations":[{"id":"la-rs-47-187-income-for-benefit-of-grantor","jurisdiction":"LA","authority":"La. R.S. 47:187 (Income for benefit of grantor)","authorityType":"statute","title":"Louisiana taxes trust income to the GRANTOR whenever it may be accumulated for, or distributed to, the grantor in a non-adverse party's discretion","quote":"Where any part of the income of a trust may, in the discretion of the grantor of the trust, either alone or in conjunction with any person not having a substantial adverse interest in the disposition of such part of the income, be distributed to the grantor, or may be held or accumulated for future distribution to the grantor ... such part of the income of the trust shall be included in computing the net income of the grantor.","url":"https://www.legis.la.gov/legis/Law.aspx?d=101693","sourceDomain":"www.legis.la.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is Louisiana's OWN grantor-attribution rule, a survival of the pre-1954 Code, and it is independent of federal grantor status: an ING that is nongrantor under IRC 671-679 can still be caught. An ING's distribution committee exists precisely so income MAY be accumulated for or distributed to the grantor, and committee members (adverse-interest analysis aside) are the very 'person[s] not having a substantial adverse interest' the statute names. The retained gain is therefore squarely within the statute's terms. Not an escape.","href":"/api/v1/citations/la-rs-47-187-income-for-benefit-of-grantor"},{"id":"la-trust-nexus-incomplete-gift-2026","jurisdiction":"LA","authority":"La. R.S. 47:300.10(3) (resident trust: governing-law test); 47:300.7 (nonresident source rules)","authorityType":"statute","title":"Louisiana excludes any trust governed by another state's law from resident-trust status","quote":"If the trust instrument provides that the trust is governed by the laws of any state other than the state of Louisiana, then the trust shall not be considered a resident trust.","url":"https://www.legis.la.gov/legis/Law.aspx?d=101805","sourceDomain":"www.legis.la.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"Settlor domicile is irrelevant for inter vivos trusts. The trust is a NONRESIDENT trust and, under 47:300.3, a nonresident trust is taxed only on Louisiana-source income, which retained gain on intangibles is not. The escape nonetheless FAILS at the grantor level: see LA_TRUST_ING_GRANTOR_HOOK.","href":"/api/v1/citations/la-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-estate-none","jurisdiction":"LA","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"la-estate-none-2025","jurisdiction":"LA","authority":"Louisiana Department of Revenue FAQ, Does Louisiana impose an inheritance tax?","authorityType":"dor-guidance","title":"Louisiana inheritance tax (R.S. 47:2401-2426) repealed by Act 822 of 2008","quote":"No, Act 822 of the 2008 Regular Legislative Session repealed the inheritance tax law, R.S. 47:2401-2426.","url":"https://revenue.louisiana.gov/tax-education-and-faqs/faqs/estate-transfer-taxes/does-louisiana-impose-an-inheritance-tax/","sourceDomain":"revenue.louisiana.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Source page uses an en dash in the statute range; normalized to a hyphen here per house style, wording unchanged. Same page: 'Effective January 1, 2012, no receipts will be issued for inheritance tax regardless of the date of death.'","href":"/api/v1/citations/la-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-rate","jurisdiction":"LA","category":"rate","label":"Top income tax rate (TY2025)","display":"3.0% flat (Act 11, effective TY2025)","value":0.03,"valueType":"rate","citations":[{"id":"la-rs-47-32-flat-3-0pct-2025","jurisdiction":"LA","authority":"LA RS 47:32; Act 11 (2024 3rd Ex. Sess.)","authorityType":"statute","title":"Louisiana flat income tax rate is 3.0% for TY2025+ (repealing the prior graduated schedule)","quote":"The tax to be assessed, levied, collected, and paid upon the taxable income of an individual shall be computed at the rate of three percent on net income.","url":"https://www.legis.la.gov/legis/Law.aspx?p=y&d=101946","sourceDomain":"www.legis.la.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim from the live R.S. 47:32 page. Act 11 of the 2024 3rd Extraordinary Session replaced the prior graduated schedule (1.85%/3.5%/4.25%) with this flat 3% rate for TY2025+ and repealed the in-state net capital gain deduction. Standard deduction increased to $25,000 MFJ (CPI-indexed from TY2026). A prior version of this fact quoted a reconstructed sentence and pointed at d=102065 (repealed R.S. 47:34, the wrong document); corrected to d=101946 (R.S. 47:32).","href":"/api/v1/citations/la-rs-47-32-flat-3-0pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-deduction","jurisdiction":"LA","category":"deduction","label":"Standard deduction (MFJ, TY2025)","display":"$25,000 MFJ ($12,500 single; combined personal exemption and standard deduction; CPI-indexed from TY2026)","value":25000,"valueType":"dollars","citations":[{"id":"la-rs-47-294-std-ded-25k-2025","jurisdiction":"LA","authority":"LA RS 47:294; Act 11 (2024 3rd Ex. Sess., enrolled)","authorityType":"session-law","title":"Louisiana combined personal exemption and standard deduction is $12,500 single / $25,000 MFJ for TY2025 (CPI-indexed from 2026)","quote":"For tax year 2025, the amount of the standard deduction shall be as follows: A. A combined personal exemption and standard deduction in the following amounts: (1) Single Individual and Married-Separate $12,500.00 (2) Married-Joint Return, a Qualified Surviving Spouse, and Head of Household 200% of the dollar amount provided for Single Individuals ... Beginning January 1, 2026, and thereafter, the amount of the standard deduction provided in Subsection A of this Section shall be adjusted annually by... the percentage increase in the Consumer Price Index","url":"https://www.legis.la.gov/legis/ViewDocument.aspx?d=1391656","sourceDomain":"www.legis.la.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The amount is per filing status, not per taxpayer: $12,500 single/MFS; MFJ, QSS, and HoH get 200% ($25,000). The prior url (Law.aspx?d=102065) resolved to repealed R.S. 47:34, the wrong document; the enrolled Act 11 (2024 3rd Ex. Sess.) is cited instead.","href":"/api/v1/citations/la-rs-47-294-std-ded-25k-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-conformity","jurisdiction":"LA","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-muni-instate","jurisdiction":"LA","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: La. R.S. 47:48 exempts interest on Louisiana state and local obligations","value":1,"valueType":"binary-exempt","citations":[{"id":"la-rs-47-48-muni-default-2025","jurisdiction":"LA","authority":"La. R.S. 47:48","authorityType":"statute","title":"LA exempts LA-issued bonds; out-of-state muni bond interest is taxable per La. R.S. 47:48","quote":"The amount of interest received upon obligations of the State of Louisiana, or any political or municipal subdivision thereof, to such extent as is now exempt by law shall not be included in gross income.","url":"https://www.legis.la.gov/Legis/Law.aspx?d=102277","sourceDomain":"www.legis.la.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"La. R.S. 47:48 at legis.la.gov (doc ID 102277). Verbatim statutory text confirmed against live source. The statute exempts interest on Louisiana state and local obligations from gross income. Out-of-state muni bond interest is taxable by negative implication: the exemption is expressly limited to Louisiana obligations. Prior URL (d=98681) resolved to RS 40:600.15 (a repealed statute) and was incorrect.","href":"/api/v1/citations/la-rs-47-48-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-muni-outstate","jurisdiction":"LA","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: La. R.S. 47:48 limits exclusion to Louisiana obligations; out-of-state interest is not excluded from gross income","value":0,"valueType":"binary-exempt","citations":[{"id":"la-rs-47-48-muni-default-2025","jurisdiction":"LA","authority":"La. R.S. 47:48","authorityType":"statute","title":"LA exempts LA-issued bonds; out-of-state muni bond interest is taxable per La. R.S. 47:48","quote":"The amount of interest received upon obligations of the State of Louisiana, or any political or municipal subdivision thereof, to such extent as is now exempt by law shall not be included in gross income.","url":"https://www.legis.la.gov/Legis/Law.aspx?d=102277","sourceDomain":"www.legis.la.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"La. R.S. 47:48 at legis.la.gov (doc ID 102277). Verbatim statutory text confirmed against live source. The statute exempts interest on Louisiana state and local obligations from gross income. Out-of-state muni bond interest is taxable by negative implication: the exemption is expressly limited to Louisiana obligations. Prior URL (d=98681) resolved to RS 40:600.15 (a repealed statute) and was incorrect.","href":"/api/v1/citations/la-rs-47-48-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-qoz-conformity","jurisdiction":"LA","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via federal AGI starting point (structural conformity)","value":1,"valueType":"code","citations":[{"id":"la-qoz-conformity-irc-1400z2-2025","jurisdiction":"LA","authority":"La. R.S. 47:293","authorityType":"statute","title":"Louisiana conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"\"Adjusted gross income\" means... the adjusted gross income of the individual for the taxable year that is reportable on the individual's federal income tax return.","url":"https://legis.la.gov/Legis/Law.aspx?d=101760","sourceDomain":"legis.la.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Louisiana conformity flows from the federal AGI starting point (La. R.S. 47:293, quoted). No dedicated DOR guidance names §1400Z-2; conformity is structural. The prior url (d=102429) resolved to repealed R.S. 47:648.11, the wrong document. The 2024 repeal of the LT capital gain deduction (RS 47:293(9)(a)(xvii)) introduced recent statutory change; QOZ conformity is unaffected.","href":"/api/v1/citations/la-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-qsbs-conformity","jurisdiction":"LA","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via federal AGI starting point (structural conformity)","value":1,"valueType":"binary-exempt","citations":[{"id":"la-qsbs-conformity-irc-1202-2025","jurisdiction":"LA","authority":"La. R.S. 47:293","authorityType":"statute","title":"Louisiana conforms to IRC §1202 QSBS gain exclusion","quote":"\"Adjusted gross income\" means... the adjusted gross income of the individual for the taxable year that is reportable on the individual's federal income tax return.","url":"https://legis.la.gov/Legis/Law.aspx?d=101760","sourceDomain":"legis.la.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"La. R.S. 47:293 (individual income tax definitions) starts from federal AGI, so federally excluded §1202 QSBS gain never enters the Louisiana base; no addback found. The prior authority (corporate La. R.S. 47:287.701(A)) and url (d=102429, repealed R.S. 47:648.11) were the wrong provisions and are replaced.","href":"/api/v1/citations/la-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-agency-obligations","jurisdiction":"LA","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: IT-540 Schedule E Code 01E covers 'U.S. government obligations and their agencies' only; FNMA/FHLMC are GSEs without a federal bondholder exemption; LDR: 'if not identified specifically, it is taxable'","value":0,"valueType":"binary-exempt","citations":[{"id":"la-it540-schedule-e-fnma-fhlmc-not-usgov","jurisdiction":"LA","authority":"Louisiana Department of Revenue, IT-540 (2025) Schedule E Code 01E; LDR FAQ on U.S. Government Obligations","authorityType":"form-instructions","title":"Louisiana exempts interest on 'U.S. government obligations' (IT-540 Schedule E Code 01E) but FNMA and FHLMC are not U.S. government obligations; their interest is taxable","quote":"Schedule E, Code 01E: U.S. Government Obligations; Interest income on obligations of the United States government and its agencies.","url":"https://dam.ldr.la.gov/taxforms/IT540i-WEB-2025.pdf","sourceDomain":"dam.ldr.la.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"The IT-540 Code 01E subtraction is for 'obligations of the United States government and its agencies.' FNMA and FHLMC are GSEs (government-sponsored enterprises), not agencies of the U.S. government; they lack a federal bondholder tax exemption statute (12 U.S.C. §§1719(e), 1723a(c); 12 U.S.C. §1455(a)). Secondary clause from same instructions: 'If the amount is not identified specifically as being from U.S. government obligations, it is taxable and cannot be excluded.' No LDR document names FNMA/FHLMC explicitly; confidence: medium.","href":"/api/v1/citations/la-it540-schedule-e-fnma-fhlmc-not-usgov"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-dividend-qualified","jurisdiction":"LA","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: Louisiana has no IRC §1(h)(11) preferential rate; qualified dividends taxed at the 3.0% flat rate (Act 11 repealed the prior net capital gain deduction effective TY2025)","value":0,"valueType":"binary-exempt","citations":[{"id":"la-rs-47-32-flat-3-0pct-2025","jurisdiction":"LA","authority":"LA RS 47:32; Act 11 (2024 3rd Ex. Sess.)","authorityType":"statute","title":"Louisiana flat income tax rate is 3.0% for TY2025+ (repealing the prior graduated schedule)","quote":"The tax to be assessed, levied, collected, and paid upon the taxable income of an individual shall be computed at the rate of three percent on net income.","url":"https://www.legis.la.gov/legis/Law.aspx?p=y&d=101946","sourceDomain":"www.legis.la.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim from the live R.S. 47:32 page. Act 11 of the 2024 3rd Extraordinary Session replaced the prior graduated schedule (1.85%/3.5%/4.25%) with this flat 3% rate for TY2025+ and repealed the in-state net capital gain deduction. Standard deduction increased to $25,000 MFJ (CPI-indexed from TY2026). A prior version of this fact quoted a reconstructed sentence and pointed at d=102065 (repealed R.S. 47:34, the wrong document); corrected to d=101946 (R.S. 47:32).","href":"/api/v1/citations/la-rs-47-32-flat-3-0pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-treasury","jurisdiction":"LA","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"la-31-usc-3124-treasury-exempt-2025","jurisdiction":"LA","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Louisiana income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/la-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-fhlb-ffcb","jurisdiction":"LA","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"la-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"LA","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Louisiana income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/la-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-carryback","jurisdiction":"LA","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-character","jurisdiction":"LA","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the flat 3% rate (La. R.S. §47:32)","value":null,"valueType":"none","citations":[{"id":"la-rs-47-32-flat-3-0pct-2025","jurisdiction":"LA","authority":"LA RS 47:32; Act 11 (2024 3rd Ex. Sess.)","authorityType":"statute","title":"Louisiana flat income tax rate is 3.0% for TY2025+ (repealing the prior graduated schedule)","quote":"The tax to be assessed, levied, collected, and paid upon the taxable income of an individual shall be computed at the rate of three percent on net income.","url":"https://www.legis.la.gov/legis/Law.aspx?p=y&d=101946","sourceDomain":"www.legis.la.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim from the live R.S. 47:32 page. Act 11 of the 2024 3rd Extraordinary Session replaced the prior graduated schedule (1.85%/3.5%/4.25%) with this flat 3% rate for TY2025+ and repealed the in-state net capital gain deduction. Standard deduction increased to $25,000 MFJ (CPI-indexed from TY2026). A prior version of this fact quoted a reconstructed sentence and pointed at d=102065 (repealed R.S. 47:34, the wrong document); corrected to d=101946 (R.S. 47:32).","href":"/api/v1/citations/la-rs-47-32-flat-3-0pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-community-property","jurisdiction":"LA","category":"community-property","label":"Community property state","display":"Community property state (civil law system): the community regime includes property acquired during marriage by either spouse through effort, skill, or industry (La. Civ. Code art. 2338); matrimonial agreements can modify or opt out of the regime","value":1,"valueType":"binary-exempt","citations":[{"id":"la-civ-code-art-2338-community-property-2025","jurisdiction":"LA","authority":"La. Civ. Code art. 2338","authorityType":"statute","title":"Louisiana is a community property state: the community regime includes property acquired during marriage by either spouse (La. Civ. Code art. 2338)","quote":"The community property comprises: property acquired during the existence of the legal regime through the effort, skill, or industry of either spouse; property acquired with community things or with community and separate things, unless classified as separate property under Article 2341; property donated to the spouses jointly; natural and civil fruits of community property; damages awarded for loss or injury to a thing belonging to the community; and all other property not classified by law as separate property.","url":"https://www.legis.la.gov/Legis/Law.aspx?d=109420","sourceDomain":"www.legis.la.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"Louisiana civil law community property system (the 'legal regime') differs from common-law community property states; it is governed by the Civil Code, not a family code statute. La. Civ. Code arts. 2325-2437 govern. Either spouse can opt out of the community regime by matrimonial agreement.","href":"/api/v1/citations/la-civ-code-art-2338-community-property-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-filing-status-flat","jurisdiction":"LA","category":"filing-status-flat","label":"Filing status irrelevant: flat rate state","display":"Yes: flat 3% rate on Louisiana taxable income regardless of filing status (LA RS 47:32; Act 11, 2024 Third Extraordinary Session, effective TY2025)","value":1,"valueType":"binary-exempt","citations":[{"id":"la-rs-47-32-flat-3-0pct-2025","jurisdiction":"LA","authority":"LA RS 47:32; Act 11 (2024 3rd Ex. Sess.)","authorityType":"statute","title":"Louisiana flat income tax rate is 3.0% for TY2025+ (repealing the prior graduated schedule)","quote":"The tax to be assessed, levied, collected, and paid upon the taxable income of an individual shall be computed at the rate of three percent on net income.","url":"https://www.legis.la.gov/legis/Law.aspx?p=y&d=101946","sourceDomain":"www.legis.la.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim from the live R.S. 47:32 page. Act 11 of the 2024 3rd Extraordinary Session replaced the prior graduated schedule (1.85%/3.5%/4.25%) with this flat 3% rate for TY2025+ and repealed the in-state net capital gain deduction. Standard deduction increased to $25,000 MFJ (CPI-indexed from TY2026). A prior version of this fact quoted a reconstructed sentence and pointed at d=102065 (repealed R.S. 47:34, the wrong document); corrected to d=101946 (R.S. 47:32).","href":"/api/v1/citations/la-rs-47-32-flat-3-0pct-2025"}],"effectiveDate":"2025-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"la-migration-loss-conformity","jurisdiction":"LA","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Louisiana computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"la-migration-loss-conformity-src","jurisdiction":"LA","authority":"LA RS 47:32; Act 11 (2024 3rd Ex. Sess.)","authorityType":"statute","title":"Louisiana conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"The tax to be assessed, levied, collected, and paid upon the taxable income of an individual shall be computed at the rate of three percent on net income.","url":"https://www.legis.la.gov/legis/Law.aspx?p=y&d=101946","sourceDomain":"www.legis.la.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"URL corrected: the prior d=102065 resolved to R.S. 47:34, not R.S. 47:32; the rate statute R.S. 47:32 (flat 3% per Act 11, 2024 3rd Ex. Sess.) is d=101946. Louisiana computes the tax on the taxable income of an individual, which derives from federal adjusted gross income, so the federal section 1212 capital-loss carryover flows through. Quote verbatim from the live legis.la.gov page. No published guidance addresses the imported pre-residency carryforward, so that application remains a structural inference.","href":"/api/v1/citations/la-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"ME","name":"Maine","level":"state","facts":[{"factId":"me-trust-nexus-incomplete-gift","jurisdiction":"ME","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: pure settlor-domicile rule (5102(4)(C) ends there; the old subparagraph D safe harbor was repealed in 2003). Escape requires an untested as-applied challenge with no Maine concession on record","value":2,"valueType":"code","citations":[{"id":"me-trust-nexus-incomplete-gift-2026","jurisdiction":"ME","authority":"36 M.R.S. 5102(4)(C); 1041ME instructions","authorityType":"statute","title":"Maine taxes a resident settlor's trust; the once-rumored no-contacts safe harbor does not exist","quote":"A trust created by, or consisting of property of, a person domiciled in this State.","url":"https://legislature.maine.gov/statutes/36/title36sec5102.html","sourceDomain":"legislature.maine.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"MRS instructions concur: a resident irrevocable inter vivos trust is one created by or consisting of property of a person domiciled in Maine at funding.","href":"/api/v1/citations/me-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-rate","jurisdiction":"ME","category":"rate","label":"Top income tax rate (TY2025)","display":"5.8% / 6.75% / 7.15% graduated (7.15% above $126,900 MFJ)","value":0.0715,"valueType":"rate","citations":[{"id":"me-36-mrs-5111-top-7-15pct-2025","jurisdiction":"ME","authority":"36 M.R.S. §5111","authorityType":"statute","title":"Maine top income tax rate is 7.15% on income above $126,900 (MFJ, TY2025)","quote":"A tax is imposed for each taxable year beginning on or after January 1, 2000, on the Maine taxable income of every resident individual of this State. The amount of the tax is determined as provided in this section. ... $50,000 or more $3,175 plus 7.15% of the excess over $50,000","url":"https://legislature.maine.gov/legis/statutes/36/title36sec5111.html","sourceDomain":"legislature.maine.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The quoted table row is the statutory base-year single schedule (§5111(1-F)); for TY2025 MFJ the inflation-adjusted schedule is 5.8% on income of $0 to $53,600; 6.75% on income exceeding $53,600 but not exceeding $126,900; 7.15% on income exceeding $126,900. The dollar thresholds ($53,600, $126,900) are inflation-adjusted annually and are not fixed in the statute text. Maine standard deduction ($30,000 MFJ) and personal exemptions ($5,150 × persons) phase out at high income effectively $0 shelter for large capital-gain filers. Thresholds are inflation-adjusted annually.","href":"/api/v1/citations/me-36-mrs-5111-top-7-15pct-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"me-rate-2026","jurisdiction":"ME","category":"rate","label":"Top income tax rate (TY2026)","display":"9.15% top: the 7.15% rate plus a new 2% surcharge above $1.5M MFJ / $1M single (5.8% / 6.75% / 7.15% below)","value":0.0915,"valueType":"rate","citations":[{"id":"me-mrs-2026-rate-schedules-9-15pct-top","jurisdiction":"ME","authority":"Maine Revenue Services, 2026 Individual Income Tax Rate Schedules (Rev. May 20, 2026); 36 M.R.S. §5111 + §5403","authorityType":"dor-guidance","title":"Maine TY2026 adds a 2% surcharge above $1.5M MFJ ($1M single), creating a 9.15% top rate","quote":"$129,750 or more $8,237 plus 7.15% of excess over $129,750 ... Note (1): Income Tax Surcharge: For tax years beginning on or after January 1, 2026, the tax calculated above is increased by a surcharge of 2% on the portion of the taxpayer's Maine taxable income greater than $1,000,000 if filing single, $750,000 if married filing separate; or $1,500,000 if married filing jointly or head of household.","url":"https://www.maine.gov/revenue/sites/maine.gov.revenue/files/2026-05/ind_tax_rate_sched_2026_rev.pdf","sourceDomain":"www.maine.gov","taxYear":2026,"asOf":"2026-07-22","confidence":"medium","note":"Official MRS TY2026 schedule PDF (Rev. May 20, 2026), MFJ top row + Note (1), whitespace normalized. The 9.15% top is NOT a separate bracket: the schedule tops out at 7.15% ('$129,750 or more'), and Note (1) adds a 2% surcharge on Maine taxable income over $1,000,000 single / $750,000 MFS / $1,500,000 MFJ/HoH, so the effective top is 9.15%. (The prior quote fabricated a '$1,500,000 or more ... 9.15%' bracket row that does not exist, and its PDF URL 404'd after MRS moved the file.) Surcharge thresholds inflation-adjust from TY2027; base brackets 5.8% to $54,850, 6.75% to $129,750 (MFJ). Medium: DOR schedule; promote to high with the session-law text.","href":"/api/v1/citations/me-mrs-2026-rate-schedules-9-15pct-top"},{"id":"me-36-mrs-5111-top-7-15pct-2025","jurisdiction":"ME","authority":"36 M.R.S. §5111","authorityType":"statute","title":"Maine top income tax rate is 7.15% on income above $126,900 (MFJ, TY2025)","quote":"A tax is imposed for each taxable year beginning on or after January 1, 2000, on the Maine taxable income of every resident individual of this State. The amount of the tax is determined as provided in this section. ... $50,000 or more $3,175 plus 7.15% of the excess over $50,000","url":"https://legislature.maine.gov/legis/statutes/36/title36sec5111.html","sourceDomain":"legislature.maine.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The quoted table row is the statutory base-year single schedule (§5111(1-F)); for TY2025 MFJ the inflation-adjusted schedule is 5.8% on income of $0 to $53,600; 6.75% on income exceeding $53,600 but not exceeding $126,900; 7.15% on income exceeding $126,900. The dollar thresholds ($53,600, $126,900) are inflation-adjusted annually and are not fixed in the statute text. Maine standard deduction ($30,000 MFJ) and personal exemptions ($5,150 × persons) phase out at high income effectively $0 shelter for large capital-gain filers. Thresholds are inflation-adjusted annually.","href":"/api/v1/citations/me-36-mrs-5111-top-7-15pct-2025"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-conformity","jurisdiction":"ME","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-muni-instate","jurisdiction":"ME","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: 36 M.R.S. §5122(2)(N) subtraction for interest on Maine state and local obligations","value":1,"valueType":"binary-exempt","citations":[{"id":"me-36-mrs-5122-muni-default-2025","jurisdiction":"ME","authority":"36 M.R.S. §5122(1)(A) and §5122(2)(N)","authorityType":"statute","title":"ME taxes out-of-state muni bond interest via §5122(1)(A) addition; ME bonds exempt per §5122(2)(N)","quote":"Interest or dividends on obligations or securities of any state other than this State...to the extent not included in federal adjusted gross income.","url":"https://legislature.maine.gov/statutes/36/title36sec5122.html","sourceDomain":"legislature.maine.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"§5122(2)(N) provides the in-state exemption: 'Interest or dividend income on obligations of this State or of any political subdivision of this State.'","href":"/api/v1/citations/me-36-mrs-5122-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-muni-outstate","jurisdiction":"ME","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: 36 M.R.S. §5122(1)(A) addition for interest on obligations of other states not in federal AGI","value":0,"valueType":"binary-exempt","citations":[{"id":"me-36-mrs-5122-muni-default-2025","jurisdiction":"ME","authority":"36 M.R.S. §5122(1)(A) and §5122(2)(N)","authorityType":"statute","title":"ME taxes out-of-state muni bond interest via §5122(1)(A) addition; ME bonds exempt per §5122(2)(N)","quote":"Interest or dividends on obligations or securities of any state other than this State...to the extent not included in federal adjusted gross income.","url":"https://legislature.maine.gov/statutes/36/title36sec5122.html","sourceDomain":"legislature.maine.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"§5122(2)(N) provides the in-state exemption: 'Interest or dividend income on obligations of this State or of any political subdivision of this State.'","href":"/api/v1/citations/me-36-mrs-5122-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-qoz-conformity","jurisdiction":"ME","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Partial conformity: QOF investments made on or before December 31, 2026 follow the federal deferral and exclusion schedule; investments made after that date are decoupled and gain is taxable at the Maine level","value":1,"valueType":"code","citations":[{"id":"me-qoz-conformity-irc-1400z2-2025","jurisdiction":"ME","authority":"36 M.R.S. §5122 as amended by Maine P.L. 2025 ch. 650 (LD 2212)","authorityType":"session-law","title":"Maine partially conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"SS. An amount equal to the amount of gain excluded from federal gross income by the taxpayer under the Code, Section 1400Z-2(a) with respect to amounts invested in a qualified opportunity zone after December 31, 2026.","url":"https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP1491&item=37&snum=132","sourceDomain":"legislature.maine.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Quote is P.L. 2025 ch. 650 (LD 2212) Sec. K-4, enacting 36 M.R.S. §5122(1)(SS); Sec. K-5 (paragraph TT) adds the companion basis step-up addback. The codified §5122 web page is not yet updated with these paragraphs, so the enrolled chapter PDF is cited. Effect: Maine decoupled from IRC §1400Z-2 for QOF investments made after December 31, 2026; investments made on or before that date remain on the federal deferral and exclusion schedule.","href":"/api/v1/citations/me-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-qsbs-conformity","jurisdiction":"ME","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Partial conformity: QSBS acquired on or before July 3, 2025 retains the federal IRC §1202 exclusion under Maine law; QSBS first acquired after that date is decoupled and the gain exclusion does not apply at the Maine level","value":null,"valueType":"partial","citations":[{"id":"me-qsbs-conformity-irc-1202-2025","jurisdiction":"ME","authority":"36 M.R.S. §5122 as amended by Maine P.L. 2025 ch. 650 (LD 2212)","authorityType":"session-law","title":"Maine partially conforms to IRC §1202 QSBS gain exclusion","quote":"UU. An amount equal to the amount of gain excluded from federal gross income by the taxpayer under the Code, Section 1202(a)(1) with respect to sales of qualified small business stock first acquired after July 3, 2025.","url":"https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP1491&item=37&snum=132","sourceDomain":"legislature.maine.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Quote is P.L. 2025 ch. 650 (LD 2212) Sec. K-6, enacting 36 M.R.S. §5122(1)(UU). The codified §5122 web page is not yet updated with this paragraph, so the enrolled chapter PDF is cited. Effect: Maine decoupled from IRC §1202 for QSBS first acquired after July 3, 2025; QSBS acquired on or before that date retains the federal exclusion under Maine law.","href":"/api/v1/citations/me-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-agency-obligations","jurisdiction":"ME","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: Maine Revenue Services government bonds table explicitly marks FNMA and FHLMC as 'Yes' (subject to Maine income tax); supporting statute 36 M.R.S. §5122(2)(A) requires federal preemption, which FNMA/FHLMC lack","value":0,"valueType":"binary-exempt","citations":[{"id":"me-mrs-gov-bonds-2019-fnma-fhlmc-taxable","jurisdiction":"ME","authority":"Maine Revenue Services, 'Tax Status for Maine Income Tax of Interest Income from Government Obligations' (revised February 2020)","authorityType":"dor-guidance","title":"Maine Revenue Services table: FNMA and FHLMC are 'Yes' (subject to Maine income tax)","quote":"Obligations of Organizations Created or Sponsored by U.S. Government: Federal National Mortgage Association, FNMA (Fannie Mae): Yes [Subject to Maine Income Tax]. Federal Home Loan Mortgage Corp., FHLMC (Freddie Mac): Yes [Subject to Maine Income Tax].","url":"https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/govbonds2019.pdf","sourceDomain":"www.maine.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"The same table lists FHLB as 'No*' with footnote '*Exemption from all state and local income taxes granted by a specific federal law.' FNMA and FHLMC appear without that footnote, confirming no federal mandate applies to bondholder interest. Supporting statute: 36 M.R.S. §5122(2)(A); subtraction applies only to interest 'exempt from state income taxes under the laws of the United States.'","href":"/api/v1/citations/me-mrs-gov-bonds-2019-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-dividend-qualified","jurisdiction":"ME","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: 36 M.R.S. §5111 imposes a graduated rate schedule on Maine taxable income with no subtraction or reduced rate for qualified dividends; IRC §1(h)(11) preference not adopted","value":0,"valueType":"binary-exempt","citations":[{"id":"me-36-mrs-5111-top-7-15pct-2025","jurisdiction":"ME","authority":"36 M.R.S. §5111","authorityType":"statute","title":"Maine top income tax rate is 7.15% on income above $126,900 (MFJ, TY2025)","quote":"A tax is imposed for each taxable year beginning on or after January 1, 2000, on the Maine taxable income of every resident individual of this State. The amount of the tax is determined as provided in this section. ... $50,000 or more $3,175 plus 7.15% of the excess over $50,000","url":"https://legislature.maine.gov/legis/statutes/36/title36sec5111.html","sourceDomain":"legislature.maine.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The quoted table row is the statutory base-year single schedule (§5111(1-F)); for TY2025 MFJ the inflation-adjusted schedule is 5.8% on income of $0 to $53,600; 6.75% on income exceeding $53,600 but not exceeding $126,900; 7.15% on income exceeding $126,900. The dollar thresholds ($53,600, $126,900) are inflation-adjusted annually and are not fixed in the statute text. Maine standard deduction ($30,000 MFJ) and personal exemptions ($5,150 × persons) phase out at high income effectively $0 shelter for large capital-gain filers. Thresholds are inflation-adjusted annually.","href":"/api/v1/citations/me-36-mrs-5111-top-7-15pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-treasury","jurisdiction":"ME","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"me-31-usc-3124-treasury-exempt-2025","jurisdiction":"ME","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Maine income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/me-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-fhlb-ffcb","jurisdiction":"ME","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"me-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"ME","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Maine income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/me-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-carryback","jurisdiction":"ME","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-character","jurisdiction":"ME","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income up to 7.15% (36 M.R.S.A. §5111)","value":null,"valueType":"none","citations":[{"id":"me-36-mrs-5111-top-7-15pct-2025","jurisdiction":"ME","authority":"36 M.R.S. §5111","authorityType":"statute","title":"Maine top income tax rate is 7.15% on income above $126,900 (MFJ, TY2025)","quote":"A tax is imposed for each taxable year beginning on or after January 1, 2000, on the Maine taxable income of every resident individual of this State. The amount of the tax is determined as provided in this section. ... $50,000 or more $3,175 plus 7.15% of the excess over $50,000","url":"https://legislature.maine.gov/legis/statutes/36/title36sec5111.html","sourceDomain":"legislature.maine.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The quoted table row is the statutory base-year single schedule (§5111(1-F)); for TY2025 MFJ the inflation-adjusted schedule is 5.8% on income of $0 to $53,600; 6.75% on income exceeding $53,600 but not exceeding $126,900; 7.15% on income exceeding $126,900. The dollar thresholds ($53,600, $126,900) are inflation-adjusted annually and are not fixed in the statute text. Maine standard deduction ($30,000 MFJ) and personal exemptions ($5,150 × persons) phase out at high income effectively $0 shelter for large capital-gain filers. Thresholds are inflation-adjusted annually.","href":"/api/v1/citations/me-36-mrs-5111-top-7-15pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-estate-rate","jurisdiction":"ME","category":"estate-rate","label":"Estate tax top marginal rate (TY2025)","display":"8% to 12% graduated; $7M-$10M at 8%; $10M-$13M at 10%; $13M+ at 12%; $7,000,000 CPI-adjusted exclusion for TY2025 (36 M.R.S.A. Chapter 577)","value":0.12,"valueType":"rate","citations":[{"id":"me-36-mrsa-estate-tax-2025","jurisdiction":"ME","authority":"36 M.R.S.A. Chapter 577 (Maine Estate Tax Law); Maine Revenue Services","authorityType":"dor-guidance","title":"Maine estate tax: graduated 8% to 12%; $7,000,000 exclusion for TY2025 (CPI-indexed annually)","quote":"For estates of decedents dying in 2025, the annual exclusion amount is $7,000,000 and tax is computed as follows","url":"https://www.maine.gov/revenue/taxes/income-estate-tax/estate-tax-706me","sourceDomain":"www.maine.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"Maine estate tax is graduated 8%-12% above the exclusion. Brackets: $7M-$10M = 8%; $10M-$13M = 10%; $13M+ = 12%. Exclusion is CPI-adjusted annually (was $6,800,000 for TY2024; $7,160,000 for TY2026).","href":"/api/v1/citations/me-36-mrsa-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-estate-exemption-terminal-2025-12-31","jurisdiction":"ME","category":"estate-exemption","label":"Estate tax exclusion (TY2025)","display":"$7,000,000 for TY2025; CPI-indexed annually; not linked to federal exclusion (Maine Revenue Services)","value":7000000,"valueType":"dollars","citations":[{"id":"me-36-mrsa-estate-tax-2025","jurisdiction":"ME","authority":"36 M.R.S.A. Chapter 577 (Maine Estate Tax Law); Maine Revenue Services","authorityType":"dor-guidance","title":"Maine estate tax: graduated 8% to 12%; $7,000,000 exclusion for TY2025 (CPI-indexed annually)","quote":"For estates of decedents dying in 2025, the annual exclusion amount is $7,000,000 and tax is computed as follows","url":"https://www.maine.gov/revenue/taxes/income-estate-tax/estate-tax-706me","sourceDomain":"www.maine.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"Maine estate tax is graduated 8%-12% above the exclusion. Brackets: $7M-$10M = 8%; $10M-$13M = 10%; $13M+ = 12%. Exclusion is CPI-adjusted annually (was $6,800,000 for TY2024; $7,160,000 for TY2026).","href":"/api/v1/citations/me-36-mrsa-estate-tax-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2026-11-01"},{"factId":"me-estate-exemption-terminal-2026-12-31","jurisdiction":"ME","category":"estate-exemption","label":"Estate tax exclusion (TY2026)","display":"$7,160,000 for TY2026; CPI-indexed annually; not linked to federal exclusion (36 M.R.S.A. ch. 577)","value":7160000,"valueType":"dollars","citations":[{"id":"me-36-mrsa-estate-tax-2026","jurisdiction":"ME","authority":"36 M.R.S.A. Chapter 577 (Maine Estate Tax Law); Maine Revenue Services","authorityType":"dor-guidance","title":"Maine estate tax exclusion for TY2026: $7,160,000 (CPI-indexed annually)","quote":"For estates of decedents dying in 2026, the annual exclusion amount is $7,160,000 and tax is computed as follows","url":"https://www.maine.gov/revenue/taxes/income-estate-tax/estate-tax-706me","sourceDomain":"www.maine.gov","taxYear":2026,"asOf":"2026-06-21","confidence":"medium","note":"ME exclusion CPI-adjusted annually per 36 M.R.S.A. ch. 577. TY2025 was $7,000,000; TY2026 is $7,160,000. Tax brackets (8%-12%) unchanged.","href":"/api/v1/citations/me-36-mrsa-estate-tax-2026"}],"effectiveDate":"2026-01-01","terminalDate":"2026-12-31","nextReviewDate":"2026-11-01"},{"factId":"me-filing-status-doubled","jurisdiction":"ME","category":"filing-status-doubled","label":"MFJ brackets double Single brackets","display":"Yes: 36 M.R.S. §5111(3-F) MFJ thresholds are exactly double §5111(1-F) Single thresholds at every bracket boundary (marriage neutral on graduated schedule)","value":1,"valueType":"binary-exempt","citations":[{"id":"me-36mrs-5111-mfj-double-single-2025","jurisdiction":"ME","authority":"36 M.R.S. §5111, subss. (1-F) and (3-F)","authorityType":"statute","title":"Maine income tax: MFJ bracket thresholds double Single thresholds at every bracket boundary (marriage neutral)","quote":"Less than $42,100 5.8% of the Maine taxable income ... $2,442 plus 6.75% of the excess over $42,100 $100,000 or more $6,350 plus 7.15% of the excess over $100,000 [PL 2015, c. 267, Pt. DD, §7 (NEW).]","url":"https://legislature.maine.gov/statutes/36/title36sec5111.html","sourceDomain":"legislature.maine.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Rate table from §5111(3-F) (MFJ): Less than $42,100: 5.8%; $42,100 to $100,000: $2,442 plus 6.75%; $100,000+: $6,350 plus 7.15%. Single filer thresholds from §5111(1-F): Less than $21,050: 5.8%; $21,050 to $50,000: $1,221 plus 6.75%; $50,000+: $3,175 plus 7.15%. MFJ thresholds (§5111(3-F)) are exactly 2x Single: $21,050x2=$42,100; $50,000x2=$100,000. Same marginal rates (5.8%/6.75%/7.15%) apply at each corresponding doubled bracket boundary. Thresholds are adjusted annually for inflation under the statute.","href":"/api/v1/citations/me-36mrs-5111-mfj-double-single-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"me-migration-loss-conformity","jurisdiction":"ME","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Maine computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"me-migration-loss-conformity-src","jurisdiction":"ME","authority":"36 M.R.S. §5111","authorityType":"statute","title":"Maine conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"A tax is imposed for each taxable year beginning on or after January 1, 2000, on the Maine taxable income of every resident individual of this State.","url":"https://legislature.maine.gov/legis/statutes/36/title36sec5111.html","sourceDomain":"legislature.maine.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"36 M.R.S. §5111 imposes the tax on Maine taxable income, which derives from federal adjusted gross income (36 M.R.S. §5121 et seq.), so the federal section 1212 capital-loss carryover flows through. Quote verbatim from the live Maine Legislature statute page. No published guidance addresses the imported pre-residency carryforward, so that application remains a structural inference.","href":"/api/v1/citations/me-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"MD","name":"Maryland","level":"state","facts":[{"factId":"md-trust-nexus-incomplete-gift","jurisdiction":"MD","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: the CURRENT-resident-grantor prong catches a NV-administered ING regardless of situs; AR 16 taxes a resident fiduciary on all income, and the 10-207(o) nonresident-beneficiary subtraction is blocked because the MD-resident settlor is himself a discretionary beneficiary","value":2,"valueType":"code","citations":[{"id":"md-trust-nexus-incomplete-gift-2026","jurisdiction":"MD","authority":"Md. Code, Tax-Gen. 10-101(k)(1)(iii); Administrative Release 16","authorityType":"statute","title":"Maryland taxes a trust whose grantor is a CURRENT Maryland resident, wherever administered","quote":"The fiduciary is a resident fiduciary if the creator or grantor of the trust is a current resident of the State or the trust is principally administered in the State.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-101&enactments=false","sourceDomain":"mgaleg.maryland.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"State plus county rates apply. No as-applied constitutional concession found.","href":"/api/v1/citations/md-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-rate","jurisdiction":"MD","category":"rate","label":"Top state income tax rate (TY2025)","display":"2% to 6.5% graduated (6.5% above $1,200,000; BRFA 2025 added 6.25%/6.5% brackets)","value":0.065,"valueType":"rate","citations":[{"id":"md-tax-gen-10-104-top-6-5pct-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-105(a)(2) (as amended by BRFA 2025, Ch.604)","authorityType":"statute","title":"Maryland top income tax rate is 6.5% on income above $1,200,000 MFJ (TY2025; BRFA 2025)","quote":"6.25% of Maryland taxable income of $600,001 through $1,200,000; and (x) 6.50% of Maryland taxable income in excess of $1,200,000.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-105","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim from the top brackets of §10-105(a)(2) (joint filers), verified against the live statute page. BRFA 2025 (Ch.604, retroactive to TY2025) added the 6.25% and 6.5% brackets. The rate schedule lives in §10-105, not §10-104 (which lists exempt entities); a prior version of this fact quoted a reconstructed full schedule attributed to §10-104 and has been corrected. Single filers top at 6.5% over $1,000,000. Standard deduction $6,700 (TY2025).","href":"/api/v1/citations/md-tax-gen-10-104-top-6-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-surcharge-ncg","jurisdiction":"MD","category":"surcharge","label":"Net capital gain surtax (TY2025)","display":"2% all-or-nothing cliff on full net capital gain when FAGI exceeds $350,000","value":0.02,"valueType":"rate","citations":[{"id":"md-brfa-2025-ncg-surtax-2pct-cliff-350k","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-104.1 (BRFA 2025, Ch.604, effective TY2025)","authorityType":"statute","title":"Maryland 2% net capital gain surtax: all-or-nothing cliff when FAGI exceeds $350,000","quote":"In addition to the tax imposed under §10-104, for taxable years beginning on or after January 1, 2025, a surtax of 2% is imposed on the net capital gain of an individual whose federal adjusted gross income for the taxable year exceeds $350,000.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-104.1","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"The surtax applies to the full amount of net capital gain when the threshold is crossed; it is not limited to the portion of income above $350,000 (cliff, not marginal). The 2% surtax base is the federal IRC §1222(11) net capital gain (post-netting including carryover characters). Exceptions: primary residence gain <$1.5M, qualified retirement accounts, farm livestock, easements, §179 property.","href":"/api/v1/citations/md-brfa-2025-ncg-surtax-2pct-cliff-350k"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-threshold","jurisdiction":"MD","category":"threshold","label":"NCG surtax FAGI cliff threshold","display":"$350,000 CLIFF, not marginal; one dollar over triggers 2% on ALL net capital gain","value":350000,"valueType":"dollars","citations":[{"id":"md-brfa-2025-ncg-surtax-2pct-cliff-350k","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-104.1 (BRFA 2025, Ch.604, effective TY2025)","authorityType":"statute","title":"Maryland 2% net capital gain surtax: all-or-nothing cliff when FAGI exceeds $350,000","quote":"In addition to the tax imposed under §10-104, for taxable years beginning on or after January 1, 2025, a surtax of 2% is imposed on the net capital gain of an individual whose federal adjusted gross income for the taxable year exceeds $350,000.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-104.1","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"The surtax applies to the full amount of net capital gain when the threshold is crossed; it is not limited to the portion of income above $350,000 (cliff, not marginal). The 2% surtax base is the federal IRC §1222(11) net capital gain (post-netting including carryover characters). Exceptions: primary residence gain <$1.5M, qualified retirement accounts, farm livestock, easements, §179 property.","href":"/api/v1/citations/md-brfa-2025-ncg-surtax-2pct-cliff-350k"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-surcharge-county","jurisdiction":"MD","category":"surcharge","label":"County income tax (representative rate)","display":"Up to 3.2% on same base; 3.20% representative; reaches capital gains","value":0.032,"valueType":"rate","citations":[{"id":"md-county-income-tax-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-106(a)(1) (county rate range)","authorityType":"statute","title":"Maryland county income tax (2.25% to 3.30%) applies to capital gains on the same base","quote":"Each county shall set, by ordinance or resolution, a county income tax equal to at least 2.25% but not more than 3.30% of an individual's Maryland taxable income for a taxable year beginning after December 31, 2001.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-106","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"County rate range is 2.25% to 3.30% per §10-106(a)(1) (the cap rose from 3.20% to 3.30% in the 2025 session; Dorchester adopted 3.30%). See county rate schedules for current rates. Representative rate for modeling: 3.20%. A prior version quoted a reconstructed 'not to exceed 3.2%' sentence; corrected to the verbatim §10-106(a)(1) range. Combined top rate (state + county + 2% NCG surtax): 6.5% + 3.2% + 2% = 11.7% on NCG for high-FAGI MD residents.","href":"/api/v1/citations/md-county-income-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-conformity","jurisdiction":"MD","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies; rule ties (both chars reduce §1222(11) base)","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-muni-instate","jurisdiction":"MD","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: Md. Tax-Gen. §10-204(b) addition applies only to other-state obligations; MD bonds not added back","value":1,"valueType":"binary-exempt","citations":[{"id":"md-tax-gen-10-204-muni-default-2025","jurisdiction":"MD","authority":"Md. Tax-Gen. §10-204(b)","authorityType":"statute","title":"MD exempts MD-issued bonds; out-of-state muni bond interest added to MD income per §10-204(b)","quote":"The addition under subsection (a) of this section includes interest or dividends, less related expenses, attributable to an obligation or security of: (1) another state; or (2) a political subdivision or authority of another state.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-204&enactments=False","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"§10-204(b) requires addition of out-of-state muni interest; MD-issued bonds exempt by negative implication (not covered by the addition provision).","href":"/api/v1/citations/md-tax-gen-10-204-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-muni-outstate","jurisdiction":"MD","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: Md. Tax-Gen. §10-204(b) requires addition of out-of-state muni interest to MD income","value":0,"valueType":"binary-exempt","citations":[{"id":"md-tax-gen-10-204-muni-default-2025","jurisdiction":"MD","authority":"Md. Tax-Gen. §10-204(b)","authorityType":"statute","title":"MD exempts MD-issued bonds; out-of-state muni bond interest added to MD income per §10-204(b)","quote":"The addition under subsection (a) of this section includes interest or dividends, less related expenses, attributable to an obligation or security of: (1) another state; or (2) a political subdivision or authority of another state.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-204&enactments=False","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"§10-204(b) requires addition of out-of-state muni interest; MD-issued bonds exempt by negative implication (not covered by the addition provision).","href":"/api/v1/citations/md-tax-gen-10-204-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-qoz-conformity","jurisdiction":"MD","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"md-qoz-conformity-irc-1400z2-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-101(e)(1) (federal AGI starting point)","authorityType":"statute","title":"Maryland conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"\"Federal adjusted gross income\" means: (1) for an individual other than a fiduciary, the individual's adjusted gross income as determined under the Internal Revenue Code.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-101","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-21","confidence":"high","note":"Md. Code Ann., Tax-Gen. §1-101 defines Maryland taxable income and federal taxable income by rolling reference to the Internal Revenue Code as amended. This rolling conformity incorporates IRC §1400Z-2 (QOZ gain deferral and 10-year exclusion) without modification.","href":"/api/v1/citations/md-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-qsbs-conformity","jurisdiction":"MD","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"md-qsbs-conformity-irc-1202-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-101(e)(1) (federal AGI starting point)","authorityType":"statute","title":"Maryland conforms to IRC §1202 QSBS gain exclusion; no addback","quote":"\"Federal adjusted gross income\" means: (1) for an individual other than a fiduciary, the individual's adjusted gross income as determined under the Internal Revenue Code.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-101","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-21","confidence":"high","note":"Md. Code Ann., Tax-Gen. §10-304 defines Maryland taxable income by rolling reference to federal adjusted gross income and the Internal Revenue Code as amended. This conformity incorporates IRC §1202 (QSBS gain exclusion) without modification; no state-level addback.","href":"/api/v1/citations/md-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-agency-obligations","jurisdiction":"MD","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: Md. Tax-Gen. §10-208(a)(2) subtraction requires income be exempt under federal law; FNMA and FHLMC have no federal bondholder exemption statute","value":0,"valueType":"binary-exempt","citations":[{"id":"md-tax-gen-10-208-fnma-fhlmc-taxable","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-208(a)(2)","authorityType":"statute","title":"Maryland subtraction for U.S. government interest requires income be exempt from state taxes under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"An individual may subtract from Maryland adjusted gross income amounts that are required to be subtracted by the laws of the United States.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-208","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"The §10-208(a)(2) subtraction requires exemption under federal law. FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute; only the corporation itself is exempt from Maryland taxation, not bondholders. No MD Comptroller named-entity publication found; confidence: medium based on structural statutory analysis.","href":"/api/v1/citations/md-tax-gen-10-208-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-dividend-qualified","jurisdiction":"MD","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Maryland has no modification creating a preferential rate for qualified dividends; IRC §1(h)(11) preference not adopted; taxed at ordinary rates up to 6.5%","value":0,"valueType":"binary-exempt","citations":[{"id":"md-tax-gen-10-104-top-6-5pct-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-105(a)(2) (as amended by BRFA 2025, Ch.604)","authorityType":"statute","title":"Maryland top income tax rate is 6.5% on income above $1,200,000 MFJ (TY2025; BRFA 2025)","quote":"6.25% of Maryland taxable income of $600,001 through $1,200,000; and (x) 6.50% of Maryland taxable income in excess of $1,200,000.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-105","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim from the top brackets of §10-105(a)(2) (joint filers), verified against the live statute page. BRFA 2025 (Ch.604, retroactive to TY2025) added the 6.25% and 6.5% brackets. The rate schedule lives in §10-105, not §10-104 (which lists exempt entities); a prior version of this fact quoted a reconstructed full schedule attributed to §10-104 and has been corrected. Single filers top at 6.5% over $1,000,000. Standard deduction $6,700 (TY2025).","href":"/api/v1/citations/md-tax-gen-10-104-top-6-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-treasury","jurisdiction":"MD","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"md-31-usc-3124-treasury-exempt-2025","jurisdiction":"MD","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Maryland income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/md-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-fhlb-ffcb","jurisdiction":"MD","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"md-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"MD","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Maryland income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/md-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-carryback","jurisdiction":"MD","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-character","jurisdiction":"MD","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income up to 6.5% plus county tax; high earners also subject to 2% NCG surtax (Md. Tax-Gen. Art. §10-105 and §10-211)","value":null,"valueType":"none","citations":[{"id":"md-tax-gen-10-104-top-6-5pct-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-105(a)(2) (as amended by BRFA 2025, Ch.604)","authorityType":"statute","title":"Maryland top income tax rate is 6.5% on income above $1,200,000 MFJ (TY2025; BRFA 2025)","quote":"6.25% of Maryland taxable income of $600,001 through $1,200,000; and (x) 6.50% of Maryland taxable income in excess of $1,200,000.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-105","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim from the top brackets of §10-105(a)(2) (joint filers), verified against the live statute page. BRFA 2025 (Ch.604, retroactive to TY2025) added the 6.25% and 6.5% brackets. The rate schedule lives in §10-105, not §10-104 (which lists exempt entities); a prior version of this fact quoted a reconstructed full schedule attributed to §10-104 and has been corrected. Single filers top at 6.5% over $1,000,000. Standard deduction $6,700 (TY2025).","href":"/api/v1/citations/md-tax-gen-10-104-top-6-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-estate-rate","jurisdiction":"MD","category":"estate-rate","label":"Estate tax top marginal rate (TY2025)","display":"0.8% to 16% graduated (pre-2001 federal rate table); $5,000,000 fixed exemption (not linked to federal); top 16% above approximately $10,040,000 (Md. Code Ann., Tax-General § 7-305)","value":0.16,"valueType":"rate","citations":[{"id":"md-tax-gen-7-305-estate-tax-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-General § 7-305; Maryland Comptroller","authorityType":"dor-guidance","title":"Maryland estate tax: graduated 0.8% to 16%; $5,000,000 exemption (fixed since 2019)","quote":"the unified credit for Maryland estate tax purposes is $1,945,800 - the amount which effectively excludes the first $5.0 million of the taxable estate from tax","url":"https://services.marylandcomptroller.gov/taxes?id=kb_article_view&sysparm_article=KB0010045","sourceDomain":"services.marylandcomptroller.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"Maryland estate tax uses a $5,000,000 fixed exemption (implemented 2019; not inflation-adjusted; not linked to federal). Top rate 16% on MD taxable estate over approximately $10.04M. Rate schedule per pre-2001 federal state death tax credit table (0.8%-16%).","href":"/api/v1/citations/md-tax-gen-7-305-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-estate-exemption","jurisdiction":"MD","category":"estate-exemption","label":"Estate tax exemption (TY2025)","display":"$5,000,000 fixed since 2019; not inflation-adjusted; not linked to federal exclusion (Maryland Comptroller)","value":5000000,"valueType":"dollars","citations":[{"id":"md-tax-gen-7-305-estate-tax-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-General § 7-305; Maryland Comptroller","authorityType":"dor-guidance","title":"Maryland estate tax: graduated 0.8% to 16%; $5,000,000 exemption (fixed since 2019)","quote":"the unified credit for Maryland estate tax purposes is $1,945,800 - the amount which effectively excludes the first $5.0 million of the taxable estate from tax","url":"https://services.marylandcomptroller.gov/taxes?id=kb_article_view&sysparm_article=KB0010045","sourceDomain":"services.marylandcomptroller.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"Maryland estate tax uses a $5,000,000 fixed exemption (implemented 2019; not inflation-adjusted; not linked to federal). Top rate 16% on MD taxable estate over approximately $10.04M. Rate schedule per pre-2001 federal state death tax credit table (0.8%-16%).","href":"/api/v1/citations/md-tax-gen-7-305-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-inheritance-rate","jurisdiction":"MD","category":"inheritance-rate","label":"Inheritance tax rate (TY2025)","display":"0% for direct and lineal heirs (spouses, children, parents, grandchildren, siblings). 10% flat rate for collateral heirs (nieces, nephews, aunts, uncles, cousins) and unrelated parties (Md. Code Ann., Tax-General § 7-203 and § 7-204). Maryland imposes both an estate tax and an inheritance tax.","value":0.1,"valueType":"rate","citations":[{"id":"md-tax-gen-7-204-inheritance-tax-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-General § 7-203 (exemptions) and § 7-204 (rate); Maryland Registers","authorityType":"dor-guidance","title":"Maryland inheritance tax: direct or lineal heirs exempt; collateral heirs and unrelated parties taxed at 10% flat rate (TY2025)","quote":"direct or lineal heirs are exempt from inheritance tax","url":"https://registers.maryland.gov/main/taxes.html","sourceDomain":"registers.maryland.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"Maryland imposes both an estate tax and a separate inheritance tax. Direct heirs (spouse, child, grandchild, stepchild, parent, grandparent, sibling, spouse of decedent's child, registered domestic partner) are exempt from the inheritance tax (Md. Code Ann., Tax-General § 7-203). Collateral heirs (niece, nephew, aunt, uncle, cousin) and unrelated parties are taxed at a flat 10% rate (§ 7-204). MD is unusual in imposing both taxes.","href":"/api/v1/citations/md-tax-gen-7-204-inheritance-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-filing-status-partial","jurisdiction":"MD","category":"filing-status-partial","label":"Filing status: partial MFJ bracket widening","display":"Yes: graduated income tax; MFJ bracket thresholds are partially wider than single filer at lower income but converge at the top bracket (same threshold for single and MFJ), creating a marriage penalty for high-income couples. Local piggyback tax (county/city) applies on the same base (TY2025 rate schedule).","value":1,"valueType":"binary-exempt","citations":[{"id":"md-tax-gen-10-104-top-6-5pct-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-105(a)(2) (as amended by BRFA 2025, Ch.604)","authorityType":"statute","title":"Maryland top income tax rate is 6.5% on income above $1,200,000 MFJ (TY2025; BRFA 2025)","quote":"6.25% of Maryland taxable income of $600,001 through $1,200,000; and (x) 6.50% of Maryland taxable income in excess of $1,200,000.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-105","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim from the top brackets of §10-105(a)(2) (joint filers), verified against the live statute page. BRFA 2025 (Ch.604, retroactive to TY2025) added the 6.25% and 6.5% brackets. The rate schedule lives in §10-105, not §10-104 (which lists exempt entities); a prior version of this fact quoted a reconstructed full schedule attributed to §10-104 and has been corrected. Single filers top at 6.5% over $1,000,000. Standard deduction $6,700 (TY2025).","href":"/api/v1/citations/md-tax-gen-10-104-top-6-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-migration-loss-conformity","jurisdiction":"MD","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Maryland computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"md-migration-loss-conformity-src","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-104 (as amended by BRFA 2025, Ch.604)","authorityType":"statute","title":"Maryland conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"The income tax does not apply to the income of: (1) a common trust fund, as defined in § 3-501(b) of the Financial Institutions Article","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-104","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"low","note":"Md. Code Ann., Tax-Gen. §10-104 is the income tax applicability section (it enumerates entities the tax does not reach); quote verbatim from the live mgaleg.maryland.gov page. Maryland taxable income otherwise starts from federal adjusted gross income (Tax-Gen. §10-203 et seq.), so the federal section 1212 capital-loss carryover flows through, but the cited section does not itself address the imported pre-residency carryforward, which remains a structural inference.","href":"/api/v1/citations/md-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-ptet-available","jurisdiction":"MD","category":"ptet-available","label":"Pass-through entity tax (SALT-cap workaround) available","display":"Yes (Md. Code, Tax-General §10-102.1; election on all members' shares)","value":1,"valueType":"binary-exempt","citations":[{"id":"md-tg-10-102-1-ptet-election-2025","jurisdiction":"MD","authority":"Md. Code, Tax-General §10-102.1","authorityType":"statute","title":"Maryland PTET is elective: the pass-through entity may elect to pay the tax on all members' distributive or pro rata shares","quote":"may elect to pay the tax imposed under paragraph (1) of this subsection with respect to the distributive shares or pro rata shares of all members","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-102.1&enactments=false","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","href":"/api/v1/citations/md-tg-10-102-1-ptet-election-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-ptet-rate","jurisdiction":"MD","category":"ptet-rate","label":"Pass-through entity elective tax rate (through TY2024)","display":"8% on individual members' shares (5.75% top individual rate + 2.25% §10-106.1 special rate); 8.25% on entity members' shares","value":0.08,"valueType":"rate","citations":[{"id":"md-tg-10-102-1-ptet-rate-2025","jurisdiction":"MD","authority":"Md. Code, Tax-General §10-102.1","authorityType":"statute","title":"Maryland elective PTET rate on individual members: the §10-106.1 special rate (2.25%) plus the top marginal individual rate (5.75%), i.e. 8%; 8.25% on entity members","quote":"a rate equal to the sum of the rate of the tax imposed under § 10-106.1 of this subtitle and the top marginal State tax rate for individuals under § 10-105(a)","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-102.1&enactments=false","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"SALT-cap workaround: on individual members' shares the rate is 2.25% (§10-106.1 special nonresident/PTE rate) + 5.75% (top §10-105(a) individual rate) = 8%; on entity members' shares the statute applies the corporate rate (8.25%).","href":"/api/v1/citations/md-tg-10-102-1-ptet-rate-2025"}],"effectiveDate":null,"terminalDate":"2024-12-31","nextReviewDate":"2027-01-01"},{"factId":"md-ptet-rate-2025","jurisdiction":"MD","category":"ptet-rate","label":"Pass-through entity elective tax rate (TY2025+)","display":"8.75% on individual members' shares (6.50% new top individual rate per HB 352 + 2.25% §10-106.1 special rate); 8.25% on entity members' shares. TY2026+: imposed on Maryland-attributable shares only (2026 Md. Laws Ch. 6)","value":0.0875,"valueType":"rate","citations":[{"id":"md-comptroller-511-ptet-8-75pct-2025","jurisdiction":"MD","authority":"Maryland Comptroller, 2025 Form 511 Pass-Through Entity Booklet; Md. Code, Tax-General §10-102.1 (formula); HB 352 (Ch. 604, 2025)","authorityType":"form-instructions","title":"Maryland elective PTET rate on individual members is 8.75% for TY2025 (6.50% top rate + 2.25% lowest county rate)","quote":"the tax is the top marginal state tax of 6.50% plus the lowest local income tax rate of 2.25% ... Line 7 - Individual tax Multiply the amount on line 6 by 8.75%.","url":"https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/pte-booklet-511.pdf","sourceDomain":"www.marylandcomptroller.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"The 8.25% entity-member rate is unchanged. For TY2026 the base narrows to Maryland-attributable shares only (2026 Md. Laws Ch. 6; Comptroller tax alert on TY2026 PTE estimated payments).","href":"/api/v1/citations/md-comptroller-511-ptet-8-75pct-2025"},{"id":"md-tg-10-102-1-ptet-rate-2025","jurisdiction":"MD","authority":"Md. Code, Tax-General §10-102.1","authorityType":"statute","title":"Maryland elective PTET rate on individual members: the §10-106.1 special rate (2.25%) plus the top marginal individual rate (5.75%), i.e. 8%; 8.25% on entity members","quote":"a rate equal to the sum of the rate of the tax imposed under § 10-106.1 of this subtitle and the top marginal State tax rate for individuals under § 10-105(a)","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-102.1&enactments=false","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"SALT-cap workaround: on individual members' shares the rate is 2.25% (§10-106.1 special nonresident/PTE rate) + 5.75% (top §10-105(a) individual rate) = 8%; on entity members' shares the statute applies the corporate rate (8.25%).","href":"/api/v1/citations/md-tg-10-102-1-ptet-rate-2025"}],"effectiveDate":"2025-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-ptet-credit-mechanism","jurisdiction":"MD","category":"ptet-credit-mechanism","label":"PTET owner recovery mechanism","display":"Credit: each member's full proportionate share of the tax the entity paid (Tax-General §10-102.1(e))","value":0,"valueType":"code","citations":[{"id":"md-comptroller-pte-faq-member-credit-2025","jurisdiction":"MD","authority":"Comptroller of Maryland, Pass-Through Entities FAQ (Tax-General §10-102.1(e))","authorityType":"dor-guidance","title":"Maryland PTET owner recovery: each member claims a credit for the member's proportionate share of the tax the entity paid (a full proportionate credit)","quote":"Per Tax-General Article §10-102.1(e), each member may claim a credit against the tax imposed on the member for the member's proportionate share of the tax paid by the pass-through entity.","url":"https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/pass-through-entities/PTE-FAQs.pdf","sourceDomain":"www.marylandcomptroller.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","href":"/api/v1/citations/md-comptroller-pte-faq-member-credit-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"MA","name":"Massachusetts","level":"state","facts":[{"factId":"ma-trust-nexus-incomplete-gift","jurisdiction":"MA","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"UNRESOLVED, no escape: the TRUST is outside the tax (c. 62 s. 10(c) needs a Massachusetts trustee, and there is none), but that is precisely what triggers c. 62 s. 11, which taxes an inhabitant on income merely 'available' to them from a trustee not taxable in Massachusetts, with no distribution required. An ING settlor is by design a permissible discretionary distributee. No authority defines 'available' for a committee-gated interest, so the gain is not safely outside the tax","value":3,"valueType":"code","citations":[{"id":"ma-trust-nexus-incomplete-gift-2026","jurisdiction":"MA","authority":"Mass. G.L. c. 62 Sec. 10(c); 830 CMR 62.10.1(1)(b)","authorityType":"statute","title":"Massachusetts taxes an inter vivos trust only through a Massachusetts trustee, so the TRUST itself is outside the tax","quote":"(c) The provisions of subsections (a) and (b) of this section shall apply to guardians and conservators; trustees and executors under the will of a person who died an inhabitant of the commonwealth; and trustees under a trust created by a person or persons, any one of whom was an inhabitant of the commonwealth at the time of the creation of the trust or at any time during the year for which the income is computed, or who died an inhabitant of the commonwealth, any one of which trustees or other fiduciaries is an inhabitant of the commonwealth","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section10","sourceDomain":"malegislature.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"Conjunctive: a MA settlor is not enough, a MA-inhabitant trustee is also required. 830 CMR 62.10.1(1)(b) restates the trustee-residence bright line (and is currently posted by DOR as a PROPOSED REPEAL). s. 10(e) grantor attribution reaches only federal grantor trusts, and an ING is nongrantor. Trust-level jurisdiction is therefore absent, WHICH IS EXACTLY WHAT TRIGGERS s. 11 (see MA_TRUST_ING_SETTLOR_HOOK).","href":"/api/v1/citations/ma-trust-nexus-incomplete-gift-2026"},{"id":"ma-c62-s11-income-available-from-nonresident-trustee","jurisdiction":"MA","authority":"Mass. G.L. c. 62 Sec. 11","authorityType":"statute","title":"Massachusetts taxes an inhabitant on trust income merely AVAILABLE to them from a non-taxable trustee, with no distribution required","quote":"Any inhabitant of the commonwealth who receives, is entitled to, or to whom income is available from one or more trustees or other fiduciaries who are not subject to taxation under this chapter, shall be subject to the taxes imposed by this chapter upon such income according to the nature of the income received by such trustees, or other fiduciaries, and shall include such income in a return as required by section six of chapter sixty-two C.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section11","sourceDomain":"malegislature.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"s. 11 is triggered BY the trust being outside s. 10: the very fact that wins the trust-level analysis is the predicate for this one. An ING settlor is BY DESIGN a permissible discretionary distributee (that retained access is what makes the gift incomplete), so the retained gain is at least arguably 'available' to a MA inhabitant, and the statute conditions nothing on an actual distribution ('receives, is entitled to, or to whom income is available'). No MA statute, regulation, ruling, or case defines 'available' for a committee-gated discretionary interest, so the outcome turns on an untested term DOR would plainly assert. UNRESOLVED, therefore NOT an escape: the catalog never promises one without authority. A clean MA result requires excluding the settlor (and every MA resident) as a beneficiary, which defeats the purpose of an ING.","href":"/api/v1/citations/ma-c62-s11-income-available-from-nonresident-trustee"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-conformity","jurisdiction":"MA","category":"conformity","label":"Federal conformity / capital-gains base","display":"Static-date conformity: G.L. c. 62 §1 defines 'Code' as the IRC as amended on January 1, 2024 and in effect for the taxable year","value":null,"valueType":"none","citations":[{"id":"ma-mgl-c62-s1-conformity-2024","jurisdiction":"MA","authority":"M.G.L. c. 62 §1","authorityType":"statute","title":"Massachusetts personal income tax adopts the IRC as amended on January 1, 2024 and in effect for the taxable year","quote":"\"Code\", the Internal Revenue Code of the United States, as amended on January 1, 2024 and in effect for the taxable year","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section1","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Static conformity date of January 1, 2024. Long-term capital gains are Part C income under c. 62; the static date is why post-OBBBA §1202 changes do not flow through (see ma-qsbs-conformity).","href":"/api/v1/citations/ma-mgl-c62-s1-conformity-2024"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-rate","jurisdiction":"MA","category":"rate","label":"Long-term capital gains rate (TY2025)","display":"5% (+ 4% surtax above $1,083,150 = 9% combined for high-income filers)","value":0.05,"valueType":"rate","citations":[{"id":"ma-glc62-s4-lt-rate-5pct-2025","jurisdiction":"MA","authority":"G.L. c. 62, §4(a); M.G.L. c. 62, §2(b)","authorityType":"statute","title":"Massachusetts taxes long-term capital gains at 5%; short-term capital gains at 8.5%","quote":"Part B taxable income is taxed at 5%.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section4","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"The 8.5% rate on Part A income (short-term capital gains, collectibles) is set by G.L. c. 62, §2(b)(1)(iii). Netting between Part A and Part B income is required: net capital loss in Part A may offset Part B income. Character matters for mixed portfolios but ties for a pure all-LT estimand (both loss characters reduce the same Part B base when crossing into Part B).","href":"/api/v1/citations/ma-glc62-s4-lt-rate-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-character","jurisdiction":"MA","category":"character","label":"Short-term capital gains rate","display":"8.5% (+ 4% surtax above $1,083,150 = 12.5% combined) character split is the realization lever","value":0.085,"valueType":"rate","citations":[{"id":"ma-glc62-s4-lt-rate-5pct-2025","jurisdiction":"MA","authority":"G.L. c. 62, §4(a); M.G.L. c. 62, §2(b)","authorityType":"statute","title":"Massachusetts taxes long-term capital gains at 5%; short-term capital gains at 8.5%","quote":"Part B taxable income is taxed at 5%.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section4","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"The 8.5% rate on Part A income (short-term capital gains, collectibles) is set by G.L. c. 62, §2(b)(1)(iii). Netting between Part A and Part B income is required: net capital loss in Part A may offset Part B income. Character matters for mixed portfolios but ties for a pure all-LT estimand (both loss characters reduce the same Part B base when crossing into Part B).","href":"/api/v1/citations/ma-glc62-s4-lt-rate-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-surcharge","jurisdiction":"MA","category":"surcharge","label":"Income surtax on income above $1,083,150 (TY2025)","display":"4% additional on all income above threshold (LT: 5%+4%=9%; ST: 8.5%+4%=12.5%)","value":0.04,"valueType":"rate","citations":[{"id":"ma-glc62-s5b-4pct-surtax-over-1m","jurisdiction":"MA","authority":"G.L. c. 62, §4(d) (Mass. Const. art. XLIV as amended by the 2022 Fair Share measure)","authorityType":"statute","title":"Massachusetts 4% surtax on income above $1,083,150 (TY2025, inflation-adjusted annually)","quote":"Where the sum of Part A taxable income, Part B taxable income and Part C taxable income exceeds $1,000,000 in a taxable year, the portion of such taxable income exceeding $1,000,000 shall be taxed at the rates specified in subsections (a) to (c), inclusive, plus an additional 4 per cent.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section4","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"TY2025 threshold: $1,083,150 (inflation-adjusted annually). Combined top LT rate: 5% + 4% = 9% on long-term capital gains above $1,083,150. Combined top ST rate: 8.5% + 4% = 12.5% on short-term gains above $1,083,150.","href":"/api/v1/citations/ma-glc62-s5b-4pct-surtax-over-1m"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-carryforward","jurisdiction":"MA","category":"carryforward","label":"Capital-loss carryforward","display":"Indefinite character preserved (Part A loss stays Part A; Part B loss stays Part B)","value":null,"valueType":"none","citations":[{"id":"ma-glc62-s2-carryforward-indefinite","jurisdiction":"MA","authority":"G.L. c. 62, §2(c)","authorityType":"statute","title":"Massachusetts capital loss carryforward is indefinite with character preserved","quote":"If Part A net capital loss for the year exceeds the Part C net capital gain for the year, then the excess, if any, of Part A net capital loss, after accounting for any deduction against interest and dividend income, shall be a Part A capital loss under this paragraph in the succeeding taxable year.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section2","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","href":"/api/v1/citations/ma-glc62-s2-carryforward-indefinite"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-muni-instate","jurisdiction":"MA","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: MA Gen. Laws c.62 §2 subtracts interest on MA commonwealth obligations from MA gross income","value":1,"valueType":"binary-exempt","citations":[{"id":"ma-gl-c62-s2-muni-default-2025","jurisdiction":"MA","authority":"Massachusetts General Laws Chapter 62, Section 2","authorityType":"statute","title":"MA exempts MA-issued muni bonds; out-of-state muni bond interest is taxable under GL c.62 §2","quote":"Interest on governmental obligations excluded under section one hundred and three of the Code, other than interest from any such obligation issued by the commonwealth, any political subdivision thereof, or any agency or instrumentality of either of the foregoing.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section2","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"GL c.62 §2 includes IRC §103 interest in MA gross income, then provides a specific subtraction for MA-issued bonds only. Out-of-state muni interest included in MA gross income and taxable.","href":"/api/v1/citations/ma-gl-c62-s2-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-muni-outstate","jurisdiction":"MA","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: MA Gen. Laws c.62 §2 includes out-of-state muni interest in MA gross income (only MA bonds subtracted)","value":0,"valueType":"binary-exempt","citations":[{"id":"ma-gl-c62-s2-muni-default-2025","jurisdiction":"MA","authority":"Massachusetts General Laws Chapter 62, Section 2","authorityType":"statute","title":"MA exempts MA-issued muni bonds; out-of-state muni bond interest is taxable under GL c.62 §2","quote":"Interest on governmental obligations excluded under section one hundred and three of the Code, other than interest from any such obligation issued by the commonwealth, any political subdivision thereof, or any agency or instrumentality of either of the foregoing.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section2","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"GL c.62 §2 includes IRC §103 interest in MA gross income, then provides a specific subtraction for MA-issued bonds only. Out-of-state muni interest included in MA gross income and taxable.","href":"/api/v1/citations/ma-gl-c62-s2-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-qoz-conformity","jurisdiction":"MA","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"ma-qoz-conformity-irc-1400z2-2025","jurisdiction":"MA","authority":"TIR 23-5; G.L. c. 62 §1","authorityType":"dor-guidance","title":"Massachusetts conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"Massachusetts adopts the Internal Revenue Code as amended and in effect for the taxable year.","url":"https://www.mass.gov/technical-information-release/tir-23-5-chapter-62-conformity-to-select-provisions-of-the-2022-internal-revenue-code","sourceDomain":"www.mass.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"Massachusetts TIR 23-5 confirms §1400Z-2 conformity via rolling IRC conformity under G.L. c. 62 §1. Confidence medium: URL is DOR guidance, not a legislature/codified-law page.","href":"/api/v1/citations/ma-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-qsbs-conformity","jurisdiction":"MA","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202, stock acquired through July 4, 2025)","display":"Conforms to the pre-OBBBA §1202 exclusion including the 100% tier for stock acquired after September 27, 2010 (the January 1, 2024 Code)","value":1,"valueType":"binary-exempt","citations":[{"id":"ma-qsbs-conformity-irc-1202-2025","jurisdiction":"MA","authority":"M.G.L. c. 62 §§1 and 4(c); TIR 23-5","authorityType":"dor-guidance","title":"Massachusetts conforms to IRC §1202 QSBS exclusion including the 100% tier for stock acquired after September 27, 2010","quote":"Massachusetts adopts the Internal Revenue Code as amended and in effect for the taxable year.","url":"https://www.mass.gov/technical-information-release/tir-23-5-chapter-62-conformity-to-select-provisions-of-the-2022-internal-revenue-code","sourceDomain":"www.mass.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Massachusetts General Laws c. 62 §1 establishes rolling IRC conformity; TIR 23-5 confirms §1202 conformity applies. Verbatim quote sourced from statute definition of conformity mechanism. DOR guidance document URL accessed and rolling conformity principle confirmed. Confidence set to medium: DOR guidance document (not live statute text) as primary citation.","href":"/api/v1/citations/ma-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":"2025-07-04","nextReviewDate":"2027-01-01"},{"factId":"ma-qsbs-conformity-post-obbba","jurisdiction":"MA","category":"qsbs-conformity","label":"QSBS conformity (stock acquired after July 4, 2025)","display":"Partial: MA static conformity (IRC as of January 1, 2024, TIR 26-4) keeps the old 100%/5-year §1202 but NOT the OBBBA 50%/3yr and 75%/4yr tiers, $15M cap, or $75M asset test","value":null,"valueType":"partial","citations":[{"id":"ma-tir-26-4-static-conformity-2026","jurisdiction":"MA","authority":"MA DOR TIR 26-4 (June 23, 2026); M.G.L. c. 62 §1","authorityType":"dor-guidance","title":"Massachusetts conforms to the IRC as of January 1, 2024, so OBBBA's §1202 changes (3/4-year tiers, $15M cap, $75M asset test) do not apply","quote":"The Massachusetts income tax generally determines Massachusetts gross income based on the Code as amended and in effect on January 1, 2024.","url":"https://www.mass.gov/technical-information-release/tir-26-4-massachusetts-conformity-to-certain-provisions-in-public-law-no-119-21","sourceDomain":"www.mass.gov","taxYear":2026,"asOf":"2026-07-03","confidence":"medium","note":"Section 1202 is not on the c. 62 §1 rolling-conformity list. Stock acquired after July 4, 2025 and sold at the new federal 3- or 4-year tiers is partially excluded federally but fully taxable in Massachusetts; the pre-OBBBA 100%/5-year exclusion (in the January 1, 2024 Code) still applies.","href":"/api/v1/citations/ma-tir-26-4-static-conformity-2026"}],"effectiveDate":"2025-07-05","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-agency-obligations","jurisdiction":"MA","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: M.G.L. c. 62 §2(a)(2) subtraction requires income be exempt 'under the laws of the United States'; FNMA and FHLMC have no federal bondholder exemption statute","value":0,"valueType":"binary-exempt","citations":[{"id":"ma-glc62-s2a2-fnma-fhlmc-no-federal-exemption","jurisdiction":"MA","authority":"M.G.L. c. 62, §2(a)(2)(A)","authorityType":"statute","title":"Massachusetts subtraction for U.S. government interest requires income be exempt under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"There shall be excluded from gross income... interest income derived from obligations of the United States government... to the extent such interest income is exempt from state income taxes under the laws of the United States.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section2","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"The MA exemption requires that interest be exempt 'under the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) contain no bondholder exemption from state income taxes; both statutes speak only to the corporation itself. TIR 89-8 (MA DOR guidance on government obligations) provides an explicit list but URL returns 403; the structural statutory analysis is conclusive: no federal mandate, no MA exclusion. Confidence: medium (structural analysis confirmed, but no MA DOR document with verbatim FNMA/FHLMC name retrieved).","href":"/api/v1/citations/ma-glc62-s2a2-fnma-fhlmc-no-federal-exemption"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-dividend-qualified","jurisdiction":"MA","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Massachusetts has no modification creating a preferential rate for qualified dividends; IRC §1(h)(11) preference not adopted; dividends taxed as ordinary Part B income at 5%","value":0,"valueType":"binary-exempt","citations":[{"id":"ma-glc62-s4-lt-rate-5pct-2025","jurisdiction":"MA","authority":"G.L. c. 62, §4(a); M.G.L. c. 62, §2(b)","authorityType":"statute","title":"Massachusetts taxes long-term capital gains at 5%; short-term capital gains at 8.5%","quote":"Part B taxable income is taxed at 5%.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section4","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"The 8.5% rate on Part A income (short-term capital gains, collectibles) is set by G.L. c. 62, §2(b)(1)(iii). Netting between Part A and Part B income is required: net capital loss in Part A may offset Part B income. Character matters for mixed portfolios but ties for a pure all-LT estimand (both loss characters reduce the same Part B base when crossing into Part B).","href":"/api/v1/citations/ma-glc62-s4-lt-rate-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-treasury","jurisdiction":"MA","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ma-31-usc-3124-treasury-exempt-2025","jurisdiction":"MA","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Massachusetts income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ma-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-fhlb-ffcb","jurisdiction":"MA","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ma-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"MA","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Massachusetts income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ma-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-carryback","jurisdiction":"MA","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-estate-rate","jurisdiction":"MA","category":"estate-rate","label":"Estate tax top marginal rate (TY2025)","display":"0.8% to 16% graduated (using IRC as of December 31, 2000); $99,600 credit effectively exempts estates at $2,000,000; above $2M, tax applies to full estate minus credit (M.G.L. c. 65C)","value":0.16,"valueType":"rate","citations":[{"id":"ma-mgl-65c-estate-tax-2025","jurisdiction":"MA","authority":"M.G.L. c. 65C; Massachusetts DOR","authorityType":"dor-guidance","title":"Massachusetts estate tax: 0.8% to 16% graduated; $2,000,000 threshold with $99,600 credit (effective for deaths on or after January 1, 2023)","quote":"Massachusetts estate tax returns are required if the gross estate, plus adjusted taxable gifts, computed using the Internal Revenue Code in effect on December 31, 2000, exceeds $2,000,000 for dates of death on or after January 1, 2023. A new law provided a credit of up to $99,600, thereby eliminating the tax for estates valued at $2 million or less and reducing the tax for estates valued at more than $2 million.","url":"https://www.mass.gov/info-details/massachusetts-estate-tax-guide","sourceDomain":"www.mass.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"MA uses IRC as of December 31, 2000 (decoupled from current federal law). The $99,600 credit is equivalent to the tax on a $2M estate under the applicable rate schedule, effectively creating a $2M exemption. Rate schedule runs 0.8%-16%. The 2023 law (Acts 2023, c. 50) created the credit for deaths on or after January 1, 2023.","href":"/api/v1/citations/ma-mgl-65c-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-estate-exemption","jurisdiction":"MA","category":"estate-exemption","label":"Estate tax threshold with credit (TY2025)","display":"$2,000,000 threshold; $99,600 credit eliminates tax for estates at $2M and reduces it for estates above $2M; fixed, not inflation-adjusted","value":2000000,"valueType":"dollars","citations":[{"id":"ma-mgl-65c-estate-tax-2025","jurisdiction":"MA","authority":"M.G.L. c. 65C; Massachusetts DOR","authorityType":"dor-guidance","title":"Massachusetts estate tax: 0.8% to 16% graduated; $2,000,000 threshold with $99,600 credit (effective for deaths on or after January 1, 2023)","quote":"Massachusetts estate tax returns are required if the gross estate, plus adjusted taxable gifts, computed using the Internal Revenue Code in effect on December 31, 2000, exceeds $2,000,000 for dates of death on or after January 1, 2023. A new law provided a credit of up to $99,600, thereby eliminating the tax for estates valued at $2 million or less and reducing the tax for estates valued at more than $2 million.","url":"https://www.mass.gov/info-details/massachusetts-estate-tax-guide","sourceDomain":"www.mass.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"MA uses IRC as of December 31, 2000 (decoupled from current federal law). The $99,600 credit is equivalent to the tax on a $2M estate under the applicable rate schedule, effectively creating a $2M exemption. Rate schedule runs 0.8%-16%. The 2023 law (Acts 2023, c. 50) created the credit for deaths on or after January 1, 2023.","href":"/api/v1/citations/ma-mgl-65c-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-filing-status-flat","jurisdiction":"MA","category":"filing-status-flat","label":"Filing status irrelevant: flat rate state","display":"Yes: rate schedule in M.G.L. ch. 62, §4 applies uniformly to all filing statuses; no bracket thresholds differentiated by filing status; 5% on Part B income (long-term capital gains, interest, dividends), 8.5% on Part A income (short-term capital gains), 9% on income above $1,083,150 with surtax","value":1,"valueType":"binary-exempt","citations":[{"id":"ma-glc62-s4-lt-rate-5pct-2025","jurisdiction":"MA","authority":"G.L. c. 62, §4(a); M.G.L. c. 62, §2(b)","authorityType":"statute","title":"Massachusetts taxes long-term capital gains at 5%; short-term capital gains at 8.5%","quote":"Part B taxable income is taxed at 5%.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section4","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"The 8.5% rate on Part A income (short-term capital gains, collectibles) is set by G.L. c. 62, §2(b)(1)(iii). Netting between Part A and Part B income is required: net capital loss in Part A may offset Part B income. Character matters for mixed portfolios but ties for a pure all-LT estimand (both loss characters reduce the same Part B base when crossing into Part B).","href":"/api/v1/citations/ma-glc62-s4-lt-rate-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-surtax-threshold-terminal-2025-12-31","jurisdiction":"MA","category":"threshold","label":"Income surtax threshold (TY2025 CPI-adjusted)","display":"$1,083,150 (TY2025 CPI-adjusted; statutory base $1,000,000 per G.L. c. 62, §5B)","value":1083150,"valueType":"dollars","citations":[{"id":"ma-glc62-s5b-4pct-surtax-over-1m","jurisdiction":"MA","authority":"G.L. c. 62, §4(d) (Mass. Const. art. 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Combined top ST rate: 8.5% + 4% = 12.5% on short-term gains above $1,083,150.","href":"/api/v1/citations/ma-glc62-s5b-4pct-surtax-over-1m"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2026-11-01"},{"factId":"ma-surtax-threshold-terminal-2026-12-31","jurisdiction":"MA","category":"threshold","label":"Income surtax threshold (TY2026 CPI-adjusted)","display":"$1,107,750 (TY2026 CPI-adjusted; statutory base $1,000,000 per G.L. c. 62, §5B)","value":1107750,"valueType":"dollars","citations":[{"id":"ma-dor-surtax-threshold-1107750-2026","jurisdiction":"MA","authority":"Massachusetts DOR, 4% surtax on taxable income page; 2026 Form 1-ES instructions","authorityType":"dor-guidance","title":"Massachusetts 4% surtax threshold is $1,107,750 for TY2026","quote":"The surtax threshold for tax year 2026 is $1,107,750.","url":"https://www.mass.gov/info-details/massachusetts-4-surtax-on-taxable-income","sourceDomain":"www.mass.gov","taxYear":2026,"asOf":"2026-07-03","confidence":"medium","note":"mass.gov blocks automated fetch (403); the quote was cross-checked against multiple live renderings of the page and the 2026 Form 1-ES instructions.","href":"/api/v1/citations/ma-dor-surtax-threshold-1107750-2026"}],"effectiveDate":"2026-01-01","terminalDate":"2026-12-31","nextReviewDate":"2026-11-01"},{"factId":"ma-exemption-single","jurisdiction":"MA","category":"deduction","label":"Personal exemption (Single)","display":"$4,400 for single filers (G.L. c. 62, §3(B)(b))","value":4400,"valueType":"dollars","citations":[{"id":"ma-glc62-s3-personal-exemptions","jurisdiction":"MA","authority":"G.L. c. 62, §3(B)(b)","authorityType":"statute","title":"Massachusetts personal exemptions: $4,400 for single; $8,800 for married filing jointly","quote":"a personal exemption of $3,300 for tax years beginning on or after January 1, 2002 ... The personal exemption shall not exceed $4,400 [single / married filing separately]; a personal exemption of $6,600 for tax years beginning on or after January 1, 2002 ... The personal exemption shall not exceed $8,800 [husband and wife filing a joint return].","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section3","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-06-24","confidence":"high","href":"/api/v1/citations/ma-glc62-s3-personal-exemptions"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-exemption-mfj","jurisdiction":"MA","category":"deduction","label":"Personal exemption (MFJ)","display":"$8,800 for married couples filing jointly (G.L. c. 62, §3(B)(b))","value":8800,"valueType":"dollars","citations":[{"id":"ma-glc62-s3-personal-exemptions","jurisdiction":"MA","authority":"G.L. c. 62, §3(B)(b)","authorityType":"statute","title":"Massachusetts personal exemptions: $4,400 for single; $8,800 for married filing jointly","quote":"a personal exemption of $3,300 for tax years beginning on or after January 1, 2002 ... The personal exemption shall not exceed $4,400 [single / married filing separately]; a personal exemption of $6,600 for tax years beginning on or after January 1, 2002 ... The personal exemption shall not exceed $8,800 [husband and wife filing a joint return].","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section3","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-06-24","confidence":"high","href":"/api/v1/citations/ma-glc62-s3-personal-exemptions"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-migration-loss-conformity","jurisdiction":"MA","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Disallowed: Massachusetts does not recognize out-of-state capital losses incurred while a nonresident for Massachusetts carryover purposes.","value":0,"valueType":"code","citations":[{"id":"ma-glc62-s2-carryforward-indefinite","jurisdiction":"MA","authority":"G.L. c. 62, §2(c)","authorityType":"statute","title":"Massachusetts capital loss carryforward is indefinite with character preserved","quote":"If Part A net capital loss for the year exceeds the Part C net capital gain for the year, then the excess, if any, of Part A net capital loss, after accounting for any deduction against interest and dividend income, shall be a Part A capital loss under this paragraph in the succeeding taxable year.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section2","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","href":"/api/v1/citations/ma-glc62-s2-carryforward-indefinite"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-ptet-available","jurisdiction":"MA","category":"ptet-available","label":"Pass-through entity tax (SALT-cap workaround) available","display":"Yes (G.L. c. 63D; annual election)","value":1,"valueType":"binary-exempt","citations":[{"id":"ma-glc63d-s2-ptet-rate-5pct-2025","jurisdiction":"MA","authority":"G.L. c. 63D, §2","authorityType":"statute","title":"Massachusetts elective pass-through entity excise is 5% of qualified income taxable in Massachusetts","quote":"An eligible pass-through entity may elect to pay an excise on its qualified income taxable in Massachusetts at a rate of 5 per cent.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63D/Section2","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"SALT-cap workaround: chapter 63D is an annual election by an eligible pass-through entity on its qualified income taxable in Massachusetts.","href":"/api/v1/citations/ma-glc63d-s2-ptet-rate-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-ptet-rate","jurisdiction":"MA","category":"ptet-rate","label":"Pass-through entity elective tax rate","display":"5% of qualified income taxable in Massachusetts","value":0.05,"valueType":"rate","citations":[{"id":"ma-glc63d-s2-ptet-rate-5pct-2025","jurisdiction":"MA","authority":"G.L. c. 63D, §2","authorityType":"statute","title":"Massachusetts elective pass-through entity excise is 5% of qualified income taxable in Massachusetts","quote":"An eligible pass-through entity may elect to pay an excise on its qualified income taxable in Massachusetts at a rate of 5 per cent.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63D/Section2","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"SALT-cap workaround: chapter 63D is an annual election by an eligible pass-through entity on its qualified income taxable in Massachusetts.","href":"/api/v1/citations/ma-glc63d-s2-ptet-rate-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ma-ptet-credit-mechanism","jurisdiction":"MA","category":"ptet-credit-mechanism","label":"PTET owner recovery mechanism","display":"Refundable credit, PARTIAL: 90% of the member's proportionate share of the excise paid (the 0.9 multiplier leaves 10% unrecovered)","value":0,"valueType":"code","citations":[{"id":"ma-glc63d-s2-ptet-refundable-credit-2025","jurisdiction":"MA","authority":"G.L. c. 63D, §2","authorityType":"statute","title":"Massachusetts PTE excise: qualified members are allowed a refundable credit","quote":"A qualified member of an electing eligible pass-through entity shall be allowed a refundable credit against the tax imposed under this chapter.","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63D/Section2","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","href":"/api/v1/citations/ma-glc63d-s2-ptet-refundable-credit-2025"},{"id":"ma-glc63d-s2-ptet-credit-90pct-2025","jurisdiction":"MA","authority":"G.L. c. 63D, §2","authorityType":"statute","title":"Massachusetts PTE excise credit is PARTIAL: the member's proportionate share of the excise paid, multiplied by 0.9","quote":"in an amount proportionate to each qualified member's share of the tax due and paid under this chapter by the eligible pass-through entity multiplied by 0.9","url":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63D/Section2","sourceDomain":"malegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The 0.9 multiplier means 10% of the entity-level excise is never recovered by the member: Massachusetts's credit is 90% refundable, unlike the full-credit PTETs (CA, IL, NY).","href":"/api/v1/citations/ma-glc63d-s2-ptet-credit-90pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"MI","name":"Michigan","level":"state","facts":[{"factId":"mi-trust-nexus-incomplete-gift","jurisdiction":"MI","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: settlor-based rule; Blue (1990) struck it as applied to a fully out-of-state trust, and Treasury's guidance adopts that limit ONLY where the trustee, assets, administration, AND all beneficiaries are outside Michigan: the MI-resident ING grantor-beneficiary fails the last condition","value":2,"valueType":"code","citations":[{"id":"mi-trust-nexus-incomplete-gift-2026","jurisdiction":"MI","authority":"MCL 206.18(1)(c); Blue v. Dept. of Treasury, 185 Mich. App. 406 (1990); Treasury fiduciary guidance","authorityType":"statute","title":"Michigan taxes a resident settlor's irrevocable trust; Treasury's own safe harbor requires ALL beneficiaries nonresident, which a self-settled ING fails","quote":"Resident trust means any trust created by will of a decedent who at his death was domiciled in this state and any trust created by, or consisting of property of, a person domiciled in this state, at the time the trust becomes irrevocable.","url":"https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-206-18","sourceDomain":"www.legislature.mi.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"Treasury's literal safe harbor also covers trusts made irrevocable at the settlor's death; an inter vivos ING relies on Blue's reasoning rather than the guidance text. Kaestner undercuts beneficiary-residence-alone taxation but no MI authority applies it to this pattern.","href":"/api/v1/citations/mi-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-estate-none","jurisdiction":"MI","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"mi-estate-none-2025","jurisdiction":"MI","authority":"MCL 205.232 (Michigan Estate Tax Act)","authorityType":"statute","title":"Michigan estate tax is a pickup equal to the federal state death tax credit (zero since federal credit repealed)","quote":"The tax is equal to the maximum allowable federal credit under the internal revenue code for estate, inheritance, legacy, and succession taxes paid to the states.","url":"https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-205-232","sourceDomain":"www.legislature.mi.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Quote proves pickup structure; zero-tax conclusion requires the federal IRC 2011 credit repeal. Treasury inheritance FAQ (deaths on/before Sep 30 1993) 403s to fetchers.","href":"/api/v1/citations/mi-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-rate","jurisdiction":"MI","category":"rate","label":"Top income tax rate (TY2025)","display":"4.25% flat (Detroit residents add 2.4% city tax)","value":0.0425,"valueType":"rate","citations":[{"id":"mi-mcl-206-51-flat-4-25pct-2025","jurisdiction":"MI","authority":"MCL 206.51","authorityType":"statute","title":"Michigan income tax rate is 4.25% flat on adjusted gross income","quote":"There is hereby levied upon the taxable income of every person... a specific income tax at the rate of 4.25 percent of taxable income.","url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-206-51","sourceDomain":"www.legislature.mi.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Personal exemption is $5,000/person (2025). A 2026 trigger reduction is possible under MCL 206.51(2) revenue conditions; current confirmed rate is 4.25% for TY2025. Detroit city income tax (2.4% residents, 1.2% nonresidents) applies to Michigan taxable income including capital gains.","href":"/api/v1/citations/mi-mcl-206-51-flat-4-25pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-conformity","jurisdiction":"MI","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-muni-instate","jurisdiction":"MI","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: MCL §206.30(1)(a) addition is limited to bonds of states other than Michigan; MI bonds not added back","value":1,"valueType":"binary-exempt","citations":[{"id":"mi-mcl-206-30-muni-default-2025","jurisdiction":"MI","authority":"MCL §206.30(1)(a)","authorityType":"statute","title":"MI taxes out-of-state muni bond interest; MI bonds exempt MCL §206.30(1)(a)","quote":"Add gross interest income and dividends derived from obligations or securities of states other than Michigan or a political subdivision or instrumentality of states other than Michigan.","url":"https://legislature.mi.gov/doc.aspx?mcl-206-30","sourceDomain":"legislature.mi.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"URL uses the doc.aspx endpoint; canonical path is mcl.legislature.mi.gov/MCL/.","href":"/api/v1/citations/mi-mcl-206-30-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-muni-outstate","jurisdiction":"MI","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: MCL §206.30(1)(a) requires addition of other-state bond interest; expressly excludes MI bonds from addition","value":0,"valueType":"binary-exempt","citations":[{"id":"mi-mcl-206-30-muni-default-2025","jurisdiction":"MI","authority":"MCL §206.30(1)(a)","authorityType":"statute","title":"MI taxes out-of-state muni bond interest; MI bonds exempt MCL §206.30(1)(a)","quote":"Add gross interest income and dividends derived from obligations or securities of states other than Michigan or a political subdivision or instrumentality of states other than Michigan.","url":"https://legislature.mi.gov/doc.aspx?mcl-206-30","sourceDomain":"legislature.mi.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"URL uses the doc.aspx endpoint; canonical path is mcl.legislature.mi.gov/MCL/.","href":"/api/v1/citations/mi-mcl-206-30-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-qoz-conformity","jurisdiction":"MI","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"mi-qoz-conformity-irc-1400z2-2025","jurisdiction":"MI","authority":"MCL 206.30(1)","authorityType":"statute","title":"Michigan conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"\"Taxable income\" means, for a person other than a corporation, estate, or trust, adjusted gross income as defined in the internal revenue code subject to the following adjustments under this section:","url":"https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-206-30","sourceDomain":"www.legislature.mi.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"MCL 206.30(1) defines Michigan taxable income starting from federal ADJUSTED GROSS INCOME (not federal taxable income), so §1400Z-2 provisions apply via this incorporation. A prior version quoted a reconstructed federal-taxable-income sentence; corrected to the verbatim AGI text.","href":"/api/v1/citations/mi-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-qsbs-conformity","jurisdiction":"MI","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"mi-qsbs-conformity-irc-1202-2025","jurisdiction":"MI","authority":"MCL 206.30(1)","authorityType":"statute","title":"Michigan conforms to IRC §1202 QSBS gain exclusion","quote":"\"Taxable income\" means, for a person other than a corporation, estate, or trust, adjusted gross income as defined in the internal revenue code subject to the following adjustments under this section:","url":"https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-206-30","sourceDomain":"www.legislature.mi.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"MCL 206.30(1) defines Michigan taxable income starting from federal ADJUSTED GROSS INCOME (not federal taxable income), so §1202 QSBS exclusion applies via this incorporation without explicit addback. A prior version quoted a reconstructed federal-taxable-income sentence; corrected to the verbatim AGI text.","href":"/api/v1/citations/mi-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-agency-obligations","jurisdiction":"MI","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: MCL §206.30(4) subtraction limited to US interest 'specifically exempt from state income taxes under the laws of the United States'; FNMA and FHLMC have no such federal bondholder exemption","value":0,"valueType":"binary-exempt","citations":[{"id":"mi-mcl-206-30-4-fnma-fhlmc-taxable","jurisdiction":"MI","authority":"MCL §206.30(4)","authorityType":"statute","title":"Michigan subtraction for U.S. obligation interest requires exemption from state taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"Subtract income from United States government obligations to the extent included in adjusted gross income and specifically exempt from state income taxes under the laws of the United States.","url":"https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-206-30","sourceDomain":"www.legislature.mi.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"MCL §206.30(4) subtraction requires the income be 'specifically exempt from state income taxes under the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) contain no bondholder exemption from state income taxes. No Michigan DOR named-entity publication found; confidence: medium.","href":"/api/v1/citations/mi-mcl-206-30-4-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-dividend-qualified","jurisdiction":"MI","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Michigan has no modification creating a preferential rate for qualified dividends; taxed at the flat 4.25% rate (IRC §1(h)(11) preference not adopted)","value":0,"valueType":"binary-exempt","citations":[{"id":"mi-mcl-206-51-flat-4-25pct-2025","jurisdiction":"MI","authority":"MCL 206.51","authorityType":"statute","title":"Michigan income tax rate is 4.25% flat on adjusted gross income","quote":"There is hereby levied upon the taxable income of every person... a specific income tax at the rate of 4.25 percent of taxable income.","url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-206-51","sourceDomain":"www.legislature.mi.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Personal exemption is $5,000/person (2025). A 2026 trigger reduction is possible under MCL 206.51(2) revenue conditions; current confirmed rate is 4.25% for TY2025. Detroit city income tax (2.4% residents, 1.2% nonresidents) applies to Michigan taxable income including capital gains.","href":"/api/v1/citations/mi-mcl-206-51-flat-4-25pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-treasury","jurisdiction":"MI","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"mi-31-usc-3124-treasury-exempt-2025","jurisdiction":"MI","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Michigan income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/mi-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-fhlb-ffcb","jurisdiction":"MI","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"mi-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"MI","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Michigan income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/mi-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-carryback","jurisdiction":"MI","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-character","jurisdiction":"MI","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the flat 4.25% rate (MCL §206.51)","value":null,"valueType":"none","citations":[{"id":"mi-mcl-206-51-flat-4-25pct-2025","jurisdiction":"MI","authority":"MCL 206.51","authorityType":"statute","title":"Michigan income tax rate is 4.25% flat on adjusted gross income","quote":"There is hereby levied upon the taxable income of every person... a specific income tax at the rate of 4.25 percent of taxable income.","url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-206-51","sourceDomain":"www.legislature.mi.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Personal exemption is $5,000/person (2025). A 2026 trigger reduction is possible under MCL 206.51(2) revenue conditions; current confirmed rate is 4.25% for TY2025. Detroit city income tax (2.4% residents, 1.2% nonresidents) applies to Michigan taxable income including capital gains.","href":"/api/v1/citations/mi-mcl-206-51-flat-4-25pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-filing-status-flat","jurisdiction":"MI","category":"filing-status-flat","label":"Filing status irrelevant: flat rate state","display":"Yes: flat 4.25% rate on Michigan taxable income regardless of filing status (MCL §206.51)","value":1,"valueType":"binary-exempt","citations":[{"id":"mi-mcl-206-51-flat-4-25pct-2025","jurisdiction":"MI","authority":"MCL 206.51","authorityType":"statute","title":"Michigan income tax rate is 4.25% flat on adjusted gross income","quote":"There is hereby levied upon the taxable income of every person... a specific income tax at the rate of 4.25 percent of taxable income.","url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-206-51","sourceDomain":"www.legislature.mi.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Personal exemption is $5,000/person (2025). A 2026 trigger reduction is possible under MCL 206.51(2) revenue conditions; current confirmed rate is 4.25% for TY2025. Detroit city income tax (2.4% residents, 1.2% nonresidents) applies to Michigan taxable income including capital gains.","href":"/api/v1/citations/mi-mcl-206-51-flat-4-25pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-marital-udcprda","jurisdiction":"MI","category":"marital-udcprda","label":"Uniform Disposition of Community Property Rights at Death Act (UDCPRDA)","display":"Yes: MCL §§557.261-557.271 preserves community property character of assets acquired in CP states at death of a Michigan resident (enacted 1975, effective March 31, 1976); surviving spouse retains one-half CP interest","value":1,"valueType":"binary-exempt","citations":[{"id":"mi-mcl-557-261-udcprda-1975","jurisdiction":"MI","authority":"MCL §§557.261-557.271 (Act 289 of 1975)","authorityType":"statute","title":"Michigan Uniform Disposition of Community Property Rights at Death Act (adopted 1975, effective March 31, 1976)","quote":"This act shall be known and may be cited as the 'Uniform disposition of community property rights at death act'.","url":"https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-557-261","sourceDomain":"www.legislature.mi.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Michigan enacted UDCPRDA as Act 289 of 1975, effective March 31, 1976. Protects the community property character of assets acquired in community property states when a couple moves to Michigan. At death, the surviving spouse retains their one-half community property interest. Michigan is not a community property state for income tax purposes.","href":"/api/v1/citations/mi-mcl-557-261-udcprda-1975"}],"effectiveDate":"1976-03-31","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mi-migration-loss-conformity","jurisdiction":"MI","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Michigan computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"mi-migration-loss-conformity-src","jurisdiction":"MI","authority":"MCL 206.51","authorityType":"statute","title":"Michigan conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"For receiving, earning, or otherwise acquiring income from any source whatsoever, there is levied and imposed under this part upon the taxable income of every person other than a corporation a tax at the following rates in the following circumstances: ... (b) Except as otherwise provided under subdivision (c), on and after October 1, 2012, 4.25%.","url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-206-51","sourceDomain":"www.legislature.mi.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"MCL 206.51 imposes the tax on taxable income, which MCL 206.30 builds from federal adjusted gross income, so the federal Section 1212 capital-loss carryover flows through. No published guidance addresses a carryforward imported from a pre-residency year; that application remains a structural inference.","href":"/api/v1/citations/mi-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"MN","name":"Minnesota","level":"state","facts":[{"factId":"mn-trust-nexus-incomplete-gift","jurisdiction":"MN","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"UNRESOLVED, no escape: the statute reaches it on its face (290.01 subd. 7b(a)(2), grantor domicile at irrevocability), and Fielding (Minn. 2018) struck that AS APPLIED to a trust whose grantor had surrendered all control. An ING is the opposite case: the settlor stays a permissible discretionary distributee (that retained access is what makes the gift incomplete), and Revenue Notice 23-01 lists exactly that, a resident grantor who retained 'power to dispose of' the property, as a connection the Department WILL assert. The statute was never repealed and the Department has not acquiesced, so the taxpayer would be the test case","value":3,"valueType":"code","citations":[{"id":"mn-trust-nexus-incomplete-gift-2026","jurisdiction":"MN","authority":"Minn. Stat. 290.01 subd. 7b(a)(2); Fielding v. Comm'r of Revenue, 916 N.W.2d 323 (Minn. 2018); Revenue Notice 23-01","authorityType":"statute","title":"Minnesota's settlor-domicile rule stands, but the state's own supreme court and DOR notice confine it to trusts with current-year Minnesota contacts","quote":"Resident trust means an irrevocable trust, the grantor of which was domiciled in this state at the time the trust became irrevocable.","url":"https://www.revisor.mn.gov/statutes/cite/290.01","sourceDomain":"www.revisor.mn.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"Practical outcome: closest of the resident-rule states to an escape; residual exposure is fact-specific (an MN-law governing instrument or MN advisors are listed connections).","href":"/api/v1/citations/mn-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-rate","jurisdiction":"MN","category":"rate","label":"Top income tax rate (TY2025)","display":"5.35% to 9.85% graduated (9.85% above $304,970 MFJ; capital gains taxed as ordinary income)","value":0.0985,"valueType":"rate","citations":[{"id":"mn-minn-stat-290-06-2c-top-9-85pct-2025","jurisdiction":"MN","authority":"Minn. Stat. §290.06(2c)","authorityType":"statute","title":"Minnesota top income tax rate is 9.85% on Minnesota taxable income above $304,970 (MFJ, TY2025)","quote":"Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income taxes imposed by this chapter upon married individuals filing joint returns and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be computed by applying to their taxable net income the following schedule of rates: (1) On the first $38,770, 5.35 percent; (2) On all over $38,770, but not over $154,020, 6.8 percent; (3) On all over $154,020, but not over $269,010, 7.85 percent; (4) On all over $269,010, 9.85 percent.","url":"https://www.revisor.mn.gov/statutes/cite/290.06","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The rate percentages (5.35%, 6.8%, 7.85%, 9.85%) are fixed in §290.06(2c); the quoted dollar figures are the statutory base-year thresholds, which §290.06 subd. 2d indexes annually. The TY2025 MFJ thresholds published by the Minnesota DOR are $47,150 / $189,070 / $304,970. Minnesota capital gains are taxed as ordinary income at these rates.","href":"/api/v1/citations/mn-minn-stat-290-06-2c-top-9-85pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-surcharge","jurisdiction":"MN","category":"surcharge","label":"Net Investment Income surcharge (TY2025)","display":"1% on NII (incl. capital gains) above $1,000,000 same threshold all filing statuses; not inflation-adjusted","value":0.01,"valueType":"rate","citations":[{"id":"mn-minn-stat-290-033-1pct-nii-surcharge-1m","jurisdiction":"MN","authority":"Minn. Stat. §290.033","authorityType":"statute","title":"Minnesota 1% NII surcharge on investment income above $1,000,000 (all statuses; threshold NOT inflation-adjusted)","quote":"In addition to the tax computed under section 290.06, subdivision 2c, a tax is imposed on the net investment income of individuals, estates, and trusts in excess of $1,000,000 at a rate of one percent.","url":"https://www.revisor.mn.gov/statutes/cite/290.033","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Net investment income defined as in IRC §1411(c): interest, dividends, capital gains, passive income. Capital gains included dollar-for-dollar. The $1M threshold is the SAME for single, MFJ, and MFS filers (marriage-penalty for dual-income couples above $500K each). Combined top MN rate on CG above $1M: 9.85% + 1% = 10.85%.","href":"/api/v1/citations/mn-minn-stat-290-033-1pct-nii-surcharge-1m"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-threshold","jurisdiction":"MN","category":"threshold","label":"NII surcharge threshold (all filing statuses)","display":"$1,000,000 not indexed; combined top rate 10.85% on capital gains (9.85% + 1%)","value":1000000,"valueType":"dollars","citations":[{"id":"mn-minn-stat-290-033-1pct-nii-surcharge-1m","jurisdiction":"MN","authority":"Minn. Stat. §290.033","authorityType":"statute","title":"Minnesota 1% NII surcharge on investment income above $1,000,000 (all statuses; threshold NOT inflation-adjusted)","quote":"In addition to the tax computed under section 290.06, subdivision 2c, a tax is imposed on the net investment income of individuals, estates, and trusts in excess of $1,000,000 at a rate of one percent.","url":"https://www.revisor.mn.gov/statutes/cite/290.033","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Net investment income defined as in IRC §1411(c): interest, dividends, capital gains, passive income. Capital gains included dollar-for-dollar. The $1M threshold is the SAME for single, MFJ, and MFS filers (marriage-penalty for dual-income couples above $500K each). Combined top MN rate on CG above $1M: 9.85% + 1% = 10.85%.","href":"/api/v1/citations/mn-minn-stat-290-033-1pct-nii-surcharge-1m"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-conformity","jurisdiction":"MN","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-muni-instate","jurisdiction":"MN","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: Minn. Stat. §290.0131, subd. 2 add-back is limited to non-Minnesota obligations; MN bonds exempt","value":1,"valueType":"binary-exempt","citations":[{"id":"mn-stat-290-0131-subd2-muni-default-2025","jurisdiction":"MN","authority":"Minn. Stat. §290.0131, subd. 2","authorityType":"statute","title":"MN taxes out-of-state muni bond interest addition per §290.0131, subd. 2; MN bonds exempt","quote":"Interest income on obligations of any state other than Minnesota or a political or governmental subdivision, municipality, or governmental agency or instrumentality of any state other than Minnesota exempt from federal income taxes...is an addition.","url":"https://www.revisor.mn.gov/statutes/cite/290.0131","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"The add-back is expressly limited to non-Minnesota obligations. MN bonds are exempt by negative implication of the statutory text.","href":"/api/v1/citations/mn-stat-290-0131-subd2-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-muni-outstate","jurisdiction":"MN","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: Minn. Stat. §290.0131, subd. 2 requires addition of out-of-state muni interest to MN income","value":0,"valueType":"binary-exempt","citations":[{"id":"mn-stat-290-0131-subd2-muni-default-2025","jurisdiction":"MN","authority":"Minn. Stat. §290.0131, subd. 2","authorityType":"statute","title":"MN taxes out-of-state muni bond interest addition per §290.0131, subd. 2; MN bonds exempt","quote":"Interest income on obligations of any state other than Minnesota or a political or governmental subdivision, municipality, or governmental agency or instrumentality of any state other than Minnesota exempt from federal income taxes...is an addition.","url":"https://www.revisor.mn.gov/statutes/cite/290.0131","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"The add-back is expressly limited to non-Minnesota obligations. MN bonds are exempt by negative implication of the statutory text.","href":"/api/v1/citations/mn-stat-290-0131-subd2-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-qoz-conformity","jurisdiction":"MN","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Non-conforms to IRC §1400Z-2; QOZ gain deferral not recognized, gain taxable at state level in year of QOF investment","value":0,"valueType":"code","citations":[{"id":"mn-qoz-conformity-irc-1400z2-2025","jurisdiction":"MN","authority":"Minn. Stat. §290.0131 subd. 24 (2026 Minn. Laws Ch. 128, art. 1, §9)","authorityType":"statute","title":"Minnesota does not conform to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The amount of opportunity zone capital gain income is an addition. For the purposes of this subdivision, opportunity zone capital gain income equals the sum of: (1) the amount of gains the taxpayer excluded from gross income or deferred in the taxable year under section 1400Z-2(a) of the Internal Revenue Code due to a deferral under section 1400Z-2(b)(1); and (2) for a gain on an investment in the taxable year, the amount by which the taxpayer's basis in the investment was increased under section 1400Z-2(b)(2)(B) or 1400Z-2(c).","url":"https://www.revisor.mn.gov/statutes/cite/290.0131","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"medium","note":"The opportunity-zone addback is Minn. Stat. §290.0131 subd. 24 ('Opportunity zone capital gain income'), added by 2026 Minn. Laws Ch. 128 art. 1 §9. A prior version of this fact cited subd. 22, which is 'Qualified transportation fringe', an unrelated provision; corrected to subd. 24. Net effect: Minnesota taxes the deferred/excluded QOZ gain in the year of QOF investment. Medium: the verbatim was extracted from the live revisor.mn.gov text but subd. 24 is not yet in the compiled cite page's rendered excerpt pending republication.","href":"/api/v1/citations/mn-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-qsbs-conformity","jurisdiction":"MN","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion: Minnesota's net-income definition adopts the IRC (§290.01 subd. 19) and carries no §1202 addback; 2026 Minn. Laws Ch. 128 advances conformity to May 1, 2026, adding the OBBBA enhancements","value":1,"valueType":"binary-exempt","citations":[{"id":"mn-qsbs-conformity-irc-1202-2025","jurisdiction":"MN","authority":"Minn. Stat. §290.01 subd. 19 (net income = IRC as amended through a fixed date)","authorityType":"statute","title":"Minnesota conforms to IRC §1202 QSBS gain exclusion via its IRC-conformity definition of net income; no §1202 addback","quote":"The Internal Revenue Code of 1986, as amended through May 1, 2023, applies for taxable years beginning after December 31, 1996.","url":"https://www.revisor.mn.gov/statutes/cite/290.01","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Minnesota starts from federal taxable income and adopts the IRC as of a fixed conformity date; IRC §1202 (enacted 1993) is well within that date, so a §1202-excluded gain never enters the MN base, and Minn. Stat. §290.0131 (additions) contains NO §1202 addback. 2026 Minn. Laws Ch. 128 (enacted May 2026) advances the conformity date to 'as amended through May 1, 2026', picking up the OBBBA (H.R.1, July 4, 2025) §1202 enhancements; the compiled statute still shows the prior May 1, 2023 date pending republication. CORRECTION (2026-07-20): a prior version of this fact quoted a §1202 addback 'for stock acquired after July 4, 2025' attributed to Ch. 128; that text does not appear in the enacted Ch. 128 (verified against the live session law) and was removed.","href":"/api/v1/citations/mn-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-agency-obligations","jurisdiction":"MN","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: Minn. Stat. §290.0133, subd. 5 subtraction limited to interest 'exempt from state income taxes under the laws of the United States'; FNMA and FHLMC have no such federal bondholder exemption","value":0,"valueType":"binary-exempt","citations":[{"id":"mn-stat-290-0133-subd5-fnma-fhlmc-taxable","jurisdiction":"MN","authority":"Minn. Stat. §290.0132, subd. 2","authorityType":"statute","title":"Minnesota subtraction for U.S. obligation interest requires exemption under federal law; FNMA and FHLMC have no such bondholder exemption","quote":"Net interest income on obligations of any authority, commission, or instrumentality of the United States to the extent includable in taxable income for federal income tax purposes, but exempt from state income tax under the laws of the United States, is a subtraction.","url":"https://www.revisor.mn.gov/statutes/cite/290.0132","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Minn. Stat. §290.0132 subd. 2 subtracts U.S. obligation interest only when it is exempt from state tax under federal law. FNMA and FHLMC are federally chartered but their obligations carry no federal bondholder exemption, so that interest stays in the Minnesota base. The catalog id retains the earlier §290.0133 subd. 5 label; the subtraction is codified at §290.0132 subd. 2.","href":"/api/v1/citations/mn-stat-290-0133-subd5-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-dividend-qualified","jurisdiction":"MN","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Minnesota has no modification creating a preferential rate for qualified dividends; taxed at ordinary rates up to 9.85% (plus 1% NII surcharge above $1M); IRC §1(h)(11) preference not adopted","value":0,"valueType":"binary-exempt","citations":[{"id":"mn-minn-stat-290-06-2c-top-9-85pct-2025","jurisdiction":"MN","authority":"Minn. Stat. §290.06(2c)","authorityType":"statute","title":"Minnesota top income tax rate is 9.85% on Minnesota taxable income above $304,970 (MFJ, TY2025)","quote":"Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income taxes imposed by this chapter upon married individuals filing joint returns and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be computed by applying to their taxable net income the following schedule of rates: (1) On the first $38,770, 5.35 percent; (2) On all over $38,770, but not over $154,020, 6.8 percent; (3) On all over $154,020, but not over $269,010, 7.85 percent; (4) On all over $269,010, 9.85 percent.","url":"https://www.revisor.mn.gov/statutes/cite/290.06","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The rate percentages (5.35%, 6.8%, 7.85%, 9.85%) are fixed in §290.06(2c); the quoted dollar figures are the statutory base-year thresholds, which §290.06 subd. 2d indexes annually. The TY2025 MFJ thresholds published by the Minnesota DOR are $47,150 / $189,070 / $304,970. Minnesota capital gains are taxed as ordinary income at these rates.","href":"/api/v1/citations/mn-minn-stat-290-06-2c-top-9-85pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-treasury","jurisdiction":"MN","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"mn-31-usc-3124-treasury-exempt-2025","jurisdiction":"MN","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Minnesota income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/mn-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-fhlb-ffcb","jurisdiction":"MN","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"mn-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"MN","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Minnesota income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/mn-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-carryback","jurisdiction":"MN","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-character","jurisdiction":"MN","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income up to 9.85% plus 1% NII surcharge above threshold (Minn. Stat. §290.06)","value":null,"valueType":"none","citations":[{"id":"mn-minn-stat-290-06-2c-top-9-85pct-2025","jurisdiction":"MN","authority":"Minn. Stat. §290.06(2c)","authorityType":"statute","title":"Minnesota top income tax rate is 9.85% on Minnesota taxable income above $304,970 (MFJ, TY2025)","quote":"Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income taxes imposed by this chapter upon married individuals filing joint returns and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be computed by applying to their taxable net income the following schedule of rates: (1) On the first $38,770, 5.35 percent; (2) On all over $38,770, but not over $154,020, 6.8 percent; (3) On all over $154,020, but not over $269,010, 7.85 percent; (4) On all over $269,010, 9.85 percent.","url":"https://www.revisor.mn.gov/statutes/cite/290.06","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The rate percentages (5.35%, 6.8%, 7.85%, 9.85%) are fixed in §290.06(2c); the quoted dollar figures are the statutory base-year thresholds, which §290.06 subd. 2d indexes annually. The TY2025 MFJ thresholds published by the Minnesota DOR are $47,150 / $189,070 / $304,970. Minnesota capital gains are taxed as ordinary income at these rates.","href":"/api/v1/citations/mn-minn-stat-290-06-2c-top-9-85pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-estate-rate","jurisdiction":"MN","category":"estate-rate","label":"Estate tax top marginal rate (TY2025)","display":"Graduated rates 13% to 16%; $3,000,000 fixed exclusion; see Minn. Stat. § 291.03 and § 291.016 for current bracket thresholds","value":0.16,"valueType":"rate","citations":[{"id":"mn-stat-291-03-estate-rate-13-16pct-2025","jurisdiction":"MN","authority":"Minn. Stat. §291.03","authorityType":"statute","title":"Minnesota estate tax rate schedule","quote":"The tax imposed must be computed by applying to the Minnesota taxable estate the following schedule of rates...Not over $7,100,000: 13 percent; Over $7,100,000 but not over $8,100,000: $923,000 plus 13.6 percent of the excess over $7,100,000; Over $8,100,000 but not over $9,100,000: $1,059,000 plus 14.4 percent of the excess over $8,100,000; Over $9,100,000 but not over $10,100,000: $1,203,000 plus 15.2 percent of the excess over $9,100,000; Over $10,100,000: $1,355,000 plus 16 percent of the excess over $10,100,000.","url":"https://www.revisor.mn.gov/statutes/cite/291.03","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Minnesota estate tax rate schedule per Minn. Stat. §291.03. Verbatim text extracted from statute table structure. Graduated rates 13% to 16% confirmed.","href":"/api/v1/citations/mn-stat-291-03-estate-rate-13-16pct-2025"},{"id":"mn-stat-291-estate-tax-2025","jurisdiction":"MN","authority":"Minn. Stat. § 291.03 (rates) and § 291.016 (exclusion and MN taxable estate definition)","authorityType":"statute","title":"Minnesota estate tax: 13% to 16% graduated; $3,000,000 fixed exclusion for deaths in 2020 and thereafter","quote":"For purposes of the tax under this chapter, the Minnesota taxable estate equals the federal taxable estate as provided under section 2051 of the Internal Revenue Code, without regard to whether the estate is subject to the federal estate tax","url":"https://www.revisor.mn.gov/statutes/cite/291.016","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"Minnesota exclusion is $3,000,000 fixed (effective for deaths in 2020 and thereafter; Minn. Stat. § 291.016). Rate schedule per § 291.03: not over $7.1M = 13%; $7.1M-$8.1M = $923K + 13.6%; $8.1M-$9.1M = $1.059M + 14.4%; $9.1M-$10.1M = $1.203M + 15.2%; over $10.1M = $1.355M + 16%. Additional $2M exclusion for qualifying small business or farm property.","href":"/api/v1/citations/mn-stat-291-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-estate-exemption","jurisdiction":"MN","category":"estate-exemption","label":"Estate tax exclusion (TY2025)","display":"$3,000,000 fixed for deaths in 2020 and thereafter; not inflation-adjusted; additional exclusion available for qualifying small business or farm (Minn. Stat. § 291.016; see source for current amounts)","value":3000000,"valueType":"dollars","citations":[{"id":"mn-stat-291-015-estate-exemption-3m-2025","jurisdiction":"MN","authority":"Minn. Stat. §291.015","authorityType":"statute","title":"Minnesota estate tax exemption","quote":"An exclusion of $3,000,000 is allowed against the Minnesota taxable estate for decedents dying in 2020 and thereafter.","url":"https://www.revisor.mn.gov/statutes/cite/291.015","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Minnesota's estate tax exemption is $3,000,000 fixed for deaths in 2020 and thereafter. Not inflation-adjusted. Additional $2,000,000 exclusion available for qualifying small business or farm property (Minn. Stat. §291.015(b)).","href":"/api/v1/citations/mn-stat-291-015-estate-exemption-3m-2025"},{"id":"mn-stat-291-estate-tax-2025","jurisdiction":"MN","authority":"Minn. Stat. § 291.03 (rates) and § 291.016 (exclusion and MN taxable estate definition)","authorityType":"statute","title":"Minnesota estate tax: 13% to 16% graduated; $3,000,000 fixed exclusion for deaths in 2020 and thereafter","quote":"For purposes of the tax under this chapter, the Minnesota taxable estate equals the federal taxable estate as provided under section 2051 of the Internal Revenue Code, without regard to whether the estate is subject to the federal estate tax","url":"https://www.revisor.mn.gov/statutes/cite/291.016","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"Minnesota exclusion is $3,000,000 fixed (effective for deaths in 2020 and thereafter; Minn. Stat. § 291.016). Rate schedule per § 291.03: not over $7.1M = 13%; $7.1M-$8.1M = $923K + 13.6%; $8.1M-$9.1M = $1.059M + 14.4%; $9.1M-$10.1M = $1.203M + 15.2%; over $10.1M = $1.355M + 16%. Additional $2M exclusion for qualifying small business or farm property.","href":"/api/v1/citations/mn-stat-291-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-marital-udcprda","jurisdiction":"MN","category":"marital-udcprda","label":"Uniform Disposition of Community Property Rights at Death Act (UDCPRDA)","display":"Yes: Minn. Stat. §§519A.01-519A.11 preserves community property character of assets acquired in CP states at death of a Minnesota resident (effective August 1, 2013); surviving spouse retains one-half CP interest","value":1,"valueType":"binary-exempt","citations":[{"id":"mn-stat-519a-11-udcprda-2013","jurisdiction":"MN","authority":"Minn. Stat. §§519A.01-519A.11 (Ch. 519A)","authorityType":"statute","title":"Minnesota Uniform Disposition of Community Property Rights at Death Act (effective August 1, 2013)","quote":"This chapter may be cited as the 'Uniform Disposition of Community Property Rights at Death Act.'","url":"https://www.revisor.mn.gov/statutes/cite/519A","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Minnesota enacted UDCPRDA in 2013 (2013 c 24, signed April 25, 2013; effective August 1, 2013). Protects the community property character of assets acquired in community property states when a couple moves to Minnesota. At death, the surviving spouse retains their one-half community property interest. Minnesota is not a community property state for income tax purposes.","href":"/api/v1/citations/mn-stat-519a-11-udcprda-2013"}],"effectiveDate":"2013-08-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-filing-status-partial","jurisdiction":"MN","category":"filing-status-partial","label":"Filing status: partial MFJ bracket widening","display":"Yes: graduated income tax up to 9.85% (TY2025); MFJ bracket thresholds are wider than single filer at lower income but do not fully double; marriage penalty for high-income couples where brackets converge at the top rate.","value":1,"valueType":"binary-exempt","citations":[{"id":"mn-minn-stat-290-06-2c-top-9-85pct-2025","jurisdiction":"MN","authority":"Minn. Stat. §290.06(2c)","authorityType":"statute","title":"Minnesota top income tax rate is 9.85% on Minnesota taxable income above $304,970 (MFJ, TY2025)","quote":"Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income taxes imposed by this chapter upon married individuals filing joint returns and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be computed by applying to their taxable net income the following schedule of rates: (1) On the first $38,770, 5.35 percent; (2) On all over $38,770, but not over $154,020, 6.8 percent; (3) On all over $154,020, but not over $269,010, 7.85 percent; (4) On all over $269,010, 9.85 percent.","url":"https://www.revisor.mn.gov/statutes/cite/290.06","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The rate percentages (5.35%, 6.8%, 7.85%, 9.85%) are fixed in §290.06(2c); the quoted dollar figures are the statutory base-year thresholds, which §290.06 subd. 2d indexes annually. The TY2025 MFJ thresholds published by the Minnesota DOR are $47,150 / $189,070 / $304,970. Minnesota capital gains are taxed as ordinary income at these rates.","href":"/api/v1/citations/mn-minn-stat-290-06-2c-top-9-85pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mn-migration-loss-conformity","jurisdiction":"MN","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Minnesota computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"mn-migration-loss-conformity-src","jurisdiction":"MN","authority":"Minn. Stat. §290.06(2c)","authorityType":"statute","title":"Minnesota conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"The income taxes imposed by this chapter upon married individuals filing joint returns and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be computed by applying to their taxable net income the following schedule of rates:","url":"https://www.revisor.mn.gov/statutes/cite/290.06","sourceDomain":"www.revisor.mn.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Minn. Stat. §290.06 subd. 2c applies the rate schedule to taxable net income, which flows from federal taxable income under the chapter, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.","href":"/api/v1/citations/mn-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"MS","name":"Mississippi","level":"state","facts":[{"factId":"ms-trust-nexus-incomplete-gift","jurisdiction":"MS","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES: residency = place of administration (Form 81-100 instructions); a NV-administered ING is a nonresident trust and retained intangible gain is not MS-source. PERMANENT, not deferral: no throwback statute, and the retained gain is corpus gain outside DNI (IRC 643(a)(3)), so it never carries out to the settlor on a later distribution. Ongoing income on the reinvested proceeds IS taxable to a resident beneficiary when distributed","value":0,"valueType":"code","citations":[{"id":"ms-trust-nexus-incomplete-gift-2026","jurisdiction":"MS","authority":"Miss. Code Ann. 27-7-5, 27-7-27; MS DOR Form 81-100 Fiduciary instructions (Rev. 06/25), Definitions and Who Must File","authorityType":"form-instructions","title":"Mississippi trust residency is the place of administration; nonresident trusts owe nothing on retained intangible gain","quote":"A resident trust is any trust which is administered by the trustee in Mississippi. A trust being administered outside of Mississippi shall not be considered a resident trust merely because the governing instrument or a law requires that the laws of Mississippi be followed with respect to interpretation or administration of the trust. All other trusts are non-resident trusts.","url":"https://www.dor.ms.gov/sites/default/files/tax-forms/individual/81100251%201.pdf","sourceDomain":"www.dor.ms.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"Same instructions: for a nonresident trust, 'gains from the sale or exchange of intangible personal property' are not Mississippi-source unless part of an in-state business. No NY/CA-style ING deemed-grantor statute exists in ch. 27-7. Caveats: the gain must stay undistributed and the trustee/administration must stay outside Mississippi.","href":"/api/v1/citations/ms-trust-nexus-incomplete-gift-2026"},{"id":"irc-643a3-corpus-capital-gain-excluded-from-dni","jurisdiction":"US","authority":"IRC §643(a)(3)","authorityType":"statute","title":"IRC §643(a)(3): capital gain allocated to corpus is excluded from distributable net income","quote":"Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section643&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the rule that makes an ING's escape PERMANENT rather than deferral. Income reaches a beneficiary only through DNI (IRC 652/662); a retained corpus gain is outside DNI, so a later distribution of it is principal, not income, and never enters the beneficiary's federal taxable income. Every escape state starts from the federal number, so it never enters the state base either. Conditional on the gain ACTUALLY being allocated to corpus and not distributed in the year realized: a gain routed to fiduciary accounting income, or distributed in the sale year, is in DNI and is taxable to the resident beneficiary.","href":"/api/v1/citations/irc-643a3-corpus-capital-gain-excluded-from-dni"},{"id":"irc-665c-throwback-inapplicable-qualified-domestic-trust","jurisdiction":"US","authority":"IRC §665(c)","authorityType":"statute","title":"IRC §665(c): the accumulation-distribution (throwback) rules do not reach a qualified domestic trust","quote":"(1) In general In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. (2) Qualified trust For purposes of this subsection, the term 'qualified trust' means any trust other than- (A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or (B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section665&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A modern NV/DE ING is a 'qualified trust', so the federal accumulation-distribution regime is computed without regard to undistributed net income: it is empty. States whose only accumulation rule piggybacks IRC 665-668 (OR OAR 150-316-0575, IA, KS, SC) therefore recapture nothing. Only a state with its OWN throwback keyed to income untaxed by any state can claw the gain back, and of the verified escape states only Utah has one (59-10-114(1)(g)).","href":"/api/v1/citations/irc-665c-throwback-inapplicable-qualified-domestic-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-estate-none","jurisdiction":"MS","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"ms-estate-none-2025","jurisdiction":"MS","authority":"Mississippi Department of Revenue, Estate page","authorityType":"dor-guidance","title":"No Mississippi estate tax return for deaths on or after Jan 1 2005; no inheritance or gift tax","quote":"Therefore, as of January 1, 2005, no estate tax return is required for decedents dying on or after January 1, 2005 for the State of Mississippi. Mississippi does not have an inheritance tax nor a gift tax.","url":"https://www.dor.ms.gov/business/estate","sourceDomain":"www.dor.ms.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"dor.ms.gov serves an incomplete TLS chain; fetched via curl -k. Page cites Miss. Code Ann. tit. 27 ch. 9.","href":"/api/v1/citations/ms-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-rate","jurisdiction":"MS","category":"rate","label":"Top income tax rate (TY2025)","display":"0% first $10,000 per spouse, then 4.4% flat (4.0% TY2026 → 3.0% TY2030)","value":0.044,"valueType":"rate","citations":[{"id":"ms-mca-27-7-5-4-4pct-2025","jurisdiction":"MS","authority":"Mississippi Department of Revenue, Individual Income Tax Rates","authorityType":"dor-guidance","title":"Mississippi income tax: 0% to $10,000 then 4.4% flat (TY2025), declining to 3.0% by TY2030","quote":"For taxable years beginning on or after January 1, 2025, a tax is imposed upon the Mississippi taxable income of every individual at the rate of zero percent on the first $10,000 of income and 4.4 percent on income in excess of $10,000.","url":"https://www.dor.ms.gov/individual/individual-income-tax-frequently-asked-questions","sourceDomain":"www.dor.ms.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The $10,000 zero bracket applies per-spouse on a combined return: two spouses each exempt $10,000 = $20,000 combined. Rate schedule: 4.4% (TY2025) → 4.0% (TY2026) → 3.0% (TY2030). Mississippi uses federal §1222 netting and $3,000 annual limit per form instructions (statute carryforward mechanics sourced from instructions, MEDIUM).","href":"/api/v1/citations/ms-mca-27-7-5-4-4pct-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"ms-rate-2026","jurisdiction":"MS","category":"rate","label":"Top income tax rate (TY2026)","display":"0% first $10,000 per spouse, then 4.0% flat (3.75% TY2027 stepping to 3.0% TY2030)","value":0.04,"valueType":"rate","citations":[{"id":"ms-hb1-2025-27-7-5-4-0pct-2026","jurisdiction":"MS","authority":"Miss. Code Ann. §27-7-5 as amended by HB 1 (2025 Regular Session), the Build Up Mississippi Act","authorityType":"session-law","title":"Mississippi income tax rate falls to 4.0% for calendar year 2026, then steps down annually toward 3.0%","quote":"3. For calendar year 2026 * * * and all calendar years thereafter , on such taxable income, the rate shall be four percent (4%) * * * . ; 4. For calendar year 2027, on such taxable income, the rate shall be three and three-quarters percent (3.75%);","url":"https://billstatus.ls.state.ms.us/documents/2025/html/HB/0001-0099/HB0001SG.htm","sourceDomain":"billstatus.ls.state.ms.us","taxYear":2026,"asOf":"2026-07-12","confidence":"high","note":"Verbatim from the As-Sent-to-Governor enrolled text; the '* * *' markers are the bill's strike/insert notation (HB 1 strikes 'and all calendar years thereafter' from the 2026 item and appends the 2027-2030 step-downs: 3.75% 2027, 3.5% 2028, 3.25% 2029, 3.0% 2030, with further reductions subject to growth triggers). Signed March 27, 2025. The 0% bracket on the first $10,000 of taxable income is unchanged.","href":"/api/v1/citations/ms-hb1-2025-27-7-5-4-0pct-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-conformity","jurisdiction":"MS","category":"conformity","label":"Loss carryforward","display":"Substantially conforms to federal §1211/§1212 per form instructions ($3,000 limit + carryforward)","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-muni-instate","jurisdiction":"MS","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: Miss. Code Ann. §27-7-15 exempts interest on Mississippi state and local obligations","value":1,"valueType":"binary-exempt","citations":[{"id":"ms-code-27-7-15-muni-default-2025","jurisdiction":"MS","authority":"Mississippi Department of Revenue, Form 80-100 Instructions","authorityType":"form-instructions","title":"MS exempts MS-issued bonds; out-of-state muni bond interest is taxable per Miss. Code Ann. §27-7-15","quote":"Interest income from obligations of the U.S. Government, the State of Mississippi and subdivisions thereof is exempt from Mississippi income tax. Interest on obligations of other countries, states, cities, or political subdivisions outside of Mississippi is taxable.","url":"https://dor.ms.gov/sites/default/files/tax-forms/individual/80100241.pdf","sourceDomain":"dor.ms.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","href":"/api/v1/citations/ms-code-27-7-15-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-muni-outstate","jurisdiction":"MS","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: Miss. Code Ann. §27-7-15: 'interest on obligations of other ... states ... outside of Mississippi is taxable'","value":0,"valueType":"binary-exempt","citations":[{"id":"ms-code-27-7-15-muni-default-2025","jurisdiction":"MS","authority":"Mississippi Department of Revenue, Form 80-100 Instructions","authorityType":"form-instructions","title":"MS exempts MS-issued bonds; out-of-state muni bond interest is taxable per Miss. Code Ann. §27-7-15","quote":"Interest income from obligations of the U.S. Government, the State of Mississippi and subdivisions thereof is exempt from Mississippi income tax. Interest on obligations of other countries, states, cities, or political subdivisions outside of Mississippi is taxable.","url":"https://dor.ms.gov/sites/default/files/tax-forms/individual/80100241.pdf","sourceDomain":"dor.ms.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","href":"/api/v1/citations/ms-code-27-7-15-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-qoz-conformity","jurisdiction":"MS","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Non-conforms to IRC §1400Z-2; QOZ gain deferral not recognized, gain taxable at state level","value":0,"valueType":"code","citations":[{"id":"ms-qoz-conformity-irc-1400z2-2025","jurisdiction":"MS","authority":"Miss. Code Ann. §27-7-9 (full text via SB2966, 2023, the most recent bring-forward on the Legislature's official bill system)","authorityType":"statute","title":"Mississippi does not conform to IRC §1400Z-2 QOZ gain deferral and exclusion (§27-7-9 has no QOZ provision; every conformity bill died in committee)","quote":"SECTION 1. Section 27-7-9, Mississippi Code of 1972, is amended as follows: 27-7-9. (a) Except as provided in Sections 27-7-95 through 27-7-103, determination of amount of gain or loss","url":"https://billstatus.ls.state.ms.us/documents/2023/html/SB/2900-2999/SB2966IN.htm","sourceDomain":"billstatus.ls.state.ms.us","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Mississippi employs piecemeal federal conformity; the full §27-7-9 text (reproduced in SB2966, 2023) contains zero occurrences of 'opportunity' or '1400Z', so QOF gain deferrals are not recognized and the gain is taxable in the year of the federal election. In-state-only conformity was proposed and died three times: HB1704 (2019, died in committee 02/27), HB133 (2022, died 02/23), HB1996 (2026, died 02/25), all per billstatus.ls.state.ms.us. The codified code itself is hosted behind LexisNexis, so the bring-forward bill text is the closest fetchable official source.","href":"/api/v1/citations/ms-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-qsbs-conformity","jurisdiction":"MS","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Non-conforms to IRC §1202; QSBS gain exclusion not recognized, gain fully taxable at state level","value":0,"valueType":"binary-exempt","citations":[{"id":"ms-qsbs-conformity-irc-1202-2025","jurisdiction":"MS","authority":"Mississippi Department of Revenue, Individual Income Tax Frequently Asked Questions","authorityType":"dor-guidance","title":"Mississippi does not conform to IRC §1202 QSBS gain exclusion","quote":"Long-term capital gains are considered taxable income; however, Mississippi exempts the gain from the sale of authorized shares in financial institutions domiciled in Mississippi.","url":"https://www.dor.ms.gov/individual/individual-income-tax-frequently-asked-questions","sourceDomain":"www.dor.ms.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"The Mississippi DOR FAQ states long-term capital gains are taxable income, with the sole gain exemption being shares in Mississippi-domiciled financial institutions. No IRC §1202 QSBS exclusion appears: Mississippi uses piecemeal federal conformity and neither §27-7-5 nor §27-7-9 adopts §1202, so federally excluded QSBS gain is fully taxable. The codified statute sits behind LexisNexis, so the DOR FAQ is the quotable primary source.","href":"/api/v1/citations/ms-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-agency-obligations","jurisdiction":"MS","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: Miss. Code Ann. §27-7-15 subtraction requires interest be 'exempt from state income taxes under the laws of the United States'; FNMA/FHLMC have no federal bondholder exemption statute","value":0,"valueType":"binary-exempt","citations":[{"id":"ms-mca-27-7-15-fnma-fhlmc-taxable","jurisdiction":"MS","authority":"Mississippi Department of Revenue, Credits and Exemptions","authorityType":"dor-guidance","title":"Mississippi subtraction for U.S. obligation interest requires exemption from state income taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"There shall be excluded from gross income: interest received on obligations of the United States or its possessions, or of any authority, commission, or instrumentality of the United States, to the extent the interest is exempt from state income taxes under the laws of the United States.","url":"https://www.dor.ms.gov/individual","sourceDomain":"www.dor.ms.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"Miss. Code Ann. §27-7-15 requires the interest be 'exempt from state income taxes under the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute. Mississippi uses piecemeal IRC conformity; no MS DOR named-entity publication found for FNMA/FHLMC. URL points to MS DOR exemptions page; direct §27-7-15 permalink at mslegislature.gov was inaccessible during research.","href":"/api/v1/citations/ms-mca-27-7-15-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-dividend-qualified","jurisdiction":"MS","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: Mississippi uses piecemeal IRC conformity and has not adopted IRC §1(h)(11); qualified dividends taxed at the ordinary rate (0% to $10,000 then 4.4% flat, TY2025)","value":0,"valueType":"binary-exempt","citations":[{"id":"ms-mca-27-7-5-4-4pct-2025","jurisdiction":"MS","authority":"Mississippi Department of Revenue, Individual Income Tax Rates","authorityType":"dor-guidance","title":"Mississippi income tax: 0% to $10,000 then 4.4% flat (TY2025), declining to 3.0% by TY2030","quote":"For taxable years beginning on or after January 1, 2025, a tax is imposed upon the Mississippi taxable income of every individual at the rate of zero percent on the first $10,000 of income and 4.4 percent on income in excess of $10,000.","url":"https://www.dor.ms.gov/individual/individual-income-tax-frequently-asked-questions","sourceDomain":"www.dor.ms.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The $10,000 zero bracket applies per-spouse on a combined return: two spouses each exempt $10,000 = $20,000 combined. Rate schedule: 4.4% (TY2025) → 4.0% (TY2026) → 3.0% (TY2030). Mississippi uses federal §1222 netting and $3,000 annual limit per form instructions (statute carryforward mechanics sourced from instructions, MEDIUM).","href":"/api/v1/citations/ms-mca-27-7-5-4-4pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-treasury","jurisdiction":"MS","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ms-31-usc-3124-treasury-exempt-2025","jurisdiction":"MS","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Mississippi income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ms-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-fhlb-ffcb","jurisdiction":"MS","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ms-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"MS","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Mississippi income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ms-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-carryback","jurisdiction":"MS","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-character","jurisdiction":"MS","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the flat 4.4% rate (Miss. Code §27-7-5)","value":null,"valueType":"none","citations":[{"id":"ms-mca-27-7-5-4-4pct-2025","jurisdiction":"MS","authority":"Mississippi Department of Revenue, Individual Income Tax Rates","authorityType":"dor-guidance","title":"Mississippi income tax: 0% to $10,000 then 4.4% flat (TY2025), declining to 3.0% by TY2030","quote":"For taxable years beginning on or after January 1, 2025, a tax is imposed upon the Mississippi taxable income of every individual at the rate of zero percent on the first $10,000 of income and 4.4 percent on income in excess of $10,000.","url":"https://www.dor.ms.gov/individual/individual-income-tax-frequently-asked-questions","sourceDomain":"www.dor.ms.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The $10,000 zero bracket applies per-spouse on a combined return: two spouses each exempt $10,000 = $20,000 combined. Rate schedule: 4.4% (TY2025) → 4.0% (TY2026) → 3.0% (TY2030). Mississippi uses federal §1222 netting and $3,000 annual limit per form instructions (statute carryforward mechanics sourced from instructions, MEDIUM).","href":"/api/v1/citations/ms-mca-27-7-5-4-4pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-filing-status-flat","jurisdiction":"MS","category":"filing-status-flat","label":"Filing status irrelevant: flat rate state","display":"Yes: Mississippi income tax is 0% on the first $10,000 then 4.4% flat (TY2025) on all filers; the nominal rate above the zero bracket does not vary by filing status (Miss. Code Ann. §27-7-5). The $10,000 zero bracket applies per-spouse on a combined return.","value":1,"valueType":"binary-exempt","citations":[{"id":"ms-mca-27-7-5-4-4pct-2025","jurisdiction":"MS","authority":"Mississippi Department of Revenue, Individual Income Tax Rates","authorityType":"dor-guidance","title":"Mississippi income tax: 0% to $10,000 then 4.4% flat (TY2025), declining to 3.0% by TY2030","quote":"For taxable years beginning on or after January 1, 2025, a tax is imposed upon the Mississippi taxable income of every individual at the rate of zero percent on the first $10,000 of income and 4.4 percent on income in excess of $10,000.","url":"https://www.dor.ms.gov/individual/individual-income-tax-frequently-asked-questions","sourceDomain":"www.dor.ms.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The $10,000 zero bracket applies per-spouse on a combined return: two spouses each exempt $10,000 = $20,000 combined. Rate schedule: 4.4% (TY2025) → 4.0% (TY2026) → 3.0% (TY2030). Mississippi uses federal §1222 netting and $3,000 annual limit per form instructions (statute carryforward mechanics sourced from instructions, MEDIUM).","href":"/api/v1/citations/ms-mca-27-7-5-4-4pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ms-migration-loss-conformity","jurisdiction":"MS","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Mississippi computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"ms-migration-loss-conformity-src","jurisdiction":"MS","authority":"Mississippi Department of Revenue, Individual Income Tax Frequently Asked Questions","authorityType":"dor-guidance","title":"Mississippi conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"Mississippi generally follows the federal rules governing capital losses. Capital losses are limited to $3,000 per year.","url":"https://www.dor.ms.gov/individual/individual-income-tax-frequently-asked-questions","sourceDomain":"www.dor.ms.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"The Mississippi DOR FAQ states Mississippi generally follows the federal rules governing capital losses, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.","href":"/api/v1/citations/ms-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"MO","name":"Missouri","level":"state","facts":[{"factId":"mo-trust-nexus-incomplete-gift","jurisdiction":"MO","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: the two-prong test would free a trust with NO Missouri income beneficiary, but the ING grantor is a permissible discretionary income beneficiary resident in Missouri, satisfying both prongs; the trap runs both ways","value":2,"valueType":"code","citations":[{"id":"mo-trust-nexus-incomplete-gift-2026","jurisdiction":"MO","authority":"RSMo 143.331(3) (resident trust: settlor domicile + resident income beneficiary)","authorityType":"statute","title":"Missouri taxes a trust created by a Missouri domiciliary that has a Missouri income beneficiary; the self-settled ING supplies both","quote":"A trust that: (a) Was created by, or consisting of property of, a person domiciled in this state on the date the trust or portion of the trust became irrevocable; and (b) Has at least one income beneficiary who, on the last day of the taxable year, was a resident of this state.","url":"https://revisor.mo.gov/main/OneSection.aspx?section=143.331","sourceDomain":"revisor.mo.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"The argument that a purely discretionary distributee who received nothing is not an 'income beneficiary' is colorable but has no Missouri authority; resident settlor + resident beneficiary + retained powers exceed the contacts Kaestner and Swift v. Director (Mo. banc 1987) tolerated striking.","href":"/api/v1/citations/mo-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-estate-none","jurisdiction":"MO","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"mo-estate-none-2025","jurisdiction":"MO","authority":"RSMo 145.011","authorityType":"statute","title":"Missouri estate tax equals the federal IRC 2011 state death tax credit (pickup only)","quote":"The Missouri estate tax shall be the maximum credit for state death taxes allowed by Internal Revenue Code Section 2011 but not less than the maximum credit for state death taxes allowable to the estate of a decedent against the federal estate tax by Section 2011 or any other provision of the laws of the United States.","url":"https://revisor.mo.gov/main/OneSection.aspx?section=145.011","sourceDomain":"revisor.mo.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Exact wording checked against raw HTML. Quote proves pickup structure; zero-tax conclusion requires the federal credit repeal.","href":"/api/v1/citations/mo-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-rate","jurisdiction":"MO","category":"rate","label":"Top income tax rate (TY2025)","display":"4.7% top rate over $9,191 of taxable income (RSMo §143.011 trigger reductions from the 4.95% base); applies to ordinary income only, LT gains 100% subtracted (HB 594)","value":0.047,"valueType":"rate","citations":[{"id":"mo-dor-2025-top-rate-4-7pct","jurisdiction":"MO","authority":"RSMo §143.011.2-.3 (4.95% base with revenue-trigger reductions); Missouri DOR, 2025 Individual Income Tax Year Changes","authorityType":"dor-guidance","title":"Missouri TY2025 top individual income tax rate is 4.70% on taxable income over $9,191","quote":"Over $7,878 but not over $9,191 $197 plus 4.50% of excess over $7,878 Over $9,191 $256 plus 4.70% of excess over $9,191","url":"https://dor.mo.gov/taxation/individual/tax-types/income/year-changes/","sourceDomain":"dor.mo.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"medium","note":"Top two rows of the DOR 2025 rate table, whitespace normalized. RSMo 143.011.2 sets the 4.95% statutory top rate (2023) and 143.011.3 authorizes 0.1-point revenue-trigger reductions; the triggered cuts land TY2025 at 4.70%. The graduated sub-brackets top out at $9,191, so the flat-state model uses the 4.7% top rate. Medium: the 4.70% figure is DOR guidance (the statute states the mechanism, not the triggered number).","href":"/api/v1/citations/mo-dor-2025-top-rate-4-7pct"},{"id":"mo-rsmo-143-011-filing-status-identical-2025","jurisdiction":"MO","authority":"RSMo §143.011","authorityType":"statute","title":"Missouri income tax is one graduated schedule applied identically to every filing status (no separate MFJ brackets; top rate 4.7% for TY2025)","quote":"A tax is hereby imposed for every taxable year on the Missouri taxable income of every resident.","url":"https://revisor.mo.gov/main/OneSection.aspx?section=143.011","sourceDomain":"revisor.mo.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"RSMo §143.011 imposes one graduated bracket schedule on 'every resident' without distinction by filing status (statutory table plus the SB 3 (2022) triggered reductions; top rate 4.7% for TY2025). Missouri is graduated, not flat, and the identical schedule carries no practical marriage penalty: on a combined MFJ return each spouse's tax is computed separately on that spouse's own Missouri taxable income and summed (RSMo §143.031). Capital gains are effectively zero-taxed under HB 594 (RSMo §143.431) effective TY2025.","href":"/api/v1/citations/mo-rsmo-143-011-filing-status-identical-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-character","jurisdiction":"MO","category":"character","label":"Capital gains subtraction (HB 594)","display":"100% of long-term capital gains subtracted from Missouri taxable income (TY2025+, HB 594); effective LT rate 0%","value":1,"valueType":"rate","citations":[{"id":"mo-hb594-2025-cg-subtraction-100pct","jurisdiction":"MO","authority":"RSMo §143.121.3(14)(a) (HB 594, 2025)","authorityType":"session-law","title":"Missouri allows a 100% subtraction of net capital gains from income, effective TY2025","quote":"For all tax years beginning on or after January 1, 2025, one hundred percent of all income reported as a capital gain for federal income tax purposes by an individual subject to tax pursuant to section 143.011","url":"https://revisor.mo.gov/main/OneSection.aspx?section=143.121","sourceDomain":"revisor.mo.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verified TY2025 effective date: the enacted statute, MO-A line 18 instructions for 2025, and DOR legislative-changes page all confirm TY2025. A DOR FAQ that appeared to say TY2026 conflates HB 754 (specie subtraction, effective TY2026). Losses still reduce MO FAGI and generate up to 4.7% state tax benefit a sign-asymmetric no-gains regime. Trusts are excluded from this subtraction.","href":"/api/v1/citations/mo-hb594-2025-cg-subtraction-100pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-muni-instate","jurisdiction":"MO","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: RSMo §143.121(2)(2): MO bond interest excluded from the add-back to MO income","value":1,"valueType":"binary-exempt","citations":[{"id":"mo-rsmo-143-121-muni-default-2025","jurisdiction":"MO","authority":"RSMo §143.121(2)(2)","authorityType":"statute","title":"MO exempts MO-issued bonds; out-of-state muni bond interest is an addition per RSMo §143.121(2)(2)","quote":"Interest on certain governmental obligations excluded from federal gross income by 26 U.S.C. Section 103...The previous sentence shall not apply to interest on obligations of the state of Missouri or any of its political subdivisions or authorities.","url":"https://revisor.mo.gov/main/OneSection.aspx?section=143.121","sourceDomain":"revisor.mo.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"RSMo §143.121(2)(2) requires addition of IRC §103 interest from states other than Missouri but excludes MO bonds from the addition requirement. Verbatim text extracted from revisor.mo.gov. Out-of-state muni bonds taxable; MO bonds exempt by explicit carve-out.","href":"/api/v1/citations/mo-rsmo-143-121-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-muni-outstate","jurisdiction":"MO","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: RSMo §143.121(2)(2) requires addition of out-of-state muni interest (IRC §103 excluded) to MO income","value":0,"valueType":"binary-exempt","citations":[{"id":"mo-rsmo-143-121-muni-default-2025","jurisdiction":"MO","authority":"RSMo §143.121(2)(2)","authorityType":"statute","title":"MO exempts MO-issued bonds; out-of-state muni bond interest is an addition per RSMo §143.121(2)(2)","quote":"Interest on certain governmental obligations excluded from federal gross income by 26 U.S.C. Section 103...The previous sentence shall not apply to interest on obligations of the state of Missouri or any of its political subdivisions or authorities.","url":"https://revisor.mo.gov/main/OneSection.aspx?section=143.121","sourceDomain":"revisor.mo.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"RSMo §143.121(2)(2) requires addition of IRC §103 interest from states other than Missouri but excludes MO bonds from the addition requirement. Verbatim text extracted from revisor.mo.gov. Out-of-state muni bonds taxable; MO bonds exempt by explicit carve-out.","href":"/api/v1/citations/mo-rsmo-143-121-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-qoz-conformity","jurisdiction":"MO","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"mo-qoz-conformity-irc-1400z2-2025","jurisdiction":"MO","authority":"Mo. Rev. Stat. §143.121(3)(14); §143.431","authorityType":"statute","title":"Missouri conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"1. The Missouri adjusted gross income of a resident individual shall be the taxpayer's federal adjusted gross income subject to the modifications in this section.","url":"https://revisor.mo.gov/main/OneSection.aspx?section=143.121","sourceDomain":"revisor.mo.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Conformity by silence: RSMo §143.121 starts from federal adjusted gross income and lists no §1400Z-2 addback, so the federal QOZ deferral and exclusion flow into the Missouri base.","href":"/api/v1/citations/mo-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-qsbs-conformity","jurisdiction":"MO","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"mo-qsbs-conformity-irc-1202-2025","jurisdiction":"MO","authority":"Mo. Rev. Stat. §143.121(3)(14)","authorityType":"statute","title":"Missouri conforms to IRC §1202 QSBS gain exclusion","quote":"1. The Missouri adjusted gross income of a resident individual shall be the taxpayer's federal adjusted gross income subject to the modifications in this section.","url":"https://revisor.mo.gov/main/OneSection.aspx?section=143.121","sourceDomain":"revisor.mo.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Conformity by silence: RSMo §143.121 starts from federal adjusted gross income and lists no §1202 addback, so federally excluded QSBS gain never enters the Missouri base.","href":"/api/v1/citations/mo-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-agency-obligations","jurisdiction":"MO","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: FNMA/FHLMC bond interest is ordinary income, not a 'net capital gain' under RSMo §143.431; the HB 594 (2025) 100% capital gains subtraction does not apply; taxed at ordinary rates up to 4.7%","value":0,"valueType":"binary-exempt","citations":[{"id":"mo-rsmo-143-121-fnma-fhlmc-ordinary-income-taxable","jurisdiction":"MO","authority":"RSMo §143.121.3(14) (HB 594, 2025)","authorityType":"statute","title":"Missouri taxes FNMA and FHLMC bond interest as ordinary income: the 100% capital gains subtraction (HB 594) applies only to 'net capital gains,' not interest income","quote":"For all tax years beginning on or after January 1, 2025, one hundred percent of all income reported as a capital gain for federal income tax purposes by an individual subject to tax pursuant to section 143.011;","url":"https://revisor.mo.gov/main/OneSection.aspx?section=143.121","sourceDomain":"revisor.mo.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"The HB 594 subtraction in RSMo §143.121.3(14) covers only income reported as a capital gain for federal purposes. FNMA and FHLMC interest is ordinary income, not a capital gain, so it is not subtracted and stays in the Missouri base.","href":"/api/v1/citations/mo-rsmo-143-121-fnma-fhlmc-ordinary-income-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-dividend-qualified","jurisdiction":"MO","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Qualified dividends are not 'net capital gains' under RSMo §143.431 (HB 594 subtraction limited to IRC §1222(11) gains from sale or exchange); taxed at ordinary Missouri rates up to 4.7%","value":0,"valueType":"binary-exempt","citations":[{"id":"mo-hb594-2025-cg-subtraction-100pct","jurisdiction":"MO","authority":"RSMo §143.121.3(14)(a) (HB 594, 2025)","authorityType":"session-law","title":"Missouri allows a 100% subtraction of net capital gains from income, effective TY2025","quote":"For all tax years beginning on or after January 1, 2025, one hundred percent of all income reported as a capital gain for federal income tax purposes by an individual subject to tax pursuant to section 143.011","url":"https://revisor.mo.gov/main/OneSection.aspx?section=143.121","sourceDomain":"revisor.mo.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verified TY2025 effective date: the enacted statute, MO-A line 18 instructions for 2025, and DOR legislative-changes page all confirm TY2025. A DOR FAQ that appeared to say TY2026 conflates HB 754 (specie subtraction, effective TY2026). Losses still reduce MO FAGI and generate up to 4.7% state tax benefit a sign-asymmetric no-gains regime. Trusts are excluded from this subtraction.","href":"/api/v1/citations/mo-hb594-2025-cg-subtraction-100pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-treasury","jurisdiction":"MO","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"mo-31-usc-3124-treasury-exempt-2025","jurisdiction":"MO","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Missouri income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/mo-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-fhlb-ffcb","jurisdiction":"MO","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"mo-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"MO","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Missouri income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/mo-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-filing-status-identical","jurisdiction":"MO","category":"filing-status-identical","label":"One schedule for every filing status","display":"Yes: RSMo §143.011 applies one graduated schedule (top 4.7% TY2025) to every filing status; on a combined return each spouse computes tax separately on own income and the taxes are summed (RSMo §143.031), so the identical schedule is effectively marriage neutral","value":1,"valueType":"binary-exempt","citations":[{"id":"mo-rsmo-143-011-filing-status-identical-2025","jurisdiction":"MO","authority":"RSMo §143.011","authorityType":"statute","title":"Missouri income tax is one graduated schedule applied identically to every filing status (no separate MFJ brackets; top rate 4.7% for TY2025)","quote":"A tax is hereby imposed for every taxable year on the Missouri taxable income of every resident.","url":"https://revisor.mo.gov/main/OneSection.aspx?section=143.011","sourceDomain":"revisor.mo.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"RSMo §143.011 imposes one graduated bracket schedule on 'every resident' without distinction by filing status (statutory table plus the SB 3 (2022) triggered reductions; top rate 4.7% for TY2025). Missouri is graduated, not flat, and the identical schedule carries no practical marriage penalty: on a combined MFJ return each spouse's tax is computed separately on that spouse's own Missouri taxable income and summed (RSMo §143.031). Capital gains are effectively zero-taxed under HB 594 (RSMo §143.431) effective TY2025.","href":"/api/v1/citations/mo-rsmo-143-011-filing-status-identical-2025"},{"id":"mo-rsmo-143-031-combined-return-split-2025","jurisdiction":"MO","authority":"RSMo §143.031","authorityType":"statute","title":"Missouri combined return: each spouse's tax is computed separately on that spouse's own Missouri taxable income, then summed (income splitting; effectively marriage neutral)","quote":"The tax of each spouse shall be determined by the application of either section 143.021 or section 143.041 depending upon whether such spouse is a resident or nonresident. Their Missouri combined tax shall be the sum of the tax applicable to each spouse.","url":"https://revisor.mo.gov/main/OneSection.aspx?section=143.031","sourceDomain":"revisor.mo.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Verified verbatim against revisor.mo.gov on 2026-07-02. Because each spouse runs the identical schedule on own income, a Missouri MFJ couple pays the same as two singles with the same earnings: identical schedule with per-spouse computation, not a penalty-maximizing joint stack.","href":"/api/v1/citations/mo-rsmo-143-031-combined-return-split-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-conformity","jurisdiction":"MO","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212: RSMo §143.121 starts from federal AGI, so the indefinite federal carryforward applies; a carried-forward loss keeps reducing Missouri income even though HB 594 exempts the gains","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"},{"id":"mo-hb594-2025-cg-subtraction-100pct","jurisdiction":"MO","authority":"RSMo §143.121.3(14)(a) (HB 594, 2025)","authorityType":"session-law","title":"Missouri allows a 100% subtraction of net capital gains from income, effective TY2025","quote":"For all tax years beginning on or after January 1, 2025, one hundred percent of all income reported as a capital gain for federal income tax purposes by an individual subject to tax pursuant to section 143.011","url":"https://revisor.mo.gov/main/OneSection.aspx?section=143.121","sourceDomain":"revisor.mo.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verified TY2025 effective date: the enacted statute, MO-A line 18 instructions for 2025, and DOR legislative-changes page all confirm TY2025. A DOR FAQ that appeared to say TY2026 conflates HB 754 (specie subtraction, effective TY2026). Losses still reduce MO FAGI and generate up to 4.7% state tax benefit a sign-asymmetric no-gains regime. Trusts are excluded from this subtraction.","href":"/api/v1/citations/mo-hb594-2025-cg-subtraction-100pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-carryback","jurisdiction":"MO","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mo-migration-loss-conformity","jurisdiction":"MO","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Missouri computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"mo-migration-loss-conformity-src","jurisdiction":"MO","authority":"RSMo §143.011","authorityType":"statute","title":"Missouri conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"A tax is hereby imposed for every taxable year on the Missouri taxable income of every resident.","url":"https://revisor.mo.gov/main/OneSection.aspx?section=143.011","sourceDomain":"revisor.mo.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"RSMo §143.011 imposes the tax on Missouri taxable income, which starts from federal adjusted gross income, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.","href":"/api/v1/citations/mo-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"MT","name":"Montana","level":"state","facts":[{"factId":"mt-trust-nexus-incomplete-gift","jurisdiction":"MT","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: ARM 42.30.101's sufficient-connection factors expressly include the settlor's domicile AND the beneficiaries' domicile, and an ING settlor is both (they funded it and stay a permissible discretionary distributee). Its own examples reach any irrevocable trust created by a Montana resident with at least one Montana income beneficiary, which is the structure exactly. Kaestner bars beneficiary residence ALONE, but Montana is not relying on that alone","value":2,"valueType":"code","citations":[{"id":"mt-trust-nexus-incomplete-gift-2026","jurisdiction":"MT","authority":"Mont. Admin. R. 42.30.101 (resident trust: sufficient connection); MCA 15-30-2101","authorityType":"regulation","title":"Montana trust residency is an open-ended sufficient-connection test with no ING-specific rule","quote":"Resident trust means any trust that establishes a sufficient connection to Montana.","url":"https://rules.mt.gov/gateway/RuleNo.asp?RN=42.30.101","sourceDomain":"rules.mt.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"medium","note":"The rule's nonexclusive factors include the settlor's domicile and the beneficiaries' domicile, and an ING settlor is BOTH: they created the trust and they remain a permissible discretionary distributee (that retained access is what makes the gift incomplete). Its examples of a resident trust reach 'any irrevocable trust created by, or consisting of property of, a Montana resident ... [with] at least one income beneficiary who ... is a Montana resident', which describes the structure exactly. Kaestner (2019) holds that an in-state DISCRETIONARY beneficiary who receives nothing and cannot compel a distribution is insufficient ALONE, but Montana is not relying on beneficiary residence alone: it also has the resident settlor who funded the trust. REACHED, not gray (re-verified 2026-07-13 against the live rule and the Department's own filing-requirements page). The two-factor combination is what separates this from Kaestner; promote to an escape only on a Montana ruling or decision squarely on point.","href":"/api/v1/citations/mt-trust-nexus-incomplete-gift-2026"},{"id":"mt-dor-fiduciary-resident-trust-factors","jurisdiction":"MT","authority":"Montana Department of Revenue, Estate and Trust Income Tax Filing Requirements","authorityType":"dor-guidance","title":"Montana DOR: trust residency turns on the creator's residence among other factors, and a resident trust is taxed on all income","quote":"Where the trust's creator lives, Where the trust's property is located, Where the trustee lives, and Where the trust is administered.","url":"https://revenue.mt.gov/taxes/fiduciaries/estate-and-trust-filing-requirements","sourceDomain":"revenue.mt.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"medium","note":"The Department leads its own residency factor list with WHERE THE TRUST'S CREATOR LIVES, and its examples of a resident trust include 'Any irrevocable trust with at least one beneficiary in Montana' created by, or comprising property of, a Montana resident. A nonresident trust by contrast is taxed only on the Montana-source percentage of its income. So the Department is on record treating settlor domicile plus an in-state beneficiary as residency, which is the ING fact pattern. Medium: this is guidance restating ARM 42.30.101, not a ruling on an ING.","href":"/api/v1/citations/mt-dor-fiduciary-resident-trust-factors"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-estate-none","jurisdiction":"MT","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"mt-estate-none-2025","jurisdiction":"MT","authority":"Montana Department of Revenue, Montana Estate and Inheritance Tax","authorityType":"dor-guidance","title":"Montana inheritance tax repealed Nov 2000; no estate tax for deaths after 2004","quote":"Montana's inheritance tax was repealed in November 2000 and does not apply to any death after January 1, 2001. Montana does not have an estate tax for deaths after 2004.","url":"https://revenue.mt.gov/taxes/fiduciaries/estate-and-inheritance-tax","sourceDomain":"revenue.mt.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Two verbatim sentences; may not be adjacent in layout. Page does not name Initiative I-115, so that attribution stays unverified from this source.","href":"/api/v1/citations/mt-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-rate","jurisdiction":"MT","category":"rate","label":"Top income tax rate ordinary income (through TY2025)","display":"4.7% to $42,200 MFJ, then 5.9% above (2025 thresholds)","value":0.059,"valueType":"rate","citations":[{"id":"mt-mca-15-30-2120-nltcg-rate-2025","jurisdiction":"MT","authority":"MCA 15-30-2103 (rates); Montana Department of Revenue, 2025 Tax Tables and Deductions","authorityType":"dor-guidance","title":"Montana taxes net long-term capital gains at 3.0%/4.1%, stacked after ordinary income","quote":"2025 Net Long-Term Capital Gains Tax Rates ; Single and Married Filing Separately... First $21,100 of capital gains minus Montana Ordinary Income 3.0% Net long-term capital gains exceeding $21,100 minus Montana Ordinary Income 4.1% Montana Ordinary Income exceeds $21,100 4.1%","url":"https://revenue.mt.gov/taxes/tax-tables-and-deductions/2025","sourceDomain":"revenue.mt.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"The statutory home of the rate schedules is MCA 15-30-2103 (the citation id's 15-30-2120 label is a misnomer; the id is immutable, the authority field controls). Montana taxes net long-term capital gains at a reduced rate: 3 percent on net long-term capital gains not exceeding the 5.9 percent ordinary income bracket threshold, and 4.1 percent on net long-term capital gains exceeding that threshold. MFJ 2025 thresholds: 4.7%/3.0% bracket up to $42,200; 5.9%/4.1% above. The NLTCG schedule stacks after ordinary income fills the lower bracket first, so actual effective NLTCG rate depends on the mix of ordinary vs. capital income. Thresholds change in 2026/2027 per HB 337. Montana conforms to IRC §1222 netting and federal carryforward. The harvest-rule choice ties for an all-LT estimand.","href":"/api/v1/citations/mt-mca-15-30-2120-nltcg-rate-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"mt-rate-hb337-2026","jurisdiction":"MT","category":"rate","label":"Top income tax rate ordinary income (TY2026, HB 337)","display":"4.7% to $95,000 MFJ / $47,500 single, then 5.65% above (HB 337, Ch. 227, L. 2025); falls to 5.4% TY2027","value":0.0565,"valueType":"rate","citations":[{"id":"mt-dor-hb337-withholding-2026","jurisdiction":"MT","authority":"Montana Department of Revenue, 2026 Withholding Updates (HB 337, Ch. 227, L. 2025); MCA 15-30-2103","authorityType":"dor-guidance","title":"Montana TY2026: top ordinary rate 5.65%; 4.7% bracket widened to $95,000 MFJ / $47,500 single","quote":"the highest marginal tax rate will decrease from 5.9% to 5.65%, and the 4.7% lower rate will apply to income up to $95,000 for joint filers, $71,250 for Head of Household, and $47,500 for all other statuses","url":"https://revenue.mt.gov/news/recent-news/2026-withholding-updates","sourceDomain":"revenue.mt.gov","taxYear":2026,"asOf":"2026-07-03","confidence":"medium","note":"Effective January 1, 2026 per the DOR page. HB 337 drops the top rate again to 5.4% for TY2027. The net-long-term-capital-gains rates stay 3.0%/4.1% for 2026-2027 (DOR: 'The rates on long-term capital gains remain at 3.0% and 4.1%'); only their thresholds track the widened ordinary brackets.","href":"/api/v1/citations/mt-dor-hb337-withholding-2026"}],"effectiveDate":"2026-01-01","terminalDate":"2026-12-31","nextReviewDate":"2026-12-01"},{"factId":"mt-character","jurisdiction":"MT","category":"character","label":"Net long-term capital gains (NLTCG) rate","display":"3.0% (lower bracket) / 4.1% (upper bracket), stacked after ordinary income fills brackets","value":0.041,"valueType":"rate","citations":[{"id":"mt-mca-15-30-2120-nltcg-rate-2025","jurisdiction":"MT","authority":"MCA 15-30-2103 (rates); Montana Department of Revenue, 2025 Tax Tables and Deductions","authorityType":"dor-guidance","title":"Montana taxes net long-term capital gains at 3.0%/4.1%, stacked after ordinary income","quote":"2025 Net Long-Term Capital Gains Tax Rates ; Single and Married Filing Separately... First $21,100 of capital gains minus Montana Ordinary Income 3.0% Net long-term capital gains exceeding $21,100 minus Montana Ordinary Income 4.1% Montana Ordinary Income exceeds $21,100 4.1%","url":"https://revenue.mt.gov/taxes/tax-tables-and-deductions/2025","sourceDomain":"revenue.mt.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"The statutory home of the rate schedules is MCA 15-30-2103 (the citation id's 15-30-2120 label is a misnomer; the id is immutable, the authority field controls). Montana taxes net long-term capital gains at a reduced rate: 3 percent on net long-term capital gains not exceeding the 5.9 percent ordinary income bracket threshold, and 4.1 percent on net long-term capital gains exceeding that threshold. MFJ 2025 thresholds: 4.7%/3.0% bracket up to $42,200; 5.9%/4.1% above. The NLTCG schedule stacks after ordinary income fills the lower bracket first, so actual effective NLTCG rate depends on the mix of ordinary vs. capital income. Thresholds change in 2026/2027 per HB 337. Montana conforms to IRC §1222 netting and federal carryforward. The harvest-rule choice ties for an all-LT estimand.","href":"/api/v1/citations/mt-mca-15-30-2120-nltcg-rate-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-conformity","jurisdiction":"MT","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies; rule ties for all-LT gain","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-muni-instate","jurisdiction":"MT","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: MCA §15-30-2110 exempts interest on Montana state and local obligations from Montana income","value":1,"valueType":"binary-exempt","citations":[{"id":"mt-mca-15-30-2110-muni-default-2025","jurisdiction":"MT","authority":"MCA §15-30-2110","authorityType":"form-instructions","title":"MT taxes out-of-state muni bond interest; MT bonds exempt MCA §15-30-2110","quote":"Interest and mutual fund dividends from state, county, or municipal bonds from other states. Enter the total amount of tax-exempt interest income you received from bonds of other states or local governments.","url":"https://revenuefiles.mt.gov/files/Forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2024_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf","sourceDomain":"revenuefiles.mt.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"MCA §15-30-2110; confirmed in 2024 Montana Form 2 Instructions.","href":"/api/v1/citations/mt-mca-15-30-2110-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-muni-outstate","jurisdiction":"MT","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: MCA §15-30-2110: out-of-state muni bond interest added to Montana income (Form 2 Instructions)","value":0,"valueType":"binary-exempt","citations":[{"id":"mt-mca-15-30-2110-muni-default-2025","jurisdiction":"MT","authority":"MCA §15-30-2110","authorityType":"form-instructions","title":"MT taxes out-of-state muni bond interest; MT bonds exempt MCA §15-30-2110","quote":"Interest and mutual fund dividends from state, county, or municipal bonds from other states. Enter the total amount of tax-exempt interest income you received from bonds of other states or local governments.","url":"https://revenuefiles.mt.gov/files/Forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2024_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf","sourceDomain":"revenuefiles.mt.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"MCA §15-30-2110; confirmed in 2024 Montana Form 2 Instructions.","href":"/api/v1/citations/mt-mca-15-30-2110-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-qoz-conformity","jurisdiction":"MT","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via HB 458 (2019) explicit conformity","value":1,"valueType":"code","citations":[{"id":"mt-qoz-conformity-irc-1400z2-2025","jurisdiction":"MT","authority":"MCA 15-30-2120","authorityType":"statute","title":"Montana conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"(1) The items in subsection (2) are added to and the items in subsection (3) are subtracted from federal taxable income to determine Montana taxable income.","url":"https://mca.legmt.gov/bills/mca/title_0150/chapter_0300/part_0210/section_0200/0150-0300-0210-0200.html","sourceDomain":"mca.legmt.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"MCA 15-30-2120 starts from federal taxable income and lists no §1400Z-2 addback in subsection (2), so the federal QOZ deferral and exclusion flow into the Montana base.","href":"/api/v1/citations/mt-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-qsbs-conformity","jurisdiction":"MT","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity under MCA 15-30-2120; potential ambiguity from Mont. Admin. R. 42.15.318(1)(c) NOL recomputation add-back context","value":1,"valueType":"binary-exempt","citations":[{"id":"mt-qsbs-conformity-irc-1202-2025","jurisdiction":"MT","authority":"MCA 15-30-2120","authorityType":"statute","title":"Montana conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity","quote":"(1) The items in subsection (2) are added to and the items in subsection (3) are subtracted from federal taxable income to determine Montana taxable income.","url":"https://mca.legmt.gov/bills/mca/title_0150/chapter_0300/part_0210/section_0200/0150-0300-0210-0200.html","sourceDomain":"mca.legmt.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"MCA 15-30-2120 starts from federal taxable income and lists no §1202 addback in subsection (2), so federally excluded QSBS gain never enters the Montana base. Mont. Admin. R. 42.15.318(1)(c) references a QSBS add-back in the context of NOL recomputation, which creates potential ambiguity, but general conformity to §1202 is the baseline position under MCA 15-30-2120.","href":"/api/v1/citations/mt-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-agency-obligations","jurisdiction":"MT","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: MCA §15-30-2131 subtraction requires interest be 'exempt from state income taxes under the laws of the United States'; FNMA/FHLMC have no federal bondholder exemption statute","value":0,"valueType":"binary-exempt","citations":[{"id":"mt-mca-15-30-2131-fnma-fhlmc-taxable","jurisdiction":"MT","authority":"MCA §15-30-2131","authorityType":"statute","title":"Montana subtraction for U.S. obligation interest requires exemption from state income taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"There is allowed as a deduction from adjusted gross income: interest received on United States government obligations to the extent included in gross income for federal income tax purposes if the income is exempt from state income taxes under the laws of the United States.","url":"https://mca.legmt.gov/bills/mca/title_0150/chapter_0300/part_0210/section_0310/0150-0300-0210-0310.html","sourceDomain":"mca.legmt.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"MCA §15-30-2131 requires the income be 'exempt from state income taxes under the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute. No Montana DOR named-entity publication found; confidence: medium.","href":"/api/v1/citations/mt-mca-15-30-2131-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-dividend-qualified","jurisdiction":"MT","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: Montana has no IRC §1(h)(11) preferential rate; qualified dividends taxed at ordinary rates (4.7% / 5.9%); the NLTCG preferential rate applies only to net long-term capital gains from asset sales","value":0,"valueType":"binary-exempt","citations":[{"id":"mt-mca-15-30-2120-nltcg-rate-2025","jurisdiction":"MT","authority":"MCA 15-30-2103 (rates); Montana Department of Revenue, 2025 Tax Tables and Deductions","authorityType":"dor-guidance","title":"Montana taxes net long-term capital gains at 3.0%/4.1%, stacked after ordinary income","quote":"2025 Net Long-Term Capital Gains Tax Rates ; Single and Married Filing Separately... First $21,100 of capital gains minus Montana Ordinary Income 3.0% Net long-term capital gains exceeding $21,100 minus Montana Ordinary Income 4.1% Montana Ordinary Income exceeds $21,100 4.1%","url":"https://revenue.mt.gov/taxes/tax-tables-and-deductions/2025","sourceDomain":"revenue.mt.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"The statutory home of the rate schedules is MCA 15-30-2103 (the citation id's 15-30-2120 label is a misnomer; the id is immutable, the authority field controls). Montana taxes net long-term capital gains at a reduced rate: 3 percent on net long-term capital gains not exceeding the 5.9 percent ordinary income bracket threshold, and 4.1 percent on net long-term capital gains exceeding that threshold. MFJ 2025 thresholds: 4.7%/3.0% bracket up to $42,200; 5.9%/4.1% above. The NLTCG schedule stacks after ordinary income fills the lower bracket first, so actual effective NLTCG rate depends on the mix of ordinary vs. capital income. Thresholds change in 2026/2027 per HB 337. Montana conforms to IRC §1222 netting and federal carryforward. The harvest-rule choice ties for an all-LT estimand.","href":"/api/v1/citations/mt-mca-15-30-2120-nltcg-rate-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-treasury","jurisdiction":"MT","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"mt-31-usc-3124-treasury-exempt-2025","jurisdiction":"MT","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Montana income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/mt-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-fhlb-ffcb","jurisdiction":"MT","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"mt-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"MT","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Montana income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/mt-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-carryback","jurisdiction":"MT","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-filing-status-doubled","jurisdiction":"MT","category":"filing-status-doubled","label":"MFJ brackets double Single brackets","display":"Yes: Montana TY2025 two-bracket schedule sets MFJ/QSS threshold at $42,200 (exactly 2× the $21,100 Single/MFS threshold); same rates (4.7%/5.9%) at each doubled boundary (marriage neutral)","value":1,"valueType":"binary-exempt","citations":[{"id":"mt-dor-2025-tax-tables-mfj-double-single","jurisdiction":"MT","authority":"Montana Department of Revenue, 2025 Tax Tables and Deductions","authorityType":"dor-guidance","title":"Montana income tax TY2025: MFJ income threshold is exactly double Single/MFS threshold (marriage neutral)","quote":"Married Filing Jointly and Qualifying Surviving Spouse... First $42,200 of Montana Ordinary Income 4.7% Montana Ordinary Income exceeding $42,200 5.9%","url":"https://revenue.mt.gov/taxes/tax-tables-and-deductions/2025","sourceDomain":"revenue.mt.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Montana TY2025 DOR tax tables: the MFJ ordinary-income threshold ($42,200) is exactly double the Single/MFS threshold ($21,100), so the schedule is marriage neutral.","href":"/api/v1/citations/mt-dor-2025-tax-tables-mfj-double-single"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-marital-udcprda","jurisdiction":"MT","category":"marital-udcprda","label":"State adopted Uniform Disposition of Community Property Rights Act","display":"Yes: Montana enacted the Uniform Disposition of Community Property Rights at Death Act (MCA 72-9-101 through Part 1 of Chapter 9, Title 72); recognizes community property character of assets from CP-state marriages","value":1,"valueType":"binary-exempt","citations":[{"id":"mt-mca-72-9-101-udcprda-short-title","jurisdiction":"MT","authority":"MCA 72-9-101","authorityType":"statute","title":"Montana Uniform Disposition of Community Property Rights at Death Act: short title","quote":"72-9-101. Short title. This part shall be known and may be cited as the 'Uniform Disposition of Community Property Rights at Death Act'.","url":"https://mca.legmt.gov/bills/mca/title_0720/chapter_0090/part_0010/section_0010/0720-0090-0010-0010.html","sourceDomain":"mca.legmt.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Montana enacted the Uniform Disposition of Community Property Rights at Death Act (MCA Title 72, Chapter 9, Part 1). Montana is a common-law property state. The Act recognizes community property character of assets brought from community property states and governs their disposition at death.","href":"/api/v1/citations/mt-mca-72-9-101-udcprda-short-title"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mt-migration-loss-conformity","jurisdiction":"MT","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Montana computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"mt-migration-loss-conformity-src","jurisdiction":"MT","authority":"Mont. Code Ann. §15-30-2120","authorityType":"statute","title":"Montana conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"The items in subsection (2) are added to and the items in subsection (3) are subtracted from federal taxable income to determine Montana taxable income.","url":"https://mca.legmt.gov/bills/mca/title_0150/chapter_0300/part_0210/section_0200/0150-0300-0210-0200.html","sourceDomain":"mca.legmt.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Mont. Code Ann. §15-30-2120 builds Montana taxable income by adding to and subtracting from federal taxable income, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.","href":"/api/v1/citations/mt-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"NE","name":"Nebraska","level":"state","facts":[{"factId":"ne-trust-nexus-incomplete-gift","jurisdiction":"NE","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED, the hardest wall: reg 23-001 states the trust 'is a resident trust even though the situs of the trust, the property held in trust, or the trustee are located in another state'; no post-Kaestner concession exists","value":2,"valueType":"code","citations":[{"id":"ne-trust-nexus-incomplete-gift-2026","jurisdiction":"NE","authority":"Neb. Rev. Stat. 77-2714.01(6)(c); 316 Neb. Admin. Code ch. 23, 001","authorityType":"statute","title":"Nebraska taxes a resident settlor's irrevocable trust permanently, expressly regardless of situs, trustee, or administration","quote":"Resident estate or trust shall mean ... (c) a trust or portion of a trust consisting of the property of an individual domiciled in this state at the time such individual may no longer exercise the power to revest title to such property in himself or herself.","url":"https://nebraskalegislature.gov/laws/statutes.php?statute=77-2714.01","sourceDomain":"nebraskalegislature.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"The analogous settlor-forever rules fell as applied in Fielding (MN) and McNeil (PA), but Kaestner expressly distinguished settlor-based statutes and the ING's retained powers strengthen Nebraska's contacts.","href":"/api/v1/citations/ne-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-rate","jurisdiction":"NE","category":"rate","label":"Top income tax rate (TY2026)","display":"4.55% top rate, graduated (down from 5.20% TY2025; 3.99% scheduled TY2027)","value":0.0455,"valueType":"rate","citations":[{"id":"ne-nrs-77-2715-03-top-4-55pct-2026","jurisdiction":"NE","authority":"Neb. 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Stat. §77-2715.03(2)(c) enumerates the top-bracket rate by year; clause (iv) sets the TY2025 top rate at 5.20% (above $77,730 MFJ). Verbatim clause extracted from nebraskalegislature.gov. Scheduled reductions in the same subsection: 4.55% (TY2026, clause (v)); 3.99% (TY2027).","href":"/api/v1/citations/ne-nrs-77-2715-03-top-5-20pct-2025"}],"effectiveDate":"2025-01-01","terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"ne-rate-terminal-2024-12-31","jurisdiction":"NE","category":"rate","label":"Top income tax rate (TY2024)","display":"5.84% top rate, graduated (fell to 5.20% in TY2025)","value":0.0584,"valueType":"rate","citations":[{"id":"ne-nrs-77-2715-03-top-5-84pct-2024","jurisdiction":"NE","authority":"Neb. Rev. Stat. §77-2715.03 (TY2024)","authorityType":"statute","title":"Nebraska top income tax rate is 5.84% for TY2024","quote":"5.84% for taxable years beginning or deemed to begin on or after January 1, 2024, and before January 1, 2025.","url":"https://nebraskalegislature.gov/laws/statutes.php?statute=77-2715.03","sourceDomain":"nebraskalegislature.gov","taxYear":2024,"asOf":"2026-06-21","confidence":"high","note":"TY2024 top rate per the scheduled reductions in Neb. Rev. Stat. §77-2715.03; fell to 5.20% in TY2025.","href":"/api/v1/citations/ne-nrs-77-2715-03-top-5-84pct-2024"}],"effectiveDate":"2024-01-01","terminalDate":"2024-12-31","nextReviewDate":"2027-01-01"},{"factId":"ne-conformity","jurisdiction":"NE","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-muni-instate","jurisdiction":"NE","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: Neb. Rev. Stat. §77-2716(1)(c) addition is limited to other-state obligations; NE bonds not added back","value":1,"valueType":"binary-exempt","citations":[{"id":"ne-rev-stat-77-2716-muni-default-2025","jurisdiction":"NE","authority":"Neb. Rev. Stat. §77-2716(1)(c)","authorityType":"statute","title":"NE taxes out-of-state muni bond interest; NE bonds exempt Neb. Rev. Stat. §77-2716(1)(c)","quote":"There shall be added interest or dividends received by the owner of obligations of the District of Columbia, other states of the United States, or their political subdivisions, authorities, commissions, or instrumentalities to the extent excluded in the computation of gross income for federal income tax purposes except that such interest or dividends shall not be added if received by a corporation which is a regulated investment company.","url":"https://nebraskalegislature.gov/laws/statutes.php?statute=77-2716","sourceDomain":"nebraskalegislature.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","href":"/api/v1/citations/ne-rev-stat-77-2716-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-muni-outstate","jurisdiction":"NE","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: Neb. Rev. 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Stat. §77-2716(1)(c)","quote":"There shall be added interest or dividends received by the owner of obligations of the District of Columbia, other states of the United States, or their political subdivisions, authorities, commissions, or instrumentalities to the extent excluded in the computation of gross income for federal income tax purposes except that such interest or dividends shall not be added if received by a corporation which is a regulated investment company.","url":"https://nebraskalegislature.gov/laws/statutes.php?statute=77-2716","sourceDomain":"nebraskalegislature.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","href":"/api/v1/citations/ne-rev-stat-77-2716-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-qoz-conformity","jurisdiction":"NE","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and exclusion (inferred from rolling IRC conformity under §77-2714)","value":1,"valueType":"code","citations":[{"id":"ne-qoz-conformity-irc-1400z2-2025","jurisdiction":"NE","authority":"Neb. Rev. Stat. §77-2714","authorityType":"statute","title":"Nebraska conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"Any reference to the laws of the United States shall mean the provisions of the Internal Revenue Code of 1986, and amendments thereto, other provisions of the laws of the United States relating to federal income taxes, and the rules and regulations issued under such laws, as the same may be or become effective, at any time or from time to time, for the taxable year.","url":"https://nebraskalegislature.gov/laws/statutes.php?statute=77-2714","sourceDomain":"nebraskalegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Neb. Rev. Stat. §77-2714 establishes rolling IRC conformity: Nebraska adopts federal IRC as amended for the current taxable year. Rolling conformity language 'as the same may be or become effective' for each taxable year incorporates §1400Z-2 QOZ provisions automatically. Verbatim text extracted from nebraskalegislature.gov.","href":"/api/v1/citations/ne-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-qsbs-conformity","jurisdiction":"NE","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"ne-qsbs-conformity-irc-1202-2025","jurisdiction":"NE","authority":"Neb. Rev. Stat. §77-2714","authorityType":"statute","title":"Nebraska conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity (§77-2714 adoption date definition)","quote":"The Internal Revenue Code of 1986, as amended, shall mean the federal Internal Revenue Code as it exists on the Internal Revenue Code adoption date and as the code is amended after such date.","url":"https://nebraskalegislature.gov/laws/statutes.php?statute=77-2714","sourceDomain":"nebraskalegislature.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"Neb. Rev. Stat. §77-2714 defines 'Internal Revenue Code' as the code as it exists on the IRC adoption date and as amended after such date, establishing NE's rolling IRC conformity. QSBS exclusion under IRC §1202 is incorporated absent an explicit addback in §77-2716.","href":"/api/v1/citations/ne-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-agency-obligations","jurisdiction":"NE","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: Neb. Rev. Stat. §77-2716(1)(a) subtraction requires interest be 'exempt from state income taxes under the laws of the United States'; FNMA/FHLMC have no federal bondholder exemption statute","value":0,"valueType":"binary-exempt","citations":[{"id":"ne-rev-stat-77-2716-1a-fnma-fhlmc-taxable","jurisdiction":"NE","authority":"Neb. Rev. Stat. §77-2716(1)(a)","authorityType":"statute","title":"Nebraska subtraction for U.S. obligation interest requires exemption from state income taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"There shall be subtracted from federal adjusted gross income any interest or dividends on obligations of the United States and its territories and possessions or of any authority, commission, or instrumentality of the United States to the extent exempt from state income taxes under the laws of the United States.","url":"https://nebraskalegislature.gov/laws/statutes.php?statute=77-2716","sourceDomain":"nebraskalegislature.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"Neb. Rev. Stat. §77-2716(1)(a) requires the income be 'exempt from state income taxes under the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute. No NE DOR named-entity publication found; confidence: medium.","href":"/api/v1/citations/ne-rev-stat-77-2716-1a-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-dividend-qualified","jurisdiction":"NE","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: Nebraska has no IRC §1(h)(11) preferential rate; qualified dividends taxed at ordinary rates (top 4.55% TY2026, 3.99% TY2027 per §77-2715.03)","value":0,"valueType":"binary-exempt","citations":[{"id":"ne-nrs-77-2715-03-top-5-20pct-2025","jurisdiction":"NE","authority":"Neb. Rev. Stat. §77-2715.03","authorityType":"statute","title":"Nebraska top income tax rate is 5.20% for TY2025 (falling to 4.55% TY2026, 3.99% TY2027)","quote":"(iv) 5.20% for taxable years beginning or deemed to begin on or after January 1, 2025, and before January 1, 2026;","url":"https://nebraskalegislature.gov/laws/statutes.php?statute=77-2715.03","sourceDomain":"nebraskalegislature.gov","taxYear":2025,"asOf":"2026-06-27","confidence":"high","note":"Neb. Rev. Stat. §77-2715.03(2)(c) enumerates the top-bracket rate by year; clause (iv) sets the TY2025 top rate at 5.20% (above $77,730 MFJ). Verbatim clause extracted from nebraskalegislature.gov. Scheduled reductions in the same subsection: 4.55% (TY2026, clause (v)); 3.99% (TY2027).","href":"/api/v1/citations/ne-nrs-77-2715-03-top-5-20pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-treasury","jurisdiction":"NE","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ne-31-usc-3124-treasury-exempt-2025","jurisdiction":"NE","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Nebraska income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ne-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-fhlb-ffcb","jurisdiction":"NE","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ne-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"NE","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Nebraska income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ne-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-carryback","jurisdiction":"NE","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-character","jurisdiction":"NE","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the schedule top rate (4.55% TY2026, 3.99% TY2027; Neb. Rev. Stat. §77-2715.03, §77-2715.07)","value":null,"valueType":"none","citations":[{"id":"ne-nrs-77-2715-03-top-5-20pct-2025","jurisdiction":"NE","authority":"Neb. Rev. Stat. §77-2715.03","authorityType":"statute","title":"Nebraska top income tax rate is 5.20% for TY2025 (falling to 4.55% TY2026, 3.99% TY2027)","quote":"(iv) 5.20% for taxable years beginning or deemed to begin on or after January 1, 2025, and before January 1, 2026;","url":"https://nebraskalegislature.gov/laws/statutes.php?statute=77-2715.03","sourceDomain":"nebraskalegislature.gov","taxYear":2025,"asOf":"2026-06-27","confidence":"high","note":"Neb. Rev. Stat. §77-2715.03(2)(c) enumerates the top-bracket rate by year; clause (iv) sets the TY2025 top rate at 5.20% (above $77,730 MFJ). Verbatim clause extracted from nebraskalegislature.gov. Scheduled reductions in the same subsection: 4.55% (TY2026, clause (v)); 3.99% (TY2027).","href":"/api/v1/citations/ne-nrs-77-2715-03-top-5-20pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-inheritance-rate","jurisdiction":"NE","category":"inheritance-rate","label":"Inheritance tax top rate (TY2025)","display":"Class 1 (children, parents, siblings, spouses): 1% on value over $100,000. Class 2 and Class 3 rates vary; see §§ 77-2005, 77-2006 (Neb. Rev. Stat. §§ 77-2004 to 77-2006, as amended by LB310)","value":0.15,"valueType":"rate","citations":[{"id":"ne-rev-stat-77-2004-inheritance-tax-2025","jurisdiction":"NE","authority":"Neb. Rev. Stat. §§ 77-2004, 77-2005, 77-2006 (as amended by LB310, effective January 1, 2023)","authorityType":"statute","title":"Nebraska inheritance tax: Class 1 (immediate relatives) 1% over $100,000; Class 2 (remote relatives) 11% over $40,000; Class 3 (others) 15% over $25,000 (TY2025)","quote":"fifteen percent of the clear market value of the beneficial interests received by each person in excess of twenty-five thousand dollars","url":"https://nebraskalegislature.gov/laws/statutes.php?statute=77-2006","sourceDomain":"nebraskalegislature.gov","taxYear":2025,"asOf":"2026-07-06","confidence":"high","note":"Rates and thresholds per LB310 (enacted 2022, effective January 1, 2023). Class 1 (parents, grandparents, siblings, children, adopted children, lineal descendants, spouses): 1% over $100,000 (Neb. Rev. Stat. § 77-2004). Class 2 (uncles, aunts, nieces, nephews by blood/adoption and their spouses): 11% over $40,000 (§ 77-2005). Class 3 (all others): 15% over $25,000 (§ 77-2006). Additional exemption for beneficiaries under age 22. URL resolves to a range display covering §§77-2001 through 77-2040; §77-2004 is within this range.","href":"/api/v1/citations/ne-rev-stat-77-2004-inheritance-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-filing-status-doubled","jurisdiction":"NE","category":"filing-status-doubled","label":"MFJ brackets double Single brackets","display":"Yes: Nebraska 2025 Tax Calculation Schedule (Form 8-460-2025) shows MFJ bracket thresholds exactly double Single thresholds at all four bracket boundaries (marriage neutral on graduated schedule)","value":1,"valueType":"binary-exempt","citations":[{"id":"ne-form-8-460-2025-mfj-double-single-2025","jurisdiction":"NE","authority":"Nebraska 2025 Tax Calculation Schedule (Form 8-460-2025), Nebraska Department of Revenue","authorityType":"form-instructions","title":"Nebraska income tax: MFJ bracket thresholds are exactly double Single thresholds (marriage neutral)","quote":"Single: $0 $4,030 2.46% of Nebraska Taxable Income... 38,870 ;; $1,543.28 + 5.20% of the excess over $38,870 ; MFJ: $0 $8,040 2.46%... 77,730 ;; $3,086.10 + 5.20% of the excess over $77,730","url":"https://revenue.nebraska.gov/sites/default/files/doc/tax-forms/2025/2025_Tax_Calculation_Schedule.pdf","sourceDomain":"revenue.nebraska.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Nebraska Form 8-460 TY2025: each MFJ threshold ($8,040 / $77,730) is exactly double the single threshold ($4,030 / $38,870) at the same marginal rates, so the schedule is marriage neutral.","href":"/api/v1/citations/ne-form-8-460-2025-mfj-double-single-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-marital-udcprda","jurisdiction":"NE","category":"marital-udcprda","label":"State adopted Uniform Disposition of Community Property Rights Act","display":"Yes: Nebraska enacted the Uniform Community Property Disposition at Death Act (Neb. Rev. Stat. §§30-4701 to 30-4715, effective July 19, 2024); recognizes community property character of assets from CP-state marriages","value":1,"valueType":"binary-exempt","citations":[{"id":"ne-revstat-30-4701-udcprda-short-title","jurisdiction":"NE","authority":"Neb. Rev. Stat. §30-4701","authorityType":"statute","title":"Nebraska Uniform Community Property Disposition at Death Act short title (effective July 19, 2024)","quote":"Sections 30-4701 to 30-4715 shall be known and may be cited as the Uniform Community Property Disposition at Death Act.","url":"https://nebraskalegislature.gov/laws/statutes.php?statute=30-4701","sourceDomain":"nebraskalegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Nebraska enacted the Uniform Community Property Disposition at Death Act (LB 1015, eff. July 19, 2024). Nebraska is a common-law property state. The Act recognizes and preserves the community property character of assets when a married couple relocates from a community property state.","href":"/api/v1/citations/ne-revstat-30-4701-udcprda-short-title"}],"effectiveDate":"2024-07-19","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ne-migration-loss-conformity","jurisdiction":"NE","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Nebraska computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"ne-migration-loss-conformity-src","jurisdiction":"NE","authority":"Neb. Rev. Stat. §77-2716(1)","authorityType":"statute","title":"Nebraska conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"The following adjustments to federal adjusted gross income or, for corporations and fiduciaries, federal taxable income shall be made for interest or dividends received:","url":"https://nebraskalegislature.gov/laws/statutes.php?statute=77-2716","sourceDomain":"nebraskalegislature.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Neb. Rev. Stat. §77-2716 makes its adjustments to federal adjusted gross income, so Nebraska starts from the federal base and the section 1212 capital-loss carryover flows through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.","href":"/api/v1/citations/ne-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"NV","name":"Nevada","level":"state","facts":[{"factId":"nv-estate-none","jurisdiction":"NV","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"nv-estate-none-2025","jurisdiction":"NV","authority":"NRS 375A.100","authorityType":"statute","title":"NV estate tax is a pickup equal to the federal state death tax credit, zero since the federal credit's repeal","quote":"A tax is hereby imposed on the transfer of the taxable estate of a: 1. Resident decedent in the amount of the maximum credit allowable against the federal estate tax for the payment of state death taxes","url":"https://www.leg.state.nv.us/NRS/NRS-375A.html","sourceDomain":"www.leg.state.nv.us","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Quote proves the pickup structure; the zero-liability conclusion also requires the federal fact that IRC 2011's credit was eliminated for deaths after 2004. Nev. Const. art. 10 sec 4 caps any death tax at the federal credit.","href":"/api/v1/citations/nv-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nv-no-tax","jurisdiction":"NV","category":"no-tax","label":"Capital gains tax","display":"None Nevada Constitution bars a personal income tax","value":null,"valueType":"none","citations":[{"id":"nv-const-art10-s1-9-no-income-tax","jurisdiction":"NV","authority":"Nev. Const. art. 10, §1(9)","authorityType":"constitution","title":"Nevada Constitution prohibits a general income tax on natural persons","quote":"No income tax shall be levied upon the wages or personal income of natural persons. Notwithstanding the foregoing provision, and except as otherwise provided in subsection 1 of this Section, taxes may be levied upon the income or revenue of any business in whatever form it may be conducted for profit in the State.","url":"https://www.leg.state.nv.us/const/nvconst.html","sourceDomain":"www.leg.state.nv.us","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Nevada Constitution, Article 10, Section 1, paragraph 9 bars an income tax on the wages or personal income of natural persons; business income may still be taxed.","href":"/api/v1/citations/nv-const-art10-s1-9-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nv-muni-instate","jurisdiction":"NV","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: no Nevada state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"nv-const-art10-s1-9-no-income-tax","jurisdiction":"NV","authority":"Nev. Const. art. 10, §1(9)","authorityType":"constitution","title":"Nevada Constitution prohibits a general income tax on natural persons","quote":"No income tax shall be levied upon the wages or personal income of natural persons. Notwithstanding the foregoing provision, and except as otherwise provided in subsection 1 of this Section, taxes may be levied upon the income or revenue of any business in whatever form it may be conducted for profit in the State.","url":"https://www.leg.state.nv.us/const/nvconst.html","sourceDomain":"www.leg.state.nv.us","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Nevada Constitution, Article 10, Section 1, paragraph 9 bars an income tax on the wages or personal income of natural persons; business income may still be taxed.","href":"/api/v1/citations/nv-const-art10-s1-9-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nv-muni-outstate","jurisdiction":"NV","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Exempt: no Nevada state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"nv-const-art10-s1-9-no-income-tax","jurisdiction":"NV","authority":"Nev. Const. art. 10, §1(9)","authorityType":"constitution","title":"Nevada Constitution prohibits a general income tax on natural persons","quote":"No income tax shall be levied upon the wages or personal income of natural persons. Notwithstanding the foregoing provision, and except as otherwise provided in subsection 1 of this Section, taxes may be levied upon the income or revenue of any business in whatever form it may be conducted for profit in the State.","url":"https://www.leg.state.nv.us/const/nvconst.html","sourceDomain":"www.leg.state.nv.us","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Nevada Constitution, Article 10, Section 1, paragraph 9 bars an income tax on the wages or personal income of natural persons; business income may still be taxed.","href":"/api/v1/citations/nv-const-art10-s1-9-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nv-agency-obligations","jurisdiction":"NV","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Exempt: no Nevada state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"nv-const-art10-s1-9-no-income-tax","jurisdiction":"NV","authority":"Nev. Const. art. 10, §1(9)","authorityType":"constitution","title":"Nevada Constitution prohibits a general income tax on natural persons","quote":"No income tax shall be levied upon the wages or personal income of natural persons. Notwithstanding the foregoing provision, and except as otherwise provided in subsection 1 of this Section, taxes may be levied upon the income or revenue of any business in whatever form it may be conducted for profit in the State.","url":"https://www.leg.state.nv.us/const/nvconst.html","sourceDomain":"www.leg.state.nv.us","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Nevada Constitution, Article 10, Section 1, paragraph 9 bars an income tax on the wages or personal income of natural persons; business income may still be taxed.","href":"/api/v1/citations/nv-const-art10-s1-9-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nv-dividend-qualified","jurisdiction":"NV","category":"dividend-qualified","label":"Qualified dividend income","display":"Moot: no Nevada state income tax","value":null,"valueType":"none","citations":[{"id":"nv-const-art10-s1-9-no-income-tax","jurisdiction":"NV","authority":"Nev. Const. art. 10, §1(9)","authorityType":"constitution","title":"Nevada Constitution prohibits a general income tax on natural persons","quote":"No income tax shall be levied upon the wages or personal income of natural persons. Notwithstanding the foregoing provision, and except as otherwise provided in subsection 1 of this Section, taxes may be levied upon the income or revenue of any business in whatever form it may be conducted for profit in the State.","url":"https://www.leg.state.nv.us/const/nvconst.html","sourceDomain":"www.leg.state.nv.us","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Nevada Constitution, Article 10, Section 1, paragraph 9 bars an income tax on the wages or personal income of natural persons; business income may still be taxed.","href":"/api/v1/citations/nv-const-art10-s1-9-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nv-treasury","jurisdiction":"NV","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: no Nevada state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"nv-const-art10-s1-9-no-income-tax","jurisdiction":"NV","authority":"Nev. Const. art. 10, §1(9)","authorityType":"constitution","title":"Nevada Constitution prohibits a general income tax on natural persons","quote":"No income tax shall be levied upon the wages or personal income of natural persons. Notwithstanding the foregoing provision, and except as otherwise provided in subsection 1 of this Section, taxes may be levied upon the income or revenue of any business in whatever form it may be conducted for profit in the State.","url":"https://www.leg.state.nv.us/const/nvconst.html","sourceDomain":"www.leg.state.nv.us","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Nevada Constitution, Article 10, Section 1, paragraph 9 bars an income tax on the wages or personal income of natural persons; business income may still be taxed.","href":"/api/v1/citations/nv-const-art10-s1-9-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nv-fhlb-ffcb","jurisdiction":"NV","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: no Nevada state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"nv-const-art10-s1-9-no-income-tax","jurisdiction":"NV","authority":"Nev. Const. art. 10, §1(9)","authorityType":"constitution","title":"Nevada Constitution prohibits a general income tax on natural persons","quote":"No income tax shall be levied upon the wages or personal income of natural persons. Notwithstanding the foregoing provision, and except as otherwise provided in subsection 1 of this Section, taxes may be levied upon the income or revenue of any business in whatever form it may be conducted for profit in the State.","url":"https://www.leg.state.nv.us/const/nvconst.html","sourceDomain":"www.leg.state.nv.us","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Nevada Constitution, Article 10, Section 1, paragraph 9 bars an income tax on the wages or personal income of natural persons; business income may still be taxed.","href":"/api/v1/citations/nv-const-art10-s1-9-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nv-community-property","jurisdiction":"NV","category":"community-property","label":"Community property state","display":"Community property state: property acquired after marriage is community property (NRS 123.220); Nevada has no state income tax, so community property classification primarily affects federal filing and estate planning","value":1,"valueType":"binary-exempt","citations":[{"id":"nv-stat-123-220-community-property-2025","jurisdiction":"NV","authority":"NRS 123.220","authorityType":"statute","title":"Nevada is a community property state: all property acquired after marriage is community property (NRS 123.220)","quote":"Except as otherwise provided in NRS 123.030 and in cases where separate property is set aside out of the community property for the support of a party or dependent children pursuant to NRS 123.121 and 125.150, all property, other than that stated in NRS 123.130, acquired after marriage by either husband or wife, or both, is community property unless: 1. Acquired by gift, bequest, devise or descent; 2. Acquired with the separate property of either spouse.","url":"https://www.leg.state.nv.us/NRS/NRS-123.html#NRS123Sec220","sourceDomain":"www.leg.state.nv.us","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"Nevada is a community property state with no state income tax. Community property classification affects federal income tax filing (each spouse reports one-half of community income) and estate planning. NRS 123.220 is the primary community property statute. Nevada also allows community property with right of survivorship (NRS 111.064).","href":"/api/v1/citations/nv-stat-123-220-community-property-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"NH","name":"New Hampshire","level":"state","facts":[{"factId":"nh-estate-none","jurisdiction":"NH","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"nh-estate-none-2025","jurisdiction":"NH","authority":"N.H. RSA Chapter 86 (repealed)","authorityType":"statute","title":"NH legacy and succession tax chapter repealed effective Jan 1, 2003","quote":"Entire Chapter was repealed [Repealed 2002, 232:14, II, eff. Jan. 1, 2003.]","url":"https://gc.nh.gov/rsa/html/V/86/86-mrg.htm","sourceDomain":"gc.nh.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"revenue.nh.gov 403s to fetchers; the statute page on gc.nh.gov is the cleaner authority. Page header reads 'Chapter 86 Repealed' immediately before the quoted text.","href":"/api/v1/citations/nh-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nh-no-tax","jurisdiction":"NH","category":"no-tax","label":"Capital gains tax","display":"None New Hampshire imposes no income tax; capital gains were never taxed","value":null,"valueType":"none","citations":[{"id":"nh-rsa77-repealed-cg-never-taxed","jurisdiction":"NH","authority":"New Hampshire Department of Revenue Administration, Interest and Dividends Tax guidance","authorityType":"dor-guidance","title":"New Hampshire never taxed capital gains; the Interest & Dividends tax was repealed 1/1/2025","quote":"Verbatim text not yet extracted; see note.","url":"https://www.revenue.nh.gov/resource-center/technical-information-releases-declaratory-rulings/technical-information-releases","sourceDomain":"www.revenue.nh.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"low","note":"The NH Interest & Dividends tax (RSA 77) was fully repealed effective 1/1/2025 (2021 N.H. Laws ch. 91, sec. 189); the tax reached only interest and dividend income and never included capital gains, and NH levies no other personal income tax. revenue.nh.gov 403s to automated fetch, so this DOR-guidance cite stays low and the URL stays at the migration-1.28.0-pinned TIR listing; the companion NH_RSA77_REPEALED statute cite (gc.nh.gov) carries the verbatim repeal text.","href":"/api/v1/citations/nh-rsa77-repealed-cg-never-taxed"},{"id":"nh-rsa-77-repealed-2021-91-189-eff-2025","jurisdiction":"NH","authority":"N.H. RSA Chapter 77 (repealed)","authorityType":"statute","title":"NH RSA Chapter 77 (Taxation of Incomes, the Interest & Dividends tax) repealed effective January 1, 2025","quote":"Entire Chapter was repealed [Repealed by 2021, 91:189, II, eff. Jan. 1, 2025.]","url":"https://gc.nh.gov/rsa/html/V/77/77-mrg.htm","sourceDomain":"gc.nh.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Same gc.nh.gov pattern as the Chapter 86 estate repeal cite: the statute page header reads 'Chapter 77 Repealed' immediately before the quoted annotation. RSA 77 reached only interest and dividends (never capital gains), so post-repeal NH taxes no personal investment income.","href":"/api/v1/citations/nh-rsa-77-repealed-2021-91-189-eff-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nh-muni-instate","jurisdiction":"NH","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: no New Hampshire state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"nh-rsa77-repealed-cg-never-taxed","jurisdiction":"NH","authority":"New Hampshire Department of Revenue Administration, Interest and Dividends Tax guidance","authorityType":"dor-guidance","title":"New Hampshire never taxed capital gains; the Interest & Dividends tax was repealed 1/1/2025","quote":"Verbatim text not yet extracted; see note.","url":"https://www.revenue.nh.gov/resource-center/technical-information-releases-declaratory-rulings/technical-information-releases","sourceDomain":"www.revenue.nh.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"low","note":"The NH Interest & Dividends tax (RSA 77) was fully repealed effective 1/1/2025 (2021 N.H. Laws ch. 91, sec. 189); the tax reached only interest and dividend income and never included capital gains, and NH levies no other personal income tax. revenue.nh.gov 403s to automated fetch, so this DOR-guidance cite stays low and the URL stays at the migration-1.28.0-pinned TIR listing; the companion NH_RSA77_REPEALED statute cite (gc.nh.gov) carries the verbatim repeal text.","href":"/api/v1/citations/nh-rsa77-repealed-cg-never-taxed"},{"id":"nh-rsa-77-repealed-2021-91-189-eff-2025","jurisdiction":"NH","authority":"N.H. RSA Chapter 77 (repealed)","authorityType":"statute","title":"NH RSA Chapter 77 (Taxation of Incomes, the Interest & Dividends tax) repealed effective January 1, 2025","quote":"Entire Chapter was repealed [Repealed by 2021, 91:189, II, eff. Jan. 1, 2025.]","url":"https://gc.nh.gov/rsa/html/V/77/77-mrg.htm","sourceDomain":"gc.nh.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Same gc.nh.gov pattern as the Chapter 86 estate repeal cite: the statute page header reads 'Chapter 77 Repealed' immediately before the quoted annotation. RSA 77 reached only interest and dividends (never capital gains), so post-repeal NH taxes no personal investment income.","href":"/api/v1/citations/nh-rsa-77-repealed-2021-91-189-eff-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nh-muni-outstate","jurisdiction":"NH","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Exempt: no New Hampshire state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"nh-rsa77-repealed-cg-never-taxed","jurisdiction":"NH","authority":"New Hampshire Department of Revenue Administration, Interest and Dividends Tax guidance","authorityType":"dor-guidance","title":"New Hampshire never taxed capital gains; the Interest & Dividends tax was repealed 1/1/2025","quote":"Verbatim text not yet extracted; see note.","url":"https://www.revenue.nh.gov/resource-center/technical-information-releases-declaratory-rulings/technical-information-releases","sourceDomain":"www.revenue.nh.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"low","note":"The NH Interest & Dividends tax (RSA 77) was fully repealed effective 1/1/2025 (2021 N.H. Laws ch. 91, sec. 189); the tax reached only interest and dividend income and never included capital gains, and NH levies no other personal income tax. revenue.nh.gov 403s to automated fetch, so this DOR-guidance cite stays low and the URL stays at the migration-1.28.0-pinned TIR listing; the companion NH_RSA77_REPEALED statute cite (gc.nh.gov) carries the verbatim repeal text.","href":"/api/v1/citations/nh-rsa77-repealed-cg-never-taxed"},{"id":"nh-rsa-77-repealed-2021-91-189-eff-2025","jurisdiction":"NH","authority":"N.H. RSA Chapter 77 (repealed)","authorityType":"statute","title":"NH RSA Chapter 77 (Taxation of Incomes, the Interest & Dividends tax) repealed effective January 1, 2025","quote":"Entire Chapter was repealed [Repealed by 2021, 91:189, II, eff. Jan. 1, 2025.]","url":"https://gc.nh.gov/rsa/html/V/77/77-mrg.htm","sourceDomain":"gc.nh.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Same gc.nh.gov pattern as the Chapter 86 estate repeal cite: the statute page header reads 'Chapter 77 Repealed' immediately before the quoted annotation. RSA 77 reached only interest and dividends (never capital gains), so post-repeal NH taxes no personal investment income.","href":"/api/v1/citations/nh-rsa-77-repealed-2021-91-189-eff-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nh-agency-obligations","jurisdiction":"NH","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Exempt: no New Hampshire state income tax (I&D Tax repealed 1/1/2025)","value":1,"valueType":"binary-exempt","citations":[{"id":"nh-rsa77-repealed-cg-never-taxed","jurisdiction":"NH","authority":"New Hampshire Department of Revenue Administration, Interest and Dividends Tax guidance","authorityType":"dor-guidance","title":"New Hampshire never taxed capital gains; the Interest & Dividends tax was repealed 1/1/2025","quote":"Verbatim text not yet extracted; see note.","url":"https://www.revenue.nh.gov/resource-center/technical-information-releases-declaratory-rulings/technical-information-releases","sourceDomain":"www.revenue.nh.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"low","note":"The NH Interest & Dividends tax (RSA 77) was fully repealed effective 1/1/2025 (2021 N.H. Laws ch. 91, sec. 189); the tax reached only interest and dividend income and never included capital gains, and NH levies no other personal income tax. revenue.nh.gov 403s to automated fetch, so this DOR-guidance cite stays low and the URL stays at the migration-1.28.0-pinned TIR listing; the companion NH_RSA77_REPEALED statute cite (gc.nh.gov) carries the verbatim repeal text.","href":"/api/v1/citations/nh-rsa77-repealed-cg-never-taxed"},{"id":"nh-rsa-77-repealed-2021-91-189-eff-2025","jurisdiction":"NH","authority":"N.H. RSA Chapter 77 (repealed)","authorityType":"statute","title":"NH RSA Chapter 77 (Taxation of Incomes, the Interest & Dividends tax) repealed effective January 1, 2025","quote":"Entire Chapter was repealed [Repealed by 2021, 91:189, II, eff. Jan. 1, 2025.]","url":"https://gc.nh.gov/rsa/html/V/77/77-mrg.htm","sourceDomain":"gc.nh.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Same gc.nh.gov pattern as the Chapter 86 estate repeal cite: the statute page header reads 'Chapter 77 Repealed' immediately before the quoted annotation. RSA 77 reached only interest and dividends (never capital gains), so post-repeal NH taxes no personal investment income.","href":"/api/v1/citations/nh-rsa-77-repealed-2021-91-189-eff-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nh-dividend-qualified","jurisdiction":"NH","category":"dividend-qualified","label":"Qualified dividend income","display":"Moot: no New Hampshire state income tax (I&D Tax repealed 1/1/2025)","value":null,"valueType":"none","citations":[{"id":"nh-rsa77-repealed-cg-never-taxed","jurisdiction":"NH","authority":"New Hampshire Department of Revenue Administration, Interest and Dividends Tax guidance","authorityType":"dor-guidance","title":"New Hampshire never taxed capital gains; the Interest & Dividends tax was repealed 1/1/2025","quote":"Verbatim text not yet extracted; see note.","url":"https://www.revenue.nh.gov/resource-center/technical-information-releases-declaratory-rulings/technical-information-releases","sourceDomain":"www.revenue.nh.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"low","note":"The NH Interest & Dividends tax (RSA 77) was fully repealed effective 1/1/2025 (2021 N.H. Laws ch. 91, sec. 189); the tax reached only interest and dividend income and never included capital gains, and NH levies no other personal income tax. revenue.nh.gov 403s to automated fetch, so this DOR-guidance cite stays low and the URL stays at the migration-1.28.0-pinned TIR listing; the companion NH_RSA77_REPEALED statute cite (gc.nh.gov) carries the verbatim repeal text.","href":"/api/v1/citations/nh-rsa77-repealed-cg-never-taxed"},{"id":"nh-rsa-77-repealed-2021-91-189-eff-2025","jurisdiction":"NH","authority":"N.H. RSA Chapter 77 (repealed)","authorityType":"statute","title":"NH RSA Chapter 77 (Taxation of Incomes, the Interest & Dividends tax) repealed effective January 1, 2025","quote":"Entire Chapter was repealed [Repealed by 2021, 91:189, II, eff. Jan. 1, 2025.]","url":"https://gc.nh.gov/rsa/html/V/77/77-mrg.htm","sourceDomain":"gc.nh.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Same gc.nh.gov pattern as the Chapter 86 estate repeal cite: the statute page header reads 'Chapter 77 Repealed' immediately before the quoted annotation. RSA 77 reached only interest and dividends (never capital gains), so post-repeal NH taxes no personal investment income.","href":"/api/v1/citations/nh-rsa-77-repealed-2021-91-189-eff-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nh-treasury","jurisdiction":"NH","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: no New Hampshire state income tax (I&D Tax repealed 1/1/2025)","value":1,"valueType":"binary-exempt","citations":[{"id":"nh-rsa77-repealed-cg-never-taxed","jurisdiction":"NH","authority":"New Hampshire Department of Revenue Administration, Interest and Dividends Tax guidance","authorityType":"dor-guidance","title":"New Hampshire never taxed capital gains; the Interest & Dividends tax was repealed 1/1/2025","quote":"Verbatim text not yet extracted; see note.","url":"https://www.revenue.nh.gov/resource-center/technical-information-releases-declaratory-rulings/technical-information-releases","sourceDomain":"www.revenue.nh.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"low","note":"The NH Interest & Dividends tax (RSA 77) was fully repealed effective 1/1/2025 (2021 N.H. Laws ch. 91, sec. 189); the tax reached only interest and dividend income and never included capital gains, and NH levies no other personal income tax. revenue.nh.gov 403s to automated fetch, so this DOR-guidance cite stays low and the URL stays at the migration-1.28.0-pinned TIR listing; the companion NH_RSA77_REPEALED statute cite (gc.nh.gov) carries the verbatim repeal text.","href":"/api/v1/citations/nh-rsa77-repealed-cg-never-taxed"},{"id":"nh-rsa-77-repealed-2021-91-189-eff-2025","jurisdiction":"NH","authority":"N.H. RSA Chapter 77 (repealed)","authorityType":"statute","title":"NH RSA Chapter 77 (Taxation of Incomes, the Interest & Dividends tax) repealed effective January 1, 2025","quote":"Entire Chapter was repealed [Repealed by 2021, 91:189, II, eff. Jan. 1, 2025.]","url":"https://gc.nh.gov/rsa/html/V/77/77-mrg.htm","sourceDomain":"gc.nh.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Same gc.nh.gov pattern as the Chapter 86 estate repeal cite: the statute page header reads 'Chapter 77 Repealed' immediately before the quoted annotation. RSA 77 reached only interest and dividends (never capital gains), so post-repeal NH taxes no personal investment income.","href":"/api/v1/citations/nh-rsa-77-repealed-2021-91-189-eff-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nh-fhlb-ffcb","jurisdiction":"NH","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: no New Hampshire state income tax (I&D Tax repealed 1/1/2025)","value":1,"valueType":"binary-exempt","citations":[{"id":"nh-rsa77-repealed-cg-never-taxed","jurisdiction":"NH","authority":"New Hampshire Department of Revenue Administration, Interest and Dividends Tax guidance","authorityType":"dor-guidance","title":"New Hampshire never taxed capital gains; the Interest & Dividends tax was repealed 1/1/2025","quote":"Verbatim text not yet extracted; see note.","url":"https://www.revenue.nh.gov/resource-center/technical-information-releases-declaratory-rulings/technical-information-releases","sourceDomain":"www.revenue.nh.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"low","note":"The NH Interest & Dividends tax (RSA 77) was fully repealed effective 1/1/2025 (2021 N.H. Laws ch. 91, sec. 189); the tax reached only interest and dividend income and never included capital gains, and NH levies no other personal income tax. revenue.nh.gov 403s to automated fetch, so this DOR-guidance cite stays low and the URL stays at the migration-1.28.0-pinned TIR listing; the companion NH_RSA77_REPEALED statute cite (gc.nh.gov) carries the verbatim repeal text.","href":"/api/v1/citations/nh-rsa77-repealed-cg-never-taxed"},{"id":"nh-rsa-77-repealed-2021-91-189-eff-2025","jurisdiction":"NH","authority":"N.H. RSA Chapter 77 (repealed)","authorityType":"statute","title":"NH RSA Chapter 77 (Taxation of Incomes, the Interest & Dividends tax) repealed effective January 1, 2025","quote":"Entire Chapter was repealed [Repealed by 2021, 91:189, II, eff. Jan. 1, 2025.]","url":"https://gc.nh.gov/rsa/html/V/77/77-mrg.htm","sourceDomain":"gc.nh.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Same gc.nh.gov pattern as the Chapter 86 estate repeal cite: the statute page header reads 'Chapter 77 Repealed' immediately before the quoted annotation. RSA 77 reached only interest and dividends (never capital gains), so post-repeal NH taxes no personal investment income.","href":"/api/v1/citations/nh-rsa-77-repealed-2021-91-189-eff-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"NJ","name":"New Jersey","level":"state","facts":[{"factId":"nj-trust-nexus-incomplete-gift","jurisdiction":"NJ","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES: statutorily a resident trust (settlor-based), but the Division's own GIT-12 concedes no tax when the trust has no NJ tangible assets, NJ-source income, or NJ trustee; affirmed in Residuary Trust A v. Director (App. Div. 2015). PERMANENT, not deferral: no throwback statute, and the retained gain is corpus gain outside DNI (IRC 643(a)(3)), so it never carries out to the settlor on a later distribution. Ongoing income on the reinvested proceeds IS taxable to a resident beneficiary when distributed","value":0,"valueType":"code","citations":[{"id":"nj-trust-nexus-incomplete-gift-2026","jurisdiction":"NJ","authority":"N.J.S.A. 54A:1-2(o) (resident trust); N.J. Div. of Taxation publication GIT-12 (rev. Jan. 2026)","authorityType":"dor-guidance","title":"New Jersey concedes it cannot tax a resident trust with no NJ assets, NJ-source income, or NJ trustee","quote":"A resident estate or trust does not have sufficient nexus (a tax presence) with New Jersey and is not subject to New Jersey tax if it: Does not have any tangible assets in New Jersey; and Does not have any income from New Jersey sources; and Does not have any trustees or executors in New Jersey.","url":"https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git12.pdf","sourceDomain":"www.nj.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"Trust-held stock is an intangible, so it is not an NJ 'tangible asset' (Residuary Trust A: NJ S-corp stock did not defeat the escape). The fiduciary still files NJ-1041 with the no-nexus certification. An institutional trustee with any NJ office defeats it.","href":"/api/v1/citations/nj-trust-nexus-incomplete-gift-2026"},{"id":"irc-643a3-corpus-capital-gain-excluded-from-dni","jurisdiction":"US","authority":"IRC §643(a)(3)","authorityType":"statute","title":"IRC §643(a)(3): capital gain allocated to corpus is excluded from distributable net income","quote":"Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section643&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the rule that makes an ING's escape PERMANENT rather than deferral. Income reaches a beneficiary only through DNI (IRC 652/662); a retained corpus gain is outside DNI, so a later distribution of it is principal, not income, and never enters the beneficiary's federal taxable income. Every escape state starts from the federal number, so it never enters the state base either. Conditional on the gain ACTUALLY being allocated to corpus and not distributed in the year realized: a gain routed to fiduciary accounting income, or distributed in the sale year, is in DNI and is taxable to the resident beneficiary.","href":"/api/v1/citations/irc-643a3-corpus-capital-gain-excluded-from-dni"},{"id":"irc-665c-throwback-inapplicable-qualified-domestic-trust","jurisdiction":"US","authority":"IRC §665(c)","authorityType":"statute","title":"IRC §665(c): the accumulation-distribution (throwback) rules do not reach a qualified domestic trust","quote":"(1) In general In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. (2) Qualified trust For purposes of this subsection, the term 'qualified trust' means any trust other than- (A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or (B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section665&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A modern NV/DE ING is a 'qualified trust', so the federal accumulation-distribution regime is computed without regard to undistributed net income: it is empty. States whose only accumulation rule piggybacks IRC 665-668 (OR OAR 150-316-0575, IA, KS, SC) therefore recapture nothing. Only a state with its OWN throwback keyed to income untaxed by any state can claw the gain back, and of the verified escape states only Utah has one (59-10-114(1)(g)).","href":"/api/v1/citations/irc-665c-throwback-inapplicable-qualified-domestic-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-conformity","jurisdiction":"NJ","category":"conformity","label":"Federal conformity / capital-gains base","display":"Own base: NJ Gross Income Tax (N.J.S.A. 54A:5-1) taxes gains as the 'Net gains from disposition of property' category; no federal AGI, no short/long-term distinction","value":null,"valueType":"none","citations":[{"id":"nj-njsa-54a-5-1-own-base","jurisdiction":"NJ","authority":"N.J.S.A. 54A:5-1(c); NJ Division of Taxation (GIT and capital gains)","authorityType":"dor-guidance","title":"New Jersey Gross Income Tax defines its own income categories (no federal AGI); capital gains are 'Net gains or income from disposition of property'","quote":"New Jersey does not differentiate between short-term and long-term capital gains. ... If you are a New Jersey resident, all of your capital gains, except gains from the sale of exempt obligations, are subject to tax.","url":"https://www.nj.gov/treasury/taxation/njit9.shtml","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"NJ's Gross Income Tax enumerates its own categories rather than adopting federal AGI/taxable income; gains are the N.J.S.A. 54A:5-1(c) 'Net gains or income from disposition of property' category, taxed as ordinary income with no preferential rate and no carryforward.","href":"/api/v1/citations/nj-njsa-54a-5-1-own-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-rate","jurisdiction":"NJ","category":"rate","label":"Top income tax rate (TY2025)","display":"1.4% to 10.75% graduated (10.75% above $1,000,000; capital gains taxed as ordinary income)","value":0.1075,"valueType":"rate","citations":[{"id":"nj-njsa-54a-2-1-top-10-75pct-2025","jurisdiction":"NJ","authority":"N.J. Division of Taxation NJ-1040 Instructions (TY2025)","authorityType":"form-instructions","title":"New Jersey top income tax rate is 10.75% on income above $1,000,000 (TY2025)","quote":"For taxable year 2025, the New Jersey gross income tax rates are: 1.4% on income up to $20,000; 1.75% from $20,001 to $35,000; 3.5% from $35,001 to $40,000; 5.525% from $40,001 to $75,000; 6.37% from $75,001 to $500,000; 8.97% from $500,001 to $1,000,000; and 10.75% above $1,000,000.","url":"https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The 10.75% top rate was made permanent. Because NJ taxes capital gains as ordinary income and has no LT preference, the effective rate on NJ LT gains matches this schedule directly. MFJ and single use the same brackets (no doubling in NJ law). Standard deduction: none (NJ uses exemptions instead).","href":"/api/v1/citations/nj-njsa-54a-2-1-top-10-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-carryforward","jurisdiction":"NJ","category":"carryforward","label":"Capital-loss carryforward","display":"NONE strict year-lock: net loss in any income category dies at year-end; no carryforward, no cross-category offset","value":0,"valueType":"years","citations":[{"id":"nj-njsa-54a-5-2-year-lock-category-strict","jurisdiction":"NJ","authority":"N.J. Division of Taxation NJ-1040 Instructions (TY2025)","authorityType":"form-instructions","title":"New Jersey year-locks capital losses: net loss dies at year-end; no carryforward, no cross-category offset","quote":"If, in any taxable year, the taxpayer's net gains or net income from any category of income is a loss, that loss shall not be applied against or offset the income, gains, or profits from any other category of income; and shall not be carried over as a loss or deduction in any subsequent taxable year.","url":"https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"This is the strictest capital-loss rule in the country. NJ losses cannot offset NJ wages, interest, rents, or any other NJ income category and cannot carry forward even one year. Harvest strategy: realize NJ gains and losses in the same year; a net-loss year is a total wipe. No $3,000 deduction; no indefinite carryforward.","href":"/api/v1/citations/nj-njsa-54a-5-2-year-lock-category-strict"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-carryback","jurisdiction":"NJ","category":"carryback","label":"Capital-loss carryback","display":"NONE year-locked","value":0,"valueType":"years","citations":[{"id":"nj-njsa-54a-5-2-year-lock-category-strict","jurisdiction":"NJ","authority":"N.J. Division of Taxation NJ-1040 Instructions (TY2025)","authorityType":"form-instructions","title":"New Jersey year-locks capital losses: net loss dies at year-end; no carryforward, no cross-category offset","quote":"If, in any taxable year, the taxpayer's net gains or net income from any category of income is a loss, that loss shall not be applied against or offset the income, gains, or profits from any other category of income; and shall not be carried over as a loss or deduction in any subsequent taxable year.","url":"https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"This is the strictest capital-loss rule in the country. NJ losses cannot offset NJ wages, interest, rents, or any other NJ income category and cannot carry forward even one year. Harvest strategy: realize NJ gains and losses in the same year; a net-loss year is a total wipe. No $3,000 deduction; no indefinite carryforward.","href":"/api/v1/citations/nj-njsa-54a-5-2-year-lock-category-strict"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-muni-instate","jurisdiction":"NJ","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: N.J.S.A. 54A:6-14 exempts NJ and NJ subdivision debt obligations from NJ gross income","value":1,"valueType":"binary-exempt","citations":[{"id":"nj-njsa-54a-6-14-muni-default-2025","jurisdiction":"NJ","authority":"NJ Division of Taxation, Publication GIT-5 'Exempt Obligations' (January 2026 edition)","authorityType":"dor-guidance","title":"NJ exempts NJ-issued bonds; out-of-state muni bond interest is taxable gross income per N.J.S.A. 54A:5-1(e)","quote":"Interest and gains from government debt obligations (such as bonds) of the State of New Jersey or its political subdivisions...is exempt from tax. Interest and gains you receive from debt obligations of other states and local governments are taxed by New Jersey.","url":"https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"GIT-5 plain-language description of N.J.S.A. 54A:6-14 (NJ bond exemption) and N.J.S.A. 54A:5-1(e) (out-of-state bond interest as NJ gross income).","href":"/api/v1/citations/nj-njsa-54a-6-14-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-muni-outstate","jurisdiction":"NJ","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: N.J.S.A. 54A:5-1(e) includes other states' bond interest in NJ gross income","value":0,"valueType":"binary-exempt","citations":[{"id":"nj-njsa-54a-6-14-muni-default-2025","jurisdiction":"NJ","authority":"NJ Division of Taxation, Publication GIT-5 'Exempt Obligations' (January 2026 edition)","authorityType":"dor-guidance","title":"NJ exempts NJ-issued bonds; out-of-state muni bond interest is taxable gross income per N.J.S.A. 54A:5-1(e)","quote":"Interest and gains from government debt obligations (such as bonds) of the State of New Jersey or its political subdivisions...is exempt from tax. Interest and gains you receive from debt obligations of other states and local governments are taxed by New Jersey.","url":"https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"GIT-5 plain-language description of N.J.S.A. 54A:6-14 (NJ bond exemption) and N.J.S.A. 54A:5-1(e) (out-of-state bond interest as NJ gross income).","href":"/api/v1/citations/nj-njsa-54a-6-14-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-qoz-conformity","jurisdiction":"NJ","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms: New Jersey follows IRC §1400Z-2 deferral (and the 10-year exclusion) via the basis/accounting-method rules of N.J.S.A. 54A:8-3(c) and 54A:5-1(c); gain is taxed only when recognized federally","value":1,"valueType":"code","citations":[{"id":"nj-qoz-conformity-irc-1400z2-2025","jurisdiction":"NJ","authority":"N.J. Division of Taxation, Tax Information for Federal Tax Reform (Opportunity Zones)","authorityType":"dor-guidance","title":"New Jersey conforms to IRC §1400Z-2 QOZ gain deferral via its basis/accounting-method statutes","quote":"New Jersey follows IRC section 1400Z-2 in the deferral of capital gains because, pursuant to N.J.S.A. 54A:8-3(c) and N.J.S.A. 54A:5-1(c), the method of accounting and the basis of property must be the same as for federal income tax purposes. New Jersey also follows the special rule for investments held for at least 10 years in IRC 1400Z-2(c).","url":"https://www.nj.gov/treasury/taxation/federaltaxcuts.shtml","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-06-30","confidence":"high","note":"Verified live against nj.gov. The earlier 'non-conforms (structural inference)' encoding was wrong: NJ reaches §1400Z-2 conformity through its basis and accounting-method statutes, not a direct IRC incorporation. The gain is taxed only when recognized federally.","href":"/api/v1/citations/nj-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-qsbs-conformity","jurisdiction":"NJ","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202) through TY2025","display":"Non-conforms through TY2025: QSBS gain is fully taxable New Jersey gross income; no §1202 exclusion applies before P.L. 2025 c.67","value":0,"valueType":"binary-exempt","citations":[{"id":"nj-qsbs-conformity-irc-1202-2025","jurisdiction":"NJ","authority":"P.L. 2025 c.67 (A4455/S4503); N.J.S.A. 54A:5-1(c)","authorityType":"session-law","title":"New Jersey enacts partial QSBS conformity (IRC §1202) for gains realized on or after January 1, 2026","quote":"1. Notwithstanding any law or regulation to the contrary, gross income shall not include net gains or income derived from the sale, exchange, or other disposition of qualified small business stock to the extent such gains or income are exempt from federal taxation pursuant to section 1202 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.1202). 2. This act shall take effect immediately and shall apply to taxable years beginning on or after the January 1 next following the date of enactment. Approved June 30, 2025.","url":"https://pub.njleg.gov/bills/2024/PL25/67_.PDF","sourceDomain":"pub.njleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Codified as C.54A:6-34; approved June 30, 2025, so it applies to taxable years beginning on or after January 1, 2026 (TY2026). Pre-2026 QSBS gains remain fully taxable in New Jersey; 2026-and-later gains track the federal §1202 exclusion.","href":"/api/v1/citations/nj-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"nj-qsbs-conformity-ty2026","jurisdiction":"NJ","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202) effective TY2026","display":"Partial conformity from TY2026: P.L. 2025 c.67 excludes the same percentage as IRC §1202 for QSBS gain realized on or after January 1, 2026","value":null,"valueType":"partial","citations":[{"id":"nj-qsbs-conformity-irc-1202-2025","jurisdiction":"NJ","authority":"P.L. 2025 c.67 (A4455/S4503); N.J.S.A. 54A:5-1(c)","authorityType":"session-law","title":"New Jersey enacts partial QSBS conformity (IRC §1202) for gains realized on or after January 1, 2026","quote":"1. Notwithstanding any law or regulation to the contrary, gross income shall not include net gains or income derived from the sale, exchange, or other disposition of qualified small business stock to the extent such gains or income are exempt from federal taxation pursuant to section 1202 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.1202). 2. This act shall take effect immediately and shall apply to taxable years beginning on or after the January 1 next following the date of enactment. Approved June 30, 2025.","url":"https://pub.njleg.gov/bills/2024/PL25/67_.PDF","sourceDomain":"pub.njleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Codified as C.54A:6-34; approved June 30, 2025, so it applies to taxable years beginning on or after January 1, 2026 (TY2026). Pre-2026 QSBS gains remain fully taxable in New Jersey; 2026-and-later gains track the federal §1202 exclusion.","href":"/api/v1/citations/nj-qsbs-conformity-irc-1202-2025"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-agency-obligations","jurisdiction":"NJ","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: GIT-5 (Jan 2026) explicitly marks FNMA and FHLMC interest as 'T' (taxable); no federal statute mandates state exemption for these GSEs","value":0,"valueType":"binary-exempt","citations":[{"id":"nj-git5-2026-fnma-fhlmc-taxable","jurisdiction":"NJ","authority":"NJ Division of Taxation, Publication GIT-5 'Exempt Obligations' (January 2026 edition)","authorityType":"dor-guidance","title":"NJ taxes FNMA and FHLMC bond interest: GIT-5 lists both as taxable (T) for interest and capital gains","quote":"Federal Home Loan Mortgage Corporation  T  T ... Federal National Mortgage Association (Fannie Mae): Guaranteed Participation Certification  T  T; Interest on Bonds and Debentures  T  T","url":"https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"In NJ GIT-5 the two columns are Interest and Capital Gain and 'T' marks the income taxable ('E' exempt). Freddie Mac (FHLMC) and Fannie Mae (FNMA) obligations show 'T' in both columns, so their interest and gains are fully taxable for New Jersey gross income tax. Federal Home Loan Bank obligations, by contrast, are listed 'E' (exempt).","href":"/api/v1/citations/nj-git5-2026-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-dividend-qualified","jurisdiction":"NJ","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: NJ Gross Income Tax Act (N.J.S.A. 54A) does not conform to the IRC and has no IRC §1(h)(11) preferential rate for qualified dividends","value":0,"valueType":"binary-exempt","citations":[{"id":"nj-njsa-54a-2-1-top-10-75pct-2025","jurisdiction":"NJ","authority":"N.J. Division of Taxation NJ-1040 Instructions (TY2025)","authorityType":"form-instructions","title":"New Jersey top income tax rate is 10.75% on income above $1,000,000 (TY2025)","quote":"For taxable year 2025, the New Jersey gross income tax rates are: 1.4% on income up to $20,000; 1.75% from $20,001 to $35,000; 3.5% from $35,001 to $40,000; 5.525% from $40,001 to $75,000; 6.37% from $75,001 to $500,000; 8.97% from $500,001 to $1,000,000; and 10.75% above $1,000,000.","url":"https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The 10.75% top rate was made permanent. Because NJ taxes capital gains as ordinary income and has no LT preference, the effective rate on NJ LT gains matches this schedule directly. MFJ and single use the same brackets (no doubling in NJ law). Standard deduction: none (NJ uses exemptions instead).","href":"/api/v1/citations/nj-njsa-54a-2-1-top-10-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-treasury","jurisdiction":"NJ","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"nj-31-usc-3124-treasury-exempt-2025","jurisdiction":"NJ","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from New Jersey income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/nj-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-fhlb-ffcb","jurisdiction":"NJ","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"nj-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"NJ","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from New Jersey income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/nj-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-character","jurisdiction":"NJ","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at rates up to 10.75% under New Jersey's own income tax system (N.J. Stat. Ann. §54A:5-1)","value":null,"valueType":"none","citations":[{"id":"nj-njsa-54a-2-1-top-10-75pct-2025","jurisdiction":"NJ","authority":"N.J. Division of Taxation NJ-1040 Instructions (TY2025)","authorityType":"form-instructions","title":"New Jersey top income tax rate is 10.75% on income above $1,000,000 (TY2025)","quote":"For taxable year 2025, the New Jersey gross income tax rates are: 1.4% on income up to $20,000; 1.75% from $20,001 to $35,000; 3.5% from $35,001 to $40,000; 5.525% from $40,001 to $75,000; 6.37% from $75,001 to $500,000; 8.97% from $500,001 to $1,000,000; and 10.75% above $1,000,000.","url":"https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The 10.75% top rate was made permanent. Because NJ taxes capital gains as ordinary income and has no LT preference, the effective rate on NJ LT gains matches this schedule directly. MFJ and single use the same brackets (no doubling in NJ law). Standard deduction: none (NJ uses exemptions instead).","href":"/api/v1/citations/nj-njsa-54a-2-1-top-10-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-inheritance-rate","jurisdiction":"NJ","category":"inheritance-rate","label":"Inheritance tax top rate for non-exempt beneficiaries (TY2025)","display":"Rates depend on the amount received and the relationship between the decedent and the beneficiary or transferee; see note for class-by-class rates as of TY2025 per N.J.S.A. 54:34-2 et seq.","value":0.16,"valueType":"rate","citations":[{"id":"nj-sa-54-34-1-inheritance-tax-2025","jurisdiction":"NJ","authority":"N.J.S.A. 54:34-1 et seq.; NJ Division of Taxation","authorityType":"dor-guidance","title":"New Jersey inheritance tax: Class A (children, parents, spouses) fully exempt; Class C and D taxed at graduated rates based on amount received and beneficiary relationship (TY2025)","quote":"Rates depend on the amount received and the relationship between the decedent and the beneficiary or transferee.","url":"https://www.nj.gov/treasury/taxation/inheritance-estate/tax-rates.shtml","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"NJ eliminated its estate tax in 2018; only the inheritance tax remains. Class A (parent, grandparent, spouse, domestic partner, child, stepchild, grandchild): fully exempt. Class C (sibling, son/daughter-in-law): first $25,000 exempt; 11% on $25K-$1.1M; 13% on $1.1M-$1.4M; 14% on $1.4M-$1.7M; 16% over $1.7M. Class D (all others not in A, C, or E): 15% on first $700,000; 16% over $700,000. Class E (charitable orgs, NJ/federal government): exempt.","href":"/api/v1/citations/nj-sa-54-34-1-inheritance-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-filing-status-partial","jurisdiction":"NJ","category":"filing-status-partial","label":"Filing status: partial MFJ bracket widening","display":"Yes: graduated income tax up to 10.75% (TY2025); MFJ bracket thresholds are partially wider than single filer at lower income but converge at the top bracket; marriage penalty for high-income couples.","value":1,"valueType":"binary-exempt","citations":[{"id":"nj-njsa-54a-2-1-top-10-75pct-2025","jurisdiction":"NJ","authority":"N.J. Division of Taxation NJ-1040 Instructions (TY2025)","authorityType":"form-instructions","title":"New Jersey top income tax rate is 10.75% on income above $1,000,000 (TY2025)","quote":"For taxable year 2025, the New Jersey gross income tax rates are: 1.4% on income up to $20,000; 1.75% from $20,001 to $35,000; 3.5% from $35,001 to $40,000; 5.525% from $40,001 to $75,000; 6.37% from $75,001 to $500,000; 8.97% from $500,001 to $1,000,000; and 10.75% above $1,000,000.","url":"https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The 10.75% top rate was made permanent. Because NJ taxes capital gains as ordinary income and has no LT preference, the effective rate on NJ LT gains matches this schedule directly. MFJ and single use the same brackets (no doubling in NJ law). Standard deduction: none (NJ uses exemptions instead).","href":"/api/v1/citations/nj-njsa-54a-2-1-top-10-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-migration-loss-conformity","jurisdiction":"NJ","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Disallowed: New Jersey gross income tax does not recognize capital loss carryforwards per N.J.S.A. 54A:5-2.","value":0,"valueType":"code","citations":[{"id":"nj-njsa-54a-5-2-year-lock-category-strict","jurisdiction":"NJ","authority":"N.J. Division of Taxation NJ-1040 Instructions (TY2025)","authorityType":"form-instructions","title":"New Jersey year-locks capital losses: net loss dies at year-end; no carryforward, no cross-category offset","quote":"If, in any taxable year, the taxpayer's net gains or net income from any category of income is a loss, that loss shall not be applied against or offset the income, gains, or profits from any other category of income; and shall not be carried over as a loss or deduction in any subsequent taxable year.","url":"https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"This is the strictest capital-loss rule in the country. NJ losses cannot offset NJ wages, interest, rents, or any other NJ income category and cannot carry forward even one year. Harvest strategy: realize NJ gains and losses in the same year; a net-loss year is a total wipe. No $3,000 deduction; no indefinite carryforward.","href":"/api/v1/citations/nj-njsa-54a-5-2-year-lock-category-strict"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-ptet-available","jurisdiction":"NJ","category":"ptet-available","label":"Pass-through entity tax (SALT-cap workaround) available","display":"Yes (BAIT, P.L. 2019, c.320; annual election)","value":1,"valueType":"binary-exempt","citations":[{"id":"nj-bait-rate-schedule-2025","jurisdiction":"NJ","authority":"P.L. 2019, c.320 (N.J.S.A. 54A:12-1 et seq.)","authorityType":"dor-guidance","title":"New Jersey Business Alternative Income Tax (BAIT): graduated 5.675% to 10.9% (top bracket over $1,000,000)","quote":"Taxable Income: $0-$250,000 at 5.675%; $250,001-$1,000,000 at 6.52%; Over $1,000,000 at 10.9%","url":"https://www.nj.gov/treasury/taxation/baitpte/index.shtml","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"SALT-cap workaround: the Pass-Through Business Alternative Income Tax (BAIT) is an annual election by a partnership or S corporation on its distributive proceeds. Confidence medium: Division of Taxation BAIT page; the session law text was not fetchable during verification.","href":"/api/v1/citations/nj-bait-rate-schedule-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-ptet-rate","jurisdiction":"NJ","category":"ptet-rate","label":"Pass-through entity elective tax rate","display":"Graduated on distributive proceeds: 5.675% to $250,000; 6.52% $250,001-$1,000,000; 10.9% over $1,000,000","value":0.109,"valueType":"rate","citations":[{"id":"nj-bait-rate-schedule-2025","jurisdiction":"NJ","authority":"P.L. 2019, c.320 (N.J.S.A. 54A:12-1 et seq.)","authorityType":"dor-guidance","title":"New Jersey Business Alternative Income Tax (BAIT): graduated 5.675% to 10.9% (top bracket over $1,000,000)","quote":"Taxable Income: $0-$250,000 at 5.675%; $250,001-$1,000,000 at 6.52%; Over $1,000,000 at 10.9%","url":"https://www.nj.gov/treasury/taxation/baitpte/index.shtml","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"SALT-cap workaround: the Pass-Through Business Alternative Income Tax (BAIT) is an annual election by a partnership or S corporation on its distributive proceeds. Confidence medium: Division of Taxation BAIT page; the session law text was not fetchable during verification.","href":"/api/v1/citations/nj-bait-rate-schedule-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nj-ptet-credit-mechanism","jurisdiction":"NJ","category":"ptet-credit-mechanism","label":"PTET owner recovery mechanism","display":"Refundable credit: each member's full share of the BAIT the entity paid","value":0,"valueType":"code","citations":[{"id":"nj-bait-refundable-credit-2025","jurisdiction":"NJ","authority":"P.L. 2019, c.320 (N.J.S.A. 54A:12-1 et seq.)","authorityType":"dor-guidance","title":"New Jersey BAIT: members receive a refundable gross income tax credit for their share of the entity-level tax","quote":"Each member receives a share of BAIT paid by the entity on their share of distributive proceeds. Credits are refundable","url":"https://www.nj.gov/treasury/taxation/baitpte/index.shtml","sourceDomain":"www.nj.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Full credit: the member's credit equals the member's share of the BAIT the entity paid, and unused credit is refundable. Confidence medium: Division of Taxation BAIT page.","href":"/api/v1/citations/nj-bait-refundable-credit-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"NM","name":"New Mexico","level":"state","facts":[{"factId":"nm-trust-nexus-incomplete-gift","jurisdiction":"NM","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES: trustee/administration test per the state's own instructions; a NV-sited ING is nonresident with no NM-source income. Medium confidence: the rule lives in guidance, not statute. PERMANENT, not deferral: no throwback statute, and the retained gain is corpus gain outside DNI (IRC 643(a)(3)), so it never carries out to the settlor on a later distribution. Ongoing income on the reinvested proceeds IS taxable to a resident beneficiary when distributed","value":0,"valueType":"code","citations":[{"id":"nm-trust-nexus-incomplete-gift-2026","jurisdiction":"NM","authority":"N.M. Taxation & Revenue Dept., FID-1 instructions (trust domicile rule); NMSA 7-2-2","authorityType":"form-instructions","title":"New Mexico fixes trust domicile at the trustee's domicile or the principal place of administration","quote":"A trust is domiciled in New Mexico if the trustee is a resident of New Mexico or if the principal place from which the trust is managed or administered is in New Mexico.","url":"https://www.tax.newmexico.gov/all-nm-taxes/2020/10/23/fiduciary-income-tax-for-trusts-and-estates/","sourceDomain":"www.tax.newmexico.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"medium","note":"NMSA 7-2-2 folds trusts into 'individual' without a trust-residency definition; the operative rule is the department's.","href":"/api/v1/citations/nm-trust-nexus-incomplete-gift-2026"},{"id":"irc-643a3-corpus-capital-gain-excluded-from-dni","jurisdiction":"US","authority":"IRC §643(a)(3)","authorityType":"statute","title":"IRC §643(a)(3): capital gain allocated to corpus is excluded from distributable net income","quote":"Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section643&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the rule that makes an ING's escape PERMANENT rather than deferral. Income reaches a beneficiary only through DNI (IRC 652/662); a retained corpus gain is outside DNI, so a later distribution of it is principal, not income, and never enters the beneficiary's federal taxable income. Every escape state starts from the federal number, so it never enters the state base either. Conditional on the gain ACTUALLY being allocated to corpus and not distributed in the year realized: a gain routed to fiduciary accounting income, or distributed in the sale year, is in DNI and is taxable to the resident beneficiary.","href":"/api/v1/citations/irc-643a3-corpus-capital-gain-excluded-from-dni"},{"id":"irc-665c-throwback-inapplicable-qualified-domestic-trust","jurisdiction":"US","authority":"IRC §665(c)","authorityType":"statute","title":"IRC §665(c): the accumulation-distribution (throwback) rules do not reach a qualified domestic trust","quote":"(1) In general In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. (2) Qualified trust For purposes of this subsection, the term 'qualified trust' means any trust other than- (A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or (B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section665&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A modern NV/DE ING is a 'qualified trust', so the federal accumulation-distribution regime is computed without regard to undistributed net income: it is empty. States whose only accumulation rule piggybacks IRC 665-668 (OR OAR 150-316-0575, IA, KS, SC) therefore recapture nothing. Only a state with its OWN throwback keyed to income untaxed by any state can claw the gain back, and of the verified escape states only Utah has one (59-10-114(1)(g)).","href":"/api/v1/citations/irc-665c-throwback-inapplicable-qualified-domestic-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-estate-none","jurisdiction":"NM","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"nm-estate-none-2025","jurisdiction":"NM","authority":"New Mexico Taxation and Revenue Department, Estate, Trust, and Fiduciary Income Tax page","authorityType":"dor-guidance","title":"NM estate tax (federal pickup) phased out as of Jan 1, 2005","quote":"New Mexico's Estate Tax is phased out due to federal tax law changes as of January 1, 2005.","url":"https://www.tax.newmexico.gov/all-nm-taxes/2020/10/23/fiduciary-income-tax-for-trusts-and-estates/","sourceDomain":"www.tax.newmexico.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Same page also states verbatim: 'Note: New Mexico does not impose an inheritance tax'.","href":"/api/v1/citations/nm-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-rate","jurisdiction":"NM","category":"rate","label":"Top income tax rate (TY2025)","display":"1.5% to 5.9% graduated (5.9% above $315,000 MFJ)","value":0.059,"valueType":"rate","citations":[{"id":"nm-nmsa-7-2-7-top-5-9pct-2025","jurisdiction":"NM","authority":"NMSA §7-2-7","authorityType":"statute","title":"New Mexico top income tax rate is 5.9% on income above $315,000 (MFJ, TY2025)","quote":"For taxable years beginning on or after January 1, 2025, a tax is imposed upon the net income of every individual resident at the following rates: 1.5% to $8,000; 3.2% from $8,001 to $25,000; 4.3% from $25,001 to $50,000; 4.7% from $50,001 to $100,000; 4.9% from $100,001 to $315,000; and 5.9% above $315,000, for married individuals filing jointly.","url":"https://www.nmlegis.gov/Legislation/Legislation?Chamber=H&LegType=B&LegNo=252&year=24","sourceDomain":"www.nmlegis.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"NM uses federal AGI minus federal standard or itemized deductions (PIT-1 line 12) as the base.","href":"/api/v1/citations/nm-nmsa-7-2-7-top-5-9pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-character","jurisdiction":"NM","category":"character","label":"Net capital gain deduction (TY2025+)","display":"Greater of min(net capital gain, $2,500), all asset types, or 40% of up to $1M of NM business-sale gain (HB 252 gutted the prior general 40%)","value":2500,"valueType":"dollars","citations":[{"id":"nm-nmsa-7-2-34-lt-deduction-2500-2025","jurisdiction":"NM","authority":"NMSA §7-2-34 (as amended by HB 252, 2024 session, Section 8)","authorityType":"session-law","title":"New Mexico net capital gain deduction is the greater of min(net capital gain, $2,500) or 40% of up to $1M of NM business-sale gain (TY2025+)","quote":"a deduction from net income in an amount equal to the greater of: (1) the taxpayer's net capital gain income for the taxable year... but not to exceed two thousand five hundred dollars ($2,500); or (2) forty percent of up to one million dollars ($1,000,000) of the taxpayer's net capital gain income from the sale of a business that is allocated or apportioned to New Mexico pursuant to Section 7-2-11 NMSA 1978","url":"https://www.nmlegis.gov/Sessions/24%20Regular/final/HB0252.PDF","sourceDomain":"www.nmlegis.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"HB 252 gutted the prior 40% general exclusion for TY2025 ('Sections 5, 8, 10 and 32 through 37 of this act apply to taxable years beginning on or after January 1, 2025'). The $2,500 prong applies to ALL asset types (net capital gain takes the IRC 1222(11) definition per subsection C), not just publicly traded securities; it is de minimis for large-gain filers. The 40% prong survives only for up to $1M of gain from the sale of a New Mexico-apportioned business.","href":"/api/v1/citations/nm-nmsa-7-2-34-lt-deduction-2500-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-conformity","jurisdiction":"NM","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-muni-instate","jurisdiction":"NM","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: NMSA §7-2-2 definition of 'state or local bond' excludes New Mexico bonds; NM bond interest not in NM base income","value":1,"valueType":"binary-exempt","citations":[{"id":"nm-nmsa-7-2-2-muni-default-2025","jurisdiction":"NM","authority":"NMSA 1978 §7-2-2(B)(3) and §7-2-2 (definition of 'state or local bond')","authorityType":"statute","title":"NM taxes out-of-state muni bond interest; NM bonds exempt NMSA §7-2-2","quote":"'base income' also includes interest received on a state or local bond; ... 'state or local bond' means a bond issued by a state other than New Mexico or by a local government other than one of New Mexico's political subdivisions, the interest from which is excluded from income for federal income tax purposes under Section 103 of the Internal Revenue Code, as that section may be amended or renumbered;","url":"https://www.nmlegis.gov/Sessions/23%20Regular/final/HB0368.pdf#page=1","sourceDomain":"www.nmlegis.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"NMSA §7-2-2 (as amended by HB 368, 2023) adds 'state or local bond' interest to base income and defines the term to cover only NON-New Mexico bonds: out-of-state muni interest is taxable, NM state and local bond interest stays out of the base by definition.","href":"/api/v1/citations/nm-nmsa-7-2-2-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-muni-outstate","jurisdiction":"NM","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: NMSA §7-2-2(B)(3) includes 'state or local bond' interest (bonds of other states) in NM base income","value":0,"valueType":"binary-exempt","citations":[{"id":"nm-nmsa-7-2-2-muni-default-2025","jurisdiction":"NM","authority":"NMSA 1978 §7-2-2(B)(3) and §7-2-2 (definition of 'state or local bond')","authorityType":"statute","title":"NM taxes out-of-state muni bond interest; NM bonds exempt NMSA §7-2-2","quote":"'base income' also includes interest received on a state or local bond; ... 'state or local bond' means a bond issued by a state other than New Mexico or by a local government other than one of New Mexico's political subdivisions, the interest from which is excluded from income for federal income tax purposes under Section 103 of the Internal Revenue Code, as that section may be amended or renumbered;","url":"https://www.nmlegis.gov/Sessions/23%20Regular/final/HB0368.pdf#page=1","sourceDomain":"www.nmlegis.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"NMSA §7-2-2 (as amended by HB 368, 2023) adds 'state or local bond' interest to base income and defines the term to cover only NON-New Mexico bonds: out-of-state muni interest is taxable, NM state and local bond interest stays out of the base by definition.","href":"/api/v1/citations/nm-nmsa-7-2-2-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-qoz-conformity","jurisdiction":"NM","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"nm-qoz-conformity-irc-1400z2-2025","jurisdiction":"NM","authority":"NMSA 1978 §7-2-2(A)","authorityType":"statute","title":"New Mexico conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"A. \"adjusted gross income\" means adjusted gross income as defined in Section 62 of the Internal Revenue Code, as that section may be amended or renumbered; ... J. \"Internal Revenue Code\" means the United States Internal Revenue Code of 1986, as amended;","url":"https://www.nmlegis.gov/Sessions/23%20Regular/bills/house/HB0368.HTML","sourceDomain":"www.nmlegis.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"NMSA §7-2-2 defines New Mexico income by reference to rolling federal AGI under IRC §62 (with §7-2-2(J) adopting the IRC 'as amended'), so §1400Z-2 QOZ deferral and exclusion flow through; no NM addback found. Confidence medium: conformity mechanism verified verbatim, QOZ-specific text does not exist in NM statute.","href":"/api/v1/citations/nm-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-qsbs-conformity","jurisdiction":"NM","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"nm-qsbs-conformity-irc-1202-2025","jurisdiction":"NM","authority":"NMSA 1978 §7-2-2(A)","authorityType":"statute","title":"New Mexico conforms to IRC §1202 QSBS gain exclusion","quote":"A. \"adjusted gross income\" means adjusted gross income as defined in Section 62 of the Internal Revenue Code, as that section may be amended or renumbered; ... J. \"Internal Revenue Code\" means the United States Internal Revenue Code of 1986, as amended;","url":"https://www.nmlegis.gov/Sessions/23%20Regular/bills/house/HB0368.HTML","sourceDomain":"www.nmlegis.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"NMSA §7-2-2 defines New Mexico income by reference to rolling federal AGI under IRC §62 (with §7-2-2(J) adopting the IRC 'as amended'), so federally excluded §1202 QSBS gain never enters the NM base; no NM addback found. Confidence medium: conformity mechanism verified verbatim, QSBS-specific text does not exist in NM statute.","href":"/api/v1/citations/nm-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-agency-obligations","jurisdiction":"NM","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: New Mexico base income starts from federal AGI (which includes FNMA/FHLMC interest); no NM subtraction exists for GSE interest lacking a federal bondholder preemption","value":0,"valueType":"binary-exempt","citations":[{"id":"nm-nmsa-7-2-2-fnma-fhlmc-in-base","jurisdiction":"NM","authority":"NMSA 1978 §7-2-2(A)","authorityType":"statute","title":"New Mexico taxes FNMA and FHLMC bond interest: NM base income starts from federal AGI, which includes FNMA/FHLMC interest; no NM subtraction is available for GSE interest lacking a federal bondholder preemption","quote":"'adjusted gross income' means adjusted gross income as defined in Section 62 of the Internal Revenue Code, as that section may be amended or renumbered;","url":"https://www.nmlegis.gov/Sessions/23%20Regular/final/HB0368.pdf#page=1","sourceDomain":"www.nmlegis.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"New Mexico base income starts from federal AGI. FNMA and FHLMC bond interest is INCLUDED in federal AGI (not IRC §103-excluded). NMSA §7-2-2 adds back IRC §103-excluded interest from other states but does not provide a separate exemption for GSE interest. No NM TRD named-entity publication found; confidence: medium.","href":"/api/v1/citations/nm-nmsa-7-2-2-fnma-fhlmc-in-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-dividend-qualified","jurisdiction":"NM","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: New Mexico has no IRC §1(h)(11) preferential rate; the §7-2-34 LT capital gain deduction applies only to gains from asset sales, not dividend income; taxed at ordinary rates up to 5.9%","value":0,"valueType":"binary-exempt","citations":[{"id":"nm-nmsa-7-2-7-top-5-9pct-2025","jurisdiction":"NM","authority":"NMSA §7-2-7","authorityType":"statute","title":"New Mexico top income tax rate is 5.9% on income above $315,000 (MFJ, TY2025)","quote":"For taxable years beginning on or after January 1, 2025, a tax is imposed upon the net income of every individual resident at the following rates: 1.5% to $8,000; 3.2% from $8,001 to $25,000; 4.3% from $25,001 to $50,000; 4.7% from $50,001 to $100,000; 4.9% from $100,001 to $315,000; and 5.9% above $315,000, for married individuals filing jointly.","url":"https://www.nmlegis.gov/Legislation/Legislation?Chamber=H&LegType=B&LegNo=252&year=24","sourceDomain":"www.nmlegis.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"NM uses federal AGI minus federal standard or itemized deductions (PIT-1 line 12) as the base.","href":"/api/v1/citations/nm-nmsa-7-2-7-top-5-9pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-treasury","jurisdiction":"NM","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"nm-31-usc-3124-treasury-exempt-2025","jurisdiction":"NM","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from New Mexico income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/nm-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-fhlb-ffcb","jurisdiction":"NM","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"nm-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"NM","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from New Mexico income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/nm-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-carryback","jurisdiction":"NM","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-community-property","jurisdiction":"NM","category":"community-property","label":"Community property state","display":"Community property state: property acquired during marriage is community property; each spouse owns one-half (N.M. Stat. Ann. § 40-3-8); income from separate property is also treated as community property in New Mexico","value":1,"valueType":"binary-exempt","citations":[{"id":"nm-stat-40-3-8-community-property-2025","jurisdiction":"NM","authority":"N.M. Stat. Ann. § 40-3-8","authorityType":"statute","title":"New Mexico is a community property state: property acquired by either spouse during marriage is community property (N.M. Stat. Ann. § 40-3-8)","quote":"Property acquired by either or both spouses during marriage and that is not separate property is community property.","url":"https://www.nmlegis.gov/","sourceDomain":"www.nmlegis.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"New Mexico is a community property state since statehood (1912). N.M. Stat. Ann. § 40-3-8 is the primary statute. Income from separate property is also treated as community property in NM (unlike most other community property states). Spouses may agree to change the character of property.","href":"/api/v1/citations/nm-stat-40-3-8-community-property-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-filing-status-partial","jurisdiction":"NM","category":"filing-status-partial","label":"Filing status: partial MFJ bracket widening","display":"Yes: New Mexico graduated income tax up to 5.9% (NMSA §7-2-7, TY2025); MFJ brackets cited; partial widening relative to single filer inferred from the graduated structure; single-filer thresholds not separately cited in this record.","value":1,"valueType":"binary-exempt","citations":[{"id":"nm-nmsa-7-2-7-top-5-9pct-2025","jurisdiction":"NM","authority":"NMSA §7-2-7","authorityType":"statute","title":"New Mexico top income tax rate is 5.9% on income above $315,000 (MFJ, TY2025)","quote":"For taxable years beginning on or after January 1, 2025, a tax is imposed upon the net income of every individual resident at the following rates: 1.5% to $8,000; 3.2% from $8,001 to $25,000; 4.3% from $25,001 to $50,000; 4.7% from $50,001 to $100,000; 4.9% from $100,001 to $315,000; and 5.9% above $315,000, for married individuals filing jointly.","url":"https://www.nmlegis.gov/Legislation/Legislation?Chamber=H&LegType=B&LegNo=252&year=24","sourceDomain":"www.nmlegis.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"NM uses federal AGI minus federal standard or itemized deductions (PIT-1 line 12) as the base.","href":"/api/v1/citations/nm-nmsa-7-2-7-top-5-9pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nm-migration-loss-conformity","jurisdiction":"NM","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): New Mexico computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"nm-migration-loss-conformity-src","jurisdiction":"NM","authority":"New Mexico Taxation and Revenue Department, Personal Income Tax Information Overview","authorityType":"dor-guidance","title":"New Mexico conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"Personal income tax in New Mexico starts with the Federally Adjusted Gross Income (FAGI) from your federal return.","url":"https://www.tax.newmexico.gov/individuals/personal-income-tax-information-overview/","sourceDomain":"www.tax.newmexico.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"The New Mexico Taxation and Revenue Department states personal income tax starts with federal adjusted gross income, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.","href":"/api/v1/citations/nm-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"NY","name":"New York","level":"state","facts":[{"factId":"ny-trust-nexus-incomplete-gift","jurisdiction":"NY","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"BLOCKED by statute: Tax Law 612(b)(41) (2014) adds the ING's income back to the NY-resident grantor's NY AGI as if a grantor trust","value":1,"valueType":"code","citations":[{"id":"ny-trust-nexus-incomplete-gift-2026","jurisdiction":"NY","authority":"N.Y. Tax Law Sec. 612(b)(41), added L. 2014 ch. 59 Part I","authorityType":"statute","title":"New York taxes ING income to the resident grantor as if the trust were a grantor trust (2014)","quote":"In the case of a taxpayer who transferred property to an incomplete gift non-grantor trust, the income of the trust, less any deductions of the trust, to the extent such income and deductions of such trust would be taken into account in computing the taxpayer's federal taxable income if such trust in its entirety were treated as a grantor trust for federal tax purposes.","url":"https://www.nysenate.gov/legislation/laws/TAX/612","sourceDomain":"www.nysenate.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"The statute defines an incomplete gift non-grantor trust as a resident trust that is non-grantor under IRC 671-679 whose funding is an incomplete gift under IRC 2511. The addback kills the state-tax play for NY residents; it does not change federal treatment.","href":"/api/v1/citations/ny-trust-nexus-incomplete-gift-2026"}],"effectiveDate":"2014-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-rate","jurisdiction":"NY","category":"rate","label":"Top stated income tax rate (TY2025)","display":"4% to 10.9% graduated (10.9% above $25M MFJ; 9.65% to 10.3% is operative range for high-CG filers)","value":0.109,"valueType":"rate","citations":[{"id":"ny-tax-law-601a-top-10-9pct-bracket-2025","jurisdiction":"NY","authority":"TY2025 IT-201 Instructions (rate schedule for married filing jointly)","authorityType":"form-instructions","title":"New York top stated rate: 10.9% on New York taxable income above $25,000,000 (MFJ, TY2025)","quote":"For taxable years beginning on or after January 1, 2023, the rates of tax imposed under this section are: 4% on income to $17,150; 4.5% from $17,151 to $23,600; 5.25% from $23,601 to $27,900; 5.85% from $27,901 to $161,550; 6.25% from $161,551 to $323,200; 6.85% from $323,201 to $2,155,350; 9.65% from $2,155,351 to $5,000,000; 10.3% from $5,000,001 to $25,000,000; and 10.9% above $25,000,000, for married individuals filing a joint return; provided, this subparagraph shall apply only to taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand twenty-eight.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The elevated brackets (9.65%, 10.3%, 10.9%) were extended through TY2032 by the FY2026 budget (A3009-C, signed 2025-05-09): N.Y. Tax Law §601 now applies them to taxable years beginning after 2025 and before 2033 ('FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FIVE AND BEFORE TWO THOUSAND THIRTY-THREE'). The 10.9% bracket applies above $25M (joint); for most high-capital-gain filers the operative range is 9.65% to 10.3%. The recapture trap (see NY_RATE_RECAPTURE) can produce higher effective rates between $107,650 and ~$161,500. No preferential LT rate: NY taxes capital gains as ordinary income at these rates. Standard deduction $16,050 MFJ (TY2025).","href":"/api/v1/citations/ny-tax-law-601a-top-10-9pct-bracket-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-character","jurisdiction":"NY","category":"character","label":"Benefit-recapture trap above $107,650 NYAGI","display":"Above $107,650 NYAGI: entire NY tax recomputed at flat rate on all NY taxable income effective marginal rate can exceed 100%","value":0,"valueType":"rate","citations":[{"id":"ny-tax-law-601-recapture-trap-107650-2025","jurisdiction":"NY","authority":"N.Y. Tax Law §601(a)","authorityType":"statute","title":"New York income tax: graduated up to 10.9%; benefit-recapture flat rate kicks in above $107,650 NYAGI","quote":"For taxable years beginning on or after January 1, 2023, the rates of tax imposed under this section are: 4% on income to $17,150; 4.5% from $17,151 to $23,600; 5.25% from $23,601 to $27,900; 5.85% from $27,901 to $161,550; 6.25% from $161,551 to $323,200; 6.85% from $323,201 to $2,155,350; 9.65% from $2,155,351 to $5,000,000; 10.3% from $5,000,001 to $25,000,000; and 10.9% above $25,000,000, for married individuals filing a joint return.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"N.Y. Tax Law §601(a) establishes graduated brackets with a benefit-recapture mechanism above $107,650 NYAGI. The recapture trap: once NYAGI exceeds $107,650, the ENTIRE NY tax is recomputed as a flat % of ALL NY taxable income. Between $107,650 and ~$161,500 NYAGI (MFJ), the effective marginal rate can exceed 100% (each additional dollar of income increases tax by more than $1 because it causes the flat-rate recalculation to apply to a larger base). This is the most counterintuitive rate structure in any U.S. state. Capital gains that push NYAGI past $107,650 trigger this. The elevated brackets (9.65%, 10.3%, 10.9%) run through TY2032 per §601 as amended by the FY2026 budget (A3009-C, signed 2025-05-09). Verbatim text extracted from nysenate.gov.","href":"/api/v1/citations/ny-tax-law-601-recapture-trap-107650-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-threshold","jurisdiction":"NY","category":"threshold","label":"Recapture trap threshold (all statuses)","display":"$107,650 NYAGI below: graduated; above: flat-rate-on-everything (enormous marginal cliff for CG timing)","value":107650,"valueType":"dollars","citations":[{"id":"ny-tax-law-601-recapture-trap-107650-2025","jurisdiction":"NY","authority":"N.Y. Tax Law §601(a)","authorityType":"statute","title":"New York income tax: graduated up to 10.9%; benefit-recapture flat rate kicks in above $107,650 NYAGI","quote":"For taxable years beginning on or after January 1, 2023, the rates of tax imposed under this section are: 4% on income to $17,150; 4.5% from $17,151 to $23,600; 5.25% from $23,601 to $27,900; 5.85% from $27,901 to $161,550; 6.25% from $161,551 to $323,200; 6.85% from $323,201 to $2,155,350; 9.65% from $2,155,351 to $5,000,000; 10.3% from $5,000,001 to $25,000,000; and 10.9% above $25,000,000, for married individuals filing a joint return.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"N.Y. Tax Law §601(a) establishes graduated brackets with a benefit-recapture mechanism above $107,650 NYAGI. The recapture trap: once NYAGI exceeds $107,650, the ENTIRE NY tax is recomputed as a flat % of ALL NY taxable income. Between $107,650 and ~$161,500 NYAGI (MFJ), the effective marginal rate can exceed 100% (each additional dollar of income increases tax by more than $1 because it causes the flat-rate recalculation to apply to a larger base). This is the most counterintuitive rate structure in any U.S. state. Capital gains that push NYAGI past $107,650 trigger this. The elevated brackets (9.65%, 10.3%, 10.9%) run through TY2032 per §601 as amended by the FY2026 budget (A3009-C, signed 2025-05-09). Verbatim text extracted from nysenate.gov.","href":"/api/v1/citations/ny-tax-law-601-recapture-trap-107650-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-conformity","jurisdiction":"NY","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-muni-instate","jurisdiction":"NY","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: N.Y. Tax Law §612(b)(1) add-back is limited to other-state obligations; NY bonds not added back","value":1,"valueType":"binary-exempt","citations":[{"id":"ny-tax-law-612b1-muni-default-2025","jurisdiction":"NY","authority":"N.Y. Tax Law §612(b)(1)","authorityType":"statute","title":"NY taxes out-of-state muni bond interest add-back per Tax Law §612(b)(1); NY bonds exempt","quote":"Interest income on obligations of any state other than this state, or of a political subdivision of any such other state unless created by compact or agreement to which this state is a party, to the extent not properly includible in federal adjusted gross income","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"N.Y. Tax Law §612(b)(1) requires addition of out-of-state muni interest to NY AGI. Verbatim text extracted from nysenate.gov. NY-issued bonds (state and subdivisions) are exempt by negative implication: the statute only requires addition of obligations of 'any state other than this state.'","href":"/api/v1/citations/ny-tax-law-612b1-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-muni-outstate","jurisdiction":"NY","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: N.Y. Tax Law §612(b)(1) requires add-back of out-of-state muni interest to NY income","value":0,"valueType":"binary-exempt","citations":[{"id":"ny-tax-law-612b1-muni-default-2025","jurisdiction":"NY","authority":"N.Y. Tax Law §612(b)(1)","authorityType":"statute","title":"NY taxes out-of-state muni bond interest add-back per Tax Law §612(b)(1); NY bonds exempt","quote":"Interest income on obligations of any state other than this state, or of a political subdivision of any such other state unless created by compact or agreement to which this state is a party, to the extent not properly includible in federal adjusted gross income","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"N.Y. Tax Law §612(b)(1) requires addition of out-of-state muni interest to NY AGI. Verbatim text extracted from nysenate.gov. NY-issued bonds (state and subdivisions) are exempt by negative implication: the statute only requires addition of obligations of 'any state other than this state.'","href":"/api/v1/citations/ny-tax-law-612b1-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-qoz-conformity","jurisdiction":"NY","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Non-conforms to IRC §1400Z-2; QOZ gain deferral not recognized, gain taxable at state level","value":0,"valueType":"code","citations":[{"id":"ny-qoz-conformity-irc-1400z2-2025","jurisdiction":"NY","authority":"N.Y. Tax Law §612(b)(42)","authorityType":"statute","title":"New York does not conform to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The amount of any gain excluded from federal gross income for the taxable year by subparagraph (A) of paragraph (1) of subsection (a) of section 1400Z-2 of the internal revenue code.","url":"https://www.nysenate.gov/legislation/laws/TAX/612","sourceDomain":"www.nysenate.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"N.Y. Tax Law §612(b)(42) requires an addback of any gain excluded from federal income under IRC §1400Z-2. Deferred or permanently excluded QOZ gain is fully taxable in New York in the year of reinvestment into a QOF.","href":"/api/v1/citations/ny-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-qsbs-conformity","jurisdiction":"NY","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion by omission: §612(b) contains no §1202 addback so federally excluded gain does not enter NYAGI","value":1,"valueType":"binary-exempt","citations":[{"id":"ny-qsbs-conformity-irc-1202-2025","jurisdiction":"NY","authority":"N.Y. Tax Law §612(a); §612(b) (no §1202 addition enumerated)","authorityType":"statute","title":"New York conforms to IRC §1202 QSBS gain exclusion by omission: no §1202 addback in §612(b)","quote":"New York adjusted gross income of a resident individual means his federal adjusted gross income as defined in the laws of the United States for the taxable year, with the modifications specified in this section.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"Conformity established by negative inference: N.Y. Tax Law §612(a) begins from federal AGI; §612(b) enumerates additions to NY income but contains no addition for amounts excluded under IRC §1202. Federally excluded QSBS gain therefore never enters NYAGI. N.Y. Tax Law §612(c)(43) is NOT a QSBS provision; it is the QOZ gain-recovery subtraction (mirror of §612(b)(42)). No affirmative statutory text confirms §1202 conformity; medium confidence per schema rules because proof-by-omission is not verbatim statutory text.","href":"/api/v1/citations/ny-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-agency-obligations","jurisdiction":"NY","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: NY TSB-M-95(4)I (Jan 1996) table lists FNMA bonds/debentures and FHLMC as 'Yes' (subject to NY income tax); §612(c)(2) subtraction requires federal preemption statute, which FNMA/FHLMC lack","value":0,"valueType":"binary-exempt","citations":[{"id":"ny-tsb-m-95-4i-fnma-fhlmc-taxable","jurisdiction":"NY","authority":"NY Department of Taxation and Finance, TSB-M-95(4)I (January 29, 1996); supersedes TSB-M-86-(8)I","authorityType":"dor-guidance","title":"NY TSB-M-95(4)I: FNMA bonds/debentures and FHLMC listed as 'Yes' (subject to NY income tax)","quote":"Federal Home Loan Mortgage Corporation (Freddie Macs): Subject to New York State Income Tax; Yes. Federal National Mortgage Association (Fannie Mae): (a) Interest on Bonds and Debentures (all tax years): Subject to New York State Income Tax; Yes.","url":"https://www.tax.ny.gov/pdf/memos/income/m95_4i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"TSB-M-95(4)I is the controlling NY DTF guidance on federal agency bond taxability. Verbatim text extracted from PDF. It explicitly distinguishes exempt GSEs (FHLB: 'No'; FFCB: 'No') from taxable ones (FNMA/FHLMC/GNMA: 'Yes'). The mechanism is N.Y. Tax Law §612(c)(2): a subtraction applies only when a federal statute specifically bars state taxation of the bondholder interest. No such statute exists for FNMA or FHLMC.","href":"/api/v1/citations/ny-tsb-m-95-4i-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-dividend-qualified","jurisdiction":"NY","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: N.Y. Tax Law §612(b) and §612(c) modifications do not include any subtraction or reduced rate for qualified dividends; IRC §1(h)(11) preference not adopted","value":0,"valueType":"binary-exempt","citations":[{"id":"ny-tax-law-601a-top-10-9pct-bracket-2025","jurisdiction":"NY","authority":"TY2025 IT-201 Instructions (rate schedule for married filing jointly)","authorityType":"form-instructions","title":"New York top stated rate: 10.9% on New York taxable income above $25,000,000 (MFJ, TY2025)","quote":"For taxable years beginning on or after January 1, 2023, the rates of tax imposed under this section are: 4% on income to $17,150; 4.5% from $17,151 to $23,600; 5.25% from $23,601 to $27,900; 5.85% from $27,901 to $161,550; 6.25% from $161,551 to $323,200; 6.85% from $323,201 to $2,155,350; 9.65% from $2,155,351 to $5,000,000; 10.3% from $5,000,001 to $25,000,000; and 10.9% above $25,000,000, for married individuals filing a joint return; provided, this subparagraph shall apply only to taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand twenty-eight.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The elevated brackets (9.65%, 10.3%, 10.9%) were extended through TY2032 by the FY2026 budget (A3009-C, signed 2025-05-09): N.Y. Tax Law §601 now applies them to taxable years beginning after 2025 and before 2033 ('FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FIVE AND BEFORE TWO THOUSAND THIRTY-THREE'). The 10.9% bracket applies above $25M (joint); for most high-capital-gain filers the operative range is 9.65% to 10.3%. The recapture trap (see NY_RATE_RECAPTURE) can produce higher effective rates between $107,650 and ~$161,500. No preferential LT rate: NY taxes capital gains as ordinary income at these rates. Standard deduction $16,050 MFJ (TY2025).","href":"/api/v1/citations/ny-tax-law-601a-top-10-9pct-bracket-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-treasury","jurisdiction":"NY","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ny-31-usc-3124-treasury-exempt-2025","jurisdiction":"NY","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from New York income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ny-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-fhlb-ffcb","jurisdiction":"NY","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ny-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"NY","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from New York income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ny-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-carryback","jurisdiction":"NY","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-estate-rate","jurisdiction":"NY","category":"estate-rate","label":"Estate tax top marginal rate (TY2025)","display":"3.06% to 16% graduated; $7,160,000 basic exclusion for TY2025; 105% cliff: if estate exceeds $7,518,000, no exclusion applies and tax starts from dollar one (NY Tax Law Art. 26)","value":0.16,"valueType":"rate","citations":[{"id":"ny-tax-law-960-estate-tax-2025","jurisdiction":"NY","authority":"N.Y. Tax Law §952 (Article 26)","authorityType":"statute","title":"New York estate tax: 3.06% to 16% graduated rate structure; 105% cliff","quote":"A tax is hereby imposed on the transfer of the New York estate by every deceased individual who at his or her death was a resident of New York state. ... no credit shall be allowed to the estate of any decedent whose New York taxable estate exceeds one hundred five percent of the basic exclusion amount.","url":"https://www.nysenate.gov/legislation/laws/TAX/952","sourceDomain":"www.nysenate.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"N.Y. Tax Law §952 (Article 26) establishes the estate tax with graduated rates from 3.06% to 16%. Cliff provision (quoted): if the estate exceeds 105% of the basic exclusion, the applicable-credit exclusion is fully phased out and tax applies from dollar one at 3.06%, rising to 16%. NY does not allow federal portability. Agency overview: https://www.tax.ny.gov/pit/estate/etidx.htm. See NY_ESTATE_EXEMPTION_2025 for the basic exclusion amount.","href":"/api/v1/citations/ny-tax-law-960-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-estate-exemption-terminal-2025-12-31","jurisdiction":"NY","category":"estate-exemption","label":"Estate tax basic exclusion (TY2025)","display":"$7,160,000 for TY2025; CPI-adjusted annually; independent of federal exclusion; cliff at 105% ($7,518,000) eliminates exclusion entirely for larger estates","value":7160000,"valueType":"dollars","citations":[{"id":"ny-tax-law-951c-estate-exemption-7160000-2025","jurisdiction":"NY","authority":"N.Y. Tax Law §951-c","authorityType":"statute","title":"New York estate exemption TY2025","quote":"The basic exclusion amount for New York estate tax purposes is $7,160,000 for dates of death on or after January 1, 2025.","url":"https://www.tax.ny.gov/pit/estate/etidx.htm","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"N.Y. Tax Law §951-c provides the basic exclusion amount for New York estate tax. For dates of death on or after January 1, 2025, the basic exclusion is $7,160,000 (CPI-adjusted annually). Verified from ny.gov estate tax page.","href":"/api/v1/citations/ny-tax-law-951c-estate-exemption-7160000-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2026-11-01"},{"factId":"ny-estate-exemption-terminal-2026-12-31","jurisdiction":"NY","category":"estate-exemption","label":"Estate tax basic exclusion (TY2026)","display":"$7,350,000 for TY2026; CPI-adjusted annually; independent of federal exclusion; cliff at 105% ($7,717,500) eliminates exclusion entirely for larger estates","value":7350000,"valueType":"dollars","citations":[{"id":"ny-tax-law-960-estate-exemption-2026","jurisdiction":"NY","authority":"NY Tax Law Article 26 (§ 960 et seq.); NY Department of Taxation and Finance","authorityType":"dor-guidance","title":"New York basic exclusion amount for TY2026: $7,350,000 (CPI-adjusted annually)","quote":"The basic exclusion amount for dates of death on or after January 1, 2026, through December 31, 2026 is $7,350,000.","url":"https://www.tax.ny.gov/pit/estate/etidx.htm","sourceDomain":"www.tax.ny.gov","taxYear":2026,"asOf":"2026-06-21","confidence":"medium","note":"NY basic exclusion for TY2026 is $7,350,000 (CPI-adjusted annually; independent of federal). Cliff provision: if estate exceeds 105% of basic exclusion ($7,717,500 for 2026), exclusion is fully phased out and tax applies from dollar one at 3.06%, rising to 16%.","href":"/api/v1/citations/ny-tax-law-960-estate-exemption-2026"}],"effectiveDate":"2026-01-01","terminalDate":"2026-12-31","nextReviewDate":"2026-11-01"},{"factId":"ny-marital-udcprda","jurisdiction":"NY","category":"marital-udcprda","label":"Uniform Disposition of Community Property Rights at Death Act (UDCPRDA)","display":"Yes: EPTL §§6-6.1 to 6-6.7 preserves community property character of assets acquired in CP states at death of a New York resident; surviving spouse retains one-half CP interest","value":1,"valueType":"binary-exempt","citations":[{"id":"ny-eptl-6-6-7-udcprda","jurisdiction":"NY","authority":"EPTL §§6-6.1 to 6-6.7 (1971 uniform act)","authorityType":"statute","title":"New York adopted the Uniform Disposition of Community Property Rights at Death Act","quote":"This part may be cited as 'The New York uniform disposition of community property rights at death act.'","url":"https://www.tax.ny.gov/pit/estate/etidx.htm","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"New York enacted UDCPRDA based on the 1971 NCCUSL model act. Protects community property character of assets acquired in community property states when a couple moves to New York.","href":"/api/v1/citations/ny-eptl-6-6-7-udcprda"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-filing-status-partial","jurisdiction":"NY","category":"filing-status-partial","label":"Filing status: partial MFJ bracket widening","display":"Yes: graduated income tax up to 10.9% (TY2025); MFJ bracket thresholds are partially wider than single filer at lower income but do not fully double at higher income; marriage penalty for high-income couples where thresholds converge.","value":1,"valueType":"binary-exempt","citations":[{"id":"ny-tax-law-601a-top-10-9pct-bracket-2025","jurisdiction":"NY","authority":"TY2025 IT-201 Instructions (rate schedule for married filing jointly)","authorityType":"form-instructions","title":"New York top stated rate: 10.9% on New York taxable income above $25,000,000 (MFJ, TY2025)","quote":"For taxable years beginning on or after January 1, 2023, the rates of tax imposed under this section are: 4% on income to $17,150; 4.5% from $17,151 to $23,600; 5.25% from $23,601 to $27,900; 5.85% from $27,901 to $161,550; 6.25% from $161,551 to $323,200; 6.85% from $323,201 to $2,155,350; 9.65% from $2,155,351 to $5,000,000; 10.3% from $5,000,001 to $25,000,000; and 10.9% above $25,000,000, for married individuals filing a joint return; provided, this subparagraph shall apply only to taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand twenty-eight.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The elevated brackets (9.65%, 10.3%, 10.9%) were extended through TY2032 by the FY2026 budget (A3009-C, signed 2025-05-09): N.Y. Tax Law §601 now applies them to taxable years beginning after 2025 and before 2033 ('FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FIVE AND BEFORE TWO THOUSAND THIRTY-THREE'). The 10.9% bracket applies above $25M (joint); for most high-capital-gain filers the operative range is 9.65% to 10.3%. The recapture trap (see NY_RATE_RECAPTURE) can produce higher effective rates between $107,650 and ~$161,500. No preferential LT rate: NY taxes capital gains as ordinary income at these rates. Standard deduction $16,050 MFJ (TY2025).","href":"/api/v1/citations/ny-tax-law-601a-top-10-9pct-bracket-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-migration-loss-conformity","jurisdiction":"NY","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform: New York generally conforms to the federal Schedule D carryforward bank, but losses are only usable against New York-source gains.","value":1,"valueType":"code","citations":[{"id":"ny-migration-loss-it203i","jurisdiction":"NY","authority":"N.Y. Tax Law § 631 & Form IT-203-I","authorityType":"statute","title":"New York Source Income of Part-Year Residents","quote":"If you have a net capital loss for New York State purposes the loss is limited to $3,000 ($1,500 if you are married and filing separately) on your New York State return. You must treat any balance of a loss in excess of the amount claimed on your 2025 return as a carryover loss on returns for later years.","url":"https://www.tax.ny.gov/forms/current-forms/it/it203i.htm","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"Form IT-203-I. Capital loss is capped at $3,000/year with the balance carried forward, mirroring federal treatment. For part-year residents New York source income is federal-return income for the resident period plus New York source income for the nonresident period; the prior verbatim quote stitched two passages into a source-limitation claim the form does not make.","href":"/api/v1/citations/ny-migration-loss-it203i"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-ptet-available","jurisdiction":"NY","category":"ptet-available","label":"Pass-through entity tax (SALT-cap workaround) available","display":"Yes (NY Tax Law Article 24-A; annual election)","value":1,"valueType":"binary-exempt","citations":[{"id":"ny-tax-law-862-ptet-rate-schedule-2025","jurisdiction":"NY","authority":"NY Tax Law §862 (Article 24-A)","authorityType":"statute","title":"New York pass-through entity tax: graduated 6.85% to 10.9% on PTE taxable income (top bracket above $25,000,000)","quote":"If pass-through entity taxable income is: Not over $2,000,000 6.85% of taxable income. Over $2,000,000 but not over $5,000,000 $137,000 plus 9.65% of the excess over $2,000,000. Over $5,000,000 but not over $25,000,000 $426,500 plus 10.30% of excess over $5,000,000. Over $25,000,000 $2,486,500 plus 10.90% of the excess over $25,000,000.","url":"https://www.nysenate.gov/legislation/laws/TAX/862","sourceDomain":"www.nysenate.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"SALT-cap workaround: Article 24-A PTET is an annual election by a partnership or S corporation. The graduated schedule tracks the top personal brackets (see §601); the 10.9% top bracket applies above $25M of PTE taxable income.","href":"/api/v1/citations/ny-tax-law-862-ptet-rate-schedule-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-ptet-rate","jurisdiction":"NY","category":"ptet-rate","label":"Pass-through entity elective tax rate","display":"Graduated on PTE taxable income: 6.85% to $2M; $137,000 + 9.65% of the excess $2M-$5M; $426,500 + 10.30% of the excess $5M-$25M; $2,486,500 + 10.90% of the excess above $25M","value":0.109,"valueType":"rate","citations":[{"id":"ny-tax-law-862-ptet-rate-schedule-2025","jurisdiction":"NY","authority":"NY Tax Law §862 (Article 24-A)","authorityType":"statute","title":"New York pass-through entity tax: graduated 6.85% to 10.9% on PTE taxable income (top bracket above $25,000,000)","quote":"If pass-through entity taxable income is: Not over $2,000,000 6.85% of taxable income. Over $2,000,000 but not over $5,000,000 $137,000 plus 9.65% of the excess over $2,000,000. Over $5,000,000 but not over $25,000,000 $426,500 plus 10.30% of excess over $5,000,000. Over $25,000,000 $2,486,500 plus 10.90% of the excess over $25,000,000.","url":"https://www.nysenate.gov/legislation/laws/TAX/862","sourceDomain":"www.nysenate.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"SALT-cap workaround: Article 24-A PTET is an annual election by a partnership or S corporation. The graduated schedule tracks the top personal brackets (see §601); the 10.9% top bracket applies above $25M of PTE taxable income.","href":"/api/v1/citations/ny-tax-law-862-ptet-rate-schedule-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ny-ptet-credit-mechanism","jurisdiction":"NY","category":"ptet-credit-mechanism","label":"PTET owner recovery mechanism","display":"Credit: full direct share of the entity's PTET against Article 22 tax (Tax Law §863; §606(kkk))","value":0,"valueType":"code","citations":[{"id":"ny-tax-law-863-ptet-credit-2025","jurisdiction":"NY","authority":"NY Tax Law §863; §606(kkk)","authorityType":"statute","title":"New York PTET owners receive a credit against Article 22 personal income tax, computed under §606(kkk)","quote":"shall be allowed a credit against the tax imposed pursuant to article twenty-two of this chapter, computed pursuant to the provisions of subsection (kkk) of section six hundred six of this chapter.","url":"https://www.nysenate.gov/legislation/laws/TAX/863","sourceDomain":"www.nysenate.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","href":"/api/v1/citations/ny-tax-law-863-ptet-credit-2025"},{"id":"ny-dtf-ptet-credit-direct-share-2025","jurisdiction":"NY","authority":"NY Department of Taxation and Finance, Pass-through entity tax (PTET) page","authorityType":"dor-guidance","title":"New York PTET credit is the claimant's direct share of the PTET reported by the electing entity (a full credit)","quote":"Each eligible credit claimant's PTET credit is equal to its direct share of the PTET that was reported by the electing entity on the entity's annual PTET return.","url":"https://www.tax.ny.gov/bus/ptet/","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","href":"/api/v1/citations/ny-dtf-ptet-credit-direct-share-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"NC","name":"North Carolina","level":"state","facts":[{"factId":"nc-trust-nexus-incomplete-gift","jurisdiction":"NC","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"GRAY: the beneficiary-based statute was struck as applied in Kaestner (contingent, no-distribution beneficiary), but an ING grantor is a CURRENT-permissible beneficiary, the case SCOTUS expressly reserved","value":3,"valueType":"code","citations":[{"id":"nc-trust-nexus-incomplete-gift-2026","jurisdiction":"NC","authority":"N.C.G.S. Sec. 105-160.2, as limited by North Carolina Dept. of Revenue v. Kaestner, 139 S. Ct. 2213 (2019)","authorityType":"statute","title":"North Carolina taxes trust income for the benefit of a resident; Kaestner struck it as applied to a no-distribution discretionary beneficiary","quote":"The tax is computed on the amount of the taxable income of the estate or trust that is for the benefit of a resident of this State, or for the benefit of a nonresident to the extent that the income (i) is derived from North Carolina sources and is attributable to the ownership of any interest in real or tangible personal property in this State or (ii) is derived from a business, trade, profession, or occupation carried on in this State.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-160.2.html","sourceDomain":"www.ncleg.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"Kaestner: 'the presence of in-state beneficiaries alone does not empower a State to tax trust income that has not been distributed' where the beneficiary had no right to demand and might never receive it (supremecourt.gov/opinions/18pdf/18-457_2034.pdf). The ING settlor CAN currently receive distributions via the committee, a distinguishable posture. NCDOR's 2019 Kaestner notice concedes only 'particular facts and circumstances' refunds.","href":"/api/v1/citations/nc-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-estate-none","jurisdiction":"NC","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"nc-estate-none-2025","jurisdiction":"NC","authority":"N.C. Gen. Stat. 105-32.1 repeal note","authorityType":"statute","title":"NC estate tax repealed by S.L. 2013-316 for deaths on or after Jan 1 2013","quote":"Repealed by Session Laws 2013-316, s.7(a), effective January 1, 2013, and applicable to the estates of decedents dying on or after that date.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-32.1.html","sourceDomain":"www.ncleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"NCDOR's estate-tax page contained no repeal sentence when fetched; the statute repeal note is the better authority.","href":"/api/v1/citations/nc-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-rate","jurisdiction":"NC","category":"rate","label":"Top income tax rate (TY2025)","display":"4.25% flat (3.99% after 2025)","value":0.0425,"valueType":"rate","citations":[{"id":"nc-gs-105-153-7-flat-4-25pct-2025","jurisdiction":"NC","authority":"G.S. 105-153.7(a)","authorityType":"statute","title":"North Carolina flat income tax rate is 4.25% for TY2025, falling to 3.99% thereafter","quote":"Except as otherwise provided in subsection (a1) of this section, the tax is a percentage of the taxpayer's North Carolina taxable income computed as follows: Taxable Years Beginning Tax In 2022 4.99% In 2023 4.75% In 2024 4.5% In 2025 4.25% After 2025 3.99%.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.7.html","sourceDomain":"www.ncleg.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate table transcribed from the live HTML with whitespace normalized. Rate falls to 3.99% after 2025, with a trigger-contingent further reduction to a 2.49% floor under (a1). Standard deduction is $25,500 MFJ ($12,750 single) for TY2025.","href":"/api/v1/citations/nc-gs-105-153-7-flat-4-25pct-2025"}],"effectiveDate":"2025-01-01","terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"nc-rate-2026","jurisdiction":"NC","category":"rate","label":"Top income tax rate (TY2026)","display":"3.99% flat (trigger-based 0.5-point steps toward a 2.49% floor)","value":0.0399,"valueType":"rate","citations":[{"id":"nc-gs-105-153-7-flat-3-99pct-2026","jurisdiction":"NC","authority":"G.S. 105-153.7(a), (a1)","authorityType":"statute","title":"North Carolina flat income tax rate is 3.99% for taxable years after 2025, with (a1) revenue triggers stepping toward a 2.49% floor","quote":"Except as otherwise provided in subsection (a1) of this section, the tax is a percentage of the taxpayer's North Carolina taxable income computed as follows: Taxable Years Beginning Tax In 2022 4.99% In 2023 4.75% In 2024 4.5% In 2025 4.25% After 2025 3.99%.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.7.html","sourceDomain":"www.ncleg.gov","taxYear":2026,"asOf":"2026-07-12","confidence":"high","note":"Rate table transcribed from the live HTML with whitespace normalized. Under (a1), if General Fund revenue exceeds the listed triggers the rate steps down by up to 0.50 points per year toward a 2.49% floor; no trigger reduction below 3.99% is in effect as of the read date.","href":"/api/v1/citations/nc-gs-105-153-7-flat-3-99pct-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-rate-terminal-2024-12-31","jurisdiction":"NC","category":"rate","label":"Top income tax rate (TY2024)","display":"4.50% flat (fell to 4.25% in TY2025)","value":0.045,"valueType":"rate","citations":[{"id":"nc-ncdor-rate-4-50pct-2024","jurisdiction":"NC","authority":"N.C.G.S. §105-153.7 (TY2024)","authorityType":"dor-guidance","title":"North Carolina flat income tax rate is 4.50% for TY2024","quote":"For Tax Year 2024, the North Carolina individual income tax rate is 4.50% (0.0450).","url":"https://www.ncdor.gov/taxes-forms/individual-income-tax/tax-rate-schedules","sourceDomain":"www.ncdor.gov","taxYear":2024,"asOf":"2026-06-21","confidence":"medium","note":"TY2024 flat rate; fell to 4.25% in TY2025 per G.S. 105-153.7.","href":"/api/v1/citations/nc-ncdor-rate-4-50pct-2024"}],"effectiveDate":"2024-01-01","terminalDate":"2024-12-31","nextReviewDate":"2027-01-01"},{"factId":"nc-deduction","jurisdiction":"NC","category":"deduction","label":"Standard deduction (MFJ, TY2025)","display":"$25,500","value":25500,"valueType":"dollars","citations":[{"id":"nc-gs-105-153-5-std-ded-25500-2025","jurisdiction":"NC","authority":"G.S. 105-153.5(a)(1)","authorityType":"statute","title":"North Carolina standard deduction is $25,500 (MFJ) for TY2025","quote":"The standard deduction allowed to a married couple filing jointly under this subsection is twenty-five thousand five hundred dollars ($25,500) for taxable year 2025.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.5.html","sourceDomain":"www.ncleg.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","href":"/api/v1/citations/nc-gs-105-153-5-std-ded-25500-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-conformity","jurisdiction":"NC","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-muni-instate","jurisdiction":"NC","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: N.C. Gen. Stat. §105-153.5(b)(1) subtraction for interest on NC state and local obligations","value":1,"valueType":"binary-exempt","citations":[{"id":"nc-gen-stat-105-153-5-muni-default-2025","jurisdiction":"NC","authority":"N.C. Gen. 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Gen. Stat. §105-153.5(c)(1) requires addition of other-state muni interest to NC income","value":0,"valueType":"binary-exempt","citations":[{"id":"nc-gen-stat-105-153-5-muni-default-2025","jurisdiction":"NC","authority":"N.C. Gen. Stat. §105-153.5(b)(1) (NC exempt) and §105-153.5(c)(1) (out-of-state taxable)","authorityType":"statute","title":"NC exempts NC-issued bonds; out-of-state muni bond interest is NC income addition per §105-153.5(c)(1)","quote":"Interest upon the obligations of any of the following: This State, a political subdivision of this State, or any agency of this State or a political subdivision of this State.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.5.html","sourceDomain":"www.ncleg.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"§105-153.5(b)(1) provides the NC-bond subtraction (quoted). §105-153.5(c)(1) is the complementary addition clause: 'Interest upon the obligations of states other than this State, political subdivisions of those states'; out-of-state muni bond interest is added back to NC taxable income.","href":"/api/v1/citations/nc-gen-stat-105-153-5-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-qoz-conformity","jurisdiction":"NC","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Non-conforms to IRC §1400Z-2; QOZ gain deferral not recognized, gain taxable at state level","value":0,"valueType":"code","citations":[{"id":"nc-qoz-conformity-irc-1400z2-2025","jurisdiction":"NC","authority":"N.C. Gen. Stat. §105-153.5(c2); §105-130.5","authorityType":"statute","title":"North Carolina does not conform to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The taxpayer must add the amount of gain that would be included for federal income tax purposes without regard to section 1400Z-2(a) of the Code. ... The taxpayer must add the amount of gain that would be included in the taxpayer's adjusted gross income but for the step-up in basis under section 1400Z-2(c) of the Code.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.5.html","sourceDomain":"www.ncleg.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"N.C. Gen. Stat. §105-153.5(c2)(5) adds back gain the taxpayer deferred federally under IRC §1400Z-2(a), so deferred QOZ gain is taxable in North Carolina in the year of reinvestment; subdivision (7) adds back the gain that §1400Z-2(c) would exclude via basis step-up. Subdivision (6) prevents double taxation when the deferred gain is later federally recognized. NC therefore decouples from both QOZ deferral and the QOZ exclusion.","href":"/api/v1/citations/nc-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-qsbs-conformity","jurisdiction":"NC","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms: §1202-excluded gain never enters the federal AGI starting point (G.S. 105-153.4(a)) and G.S. 105-153.5 adds none back; IRC fixed as of January 1, 2023, so OBBBA post-7/4/2025 QSBS enhancements are not yet conformed","value":1,"valueType":"binary-exempt","citations":[{"id":"nc-qsbs-conformity-irc-1202-2025","jurisdiction":"NC","authority":"N.C. Gen. Stat. §105-228.90(b) (Code definition); §105-153.4(a); §105-153.5","authorityType":"statute","title":"North Carolina conforms to IRC §1202: excluded QSBS gain never enters the federal AGI starting point and G.S. 105-153.5 adds none of it back; the Code is fixed as of January 1, 2023","quote":"Code. - The Internal Revenue Code as enacted as of January 1, 2023, including any provisions enacted as of that date that become effective either before or after that date.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-228.90.html","sourceDomain":"www.ncleg.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"G.S. 105-153.4(a) verbatim: 'For an individual who is a resident of this State, the term \"North Carolina taxable income\" means the taxpayer's adjusted gross income as modified in G.S. 105-153.5 and G.S. 105-153.6.' A live scan of G.S. 105-153.5 finds zero references to section 1202, so federally excluded QSBS gain stays out of the NC base. Because the conformity date is January 1, 2023, OBBBA's post-July 4, 2025 QSBS enhancements (tiered 3/4/5-year exclusion, $15M cap, $75M asset ceiling) are NOT conformed until the General Assembly updates the date; classic pre-OBBBA section 1202 treatment applies meanwhile.","href":"/api/v1/citations/nc-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-agency-obligations","jurisdiction":"NC","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: N.C. Gen. Stat. §105-153.5(b)(2) subtraction limited to interest 'exempt from state income taxes under the laws of the United States'; FNMA and FHLMC have no such federal bondholder exemption","value":0,"valueType":"binary-exempt","citations":[{"id":"nc-gs-105-153-5b2-fnma-fhlmc-no-federal-exemption","jurisdiction":"NC","authority":"N.C. Gen. Stat. §105-153.5(b)(1)","authorityType":"statute","title":"NC subtraction for U.S. obligation interest requires exemption under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"In calculating North Carolina taxable income, a taxpayer may deduct from the taxpayer's adjusted gross income any of the following items that are included in the taxpayer's adjusted gross income: (1) Interest upon the obligations of any of the following: a. The United States or its possessions.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.5.html","sourceDomain":"www.ncleg.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"G.S. §105-153.5(b)(1) allows a deduction only for interest on obligations of the United States or its possessions. FNMA and FHLMC are not obligations of the United States and carry no federal bondholder exemption, so their interest stays in the North Carolina base. The catalog id retains the earlier (b)(2) label; the U.S. obligation deduction is at (b)(1).","href":"/api/v1/citations/nc-gs-105-153-5b2-fnma-fhlmc-no-federal-exemption"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-dividend-qualified","jurisdiction":"NC","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: North Carolina has no modification creating a preferential rate for qualified dividends; taxed at the flat 4.25% rate (IRC §1(h)(11) preference not adopted)","value":0,"valueType":"binary-exempt","citations":[{"id":"nc-gs-105-153-7-flat-4-25pct-2025","jurisdiction":"NC","authority":"G.S. 105-153.7(a)","authorityType":"statute","title":"North Carolina flat income tax rate is 4.25% for TY2025, falling to 3.99% thereafter","quote":"Except as otherwise provided in subsection (a1) of this section, the tax is a percentage of the taxpayer's North Carolina taxable income computed as follows: Taxable Years Beginning Tax In 2022 4.99% In 2023 4.75% In 2024 4.5% In 2025 4.25% After 2025 3.99%.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.7.html","sourceDomain":"www.ncleg.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate table transcribed from the live HTML with whitespace normalized. Rate falls to 3.99% after 2025, with a trigger-contingent further reduction to a 2.49% floor under (a1). Standard deduction is $25,500 MFJ ($12,750 single) for TY2025.","href":"/api/v1/citations/nc-gs-105-153-7-flat-4-25pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-treasury","jurisdiction":"NC","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"nc-31-usc-3124-treasury-exempt-2025","jurisdiction":"NC","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from North Carolina income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/nc-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-fhlb-ffcb","jurisdiction":"NC","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"nc-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"NC","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from North Carolina income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/nc-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-carryback","jurisdiction":"NC","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-character","jurisdiction":"NC","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the flat 4.25% rate (N.C.G.S. §105-153.7)","value":null,"valueType":"none","citations":[{"id":"nc-gs-105-153-7-flat-4-25pct-2025","jurisdiction":"NC","authority":"G.S. 105-153.7(a)","authorityType":"statute","title":"North Carolina flat income tax rate is 4.25% for TY2025, falling to 3.99% thereafter","quote":"Except as otherwise provided in subsection (a1) of this section, the tax is a percentage of the taxpayer's North Carolina taxable income computed as follows: Taxable Years Beginning Tax In 2022 4.99% In 2023 4.75% In 2024 4.5% In 2025 4.25% After 2025 3.99%.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.7.html","sourceDomain":"www.ncleg.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate table transcribed from the live HTML with whitespace normalized. Rate falls to 3.99% after 2025, with a trigger-contingent further reduction to a 2.49% floor under (a1). Standard deduction is $25,500 MFJ ($12,750 single) for TY2025.","href":"/api/v1/citations/nc-gs-105-153-7-flat-4-25pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-filing-status-flat","jurisdiction":"NC","category":"filing-status-flat","label":"Filing status irrelevant: flat rate state","display":"Yes: flat 4.25% rate on North Carolina taxable income regardless of filing status (G.S. §105-153.7; TY2025)","value":1,"valueType":"binary-exempt","citations":[{"id":"nc-gs-105-153-7-flat-4-25pct-2025","jurisdiction":"NC","authority":"G.S. 105-153.7(a)","authorityType":"statute","title":"North Carolina flat income tax rate is 4.25% for TY2025, falling to 3.99% thereafter","quote":"Except as otherwise provided in subsection (a1) of this section, the tax is a percentage of the taxpayer's North Carolina taxable income computed as follows: Taxable Years Beginning Tax In 2022 4.99% In 2023 4.75% In 2024 4.5% In 2025 4.25% After 2025 3.99%.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.7.html","sourceDomain":"www.ncleg.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate table transcribed from the live HTML with whitespace normalized. Rate falls to 3.99% after 2025, with a trigger-contingent further reduction to a 2.49% floor under (a1). Standard deduction is $25,500 MFJ ($12,750 single) for TY2025.","href":"/api/v1/citations/nc-gs-105-153-7-flat-4-25pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-marital-udcprda","jurisdiction":"NC","category":"marital-udcprda","label":"Uniform Community Property Disposition at Death Act","display":"Yes: N.C.G.S. §§30-41 to 30-52 preserves community property character of assets acquired in CP states at death of a North Carolina resident (effective January 1, 2026, successor to former Ch. 31C from 1981); surviving spouse retains one-half CP interest","value":1,"valueType":"binary-exempt","citations":[{"id":"nc-gs-30-41-udcprda-2026","jurisdiction":"NC","authority":"N.C.G.S. §§30-41 to 30-52 (Ch. 30, Art. 5)","authorityType":"statute","title":"North Carolina Uniform Community Property Disposition at Death Act (effective January 1, 2026; successor to former Ch. 31C)","quote":"This Article may be cited as the Uniform Community Property Disposition at Death Act.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/ByChapter/Chapter_30.html","sourceDomain":"www.ncleg.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"NC originally adopted the UDCPRDA as Ch. 31C in 1981. Session Laws 2025-25 repealed Ch. 31C and replaced it with Ch. 30, Art. 5, effective January 1, 2026 (name changed to 'Uniform Community Property Disposition at Death Act', dropping 'Rights'). Protects the community property character of assets acquired in community property states when a couple moves to North Carolina. URL resolves to Chapter 30 table of contents; §§30-41 through 30-52 are within this chapter.","href":"/api/v1/citations/nc-gs-30-41-udcprda-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nc-migration-loss-conformity","jurisdiction":"NC","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): North Carolina computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"nc-migration-loss-conformity-src","jurisdiction":"NC","authority":"G.S. 105-153.7","authorityType":"statute","title":"North Carolina conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"A tax is imposed for each taxable year on the North Carolina taxable income of every individual.","url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.7.html","sourceDomain":"www.ncleg.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"G.S. 105-153.7 imposes the tax on North Carolina taxable income, which starts from federal adjusted gross income, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.","href":"/api/v1/citations/nc-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"ND","name":"North Dakota","level":"state","facts":[{"factId":"nd-trust-nexus-incomplete-gift","jurisdiction":"ND","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"GRAY: the reg's nexus contacts do not list settlor domicile for an irrevocable trust, but the ING grantor-beneficiary is a listed contact (a); Kaestner cuts against beneficiary-only nexus; unresolved","value":3,"valueType":"code","citations":[{"id":"nd-trust-nexus-incomplete-gift-2026","jurisdiction":"ND","authority":"N.D. Admin. Code Sec. 81-03-02.1-04(2) (resident trust nexus contacts); N.D.C.C. 57-38-30.3","authorityType":"regulation","title":"North Dakota trust residency is a nexus-contacts test; a resident discretionary beneficiary is a listed contact","quote":"A trust or estate is a resident trust or estate when it has a relationship to the state sufficient to create nexus. This includes, but is not limited to, the following contacts: a. A beneficiary of the trust or estate is a domiciliary or resident of this state.","url":"https://ndlegis.gov/prod/acdata/pdf/81-03-02.1.pdf","sourceDomain":"ndlegis.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"medium","note":"Contacts (b)-(f) (trustee, assets, administration, ND law, revocable-with-ND-grantor) are all avoided by a NV-sited ING. The remaining hook is the ND-resident grantor-beneficiary, which Kaestner (2019) holds insufficient alone for a no-distribution discretionary beneficiary; the open-ended 'not limited to' language plus retained powers leave ND a theory. Nonresident fallback is clean: intangible gain is not ND-source per the Form 38 booklet.","href":"/api/v1/citations/nd-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-estate-none","jurisdiction":"ND","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"nd-estate-none-2025","jurisdiction":"ND","authority":"North Dakota Office of State Tax Commissioner, Estate Tax History - Repealed in 2017","authorityType":"dor-guidance","title":"ND pickup estate tax phased out for deaths after Dec 31 2004; return requirement eliminated 2017","quote":"the North Dakota estate tax that is based on the state death tax credit allowable on the federal return has been phased out for estates of decedents whose death occurs after December 31, 2004.","url":"https://www.tax.nd.gov/estate-tax-history-repealed-2017","sourceDomain":"www.tax.nd.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Same page (2017 session): 'Legislation was approved that eliminates the requirement for an estate to file a North Dakota estate tax return unless tax is due with the return.'","href":"/api/v1/citations/nd-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-rate","jurisdiction":"ND","category":"rate","label":"Top income tax rate (TY2025)","display":"0% / 1.95% / 2.5% graduated (2.5% above $298,075 MFJ)","value":0.025,"valueType":"rate","citations":[{"id":"nd-ndcc-57-38-30-top-2-5pct-2025","jurisdiction":"ND","authority":"N.D.C.C. §57-38-30","authorityType":"statute","title":"North Dakota top income tax rate is 2.5% on federal taxable income above $298,075 (MFJ)","quote":"For taxable years beginning on or after January 1, 2025, a tax is imposed upon the North Dakota taxable income at the rate of 0% on income to $80,975; 1.95% on income exceeding $80,975 but not exceeding $298,075; and 2.5% on income exceeding $298,075, for married individuals filing jointly.","url":"https://www.ndlegis.gov/cencode/t57c38.pdf","sourceDomain":"www.ndlegis.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Base = federal taxable income. Caution: web rate snippets sometimes show the single schedule as MFJ the MFJ thresholds are approximately double the single thresholds. URL resolves to the N.D.C.C. Chapter 57-38 index; §57-38-30.3 is within this chapter.","href":"/api/v1/citations/nd-ndcc-57-38-30-top-2-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-character","jurisdiction":"ND","category":"character","label":"Net long-term capital gain exclusion","display":"40% of net LTCG excluded; effective top LT rate ≈ 1.5% (2.5% × 60%)","value":0.4,"valueType":"rate","citations":[{"id":"nd-ndcc-57-38-30-3-40pct-excl-2025","jurisdiction":"ND","authority":"N.D.C.C. §57-38-30.3; 2025 ND-1 instructions","authorityType":"statute","title":"North Dakota allows a 40% exclusion of net long-term capital gains from taxable income","quote":"An individual may deduct from North Dakota taxable income 40 percent of net long-term capital gain included in federal taxable income for the taxable year.","url":"https://www.ndlegis.gov/cencode/t57c38.pdf","sourceDomain":"www.ndlegis.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The 40% exclusion survived the 2023 overhaul and is confirmed in the 2025 ND-1 instructions (line 6 worksheet). The exclusion equals 40% × min(Schedule D line 15, line 16), so ST losses erode the excluded amount. The harvest rule still ties for an all-LT estimand. Also: 40% qualified-dividend exclusion (line 13). Effective top rate on LT gains ≈ 2.5% × 60% = 1.5% near-zero for high-income ND residents. URL resolves to the N.D.C.C. Chapter 57-38 index; §57-38-30.3 is within this chapter.","href":"/api/v1/citations/nd-ndcc-57-38-30-3-40pct-excl-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-dividend-qualified","jurisdiction":"ND","category":"dividend-qualified","label":"Qualified dividend income exclusion","display":"40% of qualified dividend income excluded from ND taxable income (same exclusion as net LTCG)","value":0.4,"valueType":"exclusion-pct","citations":[{"id":"nd-ndcc-57-38-30-3-40pct-excl-2025","jurisdiction":"ND","authority":"N.D.C.C. §57-38-30.3; 2025 ND-1 instructions","authorityType":"statute","title":"North Dakota allows a 40% exclusion of net long-term capital gains from taxable income","quote":"An individual may deduct from North Dakota taxable income 40 percent of net long-term capital gain included in federal taxable income for the taxable year.","url":"https://www.ndlegis.gov/cencode/t57c38.pdf","sourceDomain":"www.ndlegis.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The 40% exclusion survived the 2023 overhaul and is confirmed in the 2025 ND-1 instructions (line 6 worksheet). The exclusion equals 40% × min(Schedule D line 15, line 16), so ST losses erode the excluded amount. The harvest rule still ties for an all-LT estimand. Also: 40% qualified-dividend exclusion (line 13). Effective top rate on LT gains ≈ 2.5% × 60% = 1.5% near-zero for high-income ND residents. URL resolves to the N.D.C.C. Chapter 57-38 index; §57-38-30.3 is within this chapter.","href":"/api/v1/citations/nd-ndcc-57-38-30-3-40pct-excl-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-conformity","jurisdiction":"ND","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies; rule ties for all-LT estimand","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-muni-instate","jurisdiction":"ND","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: (ND uses federal taxable income as base; no add-back provision in N.D.C.C. §57-38-30)","value":1,"valueType":"binary-exempt","citations":[{"id":"nd-ndcc-57-38-30-muni-both-exempt-2025","jurisdiction":"ND","authority":"N.D.C.C. §57-38-30 (ND income tax base = federal taxable income)","authorityType":"statute","title":"ND exempts both in-state and out-of-state muni interest no add-back provision","quote":"The income tax imposed by this chapter is upon the North Dakota taxable income of every individual. The North Dakota taxable income of an individual is the individual's federal taxable income with the modifications contained in this chapter.","url":"https://www.ndlegis.gov/cencode/t57c38.pdf","sourceDomain":"www.ndlegis.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Federal taxable income already excludes all muni interest (IRC §103). N.D.C.C. Chapter 57-38 contains no provision adding back out-of-state muni interest; ND does not tax out-of-state muni interest income. URL resolves to the N.D.C.C. Chapter 57-38 index; §57-38-30.3 is within this chapter.","href":"/api/v1/citations/nd-ndcc-57-38-30-muni-both-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-muni-outstate","jurisdiction":"ND","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Exempt: ND does not add back out-of-state muni interest (N.D.C.C. §57-38 has no add-back provision)","value":1,"valueType":"binary-exempt","citations":[{"id":"nd-ndcc-57-38-30-muni-both-exempt-2025","jurisdiction":"ND","authority":"N.D.C.C. §57-38-30 (ND income tax base = federal taxable income)","authorityType":"statute","title":"ND exempts both in-state and out-of-state muni interest no add-back provision","quote":"The income tax imposed by this chapter is upon the North Dakota taxable income of every individual. The North Dakota taxable income of an individual is the individual's federal taxable income with the modifications contained in this chapter.","url":"https://www.ndlegis.gov/cencode/t57c38.pdf","sourceDomain":"www.ndlegis.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Federal taxable income already excludes all muni interest (IRC §103). N.D.C.C. Chapter 57-38 contains no provision adding back out-of-state muni interest; ND does not tax out-of-state muni interest income. URL resolves to the N.D.C.C. Chapter 57-38 index; §57-38-30.3 is within this chapter.","href":"/api/v1/citations/nd-ndcc-57-38-30-muni-both-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-qoz-conformity","jurisdiction":"ND","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"nd-qoz-conformity-irc-1400z2-2025","jurisdiction":"ND","authority":"N.D. Cent. Code §57-38-01; §57-38-01(5)","authorityType":"statute","title":"North Dakota conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The terms used in this chapter have the same meaning as in the Internal Revenue Code, as amended. 'Internal Revenue Code' means the Internal Revenue Code of 1986, as amended through the date of any transaction or event to which this chapter applies.","url":"https://www.legis.nd.gov/cencode/t57c38.pdf","sourceDomain":"www.legis.nd.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"North Dakota rolling IRC conformity incorporates §1400Z-2 without modification.","href":"/api/v1/citations/nd-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-qsbs-conformity","jurisdiction":"ND","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"nd-qsbs-conformity-irc-1202-2025","jurisdiction":"ND","authority":"N.D. Cent. Code §57-38-30.3","authorityType":"statute","title":"North Dakota conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity","quote":"For purposes of this section, \"North Dakota taxable income\" means the federal taxable income of an individual, estate, or trust as computed under the Internal Revenue Code of 1986, as amended, adjusted as follows: ... d. Reduced by forty percent of: (1) The excess of the taxpayer's net long-term capital gain for the taxable year over the net short-term capital loss for that year, as computed for purposes of the Internal Revenue Code of 1986, as amended.","url":"https://www.legis.nd.gov/cencode/t57c38.pdf","sourceDomain":"www.legis.nd.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"N.D.C.C. §57-38-30.3 starts from federal taxable income under the IRC 'as amended' (rolling) with enumerated adjustments; no §1202 addback appears, so federally excluded QSBS gain never enters the North Dakota base. The quoted 40% reduction is ND's separate LTCG exclusion, which applies to gain that IS in federal taxable income, not to §1202-excluded gain.","href":"/api/v1/citations/nd-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-agency-obligations","jurisdiction":"ND","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: N.D.C.C. §57-38-30.3(2)(a) subtracts only interest 'exempt from state income tax under federal statute or United States or North Dakota constitutional provisions'; FNMA/FHLMC have no federal bondholder exemption statute","value":0,"valueType":"binary-exempt","citations":[{"id":"nd-ndcc-57-38-30-3-fnma-fhlmc-taxable","jurisdiction":"ND","authority":"N.D.C.C. §57-38-30.3(2)(a)","authorityType":"statute","title":"North Dakota subtracts U.S.-obligation interest only where a federal statute or the Constitution exempts it from state tax; FNMA and FHLMC have no such federal bondholder exemption","quote":"Reduced by interest income from obligations of the United States and income exempt from state income tax under federal statute or United States or North Dakota constitutional provisions.","url":"https://www.legis.nd.gov/cencode/t57c38.pdf","sourceDomain":"www.legis.nd.gov","taxYear":2025,"asOf":"2026-07-19","confidence":"medium","note":"Verbatim from N.D.C.C. §57-38-30.3(2)(a) (verified against the live Chapter 57-38 text). The subtraction reaches only interest a federal statute or constitutional provision exempts from STATE tax. FNMA (12 U.S.C. §§1719, 1723a) and FHLMC (12 U.S.C. §1455) are GSEs with no such bondholder-exemption statute, so their interest stays in ND taxable income. Medium: the quote is verbatim, but 'taxable' rests on the absence of a FNMA/FHLMC exemption (inference). Prior encode cited §57-38-30.2, a 1975 surtax section repealed by S.L. 1975, ch. 476, § 2.","href":"/api/v1/citations/nd-ndcc-57-38-30-3-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-treasury","jurisdiction":"ND","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"nd-31-usc-3124-treasury-exempt-2025","jurisdiction":"ND","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from North Dakota income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/nd-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-fhlb-ffcb","jurisdiction":"ND","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"nd-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"ND","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from North Dakota income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/nd-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-carryback","jurisdiction":"ND","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-filing-status-partial","jurisdiction":"ND","category":"filing-status-partial","label":"Filing status: partial MFJ bracket widening","display":"Yes: graduated income tax up to 2.5% (TY2025); MFJ bracket thresholds are wider than single filer at lower income but converge at the top bracket; modest marriage penalty for the highest-income couples.","value":1,"valueType":"binary-exempt","citations":[{"id":"nd-ndcc-57-38-30-top-2-5pct-2025","jurisdiction":"ND","authority":"N.D.C.C. §57-38-30","authorityType":"statute","title":"North Dakota top income tax rate is 2.5% on federal taxable income above $298,075 (MFJ)","quote":"For taxable years beginning on or after January 1, 2025, a tax is imposed upon the North Dakota taxable income at the rate of 0% on income to $80,975; 1.95% on income exceeding $80,975 but not exceeding $298,075; and 2.5% on income exceeding $298,075, for married individuals filing jointly.","url":"https://www.ndlegis.gov/cencode/t57c38.pdf","sourceDomain":"www.ndlegis.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Base = federal taxable income. Caution: web rate snippets sometimes show the single schedule as MFJ the MFJ thresholds are approximately double the single thresholds. URL resolves to the N.D.C.C. Chapter 57-38 index; §57-38-30.3 is within this chapter.","href":"/api/v1/citations/nd-ndcc-57-38-30-top-2-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nd-migration-loss-conformity","jurisdiction":"ND","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): North Dakota computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"nd-migration-loss-conformity-src","jurisdiction":"ND","authority":"N.D.C.C. §57-38-01(11)","authorityType":"statute","title":"North Dakota conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"\"Taxable income\" in the case of individuals, estates, trusts, and corporations means the taxable income as computed for an individual, estate, trust, or corporation for federal income tax purposes under the United States Internal Revenue Code of 1954, as amended, plus or minus the adjustments as may be provided by this chapter or other provisions of law.","url":"https://www.ndlegis.gov/cencode/t57c38.pdf","sourceDomain":"www.ndlegis.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"N.D.C.C. §57-38-01 defines taxable income as federal taxable income under the Internal Revenue Code plus or minus chapter adjustments, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.","href":"/api/v1/citations/nd-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"OH","name":"Ohio","level":"state","facts":[{"factId":"oh-trust-nexus-incomplete-gift","jurisdiction":"OH","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: conjunctive settlor + qualifying-beneficiary test, and the ING grantor is himself an Ohio-domiciled qualifying (potential current) beneficiary; stripping every Ohio beneficiary would escape but defeats the ING's purpose. Ironically the OING's namesake state taxes its own residents' INGs","value":2,"valueType":"code","citations":[{"id":"oh-trust-nexus-incomplete-gift-2026","jurisdiction":"OH","authority":"Ohio Rev. Code 5747.01(I)(3)(a)(ii) (resident trust: Ohio transferor plus Ohio qualifying beneficiary)","authorityType":"statute","title":"Ohio taxes an Ohio settlor's irrevocable trust while any qualifying beneficiary is Ohio-domiciled","quote":"A trust resides in this state for the trust's current taxable year to the extent, as described in division (I)(3)(d) of this section, that the trust consists directly or indirectly, in whole or in part, of assets, net of any related liabilities, that were transferred, or caused to be transferred, directly or indirectly, to the trust by any of the following: ... (ii) A person who was domiciled in this state for the purposes of this chapter when the person directly or indirectly transferred assets to an irrevocable trust, but only if at least one of the trust's qualifying beneficiaries is domiciled in this state for the purposes of this chapter during all or some portion of the trust's current taxable year","url":"https://codes.ohio.gov/ohio-revised-code/section-5747.01","sourceDomain":"codes.ohio.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"Qualifying beneficiary = potential current beneficiary per IRC 1361(e)(2), quoted in the same section. No Ohio ING-specific grantor-attribution statute exists; the resident-trust definition is the hook.","href":"/api/v1/citations/oh-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-estate-none","jurisdiction":"OH","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"oh-estate-none-2025","jurisdiction":"OH","authority":"Ohio Department of Taxation, 2013 Annual Report, Estate Tax section","authorityType":"dor-guidance","title":"OH estate tax repealed for deaths on or after Jan 1, 2013 (HB 153)","quote":"The Ohio Estate Tax has been repealed for estates of individuals dying on or after Jan. 1, 2013 (see House Bill 153, 129th General Assembly).","url":"https://dam.assets.ohio.gov/image/upload/tax.ohio.gov/communications/publications/annual_reports/2013_annual_report/2013_ar_section_2_estate_tax.pdf","sourceDomain":"dam.assets.ohio.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"PDF fetched, quote on page 1. Same PDF: 'no return shall be filed for estates of decedents dying on or after Jan. 1, 2013.' HB 110 (134th GA) later sunset tax on after-discovered property post-2021.","href":"/api/v1/citations/oh-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-rate","jurisdiction":"OH","category":"rate","label":"Top income tax rate (through TY2025)","display":"$342 + 2.75% above $26,050 / $2,394.32 + 3.125% above $100,000 (statutory formula, not standard brackets)","value":0.03125,"valueType":"rate","citations":[{"id":"oh-rc-5747-02-formula-3-125pct-2025","jurisdiction":"OH","authority":"Ohio Rev. Code §5747.02(A)(3)(b)","authorityType":"statute","title":"Ohio income tax is a statutory formula: $342 + 2.75% above $26,050; $2,394.32 + 3.125% above $100,000","quote":"For taxable years beginning in 2025, the tax imposed under section 5747.02 of the Revised Code shall equal: $0 for income not exceeding $26,050; $342.00 plus 2.75% of income exceeding $26,050 but not exceeding $100,000; and $2,394.32 plus 3.125% of income exceeding $100,000.","url":"https://codes.ohio.gov/ohio-revised-code/section-5747.02","sourceDomain":"codes.ohio.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"The $342 entry-level amount and the $2,394.32 upper entry do NOT produce a smooth bracket: there is an $18.69 cliff at $100,000. Municipal income taxes cannot reach portfolio capital gains under RC §718.01 (intangibles exemption). School district taxes (0.25% to 2%) on a 'traditional' base CAN reach capital gains; roughly 200 Ohio districts impose them.","href":"/api/v1/citations/oh-rc-5747-02-formula-3-125pct-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"oh-rate-flat-2026","jurisdiction":"OH","category":"rate","label":"Income tax rate (TY2026+, flat)","display":"Flat 2.75% on nonbusiness income above the $26,050 zero bracket (HB 96; the 3.125% tier is gone)","value":0.0275,"valueType":"rate","citations":[{"id":"oh-rc-5747-02-flat-2-75pct-2026","jurisdiction":"OH","authority":"Ohio Rev. Code §5747.02 (as amended by HB 96, 2025); Ohio House budget release","authorityType":"statute","title":"Ohio TY2026: flat 2.75% on nonbusiness income above $26,050 (HB 96 phase-down complete)","quote":"takes the top tax bracket down from 3.5% to 3.125% in tax year 2025 and down to 2.75% in tax year 2026, and into the future","url":"https://ohiohouse.gov/news/republican/ohio-house-passes-budget-plan-that-delivers-historic-property-tax-relief-for-ohioans-implements-nations-second-lowest-income-tax-rate-135035","sourceDomain":"ohiohouse.gov","taxYear":2026,"asOf":"2026-07-03","confidence":"medium","note":"Quote is the Ohio House release describing HB 96's enacted schedule; RC 5747.02's TY2026-and-after paragraph is the statutory home. The $26,050 zero bracket is retained; the $100,000 tier disappears.","href":"/api/v1/citations/oh-rc-5747-02-flat-2-75pct-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-conformity","jurisdiction":"OH","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-muni-instate","jurisdiction":"OH","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: Ohio Rev. Code §5747.01(A)(1) addition is expressly limited to obligations of states other than Ohio","value":1,"valueType":"binary-exempt","citations":[{"id":"oh-orc-5747-01-muni-default-2025","jurisdiction":"OH","authority":"Ohio Rev. Code §5747.01(A)(1)","authorityType":"statute","title":"OH taxes out-of-state muni bond interest; OH bonds exempt Ohio Rev. Code §5747.01(A)(1)","quote":"Add interest or dividends on obligations or securities of any state or of any political subdivision or authority of any state, other than this state or a political subdivision or authority of this state.","url":"https://codes.ohio.gov/ohio-revised-code/section-5747.01","sourceDomain":"codes.ohio.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","href":"/api/v1/citations/oh-orc-5747-01-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-muni-outstate","jurisdiction":"OH","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: Ohio Rev. Code §5747.01(A)(1): 'interest or dividends on obligations ... of any state ... other than this state' added to OH income","value":0,"valueType":"binary-exempt","citations":[{"id":"oh-orc-5747-01-muni-default-2025","jurisdiction":"OH","authority":"Ohio Rev. Code §5747.01(A)(1)","authorityType":"statute","title":"OH taxes out-of-state muni bond interest; OH bonds exempt Ohio Rev. Code §5747.01(A)(1)","quote":"Add interest or dividends on obligations or securities of any state or of any political subdivision or authority of any state, other than this state or a political subdivision or authority of this state.","url":"https://codes.ohio.gov/ohio-revised-code/section-5747.01","sourceDomain":"codes.ohio.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","href":"/api/v1/citations/oh-orc-5747-01-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-qoz-conformity","jurisdiction":"OH","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"oh-qoz-conformity-irc-1400z2-2025","jurisdiction":"OH","authority":"Ohio Rev. Code Ann. §5747.01(A); HB 14 (eff. March 7, 2025)","authorityType":"statute","title":"Ohio conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"(A) \"Adjusted gross income\" or \"Ohio adjusted gross income\" means federal adjusted gross income, as defined and used in the Internal Revenue Code, adjusted as provided in this section:","url":"https://codes.ohio.gov/ohio-revised-code/section-5747.01","sourceDomain":"codes.ohio.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"ORC §5747.01(A) defines Ohio adjusted gross income as federal AGI with enumerated adjustments; no §1400Z-2 addback appears among them, so the federal QOZ deferral and exclusion flow into the Ohio base. Ohio HB 14 (effective March 7, 2025) updated the conformity date.","href":"/api/v1/citations/oh-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-qsbs-conformity","jurisdiction":"OH","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"oh-qsbs-conformity-irc-1202-2025","jurisdiction":"OH","authority":"Ohio Rev. Code Ann. §5747.01(A); HB 14 (eff. March 7, 2025)","authorityType":"statute","title":"Ohio conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity","quote":"(A) \"Adjusted gross income\" or \"Ohio adjusted gross income\" means federal adjusted gross income, as defined and used in the Internal Revenue Code, adjusted as provided in this section:","url":"https://codes.ohio.gov/ohio-revised-code/section-5747.01","sourceDomain":"codes.ohio.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"ORC §5747.01(A) defines Ohio adjusted gross income as federal AGI with enumerated adjustments; no §1202 addback appears among them, so federally excluded QSBS gain never enters the Ohio base. Ohio HB 14 (effective March 7, 2025) updated the conformity date.","href":"/api/v1/citations/oh-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-agency-obligations","jurisdiction":"OH","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: Ohio Rev. Code §5747.01(A)(1) subtraction requires interest be 'exempt from state income taxes under the laws of the United States'; FNMA/FHLMC have no federal bondholder exemption statute","value":0,"valueType":"binary-exempt","citations":[{"id":"oh-orc-5747-01-a1-fnma-fhlmc-taxable","jurisdiction":"OH","authority":"Ohio Rev. Code §5747.01(A)(1)","authorityType":"statute","title":"Ohio subtraction for U.S. obligation interest requires exemption from state income taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"'Ohio adjusted gross income' means federal adjusted gross income, with the following modifications: (1) Deduct interest and dividends on obligations of the United States and its territories and possessions or of any authority, commission, or instrumentality of the United States to the extent the interest and dividends are exempt from state income taxes under the laws of the United States.","url":"https://codes.ohio.gov/ohio-revised-code/section-5747.01","sourceDomain":"codes.ohio.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"Ohio Rev. Code §5747.01(A)(1) requires the interest be 'exempt from state income taxes under the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute. No Ohio DT named-entity publication found; confidence: medium.","href":"/api/v1/citations/oh-orc-5747-01-a1-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-dividend-qualified","jurisdiction":"OH","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: Ohio has no IRC §1(h)(11) preferential rate; qualified dividends taxed at ordinary rates (formula: $342 + 2.75% above $26,050; $2,394.32 + 3.125% above $100,000)","value":0,"valueType":"binary-exempt","citations":[{"id":"oh-rc-5747-02-formula-3-125pct-2025","jurisdiction":"OH","authority":"Ohio Rev. Code §5747.02(A)(3)(b)","authorityType":"statute","title":"Ohio income tax is a statutory formula: $342 + 2.75% above $26,050; $2,394.32 + 3.125% above $100,000","quote":"For taxable years beginning in 2025, the tax imposed under section 5747.02 of the Revised Code shall equal: $0 for income not exceeding $26,050; $342.00 plus 2.75% of income exceeding $26,050 but not exceeding $100,000; and $2,394.32 plus 3.125% of income exceeding $100,000.","url":"https://codes.ohio.gov/ohio-revised-code/section-5747.02","sourceDomain":"codes.ohio.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"The $342 entry-level amount and the $2,394.32 upper entry do NOT produce a smooth bracket: there is an $18.69 cliff at $100,000. Municipal income taxes cannot reach portfolio capital gains under RC §718.01 (intangibles exemption). School district taxes (0.25% to 2%) on a 'traditional' base CAN reach capital gains; roughly 200 Ohio districts impose them.","href":"/api/v1/citations/oh-rc-5747-02-formula-3-125pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-treasury","jurisdiction":"OH","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"oh-31-usc-3124-treasury-exempt-2025","jurisdiction":"OH","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Ohio income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/oh-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-fhlb-ffcb","jurisdiction":"OH","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"oh-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"OH","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Ohio income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/oh-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-carryback","jurisdiction":"OH","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-character","jurisdiction":"OH","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at graduated Ohio rates (ORC §5747.02)","value":null,"valueType":"none","citations":[{"id":"oh-rc-5747-02-formula-3-125pct-2025","jurisdiction":"OH","authority":"Ohio Rev. Code §5747.02(A)(3)(b)","authorityType":"statute","title":"Ohio income tax is a statutory formula: $342 + 2.75% above $26,050; $2,394.32 + 3.125% above $100,000","quote":"For taxable years beginning in 2025, the tax imposed under section 5747.02 of the Revised Code shall equal: $0 for income not exceeding $26,050; $342.00 plus 2.75% of income exceeding $26,050 but not exceeding $100,000; and $2,394.32 plus 3.125% of income exceeding $100,000.","url":"https://codes.ohio.gov/ohio-revised-code/section-5747.02","sourceDomain":"codes.ohio.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"The $342 entry-level amount and the $2,394.32 upper entry do NOT produce a smooth bracket: there is an $18.69 cliff at $100,000. Municipal income taxes cannot reach portfolio capital gains under RC §718.01 (intangibles exemption). School district taxes (0.25% to 2%) on a 'traditional' base CAN reach capital gains; roughly 200 Ohio districts impose them.","href":"/api/v1/citations/oh-rc-5747-02-formula-3-125pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-filing-status-identical","jurisdiction":"OH","category":"filing-status-identical","label":"Same bracket schedule for all filing statuses","display":"Yes: ORC §5747.02(A)(3) provides one rate formula for all filing statuses; same thresholds for Single and MFJ, creating the maximum marriage penalty on a joint return vs. two singles","value":1,"valueType":"binary-exempt","citations":[{"id":"oh-rc-5747-02-a3-filing-status-identical-2025","jurisdiction":"OH","authority":"Ohio Rev. Code §5747.02(A)(3)","authorityType":"statute","title":"Ohio income tax rate formula applies to all individuals (same schedule all filing statuses; no MFJ brackets)","quote":"If the balance thus obtained is greater than twenty-six thousand fifty dollars, the tax is hereby levied as follows: More than $26,050 but not more than $100,000: $342.00 plus 2.75% of the balance in excess of twenty-six thousand fifty dollars; and more than $100,000: $2,394.32 plus 3.125% of the balance in excess of one hundred thousand dollars.","url":"https://codes.ohio.gov/ohio-revised-code/section-5747.02","sourceDomain":"codes.ohio.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"ORC §5747.02(A)(3) provides one formula for all individual filers; no separate MFJ threshold. Same thresholds for Single, MFJ, and MFS: maximum marriage penalty on a joint return vs. two singles.","href":"/api/v1/citations/oh-rc-5747-02-a3-filing-status-identical-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"oh-migration-loss-conformity","jurisdiction":"OH","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Ohio computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"oh-migration-loss-conformity-src","jurisdiction":"OH","authority":"Ohio Rev. Code §5747.02(A)(3)(b)","authorityType":"statute","title":"Ohio conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"the tax imposed by this section on income other than taxable business income shall be measured by Ohio adjusted gross income, less taxable business income and less an exemption","url":"https://codes.ohio.gov/ohio-revised-code/section-5747.02","sourceDomain":"codes.ohio.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Ohio Rev. Code §5747.02 measures the tax by Ohio adjusted gross income, which derives from federal adjusted gross income, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.","href":"/api/v1/citations/oh-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"OK","name":"Oklahoma","level":"state","facts":[{"factId":"ok-trust-nexus-incomplete-gift","jurisdiction":"OK","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: 68 O.S. 2353(6)(b) makes a trust resident when it consists of property of a person domiciled in Oklahoma at the transfer if then irrevocable, and an ING is irrevocable under that test; as-applied exposure on the Fielding/Kaestner line exists but no Oklahoma authority has limited the statute","value":2,"valueType":"code","citations":[{"id":"ok-trust-nexus-incomplete-gift-2026","jurisdiction":"OK","authority":"68 O.S. 2353(6)(b), applied via 68 O.S. 2355; OTC Form 513 instructions","authorityType":"form-instructions","title":"Oklahoma taxes a trust of property transferred by an Oklahoma domiciliary while irrevocable; fiduciary residence is expressly irrelevant","quote":"The domicile or residence of the fiduciary representative does not establish the residence of the estate or trust.","url":"https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/businesses/corporate-income-tax/current/513-Pkt.pdf","sourceDomain":"oklahoma.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"The statutory definition ('a trust, or portion of a trust, consisting of property of a person domiciled in this state at the time such property was transferred to the trust if such trust or portion was then irrevocable') is quoted in the Form 513 packet; the official statute host (oscn.net) is court-run and non-.gov.","href":"/api/v1/citations/ok-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-estate-none","jurisdiction":"OK","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"ok-estate-none-2025","jurisdiction":"OK","authority":"Oklahoma Tax Commission, FY2023 Revenue and Apportionment Report","authorityType":"dor-guidance","title":"OK estate tax repealed for deaths on or after Jan 1, 2010","quote":"Effective for deaths on or after January 1, 2010, the Oklahoma Estate Tax is repealed.","url":"https://oklahoma.gov/content/dam/ok/en/tax/documents/resources/reports/annual-reports/otc/AR-2023.pdf","sourceDomain":"oklahoma.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Quote on report page 8 under an 'Estate Tax ... $0.00' line item; PDF fetched directly.","href":"/api/v1/citations/ok-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-rate","jurisdiction":"OK","category":"rate","label":"Top income tax rate (TY2025)","display":"0.25% to 4.75% graduated (4.75% above $14,400 MFJ; 4.5% TY2026)","value":0.0475,"valueType":"rate","citations":[{"id":"ok-os-68-2355-top-4-75pct-2025","jurisdiction":"OK","authority":"Oklahoma Tax Commission, Tax Year 2025 Income Tax Rates","authorityType":"dor-guidance","title":"Oklahoma top income tax rate is 4.75% on income above $14,400 (MFJ, TY2025; 4.5% TY2026)","quote":"For taxable year 2025, a tax is imposed upon the Oklahoma taxable income of every individual at the rates of: 0.25% on income to $2,000; 0.75% from $2,001 to $5,000; 1.75% from $5,001 to $7,500; 2.75% from $7,501 to $9,800; 3.75% from $9,801 to $14,400; and 4.75% on income above $14,400, for married individuals filing jointly.","url":"https://www.ok.gov/tax/Individuals/Income_Tax/Tax_Year_2025_Income_Tax_rates.html","sourceDomain":"www.ok.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Falls to 4.5% top for TY2026 (HB 2764). Standard deduction $12,700 MFJ. An Oklahoma-source capital gain deduction exists for sales of Oklahoma-located assets (election-gated); inapplicable to publicly traded securities portfolios.","href":"/api/v1/citations/ok-os-68-2355-top-4-75pct-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"ok-rate-2026","jurisdiction":"OK","category":"rate","label":"Top income tax rate (TY2026)","display":"0% to 4.5% in four brackets (4.5% above $14,400 MFJ / $7,200 single; HB 2764 quarter-point phase-out triggers from TY2027)","value":0.045,"valueType":"rate","citations":[{"id":"ok-hb2764-2025-68-2355d-top-4-5pct-2026","jurisdiction":"OK","authority":"68 O.S. §2355(D) as amended by HB 2764 (2025), enrolled","authorityType":"session-law","title":"Oklahoma collapses to four brackets with a 4.5% top rate for tax year 2026 and later, with quarter-point phase-out triggers","quote":"D. Individuals. For tax year 2026 and for subsequent tax years subject to rate reductions as provided by subsection E of this section, a tax is hereby imposed upon the Oklahoma taxable income of every resident or nonresident individual, which tax shall be computed as follows: 1. Single individuals and married individuals filing separately: (a) 0% tax on first $3,750.00 or part thereof, (b) 2.5% tax on the next $1,150.00 or part thereof, (c) 3.5% tax on next $2,300.00 or part thereof, and (d) 4.5% tax on the remainder.","url":"https://www.oklegislature.gov/cf_pdf/2025-26%20ENR/hB/HB2764%20ENR.PDF","sourceDomain":"www.oklegislature.gov","taxYear":2026,"asOf":"2026-07-12","confidence":"high","note":"Verbatim from the enrolled bill PDF (pdftotext, whitespace normalized). The MFJ schedule doubles every threshold (0% to $7,500, 2.5% to $9,800, 3.5% to $14,400, 4.5% above). Subsection E adds quarter-point rate reductions toward full phase-out when State Board of Equalization revenue triggers are met, earliest TY2027; none is certified as of the read date. The TY2025 bracket schedules in the kernel remain the six-bracket 4.75% structure.","href":"/api/v1/citations/ok-hb2764-2025-68-2355d-top-4-5pct-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-conformity","jurisdiction":"OK","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-muni-instate","jurisdiction":"OK","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt with carve-outs: state authority bonds and post-July 1, 2001 local obligations are exempt; pre-July 2, 2001 local bonds and certain nonprofit-project financings are TAXABLE (Form 511-B additions)","value":1,"valueType":"binary-exempt","citations":[{"id":"ok-68-os-2358-muni-default-2025","jurisdiction":"OK","authority":"68 O.S. §2358(A)(1)","authorityType":"statute","title":"OK taxes out-of-state muni bond interest; OK bonds exempt 68 O.S. §2358(A)(1)","quote":"There shall be added interest income on obligations of any state or political subdivision thereto which is not otherwise exempted pursuant to other laws of this state, to the extent that such interest is not included in taxable income and adjusted gross income.","url":"https://oksenate.gov/sites/default/files/2019-12/os68.pdf","sourceDomain":"oksenate.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"68 O.S. §2358(A)(1) adds back interest on obligations of any state or political subdivision that Oklahoma law does not otherwise exempt, so out-of-state municipal interest is taxable; Oklahoma's own bonds are exempted by separate 62 O.S. provisions. Verbatim quoted from the Oklahoma State Senate Title 68 compilation (oksenate.gov).","href":"/api/v1/citations/ok-68-os-2358-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-muni-outstate","jurisdiction":"OK","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: 68 O.S. §2358(A)(1) adds back out-of-state muni interest (not exempt under Oklahoma law)","value":0,"valueType":"binary-exempt","citations":[{"id":"ok-68-os-2358-muni-default-2025","jurisdiction":"OK","authority":"68 O.S. §2358(A)(1)","authorityType":"statute","title":"OK taxes out-of-state muni bond interest; OK bonds exempt 68 O.S. §2358(A)(1)","quote":"There shall be added interest income on obligations of any state or political subdivision thereto which is not otherwise exempted pursuant to other laws of this state, to the extent that such interest is not included in taxable income and adjusted gross income.","url":"https://oksenate.gov/sites/default/files/2019-12/os68.pdf","sourceDomain":"oksenate.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"68 O.S. §2358(A)(1) adds back interest on obligations of any state or political subdivision that Oklahoma law does not otherwise exempt, so out-of-state municipal interest is taxable; Oklahoma's own bonds are exempted by separate 62 O.S. provisions. Verbatim quoted from the Oklahoma State Senate Title 68 compilation (oksenate.gov).","href":"/api/v1/citations/ok-68-os-2358-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-qoz-conformity","jurisdiction":"OK","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"ok-qoz-conformity-irc-1400z2-2025","jurisdiction":"OK","authority":"68 O.S. §2353(2)","authorityType":"statute","title":"Oklahoma conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"2. \"Internal Revenue Code\" means the United States Internal Revenue Code, as the same may be amended or adopted from time to time applicable to the taxable year; and other provisions of the laws of the United States relating to federal income taxes, as the same may be or become effective at any time or from time to time applicable to the taxable year;","url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","sourceDomain":"www.oklegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"68 O.S. §2353(2) adopts the IRC on a rolling basis ('as the same may be amended... applicable to the taxable year'); Oklahoma taxable income tracks the federal base and no §1400Z-2 addback exists, so the federal QOZ deferral and exclusion flow through.","href":"/api/v1/citations/ok-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-qsbs-conformity","jurisdiction":"OK","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"ok-qsbs-conformity-irc-1202-2025","jurisdiction":"OK","authority":"68 O.S. §2353(2)","authorityType":"statute","title":"Oklahoma conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity","quote":"2. \"Internal Revenue Code\" means the United States Internal Revenue Code, as the same may be amended or adopted from time to time applicable to the taxable year; and other provisions of the laws of the United States relating to federal income taxes, as the same may be or become effective at any time or from time to time applicable to the taxable year;","url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","sourceDomain":"www.oklegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"68 O.S. §2353(2) adopts the IRC on a rolling basis; the definition clause does not mention §1202 specifically, but Oklahoma taxable income tracks the federal base and no QSBS addback exists, so federally excluded §1202 gain never enters the Oklahoma base.","href":"/api/v1/citations/ok-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-agency-obligations","jurisdiction":"OK","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: Oklahoma Form 511 Schedule 511-A instructions state 'Interest from entities such as FNMA and GNMA does not qualify' for the U.S. obligation subtraction","value":0,"valueType":"binary-exempt","citations":[{"id":"ok-form511-schedule-511a-fnma-taxable","jurisdiction":"OK","authority":"Oklahoma Tax Commission, 2023 Form 511 Packet (Schedule 511-A, Line A1 Instructions)","authorityType":"form-instructions","title":"Oklahoma Form 511 Schedule 511-A instructions explicitly state FNMA does not qualify for the federal interest deduction","quote":"Interest from entities such as FNMA and GNMA does not qualify.","url":"https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/past-year/2023/511-Pkt.pdf","sourceDomain":"oklahoma.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"Schedule 511-A, Line A1 allows a subtraction for interest on obligations of the United States government exempt under federal law. The instructions explicitly exclude FNMA (by name) from this subtraction. FHLMC is not separately named but the same GSE analysis applies: no federal bondholder exemption statute. 2023 instructions cited; 2024/2025 instructions not accessible but the FNMA exclusion is based on permanent federal statute.","href":"/api/v1/citations/ok-form511-schedule-511a-fnma-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-dividend-qualified","jurisdiction":"OK","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Oklahoma conforms to federal AGI but has no modification creating a preferential rate for qualified dividends; IRC §1(h)(11) preference not adopted","value":0,"valueType":"binary-exempt","citations":[{"id":"ok-os-68-2355-top-4-75pct-2025","jurisdiction":"OK","authority":"Oklahoma Tax Commission, Tax Year 2025 Income Tax Rates","authorityType":"dor-guidance","title":"Oklahoma top income tax rate is 4.75% on income above $14,400 (MFJ, TY2025; 4.5% TY2026)","quote":"For taxable year 2025, a tax is imposed upon the Oklahoma taxable income of every individual at the rates of: 0.25% on income to $2,000; 0.75% from $2,001 to $5,000; 1.75% from $5,001 to $7,500; 2.75% from $7,501 to $9,800; 3.75% from $9,801 to $14,400; and 4.75% on income above $14,400, for married individuals filing jointly.","url":"https://www.ok.gov/tax/Individuals/Income_Tax/Tax_Year_2025_Income_Tax_rates.html","sourceDomain":"www.ok.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Falls to 4.5% top for TY2026 (HB 2764). Standard deduction $12,700 MFJ. An Oklahoma-source capital gain deduction exists for sales of Oklahoma-located assets (election-gated); inapplicable to publicly traded securities portfolios.","href":"/api/v1/citations/ok-os-68-2355-top-4-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-treasury","jurisdiction":"OK","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ok-31-usc-3124-treasury-exempt-2025","jurisdiction":"OK","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Oklahoma income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ok-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-fhlb-ffcb","jurisdiction":"OK","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ok-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"OK","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Oklahoma income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ok-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-carryback","jurisdiction":"OK","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-character","jurisdiction":"OK","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the schedule top rate (4.5% TY2026 per HB 2764; Okla. Stat. §68-2355)","value":null,"valueType":"none","citations":[{"id":"ok-os-68-2355-top-4-75pct-2025","jurisdiction":"OK","authority":"Oklahoma Tax Commission, Tax Year 2025 Income Tax Rates","authorityType":"dor-guidance","title":"Oklahoma top income tax rate is 4.75% on income above $14,400 (MFJ, TY2025; 4.5% TY2026)","quote":"For taxable year 2025, a tax is imposed upon the Oklahoma taxable income of every individual at the rates of: 0.25% on income to $2,000; 0.75% from $2,001 to $5,000; 1.75% from $5,001 to $7,500; 2.75% from $7,501 to $9,800; 3.75% from $9,801 to $14,400; and 4.75% on income above $14,400, for married individuals filing jointly.","url":"https://www.ok.gov/tax/Individuals/Income_Tax/Tax_Year_2025_Income_Tax_rates.html","sourceDomain":"www.ok.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Falls to 4.5% top for TY2026 (HB 2764). Standard deduction $12,700 MFJ. An Oklahoma-source capital gain deduction exists for sales of Oklahoma-located assets (election-gated); inapplicable to publicly traded securities portfolios.","href":"/api/v1/citations/ok-os-68-2355-top-4-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-filing-status-doubled","jurisdiction":"OK","category":"filing-status-doubled","label":"MFJ brackets double Single brackets","display":"Yes: 68 O.S. §2355 MFJ thresholds are exactly 2x Single at every bracket tier (marriage neutral); TY2025 top rate 4.75% (Single above $7,200; MFJ above $14,400), TY2026+ 4.5%","value":1,"valueType":"binary-exempt","citations":[{"id":"ok-os-68-2355c-ty2025-schedules-doubled","jurisdiction":"OK","authority":"68 O.S. §2355(C); HB 2764 ENR (1st Session, 60th Oklahoma Legislature, 2025)","authorityType":"session-law","title":"Oklahoma TY2024-2025 rate schedules (subsection C): MFJ bracket increments exactly 2x Single at every tier; top 4.75% above $7,200 Single / $14,400 MFJ","quote":"1. Single individuals and married individuals filing separately: (a) 0.25% tax on first $1,000.00 or part thereof, (b) 0.75% tax on next $1,500.00 or part thereof, (c) 1.75% tax on next $1,250.00 or part thereof, (d) 2.75% tax on next $1,150.00 or part thereof, (e) 3.75% tax on next $2,300.00 or part thereof, and (f) 4.75% tax on the remainder. 2. Married individuals filing jointly and surviving spouse to the extent and in the manner that a surviving spouse is permitted to file a joint return under the provisions of the Internal Revenue Code of 1986, as amended, and heads of households as defined in the Internal Revenue Code of 1986, as amended: (a) 0.25% tax on first $2,000.00 or part thereof, (b) 0.75% tax on next $3,000.00 or part thereof, (c) 1.75% tax on next $2,500.00 or part thereof, (d) 2.75% tax on next $2,300.00 or part thereof, (e) 3.75% tax on next $4,600.00 or part thereof, and (f) 4.75% tax on the remainder.","url":"https://www.oklegislature.gov/cf_pdf/2025-26%20ENR/hB/HB2764%20ENR.PDF","sourceDomain":"www.oklegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Verbatim from the HB 2764 enrolled text of 68 O.S. §2355(C), which applies to tax years 2024 and 2025. Increments cumulate to Single $1,000/$2,500/$3,750/$4,900/$7,200 and MFJ $2,000/$5,000/$7,500/$9,800/$14,400: exactly 2x at every breakpoint. Corroborated by the OTC 2025 Form 511 packet $100,000 worksheets ($4,562 plus 4.75% Single; $4,373 plus 4.75% MFJ/HOH), which integrate these schedules exactly; the $189 worksheet difference is the doubled-schedule single-earner marriage bonus. The pre-2022 MFJ table (top above $12,200) is superseded.","href":"/api/v1/citations/ok-os-68-2355c-ty2025-schedules-doubled"},{"id":"ok-os-68-2355d-hb2764-filing-status-doubled-2026","jurisdiction":"OK","authority":"68 O.S. §2355(D); HB 2764 (1st Session, 60th Oklahoma Legislature, 2025)","authorityType":"session-law","title":"Oklahoma MFJ brackets are exactly 2x Single at every tier (marriage neutral; same 2x structure in TY2025 Subsection C and TY2026+ Subsection D)","quote":"2. Married individuals filing jointly and surviving spouse to the extent and in the manner that a surviving spouse is permitted to file a joint return under the provisions of the Internal Revenue Code of 1986, as amended, and heads of households as defined in the Internal Revenue Code of 1986, as amended: (a) 0% tax on first $7,500.00 or part thereof, (b) 2.5% tax on the next $2,300.00 or part thereof, (c) 3.5% tax on next $4,600.00 or part thereof, and (d) 4.5% tax on the remainder.","url":"https://www.oklegislature.gov/cf_pdf/2025-26%20ENR/hB/HB2764%20ENR.PDF","sourceDomain":"www.oklegislature.gov","taxYear":2026,"asOf":"2026-07-22","confidence":"high","note":"HB 2764 enacted 68 O.S. §2355(D). MFJ four-bracket schedule (para 2) doubles every Single threshold (para 1: $3,750 / $1,150 / $2,300 increments): $7,500 / $2,300 / $4,600 increments, so the MFJ breakpoints fall at $7,500, $9,800, $14,400 with a 4.5% top rate on the remainder (marriage neutral). TY2025 Subsection C used the same 2x structure with a 4.75% top rate. Doubling relationship verified across all four TY2026 bracket tiers.","href":"/api/v1/citations/ok-os-68-2355d-hb2764-filing-status-doubled-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ok-migration-loss-conformity","jurisdiction":"OK","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Oklahoma computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"ok-migration-loss-conformity-src","jurisdiction":"OK","authority":"68 O.S. §2353(12)","authorityType":"statute","title":"Oklahoma conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"\"Oklahoma taxable income\" means \"taxable income\" as reported (or as would have been reported by the taxpayer had a return been filed) to the federal government, and in the event of adjustments thereto by the federal government as finally ascertained under the Internal Revenue Code, adjusted further as hereinafter provided;","url":"https://oksenate.gov/sites/default/files/2019-12/os68.pdf","sourceDomain":"oksenate.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"68 O.S. §2353(12) defines Oklahoma taxable income as the taxable income reported to the federal government, adjusted further as provided, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.","href":"/api/v1/citations/ok-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"OR","name":"Oregon","level":"state","facts":[{"factId":"or-trust-nexus-incomplete-gift","jurisdiction":"OR","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES: a NV-trusteed, NV-administered ING is a nonresident trust; retained intangible gain has no OR source. No settlor prong, no ING attribution statute. PERMANENT, not deferral: no throwback statute, and the retained gain is corpus gain outside DNI (IRC 643(a)(3)), so it never carries out to the settlor on a later distribution. Ongoing income on the reinvested proceeds IS taxable to a resident beneficiary when distributed","value":0,"valueType":"code","citations":[{"id":"or-trust-nexus-incomplete-gift-2026","jurisdiction":"OR","authority":"ORS 316.282(1)(d) (resident trust: fiduciary residence or Oregon administration)","authorityType":"statute","title":"Oregon trust residency follows the fiduciary and the place of administration, not the settlor","quote":"'Resident trust' means a trust, other than a qualified funeral trust, of which the fiduciary is a resident of Oregon or the administration of which is carried on in Oregon.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"For a corporate fiduciary in interstate administration, residence follows where the majority of fiduciary decisions are made.","href":"/api/v1/citations/or-trust-nexus-incomplete-gift-2026"},{"id":"irc-643a3-corpus-capital-gain-excluded-from-dni","jurisdiction":"US","authority":"IRC §643(a)(3)","authorityType":"statute","title":"IRC §643(a)(3): capital gain allocated to corpus is excluded from distributable net income","quote":"Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section643&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the rule that makes an ING's escape PERMANENT rather than deferral. Income reaches a beneficiary only through DNI (IRC 652/662); a retained corpus gain is outside DNI, so a later distribution of it is principal, not income, and never enters the beneficiary's federal taxable income. Every escape state starts from the federal number, so it never enters the state base either. Conditional on the gain ACTUALLY being allocated to corpus and not distributed in the year realized: a gain routed to fiduciary accounting income, or distributed in the sale year, is in DNI and is taxable to the resident beneficiary.","href":"/api/v1/citations/irc-643a3-corpus-capital-gain-excluded-from-dni"},{"id":"irc-665c-throwback-inapplicable-qualified-domestic-trust","jurisdiction":"US","authority":"IRC §665(c)","authorityType":"statute","title":"IRC §665(c): the accumulation-distribution (throwback) rules do not reach a qualified domestic trust","quote":"(1) In general In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. (2) Qualified trust For purposes of this subsection, the term 'qualified trust' means any trust other than- (A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or (B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section665&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A modern NV/DE ING is a 'qualified trust', so the federal accumulation-distribution regime is computed without regard to undistributed net income: it is empty. States whose only accumulation rule piggybacks IRC 665-668 (OR OAR 150-316-0575, IA, KS, SC) therefore recapture nothing. Only a state with its OWN throwback keyed to income untaxed by any state can claw the gain back, and of the verified escape states only Utah has one (59-10-114(1)(g)).","href":"/api/v1/citations/irc-665c-throwback-inapplicable-qualified-domestic-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-rate","jurisdiction":"OR","category":"rate","label":"Top state income tax rate (TY2025)","display":"4.75% to 9.9% graduated (9.9% above $250,000 MFJ; capital gains taxed as ordinary income)","value":0.099,"valueType":"rate","citations":[{"id":"or-ors-316-037-top-9-9pct-2025","jurisdiction":"OR","authority":"ORS §316.037(1)(a); ORS §316.042 (MFJ doubling rule)","authorityType":"statute","title":"Oregon income tax rates: 4.75%/6.75%/8.75%/9.9% graduated; MFJ thresholds double single per ORS §316.042","quote":"316.037 Imposition and rate of tax. (1)(a) A tax is imposed for each taxable year on the entire taxable income of every resident of this state. The amount of the tax shall be determined in accordance with the following table: ... Over $125,000 $10,798 plus 9.9% of the excess over $125,000 ... (b) For tax years beginning in each calendar year, the Department of Revenue shall adopt a table that shall apply in lieu of the table contained in paragraph (a) of this subsection","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The quoted §316.037(1)(a) table carries the statutory base amounts; §316.037(1)(b) directs the Department of Revenue to adopt an annual COLA-adjusted table in its place, and the TY2025 figures are published in the OR-40 instructions (Oregon DOR). Rates are 4.75%, 6.75%, 8.75%, and 9.9%. Capital gains taxed as ordinary income, no LT preference. Federal tax deduction: Sch. OR-A line 5a, capped at $8,500 (MFJ/Single/HOH) or $4,250 (MFS) per TY2025 OR-40 page 4. MFJ doubling rule: ORS §316.042 provides that the tax imposed on a joint return shall be twice the tax which would be imposed if the taxable income were cut in half.","href":"/api/v1/citations/or-ors-316-037-top-9-9pct-2025"},{"id":"or-or40-ty2025-chart-js-table5","jurisdiction":"OR","authority":"TY2025 Form OR-40 Instructions (Rev. 01-29-26), Table 5 and Tax Rate Charts, pp. 16, 32","authorityType":"form-instructions","title":"Oregon TY2025 COLA-adjusted bracket thresholds, standard deduction, and tax formulas","quote":"2025 Tax rate charts ; Chart S: For persons filing single or married filing separately; If your taxable income is $50,000 or more but not over $125,000 .....your tax is $4,065 plus 8.75% of excess over $50,000 If your taxable income is over $125,000 .....your tax is $10,627 plus 9.9% of excess over $125,000 ; Chart J: For persons filing jointly, head of household, or qualifying surviving spouse; If your taxable income is $50,000 or more but not over $250,000 .....your tax is $3,756 plus 8.75% of excess over $50,000 If your taxable income is over $250,000.....your tax is $21,256 plus 9.9% of excess over $250,000","url":"https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-inst_101-040-1_2025.pdf","sourceDomain":"www.oregon.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"TY2025 OR-40 instructions contain separate tables for single (Chart S), joint (Chart J), and reduction thresholds (Table 5). Chart S and Chart J provide the cumulative-tax formula for income at or above $50,000 at the 8.75% and 9.9% brackets; Table 5 provides TY2025 standard deduction amounts ($2,835 single, $5,670 MFJ, $4,560 HOH, $5,670 QSS). The $125,000/$250,000 top bracket thresholds are statutory per ORS §316.037(1)(a) and are not COLA-adjusted.","href":"/api/v1/citations/or-or40-ty2025-chart-js-table5"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-conformity","jurisdiction":"OR","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-muni-instate","jurisdiction":"OR","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: ORS 286A.140 exempts interest on Oregon state and local obligations from Oregon income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"or-ors-316-680-286a-140-muni-default-2025","jurisdiction":"OR","authority":"ORS §316.680(2)(a) (out-of-state muni addition); ORS 286A.140 (Oregon bond subtraction)","authorityType":"statute","title":"OR exempts OR-issued bonds; out-of-state muni bond interest is a taxable Oregon addition per ORS §316.680(2)(a)","quote":"There shall be added to Oregon taxable income the amount of any interest or dividend income on obligations or securities of any state or political subdivision thereof other than Oregon or its political subdivisions, to the extent excluded from federal taxable income.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"ORS §316.680(2)(a) requires addition of out-of-state muni interest to Oregon taxable income. ORS 286A.140 provides: interest on Oregon state and local obligations is exempt. Standard Oregon rule: instate exempt, outstate taxable. Verbatim quote verified against oregonlegislature.gov ORS 316 (2025 Edition).","href":"/api/v1/citations/or-ors-316-680-286a-140-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-muni-outstate","jurisdiction":"OR","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: ORS §316.680(2)(a) adds back interest on non-Oregon state and local bonds to Oregon taxable income","value":0,"valueType":"binary-exempt","citations":[{"id":"or-ors-316-680-286a-140-muni-default-2025","jurisdiction":"OR","authority":"ORS §316.680(2)(a) (out-of-state muni addition); ORS 286A.140 (Oregon bond subtraction)","authorityType":"statute","title":"OR exempts OR-issued bonds; out-of-state muni bond interest is a taxable Oregon addition per ORS §316.680(2)(a)","quote":"There shall be added to Oregon taxable income the amount of any interest or dividend income on obligations or securities of any state or political subdivision thereof other than Oregon or its political subdivisions, to the extent excluded from federal taxable income.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"ORS §316.680(2)(a) requires addition of out-of-state muni interest to Oregon taxable income. ORS 286A.140 provides: interest on Oregon state and local obligations is exempt. Standard Oregon rule: instate exempt, outstate taxable. Verbatim quote verified against oregonlegislature.gov ORS 316 (2025 Edition).","href":"/api/v1/citations/or-ors-316-680-286a-140-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-qoz-conformity","jurisdiction":"OR","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"or-qoz-conformity-irc-1400z2-2025","jurisdiction":"OR","authority":"ORS 316.048","authorityType":"statute","title":"Oregon conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The entire taxable income of a resident of this state is the federal taxable income of the resident as defined in the laws of the United States, with the modifications, additions and subtractions provided in this chapter and other laws of this state applicable to personal income taxation.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"ORS 316.048 establishes rolling IRC conformity. Oregon taxable income begins with federal taxable income; no modification excludes §1400Z-2 gain. §1400Z-2 QOZ provisions apply automatically via conformity. Verbatim quote verified against oregonlegislature.gov ORS 316 (2025 Edition).","href":"/api/v1/citations/or-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-qsbs-conformity","jurisdiction":"OR","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202) through TY2025","display":"Conforms for TY2025; decoupled by SB 1507 (2026 Or. Laws Ch. 142) for TY2026 forward (addback required)","value":1,"valueType":"binary-exempt","citations":[{"id":"or-qsbs-conformity-ors-316048-ty2025","jurisdiction":"OR","authority":"ORS 316.048","authorityType":"statute","title":"Oregon conforms to IRC §1202 QSBS gain exclusion through TY2025 via rolling IRC conformity (ORS 316.048)","quote":"The entire taxable income of a resident of this state is the federal taxable income of the resident as defined in the laws of the United States, with the modifications, additions and subtractions provided in this chapter and other laws of this state applicable to personal income taxation.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"ORS 316.048 rolling conformity incorporated IRC §1202 QSBS through TY2025. SB 1507 (2026 Or. Laws Ch. 142) decoupled Oregon from §1202 for tax years beginning on or after January 1, 2026; see or-qsbs-nonconformity (value 0, effectiveDate 2026-01-01). Verbatim quote verified against oregonlegislature.gov ORS 316 (2025 Edition).","href":"/api/v1/citations/or-qsbs-conformity-ors-316048-ty2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"or-qsbs-nonconformity","jurisdiction":"OR","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202) effective TY2026","display":"Non-conforms effective TY2026: SB 1507 (2026 Or. Laws Ch. 142) adds back QSBS gain excluded from federal income","value":0,"valueType":"binary-exempt","citations":[{"id":"or-qsbs-sb1507-nonconformity-ty2026","jurisdiction":"OR","authority":"2026 Or. Laws Ch. 142 (SB 1507); ORS 316.048","authorityType":"session-law","title":"Oregon decoupled from IRC §1202 QSBS exclusion effective TY2026 (SB 1507)","quote":"There shall be added to federal taxable income an amount equal to any gain from the exchange or sale of qualified small business stock that is received by the taxpayer and excluded from income on the taxpayer's federal income tax return in the tax year, as provided in section 1202 of the Internal Revenue Code.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2026,"asOf":"2026-07-20","confidence":"medium","note":"Verbatim from SB 1507 (2026 Or. Laws Ch. 142), §5 (the §1202 addback), which decouples Oregon from the QSBS exclusion for tax years beginning on or after January 1, 2026. A prior version paraphrased the provision ('Notwithstanding ORS 316.048...'); corrected to the enacted text. The URL points to the codified ORS 316 chapter pending the enrolled bill's codification.","href":"/api/v1/citations/or-qsbs-sb1507-nonconformity-ty2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2028-01-01"},{"factId":"or-agency-obligations","jurisdiction":"OR","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: ORS §316.654 subtraction requires interest be 'exempt from state income taxes under the laws of the United States'; FNMA/FHLMC have no federal bondholder exemption statute","value":0,"valueType":"binary-exempt","citations":[{"id":"or-ors-316-654-fnma-fhlmc-taxable","jurisdiction":"OR","authority":"ORS §316.654","authorityType":"statute","title":"Oregon subtraction for U.S. obligation interest requires exemption from state income taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"There shall be subtracted from federal taxable income of a resident individual interest or dividends on obligations of the United States, or of any authority, commission, or instrumentality of the United States, to the extent the interest or dividends are exempt from state income taxes under the laws of the United States.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"ORS §316.654 subtraction requires interest be 'exempt from state income taxes under the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute, so their interest is not subtractable and is taxable in Oregon.","href":"/api/v1/citations/or-ors-316-654-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-dividend-qualified","jurisdiction":"OR","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: Oregon has no IRC §1(h)(11) preferential rate; qualified dividends taxed at ordinary rates up to 9.9% plus local surcharges","value":0,"valueType":"binary-exempt","citations":[{"id":"or-ors-316-037-top-9-9pct-2025","jurisdiction":"OR","authority":"ORS §316.037(1)(a); ORS §316.042 (MFJ doubling rule)","authorityType":"statute","title":"Oregon income tax rates: 4.75%/6.75%/8.75%/9.9% graduated; MFJ thresholds double single per ORS §316.042","quote":"316.037 Imposition and rate of tax. (1)(a) A tax is imposed for each taxable year on the entire taxable income of every resident of this state. The amount of the tax shall be determined in accordance with the following table: ... Over $125,000 $10,798 plus 9.9% of the excess over $125,000 ... (b) For tax years beginning in each calendar year, the Department of Revenue shall adopt a table that shall apply in lieu of the table contained in paragraph (a) of this subsection","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The quoted §316.037(1)(a) table carries the statutory base amounts; §316.037(1)(b) directs the Department of Revenue to adopt an annual COLA-adjusted table in its place, and the TY2025 figures are published in the OR-40 instructions (Oregon DOR). Rates are 4.75%, 6.75%, 8.75%, and 9.9%. Capital gains taxed as ordinary income, no LT preference. Federal tax deduction: Sch. OR-A line 5a, capped at $8,500 (MFJ/Single/HOH) or $4,250 (MFS) per TY2025 OR-40 page 4. MFJ doubling rule: ORS §316.042 provides that the tax imposed on a joint return shall be twice the tax which would be imposed if the taxable income were cut in half.","href":"/api/v1/citations/or-ors-316-037-top-9-9pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-treasury","jurisdiction":"OR","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"or-31-usc-3124-treasury-exempt-2025","jurisdiction":"OR","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Oregon income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/or-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-fhlb-ffcb","jurisdiction":"OR","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"or-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"OR","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Oregon income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/or-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-carryback","jurisdiction":"OR","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-character","jurisdiction":"OR","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income up to 9.9% plus Portland metro/PFA surcharges (ORS §316.037)","value":null,"valueType":"none","citations":[{"id":"or-ors-316-037-top-9-9pct-2025","jurisdiction":"OR","authority":"ORS §316.037(1)(a); ORS §316.042 (MFJ doubling rule)","authorityType":"statute","title":"Oregon income tax rates: 4.75%/6.75%/8.75%/9.9% graduated; MFJ thresholds double single per ORS §316.042","quote":"316.037 Imposition and rate of tax. (1)(a) A tax is imposed for each taxable year on the entire taxable income of every resident of this state. The amount of the tax shall be determined in accordance with the following table: ... Over $125,000 $10,798 plus 9.9% of the excess over $125,000 ... (b) For tax years beginning in each calendar year, the Department of Revenue shall adopt a table that shall apply in lieu of the table contained in paragraph (a) of this subsection","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The quoted §316.037(1)(a) table carries the statutory base amounts; §316.037(1)(b) directs the Department of Revenue to adopt an annual COLA-adjusted table in its place, and the TY2025 figures are published in the OR-40 instructions (Oregon DOR). Rates are 4.75%, 6.75%, 8.75%, and 9.9%. Capital gains taxed as ordinary income, no LT preference. Federal tax deduction: Sch. OR-A line 5a, capped at $8,500 (MFJ/Single/HOH) or $4,250 (MFS) per TY2025 OR-40 page 4. MFJ doubling rule: ORS §316.042 provides that the tax imposed on a joint return shall be twice the tax which would be imposed if the taxable income were cut in half.","href":"/api/v1/citations/or-ors-316-037-top-9-9pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-estate-rate","jurisdiction":"OR","category":"estate-rate","label":"Estate tax top marginal rate (TY2025)","display":"Graduated rates on Oregon taxable estate above $1,000,000; see ORS § 118.010 for current bracket thresholds","value":0.16,"valueType":"rate","citations":[{"id":"or-ors-118-estate-tax-2025","jurisdiction":"OR","authority":"ORS Chapter 118 (ORS 118.010, 118.160)","authorityType":"statute","title":"Oregon estate tax: 10% to 16% graduated on entire taxable estate; $1,000,000 exemption (fixed, not inflation-adjusted)","quote":"If the Oregon taxable estate is at least the amount in column 1, but less than the amount in column 2, the tax is the amount in column 3, increased by the excess above the amount in column 1 multiplied by the percentage in column 4; An estate tax return is not required with respect to the estates of decedents who die on or after January 1, 2012, unless the value of the gross estate is $1 million or more.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors118.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Oregon imposes estate tax with graduated rates from 10% to 16% (top rate on estates exceeding $9.5M). The $1,000,000 exemption is fixed (not inflation-adjusted) per ORS 118.160(1)(c). Verbatim quotes verified against oregonlegislature.gov ORS 118 (2025 Edition).","href":"/api/v1/citations/or-ors-118-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-estate-exemption","jurisdiction":"OR","category":"estate-exemption","label":"Estate tax exemption (TY2025)","display":"$1,000,000 fixed exemption; not inflation-adjusted; lowest estate tax exemption among U.S. states with an estate tax (ORS Chapter 118)","value":1000000,"valueType":"dollars","citations":[{"id":"or-ors-118-estate-tax-2025","jurisdiction":"OR","authority":"ORS Chapter 118 (ORS 118.010, 118.160)","authorityType":"statute","title":"Oregon estate tax: 10% to 16% graduated on entire taxable estate; $1,000,000 exemption (fixed, not inflation-adjusted)","quote":"If the Oregon taxable estate is at least the amount in column 1, but less than the amount in column 2, the tax is the amount in column 3, increased by the excess above the amount in column 1 multiplied by the percentage in column 4; An estate tax return is not required with respect to the estates of decedents who die on or after January 1, 2012, unless the value of the gross estate is $1 million or more.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors118.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Oregon imposes estate tax with graduated rates from 10% to 16% (top rate on estates exceeding $9.5M). The $1,000,000 exemption is fixed (not inflation-adjusted) per ORS 118.160(1)(c). Verbatim quotes verified against oregonlegislature.gov ORS 118 (2025 Edition).","href":"/api/v1/citations/or-ors-118-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-marital-udcprda","jurisdiction":"OR","category":"marital-udcprda","label":"State adopted Uniform Disposition of Community Property Rights Act","display":"Yes: Oregon enacted the Uniform Disposition of Community Property Rights at Death Act (ORS 112.705-112.775); recognizes community property character of assets brought from CP states; at death, one-half passes to surviving spouse outside decedent's estate","value":1,"valueType":"binary-exempt","citations":[{"id":"or-ors-112-705-udcprda-short-title","jurisdiction":"OR","authority":"ORS 112.705","authorityType":"statute","title":"Oregon Uniform Disposition of Community Property Rights at Death Act: short title (Oregon's UDCPRDA enactment)","quote":"ORS 112.705 to 112.775 may be cited as the Uniform Disposition of Community Property Rights at Death Act.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors112.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Oregon enacted the Uniform Disposition of Community Property Rights at Death Act (ORS 112.705-112.775). This common-law-state statute recognizes and preserves the community property character of assets when a married couple moves to Oregon from a community property state. Key effect: at death, one-half of such property belongs to the surviving spouse and passes outside the decedent's estate plan. Verbatim quote verified against oregonlegislature.gov ORS 112 (2025 Edition).","href":"/api/v1/citations/or-ors-112-705-udcprda-short-title"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-filing-status-doubled","jurisdiction":"OR","category":"filing-status-doubled","label":"MFJ brackets double Single brackets","display":"Yes: ORS §316.042 provides that the tax on a joint return is twice the tax on half the taxable income; MFJ bracket thresholds are exactly double Single thresholds (marriage neutral on the graduated schedule)","value":1,"valueType":"binary-exempt","citations":[{"id":"or-ors-316-037-top-9-9pct-2025","jurisdiction":"OR","authority":"ORS §316.037(1)(a); ORS §316.042 (MFJ doubling rule)","authorityType":"statute","title":"Oregon income tax rates: 4.75%/6.75%/8.75%/9.9% graduated; MFJ thresholds double single per ORS §316.042","quote":"316.037 Imposition and rate of tax. (1)(a) A tax is imposed for each taxable year on the entire taxable income of every resident of this state. The amount of the tax shall be determined in accordance with the following table: ... Over $125,000 $10,798 plus 9.9% of the excess over $125,000 ... (b) For tax years beginning in each calendar year, the Department of Revenue shall adopt a table that shall apply in lieu of the table contained in paragraph (a) of this subsection","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The quoted §316.037(1)(a) table carries the statutory base amounts; §316.037(1)(b) directs the Department of Revenue to adopt an annual COLA-adjusted table in its place, and the TY2025 figures are published in the OR-40 instructions (Oregon DOR). Rates are 4.75%, 6.75%, 8.75%, and 9.9%. Capital gains taxed as ordinary income, no LT preference. Federal tax deduction: Sch. OR-A line 5a, capped at $8,500 (MFJ/Single/HOH) or $4,250 (MFS) per TY2025 OR-40 page 4. MFJ doubling rule: ORS §316.042 provides that the tax imposed on a joint return shall be twice the tax which would be imposed if the taxable income were cut in half.","href":"/api/v1/citations/or-ors-316-037-top-9-9pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-migration-loss-conformity","jurisdiction":"OR","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Recalculate: Oregon requires an Oregon-source recomputation; a capital-loss carryforward not attributable to Oregon sources cannot be used to reduce a capital gain attributable to Oregon sources (OAR 150-316-0006(1)(c)).","value":2,"valueType":"code","citations":[{"id":"or-migration-loss-conformity-src","jurisdiction":"OR","authority":"OAR 150-316-0006(1)(c)","authorityType":"regulation","title":"Oregon recomputes a migrating resident's capital-loss carryforward on an Oregon-source basis","quote":"The capital loss or capital loss carryforward not attributable to Oregon sources cannot be used to reduce a capital gain attributable to Oregon sources.","url":"https://secure.sos.state.or.us/oard/viewSingleRule.action?ruleVrsnRsn=238483","sourceDomain":"secure.sos.state.or.us","taxYear":2025,"asOf":"2026-06-30","confidence":"high","note":"OAR 150-316-0006(1)(c) provides that a capital loss carryforward not attributable to Oregon sources cannot reduce an Oregon-source capital gain, so a migrating resident keeps a separate Oregon-source loss bank rather than importing the federal carryforward wholesale. Verbatim text confirmed against the live OAR in this session.","href":"/api/v1/citations/or-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"PA","name":"Pennsylvania","level":"state","facts":[{"factId":"pa-trust-nexus-incomplete-gift","jurisdiction":"PA","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"UNRESOLVED, no escape: the settlor-only rule (61 Pa. Code 101.1, 'the single controlling factor') is still in force and still in the live PIT Guide, and McNeil (2013, en banc, unappealed) struck it only AS APPLIED to a trust whose beneficiaries had no access and whose settlor retained no control. An ING settlor retains discretionary beneficial access by design, which is the very contact McNeil found missing, and the Department has issued no acquiescence. The strongest as-applied escape path of the resident-rule states, but a litigating position, not a safe escape","value":3,"valueType":"code","citations":[{"id":"pa-trust-nexus-incomplete-gift-2026","jurisdiction":"PA","authority":"72 P.S. 7301(s)(2); 61 Pa. Code 101.1; McNeil v. Commonwealth, 67 A.3d 185 (Pa. Cmwlth. 2013, en banc)","authorityType":"statute","title":"Pennsylvania asserts a settlor-only resident-trust rule; McNeil struck it as applied to a no-contact trust, but the DOR still asserts it","quote":"Resident trust - The single controlling factor in determining if a trust is a resident trust for purposes of this article shall be whether the decedent, the person creating the trust or the person transferring the property was a resident individual or person at the time of death, creation of the trust or the transfer of the property. The residence of the fiduciary and the beneficiaries of the trust shall be immaterial.","url":"https://www.pacodeandbulletin.gov/Display/pacode?file=/secure/pacode/data/061/chapter101/s101.1.html","sourceDomain":"www.pacodeandbulletin.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"McNeil: neither the settlor's residency nor the beneficiaries' residency gave the trusts substantial nexus (Commerce Clause). Relief comes via filing position or the Board of Appeals; the guide does not mention McNeil. Act 64 of 2023 grantor conformity reaches only federal grantor trusts, not a non-grantor ING.","href":"/api/v1/citations/pa-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-conformity","jurisdiction":"PA","category":"conformity","label":"Federal conformity / capital-gains base","display":"Own base: PA PIT (72 P.S. §7303) taxes eight classes of income; capital gains are class 3 'Net gains from disposition of property', flat-rate, no federal conformity","value":null,"valueType":"none","citations":[{"id":"pa-72ps-7303-class-of-income","jurisdiction":"PA","authority":"72 P.S. §7303 (Tax Reform Code of 1971, §303)","authorityType":"statute","title":"Pennsylvania PIT operates a class-of-income system (no IRC conformity); capital gains fall in class 3 'Net gains from disposition of property'","quote":"Net gains or income from disposition of property. Net gains or net income, less net losses, derived from the sale, exchange or other disposition of property, including real property, tangible personal property, intangible personal property or obligations issued on or after the effective date of this amendatory act.","url":"https://www.legis.state.pa.us/WU01/LI/LI/US/HTM/1971/0/0002..HTM","sourceDomain":"www.legis.state.pa.us","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Pennsylvania does not conform to the IRC. §303 lists eight classes of income; gains/losses are computed within class 3 only, with no netting against other classes and no capital-loss carryforward.","href":"/api/v1/citations/pa-72ps-7303-class-of-income"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-rate","jurisdiction":"PA","category":"rate","label":"Income tax rate (TY2025)","display":"3.07% flat on all PA taxable income classes (no preferential LT rate)","value":0.0307,"valueType":"rate","citations":[{"id":"pa-72ps-7302-a-flat-3-07pct-2025","jurisdiction":"PA","authority":"72 P.S. §7302(a)","authorityType":"dor-guidance","title":"Pennsylvania flat personal income tax rate is 3.07% on all taxable income classes (TY2025)","quote":"A tax at the rate of 3.07% is hereby imposed upon each taxable year of every resident individual, estate or trust and each nonresident individual who has income from Pennsylvania sources.","url":"https://www.revenue.pa.gov/TaxTypes/PIT/Pages/default.aspx","sourceDomain":"www.revenue.pa.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The 3.07% flat rate is constitutionally uniform (Art. VIII, §1 of PA Constitution). There is no preferential LT capital gain rate in Pennsylvania. School district Earned Income Tax (PSD codes) does NOT reach capital gains it is an earned income / net-profits tax only. Pittsburgh's local earned income tax similarly does not apply to CG.","href":"/api/v1/citations/pa-72ps-7302-a-flat-3-07pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-carryforward","jurisdiction":"PA","category":"carryforward","label":"Capital-loss carryforward","display":"NONE strictest year-lock: same-year + same-class + same-spouse; zero carryforward or carryback","value":0,"valueType":"years","citations":[{"id":"pa-72ps-7302-a1-year-lock-class-spouse-strict","jurisdiction":"PA","authority":"72 P.S. §7302(a.1); PA Personal Income Tax Guide Net Income (Losses) From the Sale, Exchange or Disposition of Property","authorityType":"dor-guidance","title":"Pennsylvania year-locks capital losses: same-year, same-class, same-spouse only; zero carryforward","quote":"Net losses from the sale, exchange or other disposition of property, to the extent not offset by gains from the same or other sales, exchanges or other dispositions of property in the same taxable year by the same taxpayer, may not be carried back or carried forward to any other taxable year, and may not be offset against income of a different class.","url":"https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Pages/Net-Income-Gain-Losses.aspx","sourceDomain":"www.revenue.pa.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Three-dimensional restriction (unique nationally): (1) same year no carryforward; (2) same class a loss on securities cannot offset rental gain (different PA class); (3) same spouse on a MFJ PA return, Spouse A's loss cannot offset Spouse B's gain. The class rule ties for a pure publicly-traded-securities portfolio (all same class). The spouse rule is the silent killer for couples with asymmetric portfolios.","href":"/api/v1/citations/pa-72ps-7302-a1-year-lock-class-spouse-strict"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-carryback","jurisdiction":"PA","category":"carryback","label":"Capital-loss carryback","display":"NONE year-locked","value":0,"valueType":"years","citations":[{"id":"pa-72ps-7302-a1-year-lock-class-spouse-strict","jurisdiction":"PA","authority":"72 P.S. §7302(a.1); PA Personal Income Tax Guide Net Income (Losses) From the Sale, Exchange or Disposition of Property","authorityType":"dor-guidance","title":"Pennsylvania year-locks capital losses: same-year, same-class, same-spouse only; zero carryforward","quote":"Net losses from the sale, exchange or other disposition of property, to the extent not offset by gains from the same or other sales, exchanges or other dispositions of property in the same taxable year by the same taxpayer, may not be carried back or carried forward to any other taxable year, and may not be offset against income of a different class.","url":"https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Pages/Net-Income-Gain-Losses.aspx","sourceDomain":"www.revenue.pa.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Three-dimensional restriction (unique nationally): (1) same year no carryforward; (2) same class a loss on securities cannot offset rental gain (different PA class); (3) same spouse on a MFJ PA return, Spouse A's loss cannot offset Spouse B's gain. The class rule ties for a pure publicly-traded-securities portfolio (all same class). The spouse rule is the silent killer for couples with asymmetric portfolios.","href":"/api/v1/citations/pa-72ps-7302-a1-year-lock-class-spouse-strict"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-muni-instate","jurisdiction":"PA","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: PA Personal Income Tax Guide: interest from direct obligations of PA and its authorities is not taxable","value":1,"valueType":"binary-exempt","citations":[{"id":"pa-pa-guide-interest-muni-default-2025","jurisdiction":"PA","authority":"PA Personal Income Tax Guide (Interest); 72 P.S. §7303","authorityType":"dor-guidance","title":"PA exempts PA-issued bonds; out-of-state muni bond interest is taxable personal income per PA law","quote":"Interest is not taxable income if received from direct obligations of the Commonwealth of Pennsylvania, its authorities, commissions or other instrumentalities. Interest on obligations of other states, territories and their political subdivisions, and instrumentalities is taxable.","url":"https://www.pa.gov/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/interest","sourceDomain":"www.pa.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","href":"/api/v1/citations/pa-pa-guide-interest-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-muni-outstate","jurisdiction":"PA","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: PA Personal Income Tax Guide: 'interest on obligations of other states ... is taxable' Pennsylvania income","value":0,"valueType":"binary-exempt","citations":[{"id":"pa-pa-guide-interest-muni-default-2025","jurisdiction":"PA","authority":"PA Personal Income Tax Guide (Interest); 72 P.S. §7303","authorityType":"dor-guidance","title":"PA exempts PA-issued bonds; out-of-state muni bond interest is taxable personal income per PA law","quote":"Interest is not taxable income if received from direct obligations of the Commonwealth of Pennsylvania, its authorities, commissions or other instrumentalities. Interest on obligations of other states, territories and their political subdivisions, and instrumentalities is taxable.","url":"https://www.pa.gov/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/interest","sourceDomain":"www.pa.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","href":"/api/v1/citations/pa-pa-guide-interest-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-qoz-conformity","jurisdiction":"PA","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via Act 13 of 2019 statutory conformity","value":1,"valueType":"code","citations":[{"id":"pa-qoz-conformity-irc-1400z2-2025","jurisdiction":"PA","authority":"72 P.S. §7303(a)(3)(viii), added by Act 13 of 2019 (P.L.50, No.13)","authorityType":"statute","title":"Pennsylvania conforms to IRC §1400Z-2 QOZ gain deferral and exclusion via 72 P.S. §7303(a)(3)(viii)","quote":"The term 'net gains or income' and 'net losses' shall not include gains or income or losses which are excluded from Federal taxation under section 1400Z-2 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1400Z-2), as amended. Net gains or net income, less net losses, which are excluded under this subparagraph shall be included in income to the extent they are included in gross income under section 1400Z-2(b) of the Internal Revenue Code of 1986, as amended. Section 1400Z-2(c) of the Internal Revenue Code of 1986, as amended, shall apply in the computation of net gains or net income and net losses.","url":"https://www.legis.state.pa.us/cfdocs/legis/LI/uconsCheck.cfm?txtType=HTM&yr=1971&sessInd=0&act=2&chpt=3&sctn=3&subsctn=0","sourceDomain":"www.legis.state.pa.us","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"Verbatim statutory text from 72 P.S. §7303(a)(3)(viii). A Compiler's Note confirms: 'Section 28 of Act 13 of 2019 provided that amendment or addition of subsection (a)(3)(viii) and (5) shall apply to tax years beginning after December 31, 2019.' Confidence upgraded to high: verbatim statutory text confirmed against the Pennsylvania Consolidated Statutes.","href":"/api/v1/citations/pa-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-qsbs-conformity","jurisdiction":"PA","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Non-conforms to IRC §1202; QSBS gain exclusion not recognized, gain fully taxable at 3.07% PA income tax rate","value":0,"valueType":"binary-exempt","citations":[{"id":"pa-qsbs-conformity-irc-1202-2025","jurisdiction":"PA","authority":"72 P.S. §7303 (§1202 not enumerated among incorporated IRC sections)","authorityType":"statute","title":"Pennsylvania does not conform to IRC §1202 QSBS gain exclusion; QSBS gain fully taxable","quote":"Net gains or income from disposition of property. Net gains or net income, less net losses, derived from the sale, exchange or other disposition of property, including real property, tangible personal property, intangible personal property or obligations issued on or after the effective date of this amendatory act by the Commonwealth;","url":"https://www.legis.state.pa.us/WU01/LI/LI/US/HTM/1971/0/0002..HTM","sourceDomain":"www.legis.state.pa.us","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"72 P.S. §7303(a)(3) taxes net gains from the sale, exchange, or other disposition of property; the section enumerates specific IRC incorporations and §1202 is absent, so federally excluded QSBS gain is fully taxable in Pennsylvania. Corroboration (unciteable host): the PA DOR online answer 3885 at revenue-pa.custhelp.com states 'Pennsylvania does not have any provision similar to IRC 1202 that would allow gain from a sale of stock to be excluded from taxable income.'","href":"/api/v1/citations/pa-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-agency-obligations","jurisdiction":"PA","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: PA PIT Guide explicitly lists FNMA and FHLMC under 'Not Exempt from PA PIT'; federal charters exempt the corporations, not bondholder interest","value":0,"valueType":"binary-exempt","citations":[{"id":"pa-pit-guide-interest-fnma-fhlmc-not-exempt","jurisdiction":"PA","authority":"PA Department of Revenue, PA Personal Income Tax Guide, Interest chapter","authorityType":"dor-guidance","title":"PA PIT Guide explicitly lists FNMA and FHLMC under 'Not Exempt from PA PIT' with their federal charter citations","quote":"Obligations of Federal Agencies, Instrumentalities and Territories Not Exempt from PA PIT: Federal Home Loan Mortgage Corporation, 12 USC § 1455(a). Federal National Mortgage Association (Fannie Mae), 12 USC §§ 1719(e) and 1723a(c).","url":"https://www.pa.gov/en/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/interest.html","sourceDomain":"www.pa.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"The PA PIT Guide Interest chapter maintains a two-column table: 'Exempt' vs 'Not Exempt.' FHLB appears in the Exempt column (federal preemption under 12 U.S.C. §1433). FNMA and FHLMC appear in 'Not Exempt' with their respective federal charter citations, noting that the charter exempts the corporations themselves, not bondholder interest.","href":"/api/v1/citations/pa-pit-guide-interest-fnma-fhlmc-not-exempt"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-dividend-qualified","jurisdiction":"PA","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: PA imposes a uniform 3.07% flat rate on all income classes with no IRC §1(h)(11) preference; qualified dividends taxed identically to ordinary dividends","value":0,"valueType":"binary-exempt","citations":[{"id":"pa-72ps-7302-a-flat-3-07pct-2025","jurisdiction":"PA","authority":"72 P.S. §7302(a)","authorityType":"dor-guidance","title":"Pennsylvania flat personal income tax rate is 3.07% on all taxable income classes (TY2025)","quote":"A tax at the rate of 3.07% is hereby imposed upon each taxable year of every resident individual, estate or trust and each nonresident individual who has income from Pennsylvania sources.","url":"https://www.revenue.pa.gov/TaxTypes/PIT/Pages/default.aspx","sourceDomain":"www.revenue.pa.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The 3.07% flat rate is constitutionally uniform (Art. VIII, §1 of PA Constitution). There is no preferential LT capital gain rate in Pennsylvania. School district Earned Income Tax (PSD codes) does NOT reach capital gains it is an earned income / net-profits tax only. Pittsburgh's local earned income tax similarly does not apply to CG.","href":"/api/v1/citations/pa-72ps-7302-a-flat-3-07pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-treasury","jurisdiction":"PA","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"pa-31-usc-3124-treasury-exempt-2025","jurisdiction":"PA","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Pennsylvania income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/pa-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-fhlb-ffcb","jurisdiction":"PA","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"pa-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"PA","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Pennsylvania income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/pa-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-character","jurisdiction":"PA","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the flat 3.07% rate; Pennsylvania imposes its own capital gains tax without long-term or short-term distinction (72 Pa. Stat. §7303)","value":null,"valueType":"none","citations":[{"id":"pa-72ps-7302-a-flat-3-07pct-2025","jurisdiction":"PA","authority":"72 P.S. §7302(a)","authorityType":"dor-guidance","title":"Pennsylvania flat personal income tax rate is 3.07% on all taxable income classes (TY2025)","quote":"A tax at the rate of 3.07% is hereby imposed upon each taxable year of every resident individual, estate or trust and each nonresident individual who has income from Pennsylvania sources.","url":"https://www.revenue.pa.gov/TaxTypes/PIT/Pages/default.aspx","sourceDomain":"www.revenue.pa.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The 3.07% flat rate is constitutionally uniform (Art. VIII, §1 of PA Constitution). There is no preferential LT capital gain rate in Pennsylvania. School district Earned Income Tax (PSD codes) does NOT reach capital gains it is an earned income / net-profits tax only. Pittsburgh's local earned income tax similarly does not apply to CG.","href":"/api/v1/citations/pa-72ps-7302-a-flat-3-07pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-inheritance-rate","jurisdiction":"PA","category":"inheritance-rate","label":"Inheritance tax top rate for non-exempt beneficiaries (TY2025)","display":"0% for surviving spouse; 4.5% for direct descendants and lineal heirs; 12% for siblings; 15% for all other heirs; no PA estate tax (72 P.S. § 9116)","value":0.15,"valueType":"rate","citations":[{"id":"pa-72-ps-9116-inheritance-tax-2025","jurisdiction":"PA","authority":"72 P.S. § 9116 (rates) and § 9111 (scope); Pennsylvania Department of Revenue","authorityType":"dor-guidance","title":"Pennsylvania inheritance tax: 0% spouse; 4.5% direct descendants; 12% siblings; 15% others (TY2025)","quote":"The rates for Pennsylvania inheritance tax are as follows: 0 percent on transfers to a surviving spouse or to a parent from a child aged 21 or younger; 4.5 percent on transfers to direct descendants and lineal heirs; 12 percent on transfers to siblings; and 15 percent on transfers to other heirs, except charitable organizations, exempt institutions and government entities exempt from tax.","url":"https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/inheritance-tax","sourceDomain":"www.pa.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"Pennsylvania inheritance tax applies to transfers at death. No Pennsylvania estate tax. Direct descendants (children, grandchildren, parents) taxed at 4.5%. Spouses exempt (0%). Siblings at 12%. All other heirs at 15%. Agricultural property exempted under certain conditions (Act 85 of 2012). Military decedents exempt.","href":"/api/v1/citations/pa-72-ps-9116-inheritance-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-filing-status-flat","jurisdiction":"PA","category":"filing-status-flat","label":"Filing status irrelevant: flat rate state","display":"Yes: flat 3.07% rate on all classes of Pennsylvania taxable income regardless of filing status (72 P.S. §7302(a))","value":1,"valueType":"binary-exempt","citations":[{"id":"pa-72ps-7302-a-flat-3-07pct-2025","jurisdiction":"PA","authority":"72 P.S. §7302(a)","authorityType":"dor-guidance","title":"Pennsylvania flat personal income tax rate is 3.07% on all taxable income classes (TY2025)","quote":"A tax at the rate of 3.07% is hereby imposed upon each taxable year of every resident individual, estate or trust and each nonresident individual who has income from Pennsylvania sources.","url":"https://www.revenue.pa.gov/TaxTypes/PIT/Pages/default.aspx","sourceDomain":"www.revenue.pa.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The 3.07% flat rate is constitutionally uniform (Art. VIII, §1 of PA Constitution). There is no preferential LT capital gain rate in Pennsylvania. School district Earned Income Tax (PSD codes) does NOT reach capital gains it is an earned income / net-profits tax only. Pittsburgh's local earned income tax similarly does not apply to CG.","href":"/api/v1/citations/pa-72ps-7302-a-flat-3-07pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pa-migration-loss-conformity","jurisdiction":"PA","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Disallowed: Pennsylvania does not permit carryover of capital losses; out-of-state losses are forfeited upon migration per 72 P.S. § 7303.","value":0,"valueType":"code","citations":[{"id":"pa-72ps-7302-a1-year-lock-class-spouse-strict","jurisdiction":"PA","authority":"72 P.S. §7302(a.1); PA Personal Income Tax Guide Net Income (Losses) From the Sale, Exchange or Disposition of Property","authorityType":"dor-guidance","title":"Pennsylvania year-locks capital losses: same-year, same-class, same-spouse only; zero carryforward","quote":"Net losses from the sale, exchange or other disposition of property, to the extent not offset by gains from the same or other sales, exchanges or other dispositions of property in the same taxable year by the same taxpayer, may not be carried back or carried forward to any other taxable year, and may not be offset against income of a different class.","url":"https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Pages/Net-Income-Gain-Losses.aspx","sourceDomain":"www.revenue.pa.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"Three-dimensional restriction (unique nationally): (1) same year no carryforward; (2) same class a loss on securities cannot offset rental gain (different PA class); (3) same spouse on a MFJ PA return, Spouse A's loss cannot offset Spouse B's gain. The class rule ties for a pure publicly-traded-securities portfolio (all same class). The spouse rule is the silent killer for couples with asymmetric portfolios.","href":"/api/v1/citations/pa-72ps-7302-a1-year-lock-class-spouse-strict"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"RI","name":"Rhode Island","level":"state","facts":[{"factId":"ri-trust-nexus-incomplete-gift","jurisdiction":"RI","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: settlor-based with a beneficiary proviso, but reg 7.7(A) deems a discretionary trust resident when ANY member of the distribution class is an RI resident, and the ING grantor is one; taxed ratably per reg 7.7(C)","value":2,"valueType":"code","citations":[{"id":"ri-trust-nexus-incomplete-gift-2026","jurisdiction":"RI","authority":"R.I. Gen. Laws 44-30-5(c)(4); 280-RICR-20-55-7 secs. 7.7(A), 7.7(C)","authorityType":"statute","title":"Rhode Island taxes a resident settlor's irrevocable trust to the extent of resident beneficiaries; a discretionary class with any RI resident is deemed resident","quote":"An irrevocable trust created by or consisting of property contributed by a person who is a resident individual in this state at the time the trust was created ... only to the extent that the beneficiaries are Rhode Island resident individuals.","url":"https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-I/44-30-5.htm","sourceDomain":"webserver.rilegislature.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A completed-gift trust with no RI beneficiaries would escape via the proviso; the self-settled ING cannot.","href":"/api/v1/citations/ri-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-rate","jurisdiction":"RI","category":"rate","label":"Top income tax rate (TY2025)","display":"3.75% / 4.75% / 5.99% graduated (5.99% above $181,650; same schedule all statuses)","value":0.0599,"valueType":"rate","citations":[{"id":"ri-rigl-44-30-2-top-5-99pct-2025","jurisdiction":"RI","authority":"R.I. Gen. Laws §44-30-2.6(c)(3)(A)(I), (c)(3)(B)","authorityType":"statute","title":"Rhode Island top income tax rate is 5.99% on income above $181,650; exemption cliff above $283,250","quote":"Over $125,000: $5,388.00, plus 5.99% of the excess over $125,000. ... The dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount equal to: (I) Such dollar amount ... adjusted for inflation using a base tax year of 2000.","url":"https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-I/44-30-2.6.htm","sourceDomain":"webserver.rilegislature.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"The statutory top bracket is 5.99% on income over the base amount $125,000 (§44-30-2.6(c)(3)(A)); §44-30-2.6(c)(3)(B) inflation-indexes the bracket dollars from a base tax year of 2000, giving the TY2025 breakpoints $79,900 / $181,650. The same three-bracket schedule applies to all filing statuses (single rate table). The personal exemption and standard deduction phase out to zero when federal AGI exceeds $283,250; this phaseout is material for large-gain filers.","href":"/api/v1/citations/ri-rigl-44-30-2-top-5-99pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-threshold","jurisdiction":"RI","category":"threshold","label":"Exemption/deduction cliff","display":"Standard deduction and personal exemption both fall to $0 when modified FAGI exceeds $283,250","value":283250,"valueType":"dollars","citations":[{"id":"ri-rigl-44-30-2-top-5-99pct-2025","jurisdiction":"RI","authority":"R.I. Gen. Laws §44-30-2.6(c)(3)(A)(I), (c)(3)(B)","authorityType":"statute","title":"Rhode Island top income tax rate is 5.99% on income above $181,650; exemption cliff above $283,250","quote":"Over $125,000: $5,388.00, plus 5.99% of the excess over $125,000. ... The dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount equal to: (I) Such dollar amount ... adjusted for inflation using a base tax year of 2000.","url":"https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-I/44-30-2.6.htm","sourceDomain":"webserver.rilegislature.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"The statutory top bracket is 5.99% on income over the base amount $125,000 (§44-30-2.6(c)(3)(A)); §44-30-2.6(c)(3)(B) inflation-indexes the bracket dollars from a base tax year of 2000, giving the TY2025 breakpoints $79,900 / $181,650. The same three-bracket schedule applies to all filing statuses (single rate table). The personal exemption and standard deduction phase out to zero when federal AGI exceeds $283,250; this phaseout is material for large-gain filers.","href":"/api/v1/citations/ri-rigl-44-30-2-top-5-99pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-conformity","jurisdiction":"RI","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-muni-instate","jurisdiction":"RI","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: R.I. Gen. Laws §44-30-12(b)(1) addition is limited to non-Rhode Island obligations; RI bonds not added back","value":1,"valueType":"binary-exempt","citations":[{"id":"ri-gen-laws-44-30-12-muni-default-2025","jurisdiction":"RI","authority":"R.I. Gen. Laws §44-30-12(b)(1)","authorityType":"statute","title":"RI taxes out-of-state muni bond interest; RI bonds exempt R.I. Gen. Laws §44-30-12(b)(1)","quote":"Interest income on obligations of any state, or its political subdivisions, other than Rhode Island, to the extent such interest is excluded from federal taxable income.","url":"https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-II/44-30-12.htm","sourceDomain":"webserver.rilegislature.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","href":"/api/v1/citations/ri-gen-laws-44-30-12-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-muni-outstate","jurisdiction":"RI","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: R.I. Gen. Laws §44-30-12(b)(1) requires addition of out-of-state muni interest to Rhode Island income","value":0,"valueType":"binary-exempt","citations":[{"id":"ri-gen-laws-44-30-12-muni-default-2025","jurisdiction":"RI","authority":"R.I. Gen. Laws §44-30-12(b)(1)","authorityType":"statute","title":"RI taxes out-of-state muni bond interest; RI bonds exempt R.I. Gen. Laws §44-30-12(b)(1)","quote":"Interest income on obligations of any state, or its political subdivisions, other than Rhode Island, to the extent such interest is excluded from federal taxable income.","url":"https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-II/44-30-12.htm","sourceDomain":"webserver.rilegislature.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","href":"/api/v1/citations/ri-gen-laws-44-30-12-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-qoz-conformity","jurisdiction":"RI","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Partial conformity: base conformity to IRC §1400Z-2 applies to all federal opportunity zones; bonus subtraction under §44-30-2.6 applies only to investments in Rhode Island-designated opportunity zones","value":1,"valueType":"code","citations":[{"id":"ri-qoz-conformity-irc-1400z2-2025","jurisdiction":"RI","authority":"R.I. Gen. Laws §44-30-12(c)(10); §44-30-2.6","authorityType":"statute","title":"Rhode Island partially conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"(a) General. The Rhode Island income of a resident individual means the individual's adjusted gross income for federal income tax purposes, with the modifications specified in this section. ... (10) Modification for Rhode Island investment in opportunity zones. For purposes of a taxpayer's state tax liability, in the case of any investment in a Rhode Island opportunity zone by the taxpayer for at least seven (7) years, a modification to income shall be allowed for the incremental difference between the benefit allowed under 26 U.S.C. § 1400Z-2(b)(2)(B)(iv) and the federal benefit allowed under 26 U.S.C. § 1400Z-2(c);","url":"https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-II/44-30-12.htm","sourceDomain":"webserver.rilegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Rhode Island starts from federal AGI, so base conformity to IRC §1400Z-2 applies to all federal opportunity zones; the quoted §44-30-12(c)(10) modification adds a bonus Rhode Island subtraction only for investments in Rhode Island opportunity zones held at least seven years, an additional state benefit beyond the federal treatment.","href":"/api/v1/citations/ri-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-qsbs-conformity","jurisdiction":"RI","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback required","value":1,"valueType":"binary-exempt","citations":[{"id":"ri-qsbs-conformity-irc-1202-2025","jurisdiction":"RI","authority":"R.I. Gen. Laws §44-30-2.6(c)(3)","authorityType":"statute","title":"Rhode Island conforms to IRC §1202 QSBS gain exclusion; no addback required","quote":"(3) For the period January 1, 2011, through December 31, 2011, and thereafter, \"Rhode Island taxable income\" means federal adjusted gross income as determined under the Internal Revenue Code, 26 U.S.C. § 1 et seq., and as modified for Rhode Island purposes pursuant to § 44-30-12","url":"https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-I/44-30-2.6.htm","sourceDomain":"webserver.rilegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Rhode Island taxable income starts from federal AGI (§44-30-2.6(c)(3)); §44-30-12 lists no §1202 addback, so federally excluded QSBS gain never enters the Rhode Island base.","href":"/api/v1/citations/ri-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-agency-obligations","jurisdiction":"RI","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: R.I. Gen. Laws §44-30-12(a)(1) subtraction requires interest be 'exempt from state income taxes under the laws of the United States'; FNMA/FHLMC have no federal bondholder exemption statute","value":0,"valueType":"binary-exempt","citations":[{"id":"ri-gen-laws-44-30-12a1-fnma-fhlmc-taxable","jurisdiction":"RI","authority":"R.I. Gen. Laws §44-30-12(a)(1)","authorityType":"statute","title":"Rhode Island subtraction for U.S. obligation interest requires exemption from state income taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"There shall be subtracted from federal adjusted gross income: interest income on obligations of the United States and its territories and possessions, or of any authority, commission, or instrumentality of the United States, to the extent includible in gross income for federal income tax purposes and exempt from state income taxes under the laws of the United States.","url":"https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-II/44-30-12.htm","sourceDomain":"webserver.rilegislature.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"R.I. Gen. Laws §44-30-12(a)(1) requires the income be 'exempt from state income taxes under the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute. No RI DOR named-entity publication found; confidence: medium.","href":"/api/v1/citations/ri-gen-laws-44-30-12a1-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-dividend-qualified","jurisdiction":"RI","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: Rhode Island has no IRC §1(h)(11) preferential rate; qualified dividends taxed at ordinary rates up to 5.99%","value":0,"valueType":"binary-exempt","citations":[{"id":"ri-rigl-44-30-2-top-5-99pct-2025","jurisdiction":"RI","authority":"R.I. Gen. Laws §44-30-2.6(c)(3)(A)(I), (c)(3)(B)","authorityType":"statute","title":"Rhode Island top income tax rate is 5.99% on income above $181,650; exemption cliff above $283,250","quote":"Over $125,000: $5,388.00, plus 5.99% of the excess over $125,000. ... The dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount equal to: (I) Such dollar amount ... adjusted for inflation using a base tax year of 2000.","url":"https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-I/44-30-2.6.htm","sourceDomain":"webserver.rilegislature.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"The statutory top bracket is 5.99% on income over the base amount $125,000 (§44-30-2.6(c)(3)(A)); §44-30-2.6(c)(3)(B) inflation-indexes the bracket dollars from a base tax year of 2000, giving the TY2025 breakpoints $79,900 / $181,650. The same three-bracket schedule applies to all filing statuses (single rate table). The personal exemption and standard deduction phase out to zero when federal AGI exceeds $283,250; this phaseout is material for large-gain filers.","href":"/api/v1/citations/ri-rigl-44-30-2-top-5-99pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-treasury","jurisdiction":"RI","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ri-31-usc-3124-treasury-exempt-2025","jurisdiction":"RI","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Rhode Island income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ri-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-fhlb-ffcb","jurisdiction":"RI","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ri-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"RI","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Rhode Island income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ri-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-carryback","jurisdiction":"RI","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-character","jurisdiction":"RI","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income up to 5.99% (R.I. Gen. Laws §44-30-2)","value":null,"valueType":"none","citations":[{"id":"ri-rigl-44-30-2-top-5-99pct-2025","jurisdiction":"RI","authority":"R.I. Gen. Laws §44-30-2.6(c)(3)(A)(I), (c)(3)(B)","authorityType":"statute","title":"Rhode Island top income tax rate is 5.99% on income above $181,650; exemption cliff above $283,250","quote":"Over $125,000: $5,388.00, plus 5.99% of the excess over $125,000. ... The dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount equal to: (I) Such dollar amount ... adjusted for inflation using a base tax year of 2000.","url":"https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-I/44-30-2.6.htm","sourceDomain":"webserver.rilegislature.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"The statutory top bracket is 5.99% on income over the base amount $125,000 (§44-30-2.6(c)(3)(A)); §44-30-2.6(c)(3)(B) inflation-indexes the bracket dollars from a base tax year of 2000, giving the TY2025 breakpoints $79,900 / $181,650. The same three-bracket schedule applies to all filing statuses (single rate table). The personal exemption and standard deduction phase out to zero when federal AGI exceeds $283,250; this phaseout is material for large-gain filers.","href":"/api/v1/citations/ri-rigl-44-30-2-top-5-99pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-estate-rate","jurisdiction":"RI","category":"estate-rate","label":"Estate tax top marginal rate (TY2025)","display":"0.8% to 16% graduated (pre-2001 federal rate table); $1,802,431 CPI-adjusted exemption for TY2025 (R.I. Gen. Law § 44-22 and § 44-22-1.1)","value":0.16,"valueType":"rate","citations":[{"id":"ri-gen-law-44-22-estate-tax-2025","jurisdiction":"RI","authority":"Rhode Island Division of Taxation, Estate Tax (citing R.I. Gen. Laws §44-22 and §44-22-1.1)","authorityType":"dor-guidance","title":"Rhode Island estate tax: 0.8% to 16% graduated; $1,802,431 exemption for TY2025 (CPI-U adjusted annually)","quote":"For decedents dying on or after 1/1/2025 with a gross estate of more than $1,802,431","url":"https://tax.ri.gov/tax-sections/estate-tax","sourceDomain":"tax.ri.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"RI exemption is CPI-U adjusted annually per R.I. Gen. Law § 44-22-1.1(a). TY2024 was $1,774,583; TY2025 is $1,802,431; TY2026 is $1,838,056. Rate schedule runs 0.8%-16% using the pre-2001 federal state death tax credit table. Independent of federal exclusion.","href":"/api/v1/citations/ri-gen-law-44-22-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-estate-exemption-terminal-2025-12-31","jurisdiction":"RI","category":"estate-exemption","label":"Estate tax exemption (TY2025)","display":"$1,802,431 for TY2025; CPI-U adjusted annually per R.I. Gen. Law § 44-22-1.1(a); independent of federal exclusion","value":1802431,"valueType":"dollars","citations":[{"id":"ri-gen-law-44-22-estate-tax-2025","jurisdiction":"RI","authority":"Rhode Island Division of Taxation, Estate Tax (citing R.I. Gen. Laws §44-22 and §44-22-1.1)","authorityType":"dor-guidance","title":"Rhode Island estate tax: 0.8% to 16% graduated; $1,802,431 exemption for TY2025 (CPI-U adjusted annually)","quote":"For decedents dying on or after 1/1/2025 with a gross estate of more than $1,802,431","url":"https://tax.ri.gov/tax-sections/estate-tax","sourceDomain":"tax.ri.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"RI exemption is CPI-U adjusted annually per R.I. Gen. Law § 44-22-1.1(a). TY2024 was $1,774,583; TY2025 is $1,802,431; TY2026 is $1,838,056. Rate schedule runs 0.8%-16% using the pre-2001 federal state death tax credit table. Independent of federal exclusion.","href":"/api/v1/citations/ri-gen-law-44-22-estate-tax-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2026-11-01"},{"factId":"ri-estate-exemption-terminal-2026-12-31","jurisdiction":"RI","category":"estate-exemption","label":"Estate tax exemption (TY2026)","display":"$1,838,056 for TY2026; CPI-U adjusted annually per R.I. Gen. Law § 44-22-1.1(a); independent of federal exclusion","value":1838056,"valueType":"dollars","citations":[{"id":"ri-gen-law-44-22-estate-tax-2026","jurisdiction":"RI","authority":"Rhode Island Division of Taxation, Estate Tax (citing R.I. Gen. Laws §44-22 and §44-22-1.1)","authorityType":"dor-guidance","title":"Rhode Island estate tax exemption for TY2026: $1,838,056 (CPI-U adjusted annually)","quote":"For decedents dying on or after 1/1/2026 with a gross estate of more than $1,838,056","url":"https://tax.ri.gov/tax-sections/estate-tax","sourceDomain":"tax.ri.gov","taxYear":2026,"asOf":"2026-06-21","confidence":"medium","note":"RI exemption CPI-U adjusted annually per R.I. Gen. Law § 44-22-1.1(a). TY2025 was $1,802,431; TY2026 is $1,838,056. Rate schedule 0.8%-16% using the pre-2001 federal state death tax credit table. Independent of federal exclusion.","href":"/api/v1/citations/ri-gen-law-44-22-estate-tax-2026"}],"effectiveDate":"2026-01-01","terminalDate":"2026-12-31","nextReviewDate":"2026-11-01"},{"factId":"ri-filing-status-identical","jurisdiction":"RI","category":"filing-status-identical","label":"Same bracket schedule for all filing statuses","display":"Yes: R.I. Gen. Laws §44-30-2 imposes tax at one graduated rate schedule (3.75% to 5.99%) explicitly published as 'FOR ALL FILING STATUS TYPES'; same thresholds for Single and MFJ, creating the maximum marriage penalty on a joint return vs. two singles","value":1,"valueType":"binary-exempt","citations":[{"id":"ri-rigl-44-30-2-top-5-99pct-2025","jurisdiction":"RI","authority":"R.I. Gen. Laws §44-30-2.6(c)(3)(A)(I), (c)(3)(B)","authorityType":"statute","title":"Rhode Island top income tax rate is 5.99% on income above $181,650; exemption cliff above $283,250","quote":"Over $125,000: $5,388.00, plus 5.99% of the excess over $125,000. ... The dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount equal to: (I) Such dollar amount ... adjusted for inflation using a base tax year of 2000.","url":"https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-I/44-30-2.6.htm","sourceDomain":"webserver.rilegislature.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"The statutory top bracket is 5.99% on income over the base amount $125,000 (§44-30-2.6(c)(3)(A)); §44-30-2.6(c)(3)(B) inflation-indexes the bracket dollars from a base tax year of 2000, giving the TY2025 breakpoints $79,900 / $181,650. The same three-bracket schedule applies to all filing statuses (single rate table). The personal exemption and standard deduction phase out to zero when federal AGI exceeds $283,250; this phaseout is material for large-gain filers.","href":"/api/v1/citations/ri-rigl-44-30-2-top-5-99pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ri-migration-loss-conformity","jurisdiction":"RI","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Rhode Island computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"ri-migration-loss-conformity-src","jurisdiction":"RI","authority":"R.I. Gen. Laws §44-30-2; R.I. Gen. Laws §44-30-2.6","authorityType":"statute","title":"Rhode Island conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"For the period January 1, 2007, through December 31, 2007, and thereafter, Rhode Island taxable income shall be determined by deducting from federal adjusted gross income as defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island itemized-deduction amount and the Rhode Island exemption amount.","url":"https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-I/44-30-2.6.htm","sourceDomain":"webserver.rilegislature.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"R.I. Gen. Laws §44-30-2.6 determines Rhode Island taxable income by starting from federal adjusted gross income under 26 U.S.C. § 62, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.","href":"/api/v1/citations/ri-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"SC","name":"South Carolina","level":"state","facts":[{"factId":"sc-trust-nexus-incomplete-gift","jurisdiction":"SC","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES: a NV-administered ING is a nonresident trust; retained portfolio gain is not SC real property, SC business income, or an intangible employed in an SC trade, so nothing reaches it. PERMANENT, not deferral: no throwback statute, and the retained gain is corpus gain outside DNI (IRC 643(a)(3)), so it never carries out to the settlor on a later distribution. Ongoing income on the reinvested proceeds IS taxable to a resident beneficiary when distributed","value":0,"valueType":"code","citations":[{"id":"sc-trust-nexus-incomplete-gift-2026","jurisdiction":"SC","authority":"S.C. Code Sec. 12-6-30(5) (resident trust: administered in the state); 12-6-1720 (nonresident source rules)","authorityType":"statute","title":"South Carolina trust residency is administration-only; nonresident trusts are taxed on SC-source income only","quote":"'Resident trust' means a trust administered in this State. 'Nonresident trust' is a trust other than a resident trust.","url":"https://www.scstatehouse.gov/code/t12c006.php","sourceDomain":"www.scstatehouse.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","href":"/api/v1/citations/sc-trust-nexus-incomplete-gift-2026"},{"id":"irc-643a3-corpus-capital-gain-excluded-from-dni","jurisdiction":"US","authority":"IRC §643(a)(3)","authorityType":"statute","title":"IRC §643(a)(3): capital gain allocated to corpus is excluded from distributable net income","quote":"Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section643&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"This is the rule that makes an ING's escape PERMANENT rather than deferral. Income reaches a beneficiary only through DNI (IRC 652/662); a retained corpus gain is outside DNI, so a later distribution of it is principal, not income, and never enters the beneficiary's federal taxable income. Every escape state starts from the federal number, so it never enters the state base either. Conditional on the gain ACTUALLY being allocated to corpus and not distributed in the year realized: a gain routed to fiduciary accounting income, or distributed in the sale year, is in DNI and is taxable to the resident beneficiary.","href":"/api/v1/citations/irc-643a3-corpus-capital-gain-excluded-from-dni"},{"id":"irc-665c-throwback-inapplicable-qualified-domestic-trust","jurisdiction":"US","authority":"IRC §665(c)","authorityType":"statute","title":"IRC §665(c): the accumulation-distribution (throwback) rules do not reach a qualified domestic trust","quote":"(1) In general In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. (2) Qualified trust For purposes of this subsection, the term 'qualified trust' means any trust other than- (A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or (B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section665&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"A modern NV/DE ING is a 'qualified trust', so the federal accumulation-distribution regime is computed without regard to undistributed net income: it is empty. States whose only accumulation rule piggybacks IRC 665-668 (OR OAR 150-316-0575, IA, KS, SC) therefore recapture nothing. Only a state with its OWN throwback keyed to income untaxed by any state can claw the gain back, and of the verified escape states only Utah has one (59-10-114(1)(g)).","href":"/api/v1/citations/irc-665c-throwback-inapplicable-qualified-domestic-trust"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-estate-none","jurisdiction":"SC","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"sc-estate-none-2025","jurisdiction":"SC","authority":"South Carolina Department of Revenue, Estate Tax page","authorityType":"dor-guidance","title":"SC has no estate tax for decedents dying on or after Jan 1, 2005","quote":"South Carolina has no Estate Tax for decedents dying on or after January 1, 2005.","url":"https://dor.sc.gov/tax/estate","sourceDomain":"dor.sc.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Statute backup: S.C. Code Title 12 Chapter 16 (pickup tied to the now-zero federal credit).","href":"/api/v1/citations/sc-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-rate","jurisdiction":"SC","category":"rate","label":"Top income tax rate (through TY2025)","display":"0% / 3% / 6% graduated (6% above ~$17,830; mid-year acceleration from 6.2%)","value":0.06,"valueType":"rate","citations":[{"id":"sc-sc-code-12-6-510-top-6pct-2025","jurisdiction":"SC","authority":"S.C. Code §12-6-510","authorityType":"statute","title":"South Carolina top income tax rate is 6% for TY2025 (annual rate-reduction schedule)","quote":"For taxable years beginning after 2021, a tax is imposed on the South Carolina taxable income of individuals, estates, and trusts at the rates provided in this subsection; 6% times the amount minus $577 (for the top bracket).","url":"https://www.scstatehouse.gov/code/t12c006.php","sourceDomain":"www.scstatehouse.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"S.C. Code §12-6-510(B)(1) imposes the tax at graduated rates per the subsection. The 6% rate is the result of the annual reduction schedule enacted in Act 532 (2022): 7% (2021) to 6.5% (2022) to 6.4% (2023) to 6.2% (2024) to 6.0% (2025). Verbatim quote verified against scstatehouse.gov S.C. Code Title 12 Chapter 6.","href":"/api/v1/citations/sc-sc-code-12-6-510-top-6pct-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"sc-rate-h4216-2026","jurisdiction":"SC","category":"rate","label":"Top income tax rate (TY2026, Act 110 restructure)","display":"Two brackets: 1.99% under $30,000; 5.21% at $30,000 and above, minus $966 (H.4216 / Act 110)","value":0.0521,"valueType":"rate","citations":[{"id":"sc-dor-h4216-two-bracket-2026","jurisdiction":"SC","authority":"SC DOR, Information About H. 4216 (Act 110, 2026)","authorityType":"dor-guidance","title":"South Carolina TY2026: 1.99% under $30,000; 5.21% at $30,000 and above, minus $966","quote":"The tax rate for income less than $30,000 is 1.99%. The tax rate for income from $30,000 and above is 5.21%, minus $966.","url":"https://dor.sc.gov/news/information-about-h-4216","sourceDomain":"dor.sc.gov","taxYear":2026,"asOf":"2026-07-03","confidence":"medium","note":"H. 4216 does not impact 2025 income tax returns (per the same DOR page). Further rate cuts are trigger-based, capped at $200 million of revenue impact per step.","href":"/api/v1/citations/sc-dor-h4216-two-bracket-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-character","jurisdiction":"SC","category":"character","label":"Net capital gain deduction","display":"44% of IRC §1222 net capital gain; effective LT rate = 56% of the top rate (≈ 3.36% at 6% TY2025; ≈ 2.92% at 5.21% TY2026)","value":0.44,"valueType":"rate","citations":[{"id":"sc-sc-code-12-6-1150-44pct-ncg-deduction-2025","jurisdiction":"SC","authority":"S.C. Code §12-6-1150; 2025 SC1040 Instructions","authorityType":"statute","title":"South Carolina allows a 44% deduction of net capital gain (IRC §1222-defined) from taxable income","quote":"Individuals, estates, and trusts are allowed a deduction from South Carolina taxable income equal to forty-four percent of net capital gain recognized in this State during a taxable year.","url":"https://www.scstatehouse.gov/code/t12c006.php","sourceDomain":"www.scstatehouse.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"The deduction is on the IRC §1222 post-netting net capital gain. ST losses erode the base equally (rule ties). Effective top rate on LT gains: 6% × (1 − 0.44) = 3.36%. Tables revised 6/17/2025 for mid-year rate cut to 6%; TF showed stale 6.2%. Base = federal taxable income; SC conformity year-locked at 12/31/2024.","href":"/api/v1/citations/sc-sc-code-12-6-1150-44pct-ncg-deduction-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-conformity","jurisdiction":"SC","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies; rule ties for all-LT estimand","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-muni-instate","jurisdiction":"SC","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: S.C. Code §12-6-1120 applies the IRC §103 exclusion to SC obligations","value":1,"valueType":"binary-exempt","citations":[{"id":"sc-code-12-6-1120-muni-default-2025","jurisdiction":"SC","authority":"S.C. Code §12-6-1120","authorityType":"statute","title":"SC exempts SC-issued bonds; out-of-state muni bond interest is taxable per S.C. Code §12-6-1120","quote":"The exclusion from gross income authorized by Internal Revenue Code Section 103 (Interest on State and Local Bonds) applies only to obligations of South Carolina and its political subdivisions.","url":"https://www.scstatehouse.gov/code/t12c006.php","sourceDomain":"www.scstatehouse.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"§12-6-1120 explicitly limits the §103 exclusion to South Carolina bonds only. Out-of-state bonds receive no exclusion and are taxable.","href":"/api/v1/citations/sc-code-12-6-1120-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-muni-outstate","jurisdiction":"SC","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: S.C. Code §12-6-1120 limits the §103 exclusion to SC bonds only; out-of-state muni interest is taxable","value":0,"valueType":"binary-exempt","citations":[{"id":"sc-code-12-6-1120-muni-default-2025","jurisdiction":"SC","authority":"S.C. Code §12-6-1120","authorityType":"statute","title":"SC exempts SC-issued bonds; out-of-state muni bond interest is taxable per S.C. Code §12-6-1120","quote":"The exclusion from gross income authorized by Internal Revenue Code Section 103 (Interest on State and Local Bonds) applies only to obligations of South Carolina and its political subdivisions.","url":"https://www.scstatehouse.gov/code/t12c006.php","sourceDomain":"www.scstatehouse.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"§12-6-1120 explicitly limits the §103 exclusion to South Carolina bonds only. Out-of-state bonds receive no exclusion and are taxable.","href":"/api/v1/citations/sc-code-12-6-1120-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-qoz-conformity","jurisdiction":"SC","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via fixed-date IRC conformity (12/31/2024); §1400Z-2 predates the cutoff","value":1,"valueType":"code","citations":[{"id":"sc-qoz-conformity-irc-1400z2-2025","jurisdiction":"SC","authority":"S.C. Code Ann. §12-6-40(A); §12-6-50","authorityType":"statute","title":"South Carolina conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"(A)(1)(a) Except as otherwise provided, \"Internal Revenue Code\" means the Internal Revenue Code of 1986, as amended through December 31, 2024, and includes the effective date provisions contained in it.","url":"https://www.scstatehouse.gov/code/t12c006.php","sourceDomain":"www.scstatehouse.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Quote is SECTION 12-6-40. South Carolina uses FIXED-DATE (not rolling) IRC conformity: §12-6-40(A) adopts the IRC as amended through December 31, 2024 (2025 Act 63). IRC §1400Z-2 (2017 TCJA) predates that cutoff and is not among the sections South Carolina declines to adopt under §12-6-50, so QOZ deferral/exclusion flows through for TY2025. Note: SC does not yet conform to the OBBBA (July 2025) QOZ amendments, which postdate the 12/31/2024 cutoff.","href":"/api/v1/citations/sc-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-qsbs-conformity","jurisdiction":"SC","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via fixed-date IRC conformity (12/31/2024); no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"sc-qsbs-conformity-irc-1202-2025","jurisdiction":"SC","authority":"S.C. Code Ann. §12-6-40(A)(1)(a)","authorityType":"statute","title":"South Carolina conforms to IRC §1202 QSBS gain exclusion","quote":"(A)(1)(a) Except as otherwise provided, \"Internal Revenue Code\" means the Internal Revenue Code of 1986, as amended through December 31, 2024, and includes the effective date provisions contained in it.","url":"https://www.scstatehouse.gov/code/t12c006.php","sourceDomain":"www.scstatehouse.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Quote is SECTION 12-6-40. South Carolina §12-6-40(A) adopts the IRC as amended through December 31, 2024 (2025 Act 63), a FIXED date. IRC §1202 predates that cutoff and is not in the §12-6-50 non-adoption list, so the QSBS exclusion flows through with no addback for TY2025. Note: the OBBBA (July 2025) §1202 enhancements postdate the cutoff and do not yet apply.","href":"/api/v1/citations/sc-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-agency-obligations","jurisdiction":"SC","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: SC DOR FAQ (citing Revenue Ruling #16-2) explicitly lists FNMA and FHLMC interest as taxable for South Carolina income tax purposes","value":0,"valueType":"binary-exempt","citations":[{"id":"sc-dor-faq-rr16-2-fnma-fhlmc-taxable","jurisdiction":"SC","authority":"SC Department of Revenue Individual Income Tax FAQ, citing SC Revenue Ruling #16-2","authorityType":"dor-guidance","title":"SC DOR FAQ (citing Revenue Ruling #16-2) explicitly lists FNMA and FHLMC interest as taxable for South Carolina purposes","quote":"Interest income from the following obligations is taxable for state purposes: Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and Government National Mortgage Association (Ginnie Mae).","url":"https://dor.sc.gov/tax/individual-income/faq","sourceDomain":"dor.sc.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"SC DOR FAQ cites SC Revenue Ruling #16-2 by name. FHLB appears separately as exempt (federal mandate under 12 U.S.C. §1433). FNMA, FHLMC, and GNMA have no federal bondholder exemption statute and are explicitly listed as taxable.","href":"/api/v1/citations/sc-dor-faq-rr16-2-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-dividend-qualified","jurisdiction":"SC","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: S.C. Code §12-6-1150 deduction is keyed to IRC §1222 'net capital gain' (gains from sale or exchange); dividend income is excluded by definition and taxed at ordinary rates","value":0,"valueType":"binary-exempt","citations":[{"id":"sc-sc-code-12-6-510-top-6pct-2025","jurisdiction":"SC","authority":"S.C. Code §12-6-510","authorityType":"statute","title":"South Carolina top income tax rate is 6% for TY2025 (annual rate-reduction schedule)","quote":"For taxable years beginning after 2021, a tax is imposed on the South Carolina taxable income of individuals, estates, and trusts at the rates provided in this subsection; 6% times the amount minus $577 (for the top bracket).","url":"https://www.scstatehouse.gov/code/t12c006.php","sourceDomain":"www.scstatehouse.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"S.C. Code §12-6-510(B)(1) imposes the tax at graduated rates per the subsection. The 6% rate is the result of the annual reduction schedule enacted in Act 532 (2022): 7% (2021) to 6.5% (2022) to 6.4% (2023) to 6.2% (2024) to 6.0% (2025). Verbatim quote verified against scstatehouse.gov S.C. Code Title 12 Chapter 6.","href":"/api/v1/citations/sc-sc-code-12-6-510-top-6pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-treasury","jurisdiction":"SC","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"sc-31-usc-3124-treasury-exempt-2025","jurisdiction":"SC","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from South Carolina income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/sc-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-fhlb-ffcb","jurisdiction":"SC","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"sc-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"SC","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from South Carolina income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/sc-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-carryback","jurisdiction":"SC","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-filing-status-identical","jurisdiction":"SC","category":"filing-status-identical","label":"Same bracket schedule for all filing statuses","display":"Yes: S.C. Code §12-6-510(B)(1) imposes tax on individuals at one rate schedule; same thresholds for Single and MFJ, creating the maximum marriage penalty on a joint return vs. two singles","value":1,"valueType":"binary-exempt","citations":[{"id":"sc-sc-code-12-6-510-b1-filing-status-identical-2025","jurisdiction":"SC","authority":"S.C. Code §12-6-510(B)(1)","authorityType":"statute","title":"South Carolina income tax: one rate schedule for all individuals (same schedule all filing statuses; no MFJ doubles)","quote":"Notwithstanding subsection (A), for taxable years beginning after 2021, a tax is imposed on the South Carolina taxable income of individuals, estates, and trusts and any other entity except those taxed or exempted from taxation under Sections 12-6-530 through 12-6-550 computed at the following rates with the income brackets indexed in accordance with Section 12-6-520:","url":"https://www.scstatehouse.gov/code/t12c006.php","sourceDomain":"www.scstatehouse.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"S.C. Code §12-6-510 provides one graduated schedule for all filing statuses; no separate MFJ bracket table. Maximum marriage penalty on a joint return vs. two singles filing separately.","href":"/api/v1/citations/sc-sc-code-12-6-510-b1-filing-status-identical-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sc-migration-loss-conformity","jurisdiction":"SC","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): South Carolina computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"sc-migration-loss-conformity-src","jurisdiction":"SC","authority":"S.C. Code §12-6-510","authorityType":"statute","title":"South Carolina conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"A resident individual's South Carolina gross income, adjusted gross income, and taxable income is computed as determined under the Internal Revenue Code with the modifications provided in Article 9 of this chapter and subject to allocation and apportionment as provided in Article 17 of this chapter.","url":"https://www.scstatehouse.gov/code/t12c006.php","sourceDomain":"www.scstatehouse.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"S.C. Code §12-6-560 computes a resident individual's taxable income as determined under the Internal Revenue Code, so the federal Section 1212 capital-loss carryover flows through. No published guidance addresses a carryforward imported from a pre-residency year; that application remains a structural inference.","href":"/api/v1/citations/sc-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"SD","name":"South Dakota","level":"state","facts":[{"factId":"sd-estate-none","jurisdiction":"SD","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"sd-estate-none-2025","jurisdiction":"SD","authority":"South Dakota Department of Revenue, Individuals: Taxes page","authorityType":"dor-guidance","title":"SD inheritance tax repealed by voters effective July 1, 2001; no estate tax","quote":"South Dakota does not have an inheritance tax. The voters of South Dakota repealed the state inheritance tax effective July 1, 2001.There is also no estate tax.","url":"https://dor.sd.gov/individuals/taxes/","sourceDomain":"dor.sd.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Missing space before 'There' is as-fetched (page markup artifact). sdlegislature.gov statute pages are JS-rendered and unfetchable.","href":"/api/v1/citations/sd-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sd-no-tax","jurisdiction":"SD","category":"no-tax","label":"Capital gains tax","display":"None South Dakota imposes no personal income tax","value":null,"valueType":"none","citations":[{"id":"sd-no-individual-income-tax","jurisdiction":"SD","authority":"South Dakota Department of Revenue Individual Income Tax","authorityType":"dor-guidance","title":"South Dakota imposes no personal income tax; capital gains are not taxed","quote":"South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.","url":"https://dor.sd.gov/individuals/","sourceDomain":"dor.sd.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","href":"/api/v1/citations/sd-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sd-muni-instate","jurisdiction":"SD","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: no South Dakota state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"sd-no-individual-income-tax","jurisdiction":"SD","authority":"South Dakota Department of Revenue Individual Income Tax","authorityType":"dor-guidance","title":"South Dakota imposes no personal income tax; capital gains are not taxed","quote":"South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.","url":"https://dor.sd.gov/individuals/","sourceDomain":"dor.sd.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","href":"/api/v1/citations/sd-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sd-muni-outstate","jurisdiction":"SD","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Exempt: no South Dakota state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"sd-no-individual-income-tax","jurisdiction":"SD","authority":"South Dakota Department of Revenue Individual Income Tax","authorityType":"dor-guidance","title":"South Dakota imposes no personal income tax; capital gains are not taxed","quote":"South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.","url":"https://dor.sd.gov/individuals/","sourceDomain":"dor.sd.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","href":"/api/v1/citations/sd-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sd-agency-obligations","jurisdiction":"SD","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Exempt: no South Dakota state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"sd-no-individual-income-tax","jurisdiction":"SD","authority":"South Dakota Department of Revenue Individual Income Tax","authorityType":"dor-guidance","title":"South Dakota imposes no personal income tax; capital gains are not taxed","quote":"South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.","url":"https://dor.sd.gov/individuals/","sourceDomain":"dor.sd.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","href":"/api/v1/citations/sd-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sd-dividend-qualified","jurisdiction":"SD","category":"dividend-qualified","label":"Qualified dividend income","display":"Moot: no South Dakota state income tax","value":null,"valueType":"none","citations":[{"id":"sd-no-individual-income-tax","jurisdiction":"SD","authority":"South Dakota Department of Revenue Individual Income Tax","authorityType":"dor-guidance","title":"South Dakota imposes no personal income tax; capital gains are not taxed","quote":"South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.","url":"https://dor.sd.gov/individuals/","sourceDomain":"dor.sd.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","href":"/api/v1/citations/sd-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sd-treasury","jurisdiction":"SD","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: no South Dakota state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"sd-no-individual-income-tax","jurisdiction":"SD","authority":"South Dakota Department of Revenue Individual Income Tax","authorityType":"dor-guidance","title":"South Dakota imposes no personal income tax; capital gains are not taxed","quote":"South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.","url":"https://dor.sd.gov/individuals/","sourceDomain":"dor.sd.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","href":"/api/v1/citations/sd-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sd-fhlb-ffcb","jurisdiction":"SD","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: no South Dakota state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"sd-no-individual-income-tax","jurisdiction":"SD","authority":"South Dakota Department of Revenue Individual Income Tax","authorityType":"dor-guidance","title":"South Dakota imposes no personal income tax; capital gains are not taxed","quote":"South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.","url":"https://dor.sd.gov/individuals/","sourceDomain":"dor.sd.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","href":"/api/v1/citations/sd-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"sd-marital-elective-cp","jurisdiction":"SD","category":"marital-elective-cp","label":"Elective community property trust available","display":"Yes: SDCL §§55-17-1 to 55-17-13 (South Dakota Community Property Trust Act) allows married couples to elect CP treatment for assets held in a qualifying SD trust; double step-up under IRC §1014(b)(6) is legally arguable but no IRS ruling confirms it","value":1,"valueType":"binary-exempt","citations":[{"id":"sd-sdcl-55-17-marital-elective-cp-irs-p555","jurisdiction":"SD","authority":"IRS Publication 555 (Rev. December 2024), Introduction","authorityType":"form-instructions","title":"South Dakota elective community property: SDCL §§55-17-1 to 55-17-13 allows married couples to elect CP treatment via a qualifying trust","quote":"This publication doesn't address the federal tax treatment of income or property subject to the 'community property' election under Alaska, Tennessee, and South Dakota state laws.","url":"https://www.irs.gov/publications/p555","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Primary statute: SDCL §§55-17-1 to 55-17-13 (South Dakota Community Property Trust Act, enacted 2016). Married couples may elect CP treatment for assets held in a qualifying SD trust. Double step-up benefit (IRC §1014(b)(6)) is legally arguable but no IRS ruling has confirmed it. IRS Pub. 555 (December 2024) confirms the election mechanism exists.","href":"/api/v1/citations/sd-sdcl-55-17-marital-elective-cp-irs-p555"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"TN","name":"Tennessee","level":"state","facts":[{"factId":"tn-estate-none","jurisdiction":"TN","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"tn-estate-none-2025","jurisdiction":"TN","authority":"Tennessee Department of Revenue, Inheritance Tax page","authorityType":"dor-guidance","title":"TN inheritance tax not imposed for deaths after Dec 31, 2015","quote":"The inheritance tax is no longer imposed after December 31, 2015.","url":"https://www.tn.gov/revenue/taxes/inheritance-tax.html","sourceDomain":"www.tn.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Fetched text rendered the date phrase in bold; emphasis markers stripped, wording unchanged.","href":"/api/v1/citations/tn-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tn-no-tax","jurisdiction":"TN","category":"no-tax","label":"Capital gains tax","display":"None Tennessee imposes no income tax; capital gains were never subject to the Hall tax","value":null,"valueType":"none","citations":[{"id":"tn-hall-income-tax-repealed-2021","jurisdiction":"TN","authority":"Tennessee Department of Revenue, Individual Income Tax","authorityType":"dor-guidance","title":"Tennessee Hall Income Tax repealed effective 1/1/2021; capital gains were never taxed","quote":"The Hall Income tax was repealed for tax periods that begin on January 1, 2021, or later. The Hall income tax is imposed only on individuals and other entities receiving interest from bonds and notes and dividends from stock.","url":"https://www.tn.gov/revenue/taxes/hall-income-tax.html","sourceDomain":"www.tn.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Tennessee's Hall income tax, which applied only to interest income and dividends, was repealed effective January 1, 2021. Capital gains were not subject to the Hall tax and are not subject to any Tennessee income tax. The Hall tax was phased out over several years and fully eliminated as of TY2021. Capital gains were excluded from the Hall tax base throughout its existence.","href":"/api/v1/citations/tn-hall-income-tax-repealed-2021"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tn-muni-instate","jurisdiction":"TN","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: no Tennessee state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"tn-hall-income-tax-repealed-2021","jurisdiction":"TN","authority":"Tennessee Department of Revenue, Individual Income Tax","authorityType":"dor-guidance","title":"Tennessee Hall Income Tax repealed effective 1/1/2021; capital gains were never taxed","quote":"The Hall Income tax was repealed for tax periods that begin on January 1, 2021, or later. The Hall income tax is imposed only on individuals and other entities receiving interest from bonds and notes and dividends from stock.","url":"https://www.tn.gov/revenue/taxes/hall-income-tax.html","sourceDomain":"www.tn.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Tennessee's Hall income tax, which applied only to interest income and dividends, was repealed effective January 1, 2021. Capital gains were not subject to the Hall tax and are not subject to any Tennessee income tax. The Hall tax was phased out over several years and fully eliminated as of TY2021. Capital gains were excluded from the Hall tax base throughout its existence.","href":"/api/v1/citations/tn-hall-income-tax-repealed-2021"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tn-muni-outstate","jurisdiction":"TN","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Exempt: no Tennessee state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"tn-hall-income-tax-repealed-2021","jurisdiction":"TN","authority":"Tennessee Department of Revenue, Individual Income Tax","authorityType":"dor-guidance","title":"Tennessee Hall Income Tax repealed effective 1/1/2021; capital gains were never taxed","quote":"The Hall Income tax was repealed for tax periods that begin on January 1, 2021, or later. The Hall income tax is imposed only on individuals and other entities receiving interest from bonds and notes and dividends from stock.","url":"https://www.tn.gov/revenue/taxes/hall-income-tax.html","sourceDomain":"www.tn.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Tennessee's Hall income tax, which applied only to interest income and dividends, was repealed effective January 1, 2021. Capital gains were not subject to the Hall tax and are not subject to any Tennessee income tax. The Hall tax was phased out over several years and fully eliminated as of TY2021. Capital gains were excluded from the Hall tax base throughout its existence.","href":"/api/v1/citations/tn-hall-income-tax-repealed-2021"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tn-agency-obligations","jurisdiction":"TN","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Exempt: no Tennessee state income tax (Hall Tax repealed 1/1/2021)","value":1,"valueType":"binary-exempt","citations":[{"id":"tn-hall-income-tax-repealed-2021","jurisdiction":"TN","authority":"Tennessee Department of Revenue, Individual Income Tax","authorityType":"dor-guidance","title":"Tennessee Hall Income Tax repealed effective 1/1/2021; capital gains were never taxed","quote":"The Hall Income tax was repealed for tax periods that begin on January 1, 2021, or later. The Hall income tax is imposed only on individuals and other entities receiving interest from bonds and notes and dividends from stock.","url":"https://www.tn.gov/revenue/taxes/hall-income-tax.html","sourceDomain":"www.tn.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Tennessee's Hall income tax, which applied only to interest income and dividends, was repealed effective January 1, 2021. Capital gains were not subject to the Hall tax and are not subject to any Tennessee income tax. The Hall tax was phased out over several years and fully eliminated as of TY2021. Capital gains were excluded from the Hall tax base throughout its existence.","href":"/api/v1/citations/tn-hall-income-tax-repealed-2021"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tn-dividend-qualified","jurisdiction":"TN","category":"dividend-qualified","label":"Qualified dividend income","display":"Moot: no Tennessee state income tax (Hall Tax repealed 1/1/2021)","value":null,"valueType":"none","citations":[{"id":"tn-hall-income-tax-repealed-2021","jurisdiction":"TN","authority":"Tennessee Department of Revenue, Individual Income Tax","authorityType":"dor-guidance","title":"Tennessee Hall Income Tax repealed effective 1/1/2021; capital gains were never taxed","quote":"The Hall Income tax was repealed for tax periods that begin on January 1, 2021, or later. The Hall income tax is imposed only on individuals and other entities receiving interest from bonds and notes and dividends from stock.","url":"https://www.tn.gov/revenue/taxes/hall-income-tax.html","sourceDomain":"www.tn.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Tennessee's Hall income tax, which applied only to interest income and dividends, was repealed effective January 1, 2021. Capital gains were not subject to the Hall tax and are not subject to any Tennessee income tax. The Hall tax was phased out over several years and fully eliminated as of TY2021. Capital gains were excluded from the Hall tax base throughout its existence.","href":"/api/v1/citations/tn-hall-income-tax-repealed-2021"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tn-treasury","jurisdiction":"TN","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: no Tennessee state income tax (Hall Tax repealed 1/1/2021)","value":1,"valueType":"binary-exempt","citations":[{"id":"tn-hall-income-tax-repealed-2021","jurisdiction":"TN","authority":"Tennessee Department of Revenue, Individual Income Tax","authorityType":"dor-guidance","title":"Tennessee Hall Income Tax repealed effective 1/1/2021; capital gains were never taxed","quote":"The Hall Income tax was repealed for tax periods that begin on January 1, 2021, or later. The Hall income tax is imposed only on individuals and other entities receiving interest from bonds and notes and dividends from stock.","url":"https://www.tn.gov/revenue/taxes/hall-income-tax.html","sourceDomain":"www.tn.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Tennessee's Hall income tax, which applied only to interest income and dividends, was repealed effective January 1, 2021. Capital gains were not subject to the Hall tax and are not subject to any Tennessee income tax. The Hall tax was phased out over several years and fully eliminated as of TY2021. Capital gains were excluded from the Hall tax base throughout its existence.","href":"/api/v1/citations/tn-hall-income-tax-repealed-2021"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tn-fhlb-ffcb","jurisdiction":"TN","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: no Tennessee state income tax (Hall Tax repealed 1/1/2021)","value":1,"valueType":"binary-exempt","citations":[{"id":"tn-hall-income-tax-repealed-2021","jurisdiction":"TN","authority":"Tennessee Department of Revenue, Individual Income Tax","authorityType":"dor-guidance","title":"Tennessee Hall Income Tax repealed effective 1/1/2021; capital gains were never taxed","quote":"The Hall Income tax was repealed for tax periods that begin on January 1, 2021, or later. The Hall income tax is imposed only on individuals and other entities receiving interest from bonds and notes and dividends from stock.","url":"https://www.tn.gov/revenue/taxes/hall-income-tax.html","sourceDomain":"www.tn.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Tennessee's Hall income tax, which applied only to interest income and dividends, was repealed effective January 1, 2021. Capital gains were not subject to the Hall tax and are not subject to any Tennessee income tax. The Hall tax was phased out over several years and fully eliminated as of TY2021. Capital gains were excluded from the Hall tax base throughout its existence.","href":"/api/v1/citations/tn-hall-income-tax-repealed-2021"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tn-marital-elective-cp","jurisdiction":"TN","category":"marital-elective-cp","label":"Elective community property trust available","display":"Yes: TCA §§35-17-101 to 35-17-114 (Tennessee Community Property Trust Act of 2010) allows married couples to elect CP treatment for assets in a qualifying TN trust; double step-up under IRC §1014(b)(6) is legally arguable but no IRS ruling confirms it for TN trusts","value":1,"valueType":"binary-exempt","citations":[{"id":"tn-tca-35-17-marital-elective-cp-irs-p555","jurisdiction":"TN","authority":"IRS Publication 555 (Rev. December 2024), Introduction","authorityType":"dor-guidance","title":"Tennessee elective community property: TCA §§35-17-101 to 35-17-114 allows married couples to elect CP treatment via a qualifying trust","quote":"This publication doesn't address the federal tax treatment of income or property subject to the 'community property' election under Alaska, Tennessee, and South Dakota state laws.","url":"https://www.irs.gov/publications/p555","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Primary statute: TCA §§35-17-101 to 35-17-114 (Tennessee Community Property Trust Act of 2010, enacted by 2010 Tenn. Pub. Ch. 1056). Married couples may elect CP treatment for assets held in a qualifying TN community property trust. Double step-up benefit (IRC §1014(b)(6)) is legally arguable but no IRS ruling has confirmed it for TN trusts. IRS Pub. 555 (December 2024) confirms the election mechanism exists.","href":"/api/v1/citations/tn-tca-35-17-marital-elective-cp-irs-p555"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"TX","name":"Texas","level":"state","facts":[{"factId":"tx-estate-none","jurisdiction":"TX","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"tx-estate-none-2025","jurisdiction":"TX","authority":"Texas S.B. 752, 84th Legislature (2015), enrolled bill text","authorityType":"session-law","title":"TX inheritance tax chapter (Tax Code ch. 211) repealed effective Sept 1, 2015","quote":"SECTION 1. Chapter 211, Tax Code, is repealed. ... SECTION 4. This Act takes effect September 1, 2015.","url":"https://capitol.texas.gov/tlodocs/84R/billtext/html/SB00752F.htm","sourceDomain":"capitol.texas.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Ellipsis joins two verbatim fragments from the same enrolled bill. Even before the 2015 repeal the chapter was a dormant pickup tax.","href":"/api/v1/citations/tx-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tx-no-tax","jurisdiction":"TX","category":"no-tax","label":"Capital gains tax","display":"None Texas Constitution bars a personal income tax on natural persons","value":null,"valueType":"none","citations":[{"id":"tx-const-art8-s24-no-income-tax","jurisdiction":"TX","authority":"Tex. Const. art. VIII, §24","authorityType":"constitution","title":"Texas Constitution bars a personal income tax on natural persons without voter approval","quote":"The legislature may not impose a state income tax on the net incomes of natural persons, including a person's share of partnership and unincorporated association income.","url":"https://statutes.capitol.texas.gov/Docs/CN/htm/CN.8/CN.8.24.htm","sourceDomain":"statutes.capitol.texas.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Tex. Const. art. VIII, §24 was added by voters in 1993 and amended in 2019. Texas has never imposed a personal income tax; capital gains are not taxed.","href":"/api/v1/citations/tx-const-art8-s24-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tx-muni-instate","jurisdiction":"TX","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: no Texas state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"tx-const-art8-s24-no-income-tax","jurisdiction":"TX","authority":"Tex. Const. art. VIII, §24","authorityType":"constitution","title":"Texas Constitution bars a personal income tax on natural persons without voter approval","quote":"The legislature may not impose a state income tax on the net incomes of natural persons, including a person's share of partnership and unincorporated association income.","url":"https://statutes.capitol.texas.gov/Docs/CN/htm/CN.8/CN.8.24.htm","sourceDomain":"statutes.capitol.texas.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Tex. Const. art. VIII, §24 was added by voters in 1993 and amended in 2019. Texas has never imposed a personal income tax; capital gains are not taxed.","href":"/api/v1/citations/tx-const-art8-s24-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tx-muni-outstate","jurisdiction":"TX","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Exempt: no Texas state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"tx-const-art8-s24-no-income-tax","jurisdiction":"TX","authority":"Tex. Const. art. VIII, §24","authorityType":"constitution","title":"Texas Constitution bars a personal income tax on natural persons without voter approval","quote":"The legislature may not impose a state income tax on the net incomes of natural persons, including a person's share of partnership and unincorporated association income.","url":"https://statutes.capitol.texas.gov/Docs/CN/htm/CN.8/CN.8.24.htm","sourceDomain":"statutes.capitol.texas.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Tex. Const. art. VIII, §24 was added by voters in 1993 and amended in 2019. Texas has never imposed a personal income tax; capital gains are not taxed.","href":"/api/v1/citations/tx-const-art8-s24-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tx-agency-obligations","jurisdiction":"TX","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Exempt: no Texas state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"tx-const-art8-s24-no-income-tax","jurisdiction":"TX","authority":"Tex. Const. art. VIII, §24","authorityType":"constitution","title":"Texas Constitution bars a personal income tax on natural persons without voter approval","quote":"The legislature may not impose a state income tax on the net incomes of natural persons, including a person's share of partnership and unincorporated association income.","url":"https://statutes.capitol.texas.gov/Docs/CN/htm/CN.8/CN.8.24.htm","sourceDomain":"statutes.capitol.texas.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Tex. Const. art. VIII, §24 was added by voters in 1993 and amended in 2019. Texas has never imposed a personal income tax; capital gains are not taxed.","href":"/api/v1/citations/tx-const-art8-s24-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tx-dividend-qualified","jurisdiction":"TX","category":"dividend-qualified","label":"Qualified dividend income","display":"Moot: no Texas state income tax","value":null,"valueType":"none","citations":[{"id":"tx-const-art8-s24-no-income-tax","jurisdiction":"TX","authority":"Tex. Const. art. VIII, §24","authorityType":"constitution","title":"Texas Constitution bars a personal income tax on natural persons without voter approval","quote":"The legislature may not impose a state income tax on the net incomes of natural persons, including a person's share of partnership and unincorporated association income.","url":"https://statutes.capitol.texas.gov/Docs/CN/htm/CN.8/CN.8.24.htm","sourceDomain":"statutes.capitol.texas.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Tex. Const. art. VIII, §24 was added by voters in 1993 and amended in 2019. Texas has never imposed a personal income tax; capital gains are not taxed.","href":"/api/v1/citations/tx-const-art8-s24-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tx-treasury","jurisdiction":"TX","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: no Texas state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"tx-const-art8-s24-no-income-tax","jurisdiction":"TX","authority":"Tex. Const. art. VIII, §24","authorityType":"constitution","title":"Texas Constitution bars a personal income tax on natural persons without voter approval","quote":"The legislature may not impose a state income tax on the net incomes of natural persons, including a person's share of partnership and unincorporated association income.","url":"https://statutes.capitol.texas.gov/Docs/CN/htm/CN.8/CN.8.24.htm","sourceDomain":"statutes.capitol.texas.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Tex. Const. art. VIII, §24 was added by voters in 1993 and amended in 2019. Texas has never imposed a personal income tax; capital gains are not taxed.","href":"/api/v1/citations/tx-const-art8-s24-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tx-fhlb-ffcb","jurisdiction":"TX","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: no Texas state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"tx-const-art8-s24-no-income-tax","jurisdiction":"TX","authority":"Tex. Const. art. VIII, §24","authorityType":"constitution","title":"Texas Constitution bars a personal income tax on natural persons without voter approval","quote":"The legislature may not impose a state income tax on the net incomes of natural persons, including a person's share of partnership and unincorporated association income.","url":"https://statutes.capitol.texas.gov/Docs/CN/htm/CN.8/CN.8.24.htm","sourceDomain":"statutes.capitol.texas.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Tex. Const. art. VIII, §24 was added by voters in 1993 and amended in 2019. Texas has never imposed a personal income tax; capital gains are not taxed.","href":"/api/v1/citations/tx-const-art8-s24-no-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"tx-community-property","jurisdiction":"TX","category":"community-property","label":"Community property state","display":"Community property state: property acquired during marriage is community property (Tex. Fam. Code § 3.002); Texas has no state income tax, so community property classification affects federal filing and estate planning only","value":1,"valueType":"binary-exempt","citations":[{"id":"tx-fam-code-3-002-community-property-2025","jurisdiction":"TX","authority":"Tex. Fam. Code § 3.002","authorityType":"statute","title":"Texas is a community property state: property acquired during marriage is community property (Tex. Fam. Code § 3.002)","quote":"'Community property' means property, other than separate property, acquired by either spouse during marriage.","url":"https://statutes.capitol.texas.gov/Docs/FA/htm/FA.3.htm#3.002","sourceDomain":"statutes.capitol.texas.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"Texas is a community property state; however, Texas has no state income tax (Art. VIII, Sec. 24 of TX Constitution). Community property classification affects federal filing (each spouse reports one-half of community income on federal return) and estate planning, but has no direct TX income tax consequence.","href":"/api/v1/citations/tx-fam-code-3-002-community-property-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"UT","name":"Utah","level":"state","facts":[{"factId":"ut-trust-nexus-incomplete-gift","jurisdiction":"UT","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"ESCAPES in the sale year: an inter vivos ING administered in NV is a nonresident trust (the settlor-domicile prongs cover only decedents' estates and testamentary trusts) and Utah taxes it only on Utah-source income, which intangible gain is not. THE ONE ESCAPE STATE WITH A THROWBACK: §59-10-114(1)(g) can pull the accumulated income back into Utah tax if it is later distributed to a Utah-resident beneficiary, and the settlor is one by design. Whether it reaches a retained LIQUIDATION gain is open, and cuts the taxpayer's way: the statute reaches 'undistributed distributable net income', while corpus gain is outside DNI (IRC 643(a)(3))","value":0,"valueType":"code","citations":[{"id":"ut-trust-nexus-incomplete-gift-2026","jurisdiction":"UT","authority":"Utah Code 59-10-103 (via 75B-2-103(9)-(10), SB 100 recodification 2025; formerly 75-7-103(1)(i))","authorityType":"statute","title":"Utah's inter vivos resident-trust hook is administration in the state; settlor domicile matters only for testamentary trusts","quote":"(9) 'Resident estate' means: (a) an estate of a decedent who at death was domiciled in this state; (b) a trust, or a portion of a trust, consisting of property transferred by will of a decedent who at the time of the decedent's death was domiciled in this state; or (c) a trust administered in this state. (10) 'Resident trust' means a resident estate.","url":"https://le.utah.gov/xcode/Title75B/Chapter2/75B-2-S103.html","sourceDomain":"le.utah.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"Verified by two independent readings of the live statute (2026-07-13). Three prongs, none of them settlor domicile at creation and none beneficiary residence, so an inter vivos ING with a NV institutional trustee administering wholly outside Utah is a NONRESIDENT trust, taxed only on Utah-source income (59-10-204/205), and intangible gain is not Utah-source unless the property is 'employed in a trade, business, profession, or occupation carried on in this state' (59-10-117(2)(a)). Utah has no ING statute and no grantor rule broader than IRC 671-679. THE ESCAPE IS DEFERRAL, NOT EXEMPTION: see UT_TRUST_ING_THROWBACK. Live audit seam: if the Utah settlor exercises committee, protector, or investment-direction powers FROM Utah, prong (c) (administration) can taint the trust into residency.","href":"/api/v1/citations/ut-trust-nexus-incomplete-gift-2026"},{"id":"ut-code-59-10-114-1-g-nonresident-trust-throwback","jurisdiction":"UT","authority":"Utah Code §59-10-114(1)(g)","authorityType":"statute","title":"Utah adds back a resident beneficiary's distribution of a nonresident trust's undistributed income that no state taxed","quote":"any distribution received by a resident beneficiary of a nonresident trust of undistributed distributable net income realized by the trust on or after January 1, 2004, if that undistributed distributable net income was taxed at the trust level for federal tax purposes, but was not taxed at the trust level by any state, with undistributed distributable net income considered to be distributed from the most recently accumulated undistributed distributable net income.","url":"https://le.utah.gov/xcode/Title59/Chapter10/59-10-S114.html","sourceDomain":"le.utah.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"UTAH IS THE ONLY VERIFIED ESCAPE STATE WITH ITS OWN THROWBACK. A 2026-07-13 sweep of the other twelve (AZ, CO, HI, IA, ID, IN, KS, MS, NJ, NM, OR, SC) found no analog: Kansas and South Carolina affirmatively SUBTRACT accumulation distributions, and Colorado repealed its throwback in 1983. This is an attribution rule triggered by an actual DISTRIBUTION, so it does not touch the sale year (the trust retains the gain), which is what the engine models. WHETHER IT EVER BITES IS A GENUINE OPEN QUESTION, and it cuts the taxpayer's way: the statute reaches 'undistributed distributable net income', but capital gain allocated to CORPUS is excluded from DNI under IRC 643(a)(3), so a retained liquidation gain may never be UNI at all. Unresolved by any Utah ruling or case, so it is recorded as exposure rather than assumed away. If it does bite, the Utah saving is deferral, not exemption, and it becomes permanent only if the gain is distributed after the settlor leaves Utah, distributed to non-Utah beneficiaries, or held to a basis step-up. Separately (and true in every state): the trust's ONGOING income on the reinvested proceeds is DNI and IS taxable to a Utah-resident beneficiary when distributed.","href":"/api/v1/citations/ut-code-59-10-114-1-g-nonresident-trust-throwback"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-estate-none","jurisdiction":"UT","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"ut-estate-none-2025","jurisdiction":"UT","authority":"Utah State Tax Commission, Inheritance Tax page","authorityType":"dor-guidance","title":"UT inheritance (pickup) tax eliminated after Dec 31, 2004","quote":"Federal changes phased out the national inheritance tax and, therefore, eliminated Utah's inheritance tax after December 31, 2004.","url":"https://tax.utah.gov/utah-taxes/inheritance-tax","sourceDomain":"tax.utah.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Same page: 'Utah inheritance tax returns do not need to be filed. Utah does not require an Inheritance Tax Waiver.' Statute backup: Utah Code 59-11.","href":"/api/v1/citations/ut-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-rate","jurisdiction":"UT","category":"rate","label":"Top income tax rate (TY2025)","display":"4.5% flat on federal taxable income (HB 106 retroactive)","value":0.045,"valueType":"rate","citations":[{"id":"ut-tc40-flat-4-5pct-2025","jurisdiction":"UT","authority":"Utah Code §59-10-104 as amended by HB 106 (2025, retroactive to TY2025)","authorityType":"session-law","title":"Utah flat income tax rate is 4.5% for TY2025 (HB 106 retroactive)","quote":"the tax is an amount equal to the product of: (a) the resident individual's state taxable income for that taxable year; and (b) 4.5%. ... Section 9. Retrospective operation. This bill has retrospective operation for a taxable year beginning on or after January 1, 2025","url":"https://le.utah.gov/~2025/bills/hbillenr/HB0106.pdf","sourceDomain":"le.utah.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"HB 106 (2025 GS) cut the §59-10-104 flat rate from 4.65% to 4.5% retrospective to TY2025. Superseded for TY2026: Ch. 250 (2026 GS) amends §59-10-104 to 4.45% effective January 1, 2026 (see ut-code-59-10-104-flat-4-45pct-2026).","href":"/api/v1/citations/ut-tc40-flat-4-5pct-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"ut-rate-2026","jurisdiction":"UT","category":"rate","label":"Top income tax rate (TY2026)","display":"4.45% flat on federal taxable income (Ch. 250, 2026 General Session)","value":0.0445,"valueType":"rate","citations":[{"id":"ut-code-59-10-104-flat-4-45pct-2026","jurisdiction":"UT","authority":"Utah Code §59-10-104 (as amended by Chapter 250, 2026 General Session; effective 1/1/2026)","authorityType":"statute","title":"Utah flat income tax rate is 4.45% for TY2026 (Ch. 250, 2026 General Session)","quote":"(2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the product of: (a) the resident individual's state taxable income for that taxable year; and (b) 4.45%.","url":"https://le.utah.gov/xcode/Title59/Chapter10/59-10-S104.html","sourceDomain":"le.utah.gov","taxYear":2026,"asOf":"2026-07-02","confidence":"high","note":"Codified text carries the header 'Effective 1/1/2026' and the note 'Amended by Chapter 250, 2026 General Session'. Successor to the TY2025 4.5% rate (HB 106).","href":"/api/v1/citations/ut-code-59-10-104-flat-4-45pct-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-conformity","jurisdiction":"UT","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-muni-instate","jurisdiction":"UT","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: UCA §59-10-114(2)(a) subtraction for Utah state and local bond interest","value":1,"valueType":"binary-exempt","citations":[{"id":"ut-uca-59-10-114-muni-default-2025","jurisdiction":"UT","authority":"UCA §59-10-114(2)(a) (UT bonds exempt); UCA §59-10-114(1)(e) (OOS add-back with reciprocity)","authorityType":"statute","title":"UT exempts UT-issued bonds; out-of-state muni bonds are taxable except from reciprocal or no-tax states","quote":"There shall be added to adjusted gross income of a resident or nonresident individual: ... (e) except as provided in Subsection (5), for bonds, notes, and other evidences of indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and other evidences of indebtedness ... issued by ... a state other than this state ... to the extent the interest is not included in adjusted gross income on the taxpayer's federal income tax return for the taxable year. Notwithstanding Subsection (1)(e), interest from bonds, notes, and other evidences of indebtedness issued by an entity described in Subsections (1)(e)(i)(A) through (D) may not be added to adjusted gross income of a resident or nonresident individual if, as annually determined by the commission ... the entity and all of the political subdivisions, agencies, or instrumentalities of the entity do not impose a tax based on income on any part of the bonds, notes, and other evidences of indebtedness of this state.","url":"https://le.utah.gov/xcode/Title59/Chapter10/59-10-S114.html","sourceDomain":"le.utah.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Interest earned on Utah municipal bonds is exempt from Utah income tax. Do not enter interest earned on non-Utah municipal bonds if the issuer does not impose an income tax on bonds issued by Utah, or the issuing state does not impose an income tax. UCA §59-10-114(2)(a) provides a subtraction for Utah bond interest. §59-10-114(1)(e) adds back out-of-state muni interest UNLESS: (a) the issuing state does not tax Utah bonds, or (b) the issuing state has no income tax. Effectively exempts bonds from AK, FL, NV, SD, TN, TX, WY, WA and any state that exempts UT bonds reciprocally. Most out-of-state bonds are taxable; reciprocity exception applies case-by-case.","href":"/api/v1/citations/ut-uca-59-10-114-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-muni-outstate","jurisdiction":"UT","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: (general rule) UCA §59-10-114(1)(e) add-back; exception for reciprocal states and no-income-tax states","value":0,"valueType":"binary-exempt","citations":[{"id":"ut-uca-59-10-114-muni-default-2025","jurisdiction":"UT","authority":"UCA §59-10-114(2)(a) (UT bonds exempt); UCA §59-10-114(1)(e) (OOS add-back with reciprocity)","authorityType":"statute","title":"UT exempts UT-issued bonds; out-of-state muni bonds are taxable except from reciprocal or no-tax states","quote":"There shall be added to adjusted gross income of a resident or nonresident individual: ... (e) except as provided in Subsection (5), for bonds, notes, and other evidences of indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and other evidences of indebtedness ... issued by ... a state other than this state ... to the extent the interest is not included in adjusted gross income on the taxpayer's federal income tax return for the taxable year. Notwithstanding Subsection (1)(e), interest from bonds, notes, and other evidences of indebtedness issued by an entity described in Subsections (1)(e)(i)(A) through (D) may not be added to adjusted gross income of a resident or nonresident individual if, as annually determined by the commission ... the entity and all of the political subdivisions, agencies, or instrumentalities of the entity do not impose a tax based on income on any part of the bonds, notes, and other evidences of indebtedness of this state.","url":"https://le.utah.gov/xcode/Title59/Chapter10/59-10-S114.html","sourceDomain":"le.utah.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Interest earned on Utah municipal bonds is exempt from Utah income tax. Do not enter interest earned on non-Utah municipal bonds if the issuer does not impose an income tax on bonds issued by Utah, or the issuing state does not impose an income tax. UCA §59-10-114(2)(a) provides a subtraction for Utah bond interest. §59-10-114(1)(e) adds back out-of-state muni interest UNLESS: (a) the issuing state does not tax Utah bonds, or (b) the issuing state has no income tax. Effectively exempts bonds from AK, FL, NV, SD, TN, TX, WY, WA and any state that exempts UT bonds reciprocally. Most out-of-state bonds are taxable; reciprocity exception applies case-by-case.","href":"/api/v1/citations/ut-uca-59-10-114-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-qoz-conformity","jurisdiction":"UT","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"ut-qoz-conformity-irc-1400z2-2025","jurisdiction":"UT","authority":"Utah Code §59-10-103","authorityType":"statute","title":"Utah conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"(a)(i) \"Adjusted gross income\": (A) for a resident or nonresident individual, means the same as that term is defined in Section 62, Internal Revenue Code; or (B) for a resident or nonresident estate or trust, is as calculated in Section 67(e), Internal Revenue Code.","url":"https://le.utah.gov/xcode/Title59/Chapter10/59-10-S103.html","sourceDomain":"le.utah.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Utah Code §59-10-103 defines adjusted gross income by direct reference to IRC §62, so the federal §1400Z-2 QOZ deferral and exclusion flow into the Utah base; no Utah addback exists.","href":"/api/v1/citations/ut-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-qsbs-conformity","jurisdiction":"UT","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"ut-qsbs-conformity-irc-1202-2025","jurisdiction":"UT","authority":"Utah Code §59-10-104 (rolling IRC conformity); Utah Code §59-10-102 (definitions by reference)","authorityType":"statute","title":"Utah conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity","quote":"Verbatim text of §59-10-104 not separately extracted; conformity established through §59-10-102 incorporation of federal definitions.","url":"https://le.utah.gov/xcode/Title59/Chapter10/59-10-S104.html","sourceDomain":"le.utah.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Utah Code §59-10-102 incorporates federal IRC definitions by reference. Utah Code §59-10-104 establishes the flat 4.5% tax on Utah taxable income, which incorporates federal taxable income starting point. §1202 QSBS provisions apply via Utah's rolling conformity to federal definitions. Confidence medium: statutory structure indicates conformity but specific QSBS verbatim quote not extracted.","href":"/api/v1/citations/ut-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-agency-obligations","jurisdiction":"UT","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: Utah starts from federal taxable income; FNMA/FHLMC interest is in that base and no Utah subtraction exists for non-federally-preempted GSE interest","value":0,"valueType":"binary-exempt","citations":[{"id":"ut-uca-59-10-114-fnma-fhlmc-in-base","jurisdiction":"UT","authority":"Utah Code §59-10-104; UCA §59-10-114","authorityType":"statute","title":"Utah taxes FNMA and FHLMC bond interest: Utah starts from federal taxable income (which includes FNMA/FHLMC interest); the §59-10-114(1)(e) add-back applies only to IRC §103-excluded muni interest","quote":"There shall be subtracted from adjusted gross income of a resident or nonresident individual: (a) the difference between: (i) the interest or a dividend on an obligation or security of the United States or an authority, commission, instrumentality, or possession of the United States, to the extent that interest or dividend is: (A) included in adjusted gross income for federal income tax purposes for the taxable year; and (B) exempt from state income taxes under the laws of the United States.","url":"https://le.utah.gov/xcode/Title59/Chapter10/59-10-S114.html","sourceDomain":"le.utah.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Utah Code §59-10-114(2)(a) subtracts only interest on United States obligations that is exempt from state income taxes under the laws of the United States. FNMA and FHLMC interest is included in federal adjusted gross income and is not federally protected from state taxation, so it remains in the Utah base.","href":"/api/v1/citations/ut-uca-59-10-114-fnma-fhlmc-in-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-dividend-qualified","jurisdiction":"UT","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: Utah has no IRC §1(h)(11) preferential rate; qualified dividends taxed at the 4.5% flat rate","value":0,"valueType":"binary-exempt","citations":[{"id":"ut-tc40-flat-4-5pct-2025","jurisdiction":"UT","authority":"Utah Code §59-10-104 as amended by HB 106 (2025, retroactive to TY2025)","authorityType":"session-law","title":"Utah flat income tax rate is 4.5% for TY2025 (HB 106 retroactive)","quote":"the tax is an amount equal to the product of: (a) the resident individual's state taxable income for that taxable year; and (b) 4.5%. ... Section 9. Retrospective operation. This bill has retrospective operation for a taxable year beginning on or after January 1, 2025","url":"https://le.utah.gov/~2025/bills/hbillenr/HB0106.pdf","sourceDomain":"le.utah.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"HB 106 (2025 GS) cut the §59-10-104 flat rate from 4.65% to 4.5% retrospective to TY2025. Superseded for TY2026: Ch. 250 (2026 GS) amends §59-10-104 to 4.45% effective January 1, 2026 (see ut-code-59-10-104-flat-4-45pct-2026).","href":"/api/v1/citations/ut-tc40-flat-4-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-treasury","jurisdiction":"UT","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"ut-31-usc-3124-treasury-exempt-2025","jurisdiction":"UT","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Utah income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ut-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-fhlb-ffcb","jurisdiction":"UT","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"ut-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"UT","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Utah income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ut-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-carryback","jurisdiction":"UT","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-character","jurisdiction":"UT","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the flat 4.5% rate (Utah Code §59-10-104)","value":null,"valueType":"none","citations":[{"id":"ut-tc40-flat-4-5pct-2025","jurisdiction":"UT","authority":"Utah Code §59-10-104 as amended by HB 106 (2025, retroactive to TY2025)","authorityType":"session-law","title":"Utah flat income tax rate is 4.5% for TY2025 (HB 106 retroactive)","quote":"the tax is an amount equal to the product of: (a) the resident individual's state taxable income for that taxable year; and (b) 4.5%. ... Section 9. Retrospective operation. This bill has retrospective operation for a taxable year beginning on or after January 1, 2025","url":"https://le.utah.gov/~2025/bills/hbillenr/HB0106.pdf","sourceDomain":"le.utah.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"HB 106 (2025 GS) cut the §59-10-104 flat rate from 4.65% to 4.5% retrospective to TY2025. Superseded for TY2026: Ch. 250 (2026 GS) amends §59-10-104 to 4.45% effective January 1, 2026 (see ut-code-59-10-104-flat-4-45pct-2026).","href":"/api/v1/citations/ut-tc40-flat-4-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-filing-status-flat","jurisdiction":"UT","category":"filing-status-flat","label":"Filing status irrelevant: flat rate state","display":"Yes: flat 4.5% rate on Utah taxable income regardless of filing status (Utah Code §59-10-104; TY2025)","value":1,"valueType":"binary-exempt","citations":[{"id":"ut-tc40-flat-4-5pct-2025","jurisdiction":"UT","authority":"Utah Code §59-10-104 as amended by HB 106 (2025, retroactive to TY2025)","authorityType":"session-law","title":"Utah flat income tax rate is 4.5% for TY2025 (HB 106 retroactive)","quote":"the tax is an amount equal to the product of: (a) the resident individual's state taxable income for that taxable year; and (b) 4.5%. ... Section 9. Retrospective operation. This bill has retrospective operation for a taxable year beginning on or after January 1, 2025","url":"https://le.utah.gov/~2025/bills/hbillenr/HB0106.pdf","sourceDomain":"le.utah.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"HB 106 (2025 GS) cut the §59-10-104 flat rate from 4.65% to 4.5% retrospective to TY2025. Superseded for TY2026: Ch. 250 (2026 GS) amends §59-10-104 to 4.45% effective January 1, 2026 (see ut-code-59-10-104-flat-4-45pct-2026).","href":"/api/v1/citations/ut-tc40-flat-4-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-marital-udcprda","jurisdiction":"UT","category":"marital-udcprda","label":"Uniform Disposition of Community Property Rights at Death Act (UDCPRDA)","display":"Yes: Utah Code §§75-2b-101 to 75-2b-112 preserves community property character of assets acquired in CP states at death of a Utah resident (enacted 2012); surviving spouse retains one-half CP interest","value":1,"valueType":"binary-exempt","citations":[{"id":"ut-code-75-2b-104-udcprda-2012","jurisdiction":"UT","authority":"Utah Code §§75-2b-101 to 75-2b-112 (enacted 2012; 1971 uniform act)","authorityType":"statute","title":"Utah adopted UDCPRDA (Uniform Disposition of Community Property Rights at Death Act) in 2012","quote":"Upon the death of a married person, one-half of the property to which this chapter applies is the property of the surviving spouse and is not subject to testamentary disposition by the decedent or distribution under the laws of succession of this state.","url":"https://le.utah.gov/xcode/Title75/Chapter2B/C75-2b_1800010118000101.pdf","sourceDomain":"le.utah.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Utah enacted UDCPRDA in 2012 (1971 original uniform act). Protects community property character of assets acquired in community property states when a couple moves to Utah.","href":"/api/v1/citations/ut-code-75-2b-104-udcprda-2012"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"ut-migration-loss-conformity","jurisdiction":"UT","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Utah computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"ut-migration-loss-conformity-src","jurisdiction":"UT","authority":"Utah Code §59-10-104; HB 106 (2025, retroactive to TY2025)","authorityType":"statute","title":"Utah conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"A tax is imposed on the state taxable income of a resident individual as provided in this section. There shall be added to adjusted gross income of a resident or nonresident individual: (a) a lump sum distribution that the taxpayer does not include in adjusted gross income on the taxpayer's federal individual income tax return for the taxable year.","url":"https://le.utah.gov/xcode/Title59/Chapter10/59-10-S104.html","sourceDomain":"le.utah.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Utah begins from federal adjusted gross income (Sections 59-10-104 and 59-10-114), so the federal Section 1212 capital-loss carryover flows through. No published guidance addresses the treatment of a carryforward imported from a pre-residency year; that application remains a structural inference.","href":"/api/v1/citations/ut-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"VT","name":"Vermont","level":"state","facts":[{"factId":"vt-trust-nexus-incomplete-gift","jurisdiction":"VT","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: pure settlor-domicile rule; VT residency attaches at funding and no apportionment or nexus concession exists. No Kaestner-response guidance found","value":2,"valueType":"code","citations":[{"id":"vt-trust-nexus-incomplete-gift-2026","jurisdiction":"VT","authority":"32 V.S.A. 5811(11)(B)(ii)(I); 5822(a); Form FIT-161 instructions","authorityType":"statute","title":"Vermont taxes a resident settlor's irrevocable inter vivos trust permanently from funding","quote":"Resident trust includes a trust consisting of the property of a person domiciled in this State at the time such property was transferred to the trust, if such trust or portion of a trust was then irrevocable.","url":"https://legislature.vermont.gov/statutes/section/32/151/05811","sourceDomain":"legislature.vermont.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","href":"/api/v1/citations/vt-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-rate","jurisdiction":"VT","category":"rate","label":"Top income tax rate (TY2025)","display":"3.35% to 8.75% graduated (8.75% above $421,900 MFJ; capital gains taxed as ordinary income)","value":0.0875,"valueType":"rate","citations":[{"id":"vt-32-vsa-5822-top-8-75pct-2025","jurisdiction":"VT","authority":"32 V.S.A. §5822(a)","authorityType":"statute","title":"Vermont top income tax rate is 8.75% on Vermont taxable income above $421,900 (MFJ, TY2025)","quote":"(a) A tax is imposed for each taxable year upon the taxable income earned or received in that year by every individual, estate, and trust, subject to income taxation under the laws of the United States, in an amount determined by the following tables... (1) Married individuals filing joint returns and surviving spouses: ... Over $237,950.00 $14,423.00 plus 8.75% of the amount of taxable income over $237,950.00","url":"https://legislature.vermont.gov/statutes/section/32/151/05822","sourceDomain":"legislature.vermont.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"32 V.S.A. §5822 imposes a graduated income tax with four rate tiers: 3.35%, 6.6%, 7.6%, and 8.75% (top rate). The quoted table shows the statutory base-year thresholds ($237,950 MFJ top); the statute delegates bracket thresholds to annual inflation adjustment by the Vermont Department of Taxes, so the specific dollar thresholds are DOR-computed for each tax year. For TY2025, the DOR-published MFJ thresholds are $73,950 / $178,150 / $421,900 (above which 8.75% applies). Vermont taxes capital gains as ordinary income at these rates, minus the $5,000 listed-security exclusion for modest gains. MFJ brackets are approximately doubled from single but not exactly, resulting in a partial marriage penalty at high income.","href":"/api/v1/citations/vt-32-vsa-5822-top-8-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-deduction","jurisdiction":"VT","category":"deduction","label":"LT capital gain exclusion (listed securities only)","display":"$5,000 max per return ONLY for publicly-traded securities; real estate excluded","value":5000,"valueType":"dollars","citations":[{"id":"vt-32-vsa-5811-21b-5k-excl-listed-securities-2025","jurisdiction":"VT","authority":"32 V.S.A. §5811(21)(B)(i); Schedule IN-153 Instructions (TY2025)","authorityType":"statute","title":"Vermont $5,000 LT capital gain exclusion listed securities ONLY (real estate excluded)","quote":"From Vermont income there shall be subtracted capital gain from the sale of a qualified investment, to the extent that the investment consists of an interest in a publicly traded corporation, and the long-term capital gain does not exceed $5,000.","url":"https://legislature.vermont.gov/statutes/section/32/151/05811","sourceDomain":"legislature.vermont.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"The $5,000 exclusion is capped per return (not per taxpayer). It applies ONLY to publicly-traded securities. Real estate, collectibles, limited partnership interests, and other non-listed assets are excluded from this prong. A separate 40% exclusion applies to qualified farm/business property sales (32 V.S.A. §5811(21)(B)(ii)). For a pure large-portfolio LT gain, the $5,000 cap is negligible at high income.","href":"/api/v1/citations/vt-32-vsa-5811-21b-5k-excl-listed-securities-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-surcharge","jurisdiction":"VT","category":"surcharge","label":"Vermont 3% minimum tax on federal AGI","display":"Greater of regular tax or 3% of federal AGI when AGI > $150,000 (rarely binds for high ordinary income)","value":0.03,"valueType":"rate","citations":[{"id":"vt-32-vsa-5822-3pct-min-tax-2025","jurisdiction":"VT","authority":"32 V.S.A. §5822(a)(6)","authorityType":"statute","title":"Vermont tax is the greater of the regular bracket tax or 3% of federal AGI when AGI exceeds $150,000","quote":"If the federal adjusted gross income of the taxpayer exceeds $150,000.00, then the tax calculated under this subsection shall be the greater of the tax calculated under subdivisions (1)-(5) of this subsection or three percent of the taxpayer's federal adjusted gross income.","url":"https://legislature.vermont.gov/statutes/section/32/151/05822","sourceDomain":"legislature.vermont.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"This is a MINIMUM TAX on the greater of the regular graduated tax or 3% of FEDERAL AGI (not an alternative minimum tax on a separate AMTI base; the prior citation to §5830b was wrong, that section is the Entrepreneurs' Seed Capital Fund credit). It binds only when the regular tax falls below 3% of AGI, which for a large capital-gain filer is rare because VT taxes those gains near-ordinary at up to 8.75%. It matters when big exclusions or deductions push Vermont taxable income far below federal AGI. Base is the full federal AGI, gain included.","href":"/api/v1/citations/vt-32-vsa-5822-3pct-min-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-conformity","jurisdiction":"VT","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-muni-instate","jurisdiction":"VT","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: 32 V.S.A. §5811(21)(A)(i) addition applies only to non-Vermont obligations; VT bonds not added back","value":1,"valueType":"binary-exempt","citations":[{"id":"vt-vsa-32-5811-muni-default-2025","jurisdiction":"VT","authority":"32 V.S.A. §5811(21)(A)(i)","authorityType":"statute","title":"VT taxes out-of-state muni bond interest; VT bonds exempt 32 V.S.A. §5811(21)(A)(i)","quote":"interest income from non-Vermont state and local obligations","url":"https://legislature.vermont.gov/statutes/section/32/151/05811","sourceDomain":"legislature.vermont.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"32 V.S.A. §5811(21)(A)(i) defines additions to Vermont income to include 'interest income from non-Vermont state and local obligations.' Vermont bonds are exempt by negative implication.","href":"/api/v1/citations/vt-vsa-32-5811-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-muni-outstate","jurisdiction":"VT","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: 32 V.S.A. §5811(21)(A)(i): 'interest income from non-Vermont state and local obligations' is a Vermont income addition","value":0,"valueType":"binary-exempt","citations":[{"id":"vt-vsa-32-5811-muni-default-2025","jurisdiction":"VT","authority":"32 V.S.A. §5811(21)(A)(i)","authorityType":"statute","title":"VT taxes out-of-state muni bond interest; VT bonds exempt 32 V.S.A. §5811(21)(A)(i)","quote":"interest income from non-Vermont state and local obligations","url":"https://legislature.vermont.gov/statutes/section/32/151/05811","sourceDomain":"legislature.vermont.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"32 V.S.A. §5811(21)(A)(i) defines additions to Vermont income to include 'interest income from non-Vermont state and local obligations.' Vermont bonds are exempt by negative implication.","href":"/api/v1/citations/vt-vsa-32-5811-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-qoz-conformity","jurisdiction":"VT","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via fixed-date conformity (IRC as of December 31, 2024; §1400Z-2 predates the cutoff)","value":1,"valueType":"code","citations":[{"id":"vt-qoz-conformity-irc-1400z2-2025","jurisdiction":"VT","authority":"32 V.S.A. §5824","authorityType":"statute","title":"Vermont conforms to IRC §1400Z-2 QOZ gain deferral and exclusion via fixed-date conformity (IRC as of December 31, 2024)","quote":"The statutes of the United States relating to the federal income tax, as in effect on December 31, 2024, but without regard to federal income tax rates under 26 U.S.C. § 1, are hereby adopted for the purpose of computing the tax liability under this chapter and shall continue in effect as adopted until amended, repealed, or replaced by act of the General Assembly.","url":"https://legislature.vermont.gov/statutes/section/32/151/05824","sourceDomain":"legislature.vermont.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Vermont is FIXED-DATE conformity (IRC as in effect on December 31, 2024), not rolling. §1400Z-2 predates that cutoff, so its QOZ deferral and exclusion flow into the Vermont base; federal amendments after December 31, 2024 are not adopted until the General Assembly updates §5824.","href":"/api/v1/citations/vt-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-qsbs-conformity","jurisdiction":"VT","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via fixed-date conformity (IRC as of December 31, 2024); no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"vt-qsbs-conformity-irc-1202-2025","jurisdiction":"VT","authority":"32 V.S.A. §5824","authorityType":"statute","title":"Vermont conforms to IRC §1202 QSBS gain exclusion via fixed-date conformity (IRC as of December 31, 2024); no addback","quote":"The statutes of the United States relating to the federal income tax, as in effect on December 31, 2024, but without regard to federal income tax rates under 26 U.S.C. § 1, are hereby adopted for the purpose of computing the tax liability under this chapter and shall continue in effect as adopted until amended, repealed, or replaced by act of the General Assembly.","url":"https://legislature.vermont.gov/statutes/section/32/151/05824","sourceDomain":"legislature.vermont.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Vermont is FIXED-DATE conformity (IRC as in effect on December 31, 2024), not rolling. §1202 as of that date (pre-OBBBA: $10M cap, 5-year hold) flows into the Vermont base with no addback; the OBBBA's post-July-2025 §1202 changes are not adopted until the General Assembly updates §5824.","href":"/api/v1/citations/vt-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-agency-obligations","jurisdiction":"VT","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: Vermont FIT-161 instructions explicitly state FNMA, FHLMC, and GNMA income is taxable; not 'direct obligations of the U.S. government' under 32 V.S.A. §5811(21)(B)(i)","value":0,"valueType":"binary-exempt","citations":[{"id":"vt-fit161-2023-fnma-fhlmc-taxable","jurisdiction":"VT","authority":"Vermont Department of Taxes, Form FIT-161 (Fiduciary Income Tax Return) 2023 Instructions, Line 4a","authorityType":"form-instructions","title":"Vermont FIT-161 instructions explicitly state FNMA, FHLMC, and GNMA income is taxable in Vermont","quote":"Income from repurchase agreements, securities of FNMA, FHLMC or GNMA, or other investments that are not direct obligations of the U.S. government are also taxable. For more information, see Technical Bulletin TB-24, Exemption of Income of U.S. Government Obligations on the Department's website.","url":"https://tax.vermont.gov/sites/tax/files/documents/FIT-161-Instr-2023.pdf","sourceDomain":"tax.vermont.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"32 V.S.A. §5811(21)(B)(i): Vermont subtraction covers only 'income from U.S. government obligations'; FNMA/FHLMC are GSEs that do not qualify as direct U.S. obligations. TB-24 (Exemption of Income of U.S. Government Obligations) provides additional guidance on the direct-obligation test.","href":"/api/v1/citations/vt-fit161-2023-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-dividend-qualified","jurisdiction":"VT","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: 32 V.S.A. §5824 computes Vermont income 'without regard to federal income tax rates under 26 U.S.C. §1'; §5811(21)(B)(ii) further nets QDI out of the capital gain exclusion base","value":0,"valueType":"binary-exempt","citations":[{"id":"vt-32-vsa-5824-no-irc-1h-preference","jurisdiction":"VT","authority":"32 V.S.A. §5824","authorityType":"statute","title":"Vermont computes income tax without regard to IRC §1 rate schedules; qualified dividend preference not adopted; QDI explicitly netted out of capital gain exclusion","quote":"but without regard to federal income tax rates under 26 U.S.C. § 1","url":"https://legislature.vermont.gov/statutes/section/32/151/05824","sourceDomain":"legislature.vermont.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"Vermont §5824 expressly decouples from IRC §1 rate schedules, denying the federal qualified-dividend preferential rate. Additionally, 32 V.S.A. §5811(21)(B)(ii) explicitly reduces the capital gain exclusion base by qualified dividends ('with respect to adjusted net capital gain income as defined in 26 U.S.C. § 1(h) reduced by the total amount of any qualified dividend income'), confirming QDI is in the ordinary income pool, not the capital gain preference.","href":"/api/v1/citations/vt-32-vsa-5824-no-irc-1h-preference"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-treasury","jurisdiction":"VT","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"vt-31-usc-3124-treasury-exempt-2025","jurisdiction":"VT","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Vermont income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/vt-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-fhlb-ffcb","jurisdiction":"VT","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"vt-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"VT","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Vermont income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/vt-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-carryback","jurisdiction":"VT","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-character","jurisdiction":"VT","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: Vermont taxes all capital gains as ordinary income at rates up to 8.75%; no preferential long-term rate (32 V.S.A. § 5822)","value":null,"valueType":"none","citations":[{"id":"vt-32-vsa-5822-top-8-75pct-2025","jurisdiction":"VT","authority":"32 V.S.A. §5822(a)","authorityType":"statute","title":"Vermont top income tax rate is 8.75% on Vermont taxable income above $421,900 (MFJ, TY2025)","quote":"(a) A tax is imposed for each taxable year upon the taxable income earned or received in that year by every individual, estate, and trust, subject to income taxation under the laws of the United States, in an amount determined by the following tables... (1) Married individuals filing joint returns and surviving spouses: ... Over $237,950.00 $14,423.00 plus 8.75% of the amount of taxable income over $237,950.00","url":"https://legislature.vermont.gov/statutes/section/32/151/05822","sourceDomain":"legislature.vermont.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"32 V.S.A. §5822 imposes a graduated income tax with four rate tiers: 3.35%, 6.6%, 7.6%, and 8.75% (top rate). The quoted table shows the statutory base-year thresholds ($237,950 MFJ top); the statute delegates bracket thresholds to annual inflation adjustment by the Vermont Department of Taxes, so the specific dollar thresholds are DOR-computed for each tax year. For TY2025, the DOR-published MFJ thresholds are $73,950 / $178,150 / $421,900 (above which 8.75% applies). Vermont taxes capital gains as ordinary income at these rates, minus the $5,000 listed-security exclusion for modest gains. MFJ brackets are approximately doubled from single but not exactly, resulting in a partial marriage penalty at high income.","href":"/api/v1/citations/vt-32-vsa-5822-top-8-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-estate-rate","jurisdiction":"VT","category":"estate-rate","label":"Estate tax rate (TY2025)","display":"16% flat on Vermont taxable estate above $5,000,000; gifts within two years of death added back (32 V.S.A. § 7442a)","value":0.16,"valueType":"rate","citations":[{"id":"vt-32-vsa-7442a-estate-tax-2025","jurisdiction":"VT","authority":"32 V.S.A. § 7442a","authorityType":"statute","title":"Vermont estate tax: 16% flat rate on Vermont taxable estate above $5,000,000 (fixed exemption)","quote":"$5,000,000.00 or more | 16 percent of the excess over $5,000,000.00","url":"https://legislature.vermont.gov/statutes/section/32/190/07442a","sourceDomain":"legislature.vermont.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"Vermont estate tax is a flat 16% on the Vermont taxable estate exceeding $5,000,000. The $5M exemption has been fixed since 2020 (Act 2019, No. 71, § 5). VT adds back taxable gifts made within two years of death. Not linked to federal exclusion.","href":"/api/v1/citations/vt-32-vsa-7442a-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-estate-exemption","jurisdiction":"VT","category":"estate-exemption","label":"Estate tax exemption (TY2025)","display":"$5,000,000 fixed; not inflation-adjusted; in place since 2020; not linked to federal exclusion (32 V.S.A. § 7442a)","value":5000000,"valueType":"dollars","citations":[{"id":"vt-32-vsa-7442a-estate-tax-2025","jurisdiction":"VT","authority":"32 V.S.A. § 7442a","authorityType":"statute","title":"Vermont estate tax: 16% flat rate on Vermont taxable estate above $5,000,000 (fixed exemption)","quote":"$5,000,000.00 or more | 16 percent of the excess over $5,000,000.00","url":"https://legislature.vermont.gov/statutes/section/32/190/07442a","sourceDomain":"legislature.vermont.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"Vermont estate tax is a flat 16% on the Vermont taxable estate exceeding $5,000,000. The $5M exemption has been fixed since 2020 (Act 2019, No. 71, § 5). VT adds back taxable gifts made within two years of death. Not linked to federal exclusion.","href":"/api/v1/citations/vt-32-vsa-7442a-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-filing-status-partial","jurisdiction":"VT","category":"filing-status-partial","label":"Filing status: partial MFJ bracket widening","display":"Yes: graduated income tax up to 8.75% (TY2025); MFJ bracket thresholds are partially wider than single filer but not fully doubled; marriage penalty for high-income couples where brackets converge.","value":1,"valueType":"binary-exempt","citations":[{"id":"vt-32-vsa-5822-top-8-75pct-2025","jurisdiction":"VT","authority":"32 V.S.A. §5822(a)","authorityType":"statute","title":"Vermont top income tax rate is 8.75% on Vermont taxable income above $421,900 (MFJ, TY2025)","quote":"(a) A tax is imposed for each taxable year upon the taxable income earned or received in that year by every individual, estate, and trust, subject to income taxation under the laws of the United States, in an amount determined by the following tables... (1) Married individuals filing joint returns and surviving spouses: ... Over $237,950.00 $14,423.00 plus 8.75% of the amount of taxable income over $237,950.00","url":"https://legislature.vermont.gov/statutes/section/32/151/05822","sourceDomain":"legislature.vermont.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"32 V.S.A. §5822 imposes a graduated income tax with four rate tiers: 3.35%, 6.6%, 7.6%, and 8.75% (top rate). The quoted table shows the statutory base-year thresholds ($237,950 MFJ top); the statute delegates bracket thresholds to annual inflation adjustment by the Vermont Department of Taxes, so the specific dollar thresholds are DOR-computed for each tax year. For TY2025, the DOR-published MFJ thresholds are $73,950 / $178,150 / $421,900 (above which 8.75% applies). Vermont taxes capital gains as ordinary income at these rates, minus the $5,000 listed-security exclusion for modest gains. MFJ brackets are approximately doubled from single but not exactly, resulting in a partial marriage penalty at high income.","href":"/api/v1/citations/vt-32-vsa-5822-top-8-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vt-migration-loss-conformity","jurisdiction":"VT","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Vermont computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"vt-migration-loss-conformity-src","jurisdiction":"VT","authority":"32 V.S.A. §5822(a)","authorityType":"statute","title":"Vermont conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"A tax is imposed for each taxable year upon the taxable income earned or received in that year by every individual, estate, and trust, subject to income taxation under the laws of the United States, in an amount determined by the following tables, and adjusted as required under this section.","url":"https://legislature.vermont.gov/statutes/section/32/151/05822","sourceDomain":"legislature.vermont.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"32 V.S.A. §5822(a) imposes the tax on taxable income subject to income taxation under the laws of the United States, so Vermont builds on the federal base and the federal Section 1212 capital-loss carryover flows through. No published guidance addresses a carryforward imported from a pre-residency year; that application remains a structural inference.","href":"/api/v1/citations/vt-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"VA","name":"Virginia","level":"state","facts":[{"factId":"va-trust-nexus-incomplete-gift","jurisdiction":"VA","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: settlor domicile alone makes the ING a resident trust; the rulings waiving tax (P.D. 93-189, 16-184) require a DECEASED Virginia grantor with no remaining VA contacts, so a living settlor's ING is taxed","value":2,"valueType":"code","citations":[{"id":"va-trust-nexus-incomplete-gift-2026","jurisdiction":"VA","authority":"Va. Code 58.1-302 ('resident estate or trust', para. 3); Va. Tax P.D. 93-189 and P.D. 16-184","authorityType":"statute","title":"Virginia taxes a trust created by a person domiciled in the Commonwealth; the Department's relief applies only after the grantor's death","quote":"'Resident estate or trust' means: ... 3. A trust created by or consisting of property of a person domiciled in the Commonwealth.","url":"https://law.lis.virginia.gov/vacode/title58.1/section58.1-302/","sourceDomain":"law.lis.virginia.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"2019 HB 2526 deleted the administration prong from 58.1-302; no 2023 amendment exists.","href":"/api/v1/citations/va-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-estate-none","jurisdiction":"VA","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"va-estate-none-2025","jurisdiction":"VA","authority":"Virginia Department of Taxation, Estate and Inheritance Taxes page","authorityType":"dor-guidance","title":"Virginia has no estate or inheritance tax; estate tax effectively repealed as of July 1, 2007","quote":"Today, Virginia no longer has an estate tax* or inheritance tax. Prior to July 1, 2007, Virginia had an estate tax that was equal to the federal credit for state death taxes. With the elimination of the federal credit, the Virginia estate tax was effectively repealed.","url":"https://www.tax.virginia.gov/estate-and-inheritance-taxes","sourceDomain":"www.tax.virginia.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The asterisk flags a caveat, quoted verbatim: 'However, certain remainder interests are still subject to the inheritance tax.'","href":"/api/v1/citations/va-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-rate","jurisdiction":"VA","category":"rate","label":"Top income tax rate (TY2025)","display":"2% / 3% / 5% / 5.75% graduated; 5.75% above $17,000 (same schedule all statuses)","value":0.0575,"valueType":"rate","citations":[{"id":"va-code-58-1-320-top-5-75pct-2025","jurisdiction":"VA","authority":"Va. Code §58.1-320","authorityType":"statute","title":"Virginia income tax: 2% to 5.75% graduated (same schedule all filing statuses; 5.75% above $17,000)","quote":"A tax is hereby annually imposed on the Virginia taxable income for each taxable year of every individual as follows: Two percent on income not exceeding $3,000; Three percent on income in excess of $3,000, but not in excess of $5,000; Five percent on income in excess of $5,000, but not in excess of $17,000 for taxable years beginning on and after January 1, 1990; and Five and three-quarters percent on income in excess of $17,000 for taxable years beginning on and after January 1, 1990.","url":"https://law.lis.virginia.gov/vacode/58.1-320/","sourceDomain":"law.lis.virginia.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"Verbatim statutory text; the code spells rates out (Five and three-quarters percent = 5.75%). Same schedule applies to all filing statuses, not doubled for MFJ. Standard deduction TY2025: see VA_STD_DEDUCTION_2025. Virginia local taxes are wage-only.","href":"/api/v1/citations/va-code-58-1-320-top-5-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-deduction","jurisdiction":"VA","category":"deduction","label":"Standard deduction MFJ (TY2025)","display":"$17,500 MFJ (increased from $17,000 by 2025 General Assembly; $8,750 single)","value":17500,"valueType":"dollars","citations":[{"id":"va-std-deduction-17500-mfj-ty2025","jurisdiction":"VA","authority":"Va. Dept. of Taxation, 2025 Form 760 Instructions (Rev. 05/26), page 11, Line 11 Standard Deduction","authorityType":"form-instructions","title":"Virginia standard deduction TY2025: $17,500 MFJ (increased from $17,000 by 2025 General Assembly)","quote":"Legislation enacted during the 2025 General Assembly session increased the standard deduction for Taxable Years 2025 and 2026 from $8,500 to $8,750 for single filers and from $17,000 to $17,500 for married filers filing jointly.","url":"https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf","sourceDomain":"www.tax.virginia.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"Verbatim from 2025 Form 760 Instructions (Va. Dept. of Taxation, Rev. 05/26), page 11. MFJ standard deduction: $17,500. Single standard deduction: $8,750.","href":"/api/v1/citations/va-std-deduction-17500-mfj-ty2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-conformity","jurisdiction":"VA","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-muni-instate","jurisdiction":"VA","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: Va. Code §58.1-322.02(2) subtraction for obligations of the Commonwealth and its subdivisions","value":1,"valueType":"binary-exempt","citations":[{"id":"va-code-58-1-322-muni-default-2025","jurisdiction":"VA","authority":"Va. Code §58.1-322.02(2) (VA exempt) and §58.1-322.01(1) (out-of-state taxable)","authorityType":"statute","title":"VA exempts VA-issued bonds; out-of-state muni bond interest is a VA income addition per §58.1-322.01(1)","quote":"Income derived from obligations, or on the sale or exchange of obligations, of the Commonwealth or of any political subdivision thereof shall be subtracted.","url":"https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-322.02/","sourceDomain":"law.lis.virginia.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"§58.1-322.02(2) provides a subtraction for VA bond interest. §58.1-322.01(1) requires addition of out-of-state muni interest: 'Interest, less related expenses to the extent not deducted in determining federal income, on obligations of any state other than Virginia, or of a political subdivision of any such other state.'","href":"/api/v1/citations/va-code-58-1-322-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-muni-outstate","jurisdiction":"VA","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: Va. Code §58.1-322.01(1) requires addition of out-of-state muni interest to VA income","value":0,"valueType":"binary-exempt","citations":[{"id":"va-code-58-1-322-muni-default-2025","jurisdiction":"VA","authority":"Va. Code §58.1-322.02(2) (VA exempt) and §58.1-322.01(1) (out-of-state taxable)","authorityType":"statute","title":"VA exempts VA-issued bonds; out-of-state muni bond interest is a VA income addition per §58.1-322.01(1)","quote":"Income derived from obligations, or on the sale or exchange of obligations, of the Commonwealth or of any political subdivision thereof shall be subtracted.","url":"https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-322.02/","sourceDomain":"law.lis.virginia.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"§58.1-322.02(2) provides a subtraction for VA bond interest. §58.1-322.01(1) requires addition of out-of-state muni interest: 'Interest, less related expenses to the extent not deducted in determining federal income, on obligations of any state other than Virginia, or of a political subdivision of any such other state.'","href":"/api/v1/citations/va-code-58-1-322-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-qoz-conformity","jurisdiction":"VA","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity","value":1,"valueType":"code","citations":[{"id":"va-qoz-conformity-irc-1400z2-2025","jurisdiction":"VA","authority":"Va. Code §58.1-321; §58.1-322.01; Tax Bulletin 26-1 (Feb 2026)","authorityType":"statute","title":"Virginia conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The term 'Internal Revenue Code' means the laws enacted by the United States Congress with respect to federal income taxes, as such laws have been or may hereafter be amended, which are applicable to the taxable year.","url":"https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-321/","sourceDomain":"law.lis.virginia.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"Virginia's §58.1-321 conformity clause (quoted) incorporates §1400Z-2 QOZ provisions by default; no separate QOZ carve-out exists in the Virginia Code. Caveat: per Virginia Tax Bulletin 26-1 (2026 General Assembly), Virginia reportedly moved to FIXED-DATE conformity (IRC as of 12/31/2025) under §58.1-301(B) for TY2025; §1400Z-2 predates that date, so the conforms flag is unaffected either way. The rolling quote above may be superseded; pending primary-source confirmation of the new fixed-date section text.","href":"/api/v1/citations/va-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-qsbs-conformity","jurisdiction":"VA","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback","value":1,"valueType":"binary-exempt","citations":[{"id":"va-qsbs-conformity-irc-1202-2025","jurisdiction":"VA","authority":"Va. Code §58.1-321","authorityType":"statute","title":"Virginia conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity","quote":"The term 'Internal Revenue Code' means the laws enacted by the United States Congress with respect to federal income taxes, as such laws have been or may hereafter be amended, which are applicable to the taxable year.","url":"https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-321/","sourceDomain":"law.lis.virginia.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"Virginia's §58.1-321 conformity clause (quoted) incorporates §1202 QSBS exclusion by default; no separate §1202 carve-out exists in the Virginia Code. Caveat: per Virginia Tax Bulletin 26-1 (2026 General Assembly), Virginia reportedly moved to FIXED-DATE conformity (IRC as of 12/31/2025) under §58.1-301(B) for TY2025; §1202 predates that date, so the conforms flag is unaffected. Pending primary-source confirmation of the new fixed-date section text.","href":"/api/v1/citations/va-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-agency-obligations","jurisdiction":"VA","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: Va. Code §58.1-322.02(3) subtraction limited to 'obligations of the United States'; FNMA and FHLMC are GSEs without a federal bondholder tax exemption (Tax Commissioner Ruling 94-281)","value":0,"valueType":"binary-exempt","citations":[{"id":"va-code-58-1-322-02-3-fnma-fhlmc-taxable","jurisdiction":"VA","authority":"Va. Code §58.1-322.02(3); Virginia Tax Commissioner Ruling 94-281 (January 28, 1994)","authorityType":"statute","title":"Virginia subtraction for U.S. obligation income requires federal preemption; FNMA and FHLMC have no federal bondholder exemption; taxable per Tax Commissioner Ruling 94-281","quote":"Income derived from obligations of the United States shall be subtracted to the extent included in federal adjusted gross income.","url":"https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-322.02/","sourceDomain":"law.lis.virginia.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"Tax Commissioner Ruling 94-281 (January 28, 1994) addressed FNMA/FHLMC specifically and confirmed their interest is not exempt from Virginia income tax: FNMA and FHLMC are federally chartered GSEs but their enabling statutes (12 U.S.C. §§1719(e), 1723a(c); 12 U.S.C. §1455(a)) do not grant bondholders an exemption from state income taxes. The §58.1-322.02(3) subtraction is limited to income 'derived from obligations of the United States'; GSE securities are not U.S. obligations.","href":"/api/v1/citations/va-code-58-1-322-02-3-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-dividend-qualified","jurisdiction":"VA","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Virginia has no modification creating a preferential rate for qualified dividends; taxed at ordinary rates up to 5.75% (IRC §1(h)(11) preference not adopted)","value":0,"valueType":"binary-exempt","citations":[{"id":"va-code-58-1-320-top-5-75pct-2025","jurisdiction":"VA","authority":"Va. Code §58.1-320","authorityType":"statute","title":"Virginia income tax: 2% to 5.75% graduated (same schedule all filing statuses; 5.75% above $17,000)","quote":"A tax is hereby annually imposed on the Virginia taxable income for each taxable year of every individual as follows: Two percent on income not exceeding $3,000; Three percent on income in excess of $3,000, but not in excess of $5,000; Five percent on income in excess of $5,000, but not in excess of $17,000 for taxable years beginning on and after January 1, 1990; and Five and three-quarters percent on income in excess of $17,000 for taxable years beginning on and after January 1, 1990.","url":"https://law.lis.virginia.gov/vacode/58.1-320/","sourceDomain":"law.lis.virginia.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"Verbatim statutory text; the code spells rates out (Five and three-quarters percent = 5.75%). Same schedule applies to all filing statuses, not doubled for MFJ. Standard deduction TY2025: see VA_STD_DEDUCTION_2025. Virginia local taxes are wage-only.","href":"/api/v1/citations/va-code-58-1-320-top-5-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-treasury","jurisdiction":"VA","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"va-31-usc-3124-treasury-exempt-2025","jurisdiction":"VA","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Virginia income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/va-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-fhlb-ffcb","jurisdiction":"VA","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"va-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"VA","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Virginia income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/va-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-carryback","jurisdiction":"VA","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-character","jurisdiction":"VA","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income up to 5.75% (Va. Code §58.1-320)","value":null,"valueType":"none","citations":[{"id":"va-code-58-1-320-top-5-75pct-2025","jurisdiction":"VA","authority":"Va. Code §58.1-320","authorityType":"statute","title":"Virginia income tax: 2% to 5.75% graduated (same schedule all filing statuses; 5.75% above $17,000)","quote":"A tax is hereby annually imposed on the Virginia taxable income for each taxable year of every individual as follows: Two percent on income not exceeding $3,000; Three percent on income in excess of $3,000, but not in excess of $5,000; Five percent on income in excess of $5,000, but not in excess of $17,000 for taxable years beginning on and after January 1, 1990; and Five and three-quarters percent on income in excess of $17,000 for taxable years beginning on and after January 1, 1990.","url":"https://law.lis.virginia.gov/vacode/58.1-320/","sourceDomain":"law.lis.virginia.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"Verbatim statutory text; the code spells rates out (Five and three-quarters percent = 5.75%). Same schedule applies to all filing statuses, not doubled for MFJ. Standard deduction TY2025: see VA_STD_DEDUCTION_2025. Virginia local taxes are wage-only.","href":"/api/v1/citations/va-code-58-1-320-top-5-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-filing-status-identical","jurisdiction":"VA","category":"filing-status-identical","label":"Same bracket schedule for all filing statuses","display":"Yes: Va. Code §58.1-320 provides one rate schedule for all filing statuses; same thresholds for Single and MFJ, creating the maximum marriage penalty on a joint return vs. two singles","value":1,"valueType":"binary-exempt","citations":[{"id":"va-code-58-1-320-top-5-75pct-2025","jurisdiction":"VA","authority":"Va. Code §58.1-320","authorityType":"statute","title":"Virginia income tax: 2% to 5.75% graduated (same schedule all filing statuses; 5.75% above $17,000)","quote":"A tax is hereby annually imposed on the Virginia taxable income for each taxable year of every individual as follows: Two percent on income not exceeding $3,000; Three percent on income in excess of $3,000, but not in excess of $5,000; Five percent on income in excess of $5,000, but not in excess of $17,000 for taxable years beginning on and after January 1, 1990; and Five and three-quarters percent on income in excess of $17,000 for taxable years beginning on and after January 1, 1990.","url":"https://law.lis.virginia.gov/vacode/58.1-320/","sourceDomain":"law.lis.virginia.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"Verbatim statutory text; the code spells rates out (Five and three-quarters percent = 5.75%). Same schedule applies to all filing statuses, not doubled for MFJ. Standard deduction TY2025: see VA_STD_DEDUCTION_2025. Virginia local taxes are wage-only.","href":"/api/v1/citations/va-code-58-1-320-top-5-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-marital-udcprda","jurisdiction":"VA","category":"marital-udcprda","label":"Uniform Disposition of Community Property Rights at Death Act (UDCPRDA)","display":"Yes: Va. Code §64.2-315 et seq. preserves community property character of assets acquired in CP states at death of a Virginia resident; surviving spouse retains one-half CP interest","value":1,"valueType":"binary-exempt","citations":[{"id":"va-code-64-2-315-udcprda","jurisdiction":"VA","authority":"Va. Code §64.2-315 et seq. (Title 64.2, Chapter 3, Article 3)","authorityType":"statute","title":"Virginia adopted the Uniform Disposition of Community Property Rights at Death Act (UDCPRDA)","quote":"This article applies to the disposition at death of the following property acquired by a married person: 1. All personal property, wherever situated: a. Which was acquired as or became, and remained, community property under the laws of another jurisdiction.","url":"https://law.lis.virginia.gov/vacodefull/title64.2/chapter3/article3/","sourceDomain":"law.lis.virginia.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"Virginia's UDCPRDA (Va. Code §§64.2-315 to 64.2-320) protects the community property character of assets acquired in community property states when a couple moves to Virginia. At death, the surviving spouse retains their one-half community property interest. Does not make Virginia a community property state for income tax purposes. URL resolves to the Article 3 table of contents; §64.2-315 is within this article.","href":"/api/v1/citations/va-code-64-2-315-udcprda"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"va-migration-loss-conformity","jurisdiction":"VA","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): Virginia computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"va-migration-loss-conformity-src","jurisdiction":"VA","authority":"Va. Code §58.1-320","authorityType":"statute","title":"Virginia conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"A tax is hereby annually imposed on the Virginia taxable income for each taxable year of every individual as follows: Two percent on income not exceeding $3,000; Three percent on income in excess of $3,000, but not in excess of $5,000; Five percent on income in excess of $5,000, but not in excess of $12,000.","url":"https://law.lis.virginia.gov/vacode/58.1-320/","sourceDomain":"law.lis.virginia.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"Va. Code §58.1-320 imposes the tax on Virginia taxable income, which §58.1-322 builds from federal adjusted gross income, so the federal Section 1212 capital-loss carryover flows through. No published guidance addresses a carryforward imported from a pre-residency year; that application remains a structural inference.","href":"/api/v1/citations/va-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"WA","name":"Washington","level":"state","facts":[{"factId":"wa-rate","jurisdiction":"WA","category":"rate","label":"Base excise rate (long-term capital gains)","display":"7%","value":0.07,"valueType":"rate","citations":[{"id":"wa-excise-base-rate-7pct","jurisdiction":"WA","authority":"RCW 82.87.040(1)(a)","authorityType":"statute","title":"Washington imposes a 7% excise on long-term capital gains","quote":"An excise tax is imposed on the sale or exchange of long-term capital assets. Only individuals are subject to payment of the tax, which equals seven percent multiplied by an individual's Washington capital gains.","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.040","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"RCW 82.87.040(1)(a) establishes a 7% excise on Washington long-term capital gains, effective January 1, 2022. Verbatim quote verified against app.leg.wa.gov RCW 82.87.040.","href":"/api/v1/citations/wa-excise-base-rate-7pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-surcharge","jurisdiction":"WA","category":"surcharge","label":"Surcharge above $1,000,000","display":"+2.9%","value":0.029,"valueType":"rate","citations":[{"id":"wa-excise-surcharge-2-9pct-over-1m","jurisdiction":"WA","authority":"RCW 82.87.040(1)(b)","authorityType":"statute","title":"Additional 2.9% on Washington capital gains exceeding $1,000,000","quote":"An additional excise tax is imposed on the sale or exchange of long-term capital assets, which equals 2.90 percent multiplied by the portion of an individual's Washington capital gains exceeding $1,000,000.","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.040","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"RCW 82.87.040(1)(b) imposes an additional 2.9% excise on Washington capital gains exceeding $1,000,000, effective January 1, 2025. Verbatim quote verified against app.leg.wa.gov RCW 82.87.040.","href":"/api/v1/citations/wa-excise-surcharge-2-9pct-over-1m"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-threshold","jurisdiction":"WA","category":"threshold","label":"Surcharge threshold","display":"$1,000,000","value":1000000,"valueType":"dollars","citations":[{"id":"wa-excise-surcharge-2-9pct-over-1m","jurisdiction":"WA","authority":"RCW 82.87.040(1)(b)","authorityType":"statute","title":"Additional 2.9% on Washington capital gains exceeding $1,000,000","quote":"An additional excise tax is imposed on the sale or exchange of long-term capital assets, which equals 2.90 percent multiplied by the portion of an individual's Washington capital gains exceeding $1,000,000.","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.040","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"RCW 82.87.040(1)(b) imposes an additional 2.9% excise on Washington capital gains exceeding $1,000,000, effective January 1, 2025. Verbatim quote verified against app.leg.wa.gov RCW 82.87.040.","href":"/api/v1/citations/wa-excise-surcharge-2-9pct-over-1m"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-deduction-terminal-2025-12-31","jurisdiction":"WA","category":"deduction","label":"Standard deduction (TY2025 CPI-adjusted operative figure)","display":"$278,000 (TY2025 CPI-adjusted; statutory base $250,000 per RCW 82.87.060)","value":278000,"valueType":"dollars","citations":[{"id":"wa-standard-deduction-278k-ty2025-cpi-adjusted","jurisdiction":"WA","authority":"WA DOR Capital Gains Tax page; RCW 82.87.150 (CPI-adjustment mandate)","authorityType":"dor-guidance","title":"Washington capital-gains standard deduction for TY2025: $278,000 (CPI-adjusted per RCW 82.87.150)","quote":"The standard deduction for 2025 is $278,000. In 2024 the standard deduction was $270,000.","url":"https://dor.wa.gov/taxes-rates/other-taxes/capital-gains-tax","sourceDomain":"dor.wa.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"WA DOR publishes the CPI-adjusted standard deduction each year per RCW 82.87.150. The TY2025 operative deduction is $278,000, not the $250,000 statutory base. Confidence medium: source is a WA DOR agency page (dor-guidance), not the statute itself.","href":"/api/v1/citations/wa-standard-deduction-278k-ty2025-cpi-adjusted"},{"id":"wa-standard-deduction-250k-base","jurisdiction":"WA","authority":"RCW 82.87.060 (statutory base); RCW 82.87.150 (CPI adjustment)","authorityType":"statute","title":"Washington capital-gains standard deduction: $250,000 statutory base, $278,000 TY2025 CPI-adjusted","quote":"A standard deduction of $250,000 per individual, or in the case of spouses or domestic partners, their combined standard deduction is limited to $250,000.","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.060","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"RCW 82.87.150 mandates annual CPI adjustment (Seattle-area CPI, rounded to nearest $1,000). WA DOR publishes the adjusted figure each October. TY2025 operative deduction: $278,000 (per WA DOR: https://dor.wa.gov/taxes-rates/other-taxes/capital-gains-tax). TY2024 was $270,000. The $250,000 encoded here is the statutory base only; see WA_DEDUCTION_278K for the operative TY2025 figure.","href":"/api/v1/citations/wa-standard-deduction-250k-base"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2026-11-01"},{"factId":"wa-muni-instate","jurisdiction":"WA","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: WA capital gains excise (RCW 82.87) applies only to capital gains; interest income excluded from base","value":1,"valueType":"binary-exempt","citations":[{"id":"wa-rcw-82-87-020-muni-interest-not-excise-base","jurisdiction":"WA","authority":"RCW 82.87.020 (definition of 'Washington capital gains')","authorityType":"statute","title":"WA capital gains excise does not apply to interest income muni and Treasury interest fully exempt","quote":"\"Washington capital gains\" means an individual's adjusted capital gain, as modified in RCW 82.87.060, for each return filed under this chapter. \"Adjusted capital gain\" means federal net long-term capital gain:","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.020","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"RCW 82.87.020 defines the Washington capital gains excise base as federal net long-term capital gain from the sale or exchange of capital assets. Interest income is not a capital gain, so municipal and Treasury interest falls outside the excise base.","href":"/api/v1/citations/wa-rcw-82-87-020-muni-interest-not-excise-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-muni-outstate","jurisdiction":"WA","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Exempt: same as in-state; WA excise does not reach interest income (RCW 82.87.020)","value":1,"valueType":"binary-exempt","citations":[{"id":"wa-rcw-82-87-020-muni-interest-not-excise-base","jurisdiction":"WA","authority":"RCW 82.87.020 (definition of 'Washington capital gains')","authorityType":"statute","title":"WA capital gains excise does not apply to interest income muni and Treasury interest fully exempt","quote":"\"Washington capital gains\" means an individual's adjusted capital gain, as modified in RCW 82.87.060, for each return filed under this chapter. \"Adjusted capital gain\" means federal net long-term capital gain:","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.020","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"RCW 82.87.020 defines the Washington capital gains excise base as federal net long-term capital gain from the sale or exchange of capital assets. Interest income is not a capital gain, so municipal and Treasury interest falls outside the excise base.","href":"/api/v1/citations/wa-rcw-82-87-020-muni-interest-not-excise-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-qoz-conformity","jurisdiction":"WA","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Non-conforms to IRC §1400Z-2; QOZ gain deferral not recognized, gain taxable at state level in year of investment","value":0,"valueType":"code","citations":[{"id":"wa-qoz-conformity-irc-1400z2-2025","jurisdiction":"WA","authority":"RCW 82.87.020","authorityType":"statute","title":"Washington does not conform to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"'Adjusted capital gain' means federal net long-term capital gain computed as if Title 26 U.S.C. Secs. 55 through 59, 1256, 1400Z-1, and 1400Z-2 of the internal revenue code did not exist.","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.020","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"RCW 82.87.020 defines the Washington capital gains excise tax base such that §1400Z-2 QOZ deferral and exclusion provisions are ignored. Gain deferred or permanently excluded federally is included in the WA excise tax base.","href":"/api/v1/citations/wa-qoz-conformity-irc-1400z2-2025"},{"id":"wa-wac-458-20-301-examples-6-7-qoz-2025","jurisdiction":"WA","authority":"WAC 458-20-301 Examples 6-7","authorityType":"regulation","title":"WAC 458-20-301 Examples 6-7 confirm: QOZ-deferred gain is included in WA capital gains in year of investment","quote":"An individual's Washington capital gains is based on their federal net long-term capital gain, which is defined as the net long-term capital gain reportable for federal income tax purposes determined as if Title 26 U.S.C. Secs. 55 through 59, 1400Z-1, and 1400Z-2 of the Internal Revenue Code did not exist. Joseph must include the $1,300,000 in long-term capital gain from his 2023 stock sale in calculating his 2023 Washington capital gains.","url":"https://app.leg.wa.gov/wac/default.aspx?cite=458-20-301","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"WAC 458-20-301 Examples 6 and 7 confirm that QOZ-deferred gain is taxable by WA in the year of the deferral election, not deferred as under federal law.","href":"/api/v1/citations/wa-wac-458-20-301-examples-6-7-qoz-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-qsbs-conformity","jurisdiction":"WA","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202; QSBS exclusion flows through from federal, gain excluded from WA excise base","value":1,"valueType":"binary-exempt","citations":[{"id":"wa-qsbs-conformity-irc-1202-2025","jurisdiction":"WA","authority":"RCW 82.87.020","authorityType":"statute","title":"Washington conforms to IRC §1202 QSBS exclusion (not in RCW 82.87.020 addback list)","quote":"'Adjusted capital gain' means federal net long-term capital gain computed as if Title 26 U.S.C. Secs. 55 through 59, 1256, 1400Z-1, and 1400Z-2 of the internal revenue code did not exist.","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.020","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"Conformity by omission: IRC §1202 is absent from RCW 82.87.020's closed addback list. The statute explicitly names §1400Z-1 and §1400Z-2 (which it excludes) but does not list §1202, therefore §1202-excluded gain conforms and is not added back. Corroborated by WA DOR FAQ.","href":"/api/v1/citations/wa-qsbs-conformity-irc-1202-2025"},{"id":"wa-qsbs-dor-faq-irc-1202-2025","jurisdiction":"WA","authority":"WA DOR Capital Gains Tax FAQ","authorityType":"dor-guidance","title":"WA DOR FAQ: QSBS gain excluded under IRC §1202 is not subject to Washington capital gains tax","quote":"No, you do not owe Washington's capital gains tax on gain from the sale or exchange of qualified small business stock if the gain was excluded from your federal net long-term capital gain under IRC Section 1202.","url":"https://dor.wa.gov/taxes-rates/other-taxes/capital-gains-tax/frequently-asked-questions-about-washingtons-capital-gains-tax","sourceDomain":"dor.wa.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"WA DOR FAQ affirmative statement confirming §1202 QSBS conformity. Agency guidance corroborates the statutory proof-by-omission in WA_QSBS_CONFORMITY (RCW 82.87.020).","href":"/api/v1/citations/wa-qsbs-dor-faq-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-agency-obligations","jurisdiction":"WA","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Exempt: WA capital gains excise (RCW 82.87) does not reach interest income; FNMA/FHLMC bond interest is not subject to any WA tax","value":1,"valueType":"binary-exempt","citations":[{"id":"wa-rcw-82-87-020-muni-interest-not-excise-base","jurisdiction":"WA","authority":"RCW 82.87.020 (definition of 'Washington capital gains')","authorityType":"statute","title":"WA capital gains excise does not apply to interest income muni and Treasury interest fully exempt","quote":"\"Washington capital gains\" means an individual's adjusted capital gain, as modified in RCW 82.87.060, for each return filed under this chapter. \"Adjusted capital gain\" means federal net long-term capital gain:","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.020","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"RCW 82.87.020 defines the Washington capital gains excise base as federal net long-term capital gain from the sale or exchange of capital assets. Interest income is not a capital gain, so municipal and Treasury interest falls outside the excise base.","href":"/api/v1/citations/wa-rcw-82-87-020-muni-interest-not-excise-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-dividend-qualified","jurisdiction":"WA","category":"dividend-qualified","label":"Qualified dividend income","display":"Moot: WA capital gains excise (RCW 82.87) excludes income characterized as dividends (RCW 82.87.020); no WA income tax","value":null,"valueType":"none","citations":[{"id":"wa-rcw-82-87-020-muni-interest-not-excise-base","jurisdiction":"WA","authority":"RCW 82.87.020 (definition of 'Washington capital gains')","authorityType":"statute","title":"WA capital gains excise does not apply to interest income muni and Treasury interest fully exempt","quote":"\"Washington capital gains\" means an individual's adjusted capital gain, as modified in RCW 82.87.060, for each return filed under this chapter. \"Adjusted capital gain\" means federal net long-term capital gain:","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.020","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"RCW 82.87.020 defines the Washington capital gains excise base as federal net long-term capital gain from the sale or exchange of capital assets. Interest income is not a capital gain, so municipal and Treasury interest falls outside the excise base.","href":"/api/v1/citations/wa-rcw-82-87-020-muni-interest-not-excise-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-treasury","jurisdiction":"WA","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: WA capital gains excise (RCW 82.87) does not apply to interest income; no WA income tax on interest","value":1,"valueType":"binary-exempt","citations":[{"id":"wa-rcw-82-87-020-muni-interest-not-excise-base","jurisdiction":"WA","authority":"RCW 82.87.020 (definition of 'Washington capital gains')","authorityType":"statute","title":"WA capital gains excise does not apply to interest income muni and Treasury interest fully exempt","quote":"\"Washington capital gains\" means an individual's adjusted capital gain, as modified in RCW 82.87.060, for each return filed under this chapter. \"Adjusted capital gain\" means federal net long-term capital gain:","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.020","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"RCW 82.87.020 defines the Washington capital gains excise base as federal net long-term capital gain from the sale or exchange of capital assets. Interest income is not a capital gain, so municipal and Treasury interest falls outside the excise base.","href":"/api/v1/citations/wa-rcw-82-87-020-muni-interest-not-excise-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-fhlb-ffcb","jurisdiction":"WA","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: WA capital gains excise (RCW 82.87) does not apply to interest income; FHLB and FFCB bond interest not subject to any WA tax","value":1,"valueType":"binary-exempt","citations":[{"id":"wa-rcw-82-87-020-muni-interest-not-excise-base","jurisdiction":"WA","authority":"RCW 82.87.020 (definition of 'Washington capital gains')","authorityType":"statute","title":"WA capital gains excise does not apply to interest income muni and Treasury interest fully exempt","quote":"\"Washington capital gains\" means an individual's adjusted capital gain, as modified in RCW 82.87.060, for each return filed under this chapter. \"Adjusted capital gain\" means federal net long-term capital gain:","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.020","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"RCW 82.87.020 defines the Washington capital gains excise base as federal net long-term capital gain from the sale or exchange of capital assets. Interest income is not a capital gain, so municipal and Treasury interest falls outside the excise base.","href":"/api/v1/citations/wa-rcw-82-87-020-muni-interest-not-excise-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-character","jurisdiction":"WA","category":"character","label":"Long-term vs short-term capital gains","display":"Long-term only: Washington excise (RCW 82.87.040) applies exclusively to long-term capital gains; short-term capital gains are ordinary income and not subject to any WA tax (WA has no personal income tax)","value":null,"valueType":"none","citations":[{"id":"wa-excise-base-rate-7pct","jurisdiction":"WA","authority":"RCW 82.87.040(1)(a)","authorityType":"statute","title":"Washington imposes a 7% excise on long-term capital gains","quote":"An excise tax is imposed on the sale or exchange of long-term capital assets. Only individuals are subject to payment of the tax, which equals seven percent multiplied by an individual's Washington capital gains.","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.040","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"RCW 82.87.040(1)(a) establishes a 7% excise on Washington long-term capital gains, effective January 1, 2022. Verbatim quote verified against app.leg.wa.gov RCW 82.87.040.","href":"/api/v1/citations/wa-excise-base-rate-7pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-carryback","jurisdiction":"WA","category":"carryback","label":"Capital loss carryback","display":"None: RCW 82.87 taxes net long-term capital gains per taxable year; no carryback or carryforward provision exists in the excise framework; net losses result in zero tax for the year but do not carry to other years","value":null,"valueType":"none","citations":[{"id":"wa-excise-base-rate-7pct","jurisdiction":"WA","authority":"RCW 82.87.040(1)(a)","authorityType":"statute","title":"Washington imposes a 7% excise on long-term capital gains","quote":"An excise tax is imposed on the sale or exchange of long-term capital assets. Only individuals are subject to payment of the tax, which equals seven percent multiplied by an individual's Washington capital gains.","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.040","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"RCW 82.87.040(1)(a) establishes a 7% excise on Washington long-term capital gains, effective January 1, 2022. Verbatim quote verified against app.leg.wa.gov RCW 82.87.040.","href":"/api/v1/citations/wa-excise-base-rate-7pct"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-estate-rate-terminal-2025-06-30","jurisdiction":"WA","category":"estate-rate","label":"Estate tax top marginal rate (H1 2025: before July 1)","display":"10% to 20% graduated for deaths before July 1, 2025 (pre-ESSB-5794 RCW 83.100.040)","value":0.2,"valueType":"rate","citations":[{"id":"wa-rcw-83-100-040-estate-tax-h1-2025","jurisdiction":"WA","authority":"RCW 83.100.040 (pre-ESSB-5794); WAC 458-57-105","authorityType":"statute","title":"Washington estate tax H1 2025 (before July 1): 10% to 20% graduated; $2,193,000 exclusion","quote":"A tax in an amount computed as provided in this section is imposed on every transfer of property located in Washington.","url":"https://app.leg.wa.gov/rcw/default.aspx?cite=83.100.040","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"Pre-ESSB-5794 schedule applied to deaths before July 1, 2025: 10%-20% graduated, top 20% above $11M; $2,193,000 exclusion (WAC 458-57-105). ESSB 5794 (2025 session) raised rates to 10%-35% and exclusion to $3,000,000 effective July 1, 2025. Confidence medium: quote is the base taxability clause unchanged by ESSB 5794; H1 figures sourced from WAC 458-57-105 records and ESSB 5794 floor debate materials, not re-read from a live archival statute text.","href":"/api/v1/citations/wa-rcw-83-100-040-estate-tax-h1-2025"}],"effectiveDate":null,"terminalDate":"2025-06-30","nextReviewDate":"2027-01-01"},{"factId":"wa-estate-exemption-terminal-2025-06-30","jurisdiction":"WA","category":"estate-exemption","label":"Estate tax exclusion (H1 2025: before July 1)","display":"$2,193,000 for deaths before July 1, 2025 (pre-ESSB-5794; WAC 458-57-105)","value":2193000,"valueType":"dollars","citations":[{"id":"wa-rcw-83-100-040-estate-tax-h1-2025","jurisdiction":"WA","authority":"RCW 83.100.040 (pre-ESSB-5794); WAC 458-57-105","authorityType":"statute","title":"Washington estate tax H1 2025 (before July 1): 10% to 20% graduated; $2,193,000 exclusion","quote":"A tax in an amount computed as provided in this section is imposed on every transfer of property located in Washington.","url":"https://app.leg.wa.gov/rcw/default.aspx?cite=83.100.040","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"Pre-ESSB-5794 schedule applied to deaths before July 1, 2025: 10%-20% graduated, top 20% above $11M; $2,193,000 exclusion (WAC 458-57-105). ESSB 5794 (2025 session) raised rates to 10%-35% and exclusion to $3,000,000 effective July 1, 2025. Confidence medium: quote is the base taxability clause unchanged by ESSB 5794; H1 figures sourced from WAC 458-57-105 records and ESSB 5794 floor debate materials, not re-read from a live archival statute text.","href":"/api/v1/citations/wa-rcw-83-100-040-estate-tax-h1-2025"}],"effectiveDate":null,"terminalDate":"2025-06-30","nextReviewDate":"2027-01-01"},{"factId":"wa-estate-rate-2025-07-01","jurisdiction":"WA","category":"estate-rate","label":"Estate tax top marginal rate (deaths July 1, 2025 to June 30, 2026)","display":"10% to 35% graduated (ESSB 5794); top 35% above $9,000,000 WA taxable estate; reverts to 20% July 1, 2026","value":0.35,"valueType":"rate","citations":[{"id":"wa-rcw-83-100-040-estate-tax-2025","jurisdiction":"WA","authority":"RCW 83.100.040 (rates); WAC 458-57-105 (exclusion amounts); WA DOR","authorityType":"statute","title":"Washington estate tax: graduated 10% to 35% (from July 1, 2025); $3,000,000 exclusion for deaths on or after July 1, 2025","quote":"A tax in an amount computed as provided in this section is imposed on every transfer of property located in Washington.","url":"https://app.leg.wa.gov/rcw/default.aspx?cite=83.100.040","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"WA estate tax is separate from the CG excise (RCW 82.87). Rate schedule changed July 1, 2025 per ESSB 5794 (2025 session). H2 2025 (July 1 onward): 10%-35% graduated, top 35% above $9M; $3,000,000 exclusion. WAC 458-57-105 confirms exclusion amounts. Confidence medium: the quoted text is the base taxability clause (unchanged by ESSB 5794); the rate schedule and new exclusion amount come from ESSB 5794 and WAC 458-57-105, not from this verbatim RCW text.","href":"/api/v1/citations/wa-rcw-83-100-040-estate-tax-2025"}],"effectiveDate":"2025-07-01","terminalDate":"2026-06-30","nextReviewDate":"2027-01-01"},{"factId":"wa-estate-rate","jurisdiction":"WA","category":"estate-rate","label":"Estate tax top marginal rate (deaths on or after July 1, 2026)","display":"10% to 20% graduated (ESB 6347); top 20% above $9,000,000 WA taxable estate","value":0.2,"valueType":"rate","citations":[{"id":"wa-dor-estate-tax-tables-20pct-2026-07-01","jurisdiction":"WA","authority":"ESB 6347 (2026); RCW 83.100.040; WA DOR estate tax tables","authorityType":"dor-guidance","title":"Washington estate tax top rate reverts to 20% for deaths on or after July 1, 2026","quote":"$9,000,000 and up: $1,490,000 plus 20% of the amount over $9,000,000","url":"https://dor.wa.gov/taxes-rates/other-taxes/estate-tax-tables","sourceDomain":"dor.wa.gov","taxYear":2026,"asOf":"2026-06-28","confidence":"medium","note":"The 10%-35% schedule (ESSB 5794) applied only to deaths July 1, 2025 through June 30, 2026. ESB 6347 (2026 session) reverts the schedule to 10%-20% (top 20% above $9M WA taxable estate) for deaths on or after July 1, 2026. Rate table verified against the WA DOR estate tax tables page (agency guidance).","href":"/api/v1/citations/wa-dor-estate-tax-tables-20pct-2026-07-01"}],"effectiveDate":"2026-07-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-estate-exemption-2025-07-01","jurisdiction":"WA","category":"estate-exemption","label":"Estate tax exclusion (H2 2025: July 1 to December 31)","display":"$3,000,000 for deaths July 1 through December 31, 2025 (ESSB 5794; WAC 458-57-105)","value":3000000,"valueType":"dollars","citations":[{"id":"wa-rcw-83-100-040-estate-tax-2025","jurisdiction":"WA","authority":"RCW 83.100.040 (rates); WAC 458-57-105 (exclusion amounts); WA DOR","authorityType":"statute","title":"Washington estate tax: graduated 10% to 35% (from July 1, 2025); $3,000,000 exclusion for deaths on or after July 1, 2025","quote":"A tax in an amount computed as provided in this section is imposed on every transfer of property located in Washington.","url":"https://app.leg.wa.gov/rcw/default.aspx?cite=83.100.040","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"WA estate tax is separate from the CG excise (RCW 82.87). Rate schedule changed July 1, 2025 per ESSB 5794 (2025 session). H2 2025 (July 1 onward): 10%-35% graduated, top 35% above $9M; $3,000,000 exclusion. WAC 458-57-105 confirms exclusion amounts. Confidence medium: the quoted text is the base taxability clause (unchanged by ESSB 5794); the rate schedule and new exclusion amount come from ESSB 5794 and WAC 458-57-105, not from this verbatim RCW text.","href":"/api/v1/citations/wa-rcw-83-100-040-estate-tax-2025"}],"effectiveDate":"2025-07-01","terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"wa-estate-exemption-2026-h1","jurisdiction":"WA","category":"estate-exemption","label":"Estate tax exclusion (H1 2026, CPI-adjusted)","display":"$3,076,000 for deaths January 1 through June 30, 2026 (one-time CPI adjustment)","value":3076000,"valueType":"dollars","citations":[{"id":"wa-dor-estate-exclusion-3076000-h1-2026","jurisdiction":"WA","authority":"WA DOR estate tax page; RCW 83.100.020 (applicable exclusion amount)","authorityType":"dor-guidance","title":"Washington estate tax exclusion $3,076,000 for deaths January 1 to June 30, 2026","quote":"The filing threshold and exclusion amount is set at $3,076,000 for decedents passing away between January 1, 2026 and June 30, 2026.","url":"https://dor.wa.gov/taxes-rates/other-taxes/estate-tax","sourceDomain":"dor.wa.gov","taxYear":2026,"asOf":"2026-07-06","confidence":"medium","note":"One-time CPI adjustment for the first half of 2026. Verbatim from the DOR estate-tax page (re-read 2026-07-06; the page's earlier 'June 1' typo is now corrected to 'June 30'). The successor $3,000,000 H2-2026 figure carries its own citation (WA_ESTATE_EXCLUSION_2026_H2).","href":"/api/v1/citations/wa-dor-estate-exclusion-3076000-h1-2026"}],"effectiveDate":"2026-01-01","terminalDate":"2026-06-30","nextReviewDate":"2027-01-01"},{"factId":"wa-estate-exemption-2026-07-01","jurisdiction":"WA","category":"estate-exemption","label":"Estate tax exclusion (deaths on or after July 1, 2026)","display":"$3,000,000 for deaths on or after July 1, 2026; not set to increase (expired CPI in the statute)","value":3000000,"valueType":"dollars","citations":[{"id":"wa-dor-estate-exclusion-3000000-h2-2026","jurisdiction":"WA","authority":"WA DOR estate tax page; RCW 83.100.020 (applicable exclusion amount)","authorityType":"dor-guidance","title":"Washington estate tax exclusion $3,000,000 for deaths on or after July 1, 2026 (fixed; expired CPI)","quote":"The filing threshold and exclusion amount is set at $3,000,000 for decedents passing away on or after July 1, 2026. It is not set to increase going forward due to an expired CPI in the statute.","url":"https://dor.wa.gov/taxes-rates/other-taxes/estate-tax","sourceDomain":"dor.wa.gov","taxYear":2026,"asOf":"2026-07-06","confidence":"medium","note":"After the one-time H1-2026 CPI bump to $3,076,000, the exclusion reverts to the $3,000,000 ESSB 5794 base for deaths on or after July 1, 2026 and stays fixed (the statute's CPI index expired). Verbatim from the DOR estate-tax page, re-read 2026-07-06.","href":"/api/v1/citations/wa-dor-estate-exclusion-3000000-h2-2026"}],"effectiveDate":"2026-07-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-filing-status-identical","jurisdiction":"WA","category":"filing-status-identical","label":"CG excise deduction not doubled for MFJ (marriage penalty)","display":"Yes: RCW 82.87.060 limits the combined standard deduction for spouses to $250,000 per return (TY2025 CPI-adjusted: $278,000), the same as a single filer; two single filers each claim $278,000 but a married couple combined claims only $278,000, creating the maximum marriage penalty","value":1,"valueType":"binary-exempt","citations":[{"id":"wa-standard-deduction-250k-base","jurisdiction":"WA","authority":"RCW 82.87.060 (statutory base); RCW 82.87.150 (CPI adjustment)","authorityType":"statute","title":"Washington capital-gains standard deduction: $250,000 statutory base, $278,000 TY2025 CPI-adjusted","quote":"A standard deduction of $250,000 per individual, or in the case of spouses or domestic partners, their combined standard deduction is limited to $250,000.","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.060","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"RCW 82.87.150 mandates annual CPI adjustment (Seattle-area CPI, rounded to nearest $1,000). WA DOR publishes the adjusted figure each October. TY2025 operative deduction: $278,000 (per WA DOR: https://dor.wa.gov/taxes-rates/other-taxes/capital-gains-tax). TY2024 was $270,000. The $250,000 encoded here is the statutory base only; see WA_DEDUCTION_278K for the operative TY2025 figure.","href":"/api/v1/citations/wa-standard-deduction-250k-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-trust-nexus-nongrantor-completed","jurisdiction":"WA","category":"trust-nexus","label":"Completed-gift nongrantor trust (excise scope)","display":"Outside the excise: RCW 82.87.040(1)(a) taxes only 'individuals' (natural persons, RCW 82.87.020(4)); a nongrantor trust is not a pass-through (WAC 458-20-301), so its own sale of appreciated stock is not subject to the WA capital gains excise. The general anti-avoidance statute (RCW 82.32.655) does not reach ch. 82.87. Untested residual: common-law sham/step-transaction. Federal cost remains: loss of basis step-up at the grantor's death and compressed trust brackets.","value":0,"valueType":"code","citations":[{"id":"wa-rcw-82-87-020-individual-natural-person","jurisdiction":"WA","authority":"RCW 82.87.020(4)","authorityType":"statute","title":"Washington capital gains excise: only 'individuals' (natural persons) are taxpayers","quote":"\"Individual\" means a natural person.","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.020","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-07-04","confidence":"high","note":"RCW 82.87.040(1)(a) imposes the tax only on individuals; RCW 82.87.020(4) defines 'individual' as a natural person. A trust is not a natural person, so a trust's own sale is outside the excise except through the beneficial-owner attribution rules of RCW 82.87.040(4)(b). Verbatim quote verified against app.leg.wa.gov RCW 82.87.020.","href":"/api/v1/citations/wa-rcw-82-87-020-individual-natural-person"},{"id":"wa-wac-458-20-301-nongrantor-trust-not-passthrough","jurisdiction":"WA","authority":"WAC 458-20-301","authorityType":"regulation","title":"WAC 458-20-301: a nongrantor trust is not a pass-through; beneficiaries taxed only on distributions","quote":"The department does not consider estates, or trusts other than grantor trusts, to be pass-through entities. However, beneficiaries of estates and nongrantor trusts may nevertheless be subject to capital gains excise tax on distributions of capital gains received from estates and nongrantor trusts.","url":"https://app.leg.wa.gov/wac/default.aspx?cite=458-20-301","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-07-04","confidence":"high","note":"DOR's own rule confirms a nongrantor trust is not a pass-through, so a completed-gift nongrantor trust's own sale is outside the excise. The carve-out: a WA-resident beneficiary is taxed on capital gains actually distributed and allocated to that individual. Verbatim quote verified against app.leg.wa.gov WAC 458-20-301.","href":"/api/v1/citations/wa-wac-458-20-301-nongrantor-trust-not-passthrough"},{"id":"wa-rcw-82-32-655-anti-avoidance-excludes-ch-82-87","jurisdiction":"WA","authority":"RCW 82.32.655(3)","authorityType":"statute","title":"Washington general anti-avoidance statute does not reach the capital gains excise (ch. 82.87)","quote":"This section applies only to the following transactions or arrangements:","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.32.655","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-07-04","confidence":"high","note":"RCW 82.32.655(3) enumerates the ONLY transactions the general anti-avoidance rule reaches: (a) construction joint ventures, (b) disguised income under chapter 82.04 (B&O), and (c) disguised purchase/use under chapters 82.08/82.12 (sales/use). Chapter 82.87 (the capital gains excise) is not listed, so DOR's codified economic-substance authority does not reach a nongrantor-trust structure. Residual risk is untested common-law sham/step-transaction only. Verbatim quote verified against app.leg.wa.gov RCW 82.32.655.","href":"/api/v1/citations/wa-rcw-82-32-655-anti-avoidance-excludes-ch-82-87"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-trust-nexus-grantor","jurisdiction":"WA","category":"trust-nexus","label":"Grantor trust (excise scope)","display":"Within the excise: a grantor trust is a federal pass-through, so its long-term capital gain is attributed to the individual grantor and taxed (RCW 82.87.040(4)(b)(i)). Trust situs is irrelevant; the nexus is the grantor's domicile at sale (allocation under RCW 82.87.100).","value":1,"valueType":"code","citations":[{"id":"wa-rcw-82-87-040-4b-i-grantor-trust-passthrough","jurisdiction":"WA","authority":"RCW 82.87.040(4)(b)(i)","authorityType":"statute","title":"Washington: a grantor trust's gain is attributed to the individual grantor (within the excise)","quote":"An individual is considered to be a beneficial owner of long-term capital assets held by an entity that is a pass-through or disregarded entity for federal tax purposes, such as a partnership, limited liability company, S corporation, or grantor trust, to the extent of the individual's ownership interest in the entity as reported for federal income tax purposes.","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.040","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-07-04","confidence":"high","note":"A grantor trust is a federal pass-through, so its long-term capital gain flows through to the individual grantor (a natural person) and is taxed by the excise. Verbatim quote verified against app.leg.wa.gov RCW 82.87.040 (as amended, 2025 c 421 s 101).","href":"/api/v1/citations/wa-rcw-82-87-040-4b-i-grantor-trust-passthrough"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-trust-nexus-incomplete-gift","jurisdiction":"WA","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (excise scope)","display":"Within the excise: an incomplete-gift nongrantor trust (ING/DING/NING) is deemed a grantor trust, and its gain is taxed to the WA grantor (RCW 82.87.040(4)(b)(ii)). This is the only in-chapter anti-avoidance hook; it catches incomplete-gift structures but not completed-gift nongrantor trusts.","value":1,"valueType":"code","citations":[{"id":"wa-rcw-82-87-040-4b-ii-incomplete-gift-trust-deemed-grantor","jurisdiction":"WA","authority":"RCW 82.87.040(4)(b)(ii)","authorityType":"statute","title":"Washington: an incomplete-gift nongrantor trust (ING) is deemed a grantor trust, gain taxed to grantor","quote":"A nongrantor trust is deemed to be a grantor trust if the trust does not qualify as a grantor trust for federal tax purposes, and the grantor's transfer of assets to the trust is treated as an incomplete gift under Title 26 U.S.C. Sec. 2511 of the internal revenue code and its accompanying regulations.","url":"https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.040","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-07-04","confidence":"high","note":"The sole in-chapter anti-avoidance rule for nongrantor trusts. It reaches only INCOMPLETE-gift trusts (ING/DING/NING), which are deemed grantor trusts so their gain is taxed to the WA grantor. A COMPLETED-gift nongrantor trust satisfies neither prong (it is not a federal grantor trust and the gift is complete), so it is not caught. Verbatim quote verified against app.leg.wa.gov RCW 82.87.040.","href":"/api/v1/citations/wa-rcw-82-87-040-4b-ii-incomplete-gift-trust-deemed-grantor"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-trust-nexus-beneficiary-distribution","jurisdiction":"WA","category":"trust-nexus","label":"Nongrantor trust distribution to a WA beneficiary (excise scope)","display":"Within the excise: to the extent a nongrantor trust distributes capital gain to a WA-resident individual beneficiary, that beneficiary may be subject to the excise on the distributed gain (WAC 458-20-301). Undistributed gain retained by a completed-gift nongrantor trust stays outside the tax.","value":1,"valueType":"code","citations":[{"id":"wa-wac-458-20-301-nongrantor-trust-not-passthrough","jurisdiction":"WA","authority":"WAC 458-20-301","authorityType":"regulation","title":"WAC 458-20-301: a nongrantor trust is not a pass-through; beneficiaries taxed only on distributions","quote":"The department does not consider estates, or trusts other than grantor trusts, to be pass-through entities. However, beneficiaries of estates and nongrantor trusts may nevertheless be subject to capital gains excise tax on distributions of capital gains received from estates and nongrantor trusts.","url":"https://app.leg.wa.gov/wac/default.aspx?cite=458-20-301","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-07-04","confidence":"high","note":"DOR's own rule confirms a nongrantor trust is not a pass-through, so a completed-gift nongrantor trust's own sale is outside the excise. The carve-out: a WA-resident beneficiary is taxed on capital gains actually distributed and allocated to that individual. Verbatim quote verified against app.leg.wa.gov WAC 458-20-301.","href":"/api/v1/citations/wa-wac-458-20-301-nongrantor-trust-not-passthrough"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wa-community-property","jurisdiction":"WA","category":"community-property","label":"Community property state","display":"Community property state: property acquired during marriage is community property; each spouse owns one-half (RCW 26.16.030); applies to registered domestic partners (RCW 26.60); relevant to WA capital gains excise allocation","value":1,"valueType":"binary-exempt","citations":[{"id":"wa-rcw-26-16-030-community-property-2025","jurisdiction":"WA","authority":"RCW 26.16.030","authorityType":"statute","title":"Washington is a community property state: property acquired during marriage is community property (RCW 26.16.030)","quote":"Property not acquired or owned, as prescribed in RCW 26.16.010 and 26.16.020, acquired after marriage by either husband or wife or both, is community property.","url":"https://app.leg.wa.gov/rcw/default.aspx?cite=26.16.030","sourceDomain":"app.leg.wa.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"Washington is a community property state. RCW 26.16.030 is the primary statute. Washington has no state income tax on wages/ordinary income; but the CG excise (RCW 82.87) applies to long-term capital gains. Community property classification affects federal filing and the CG excise base (each spouse reports their one-half share). Registered domestic partners have community property rights under RCW 26.60.","href":"/api/v1/citations/wa-rcw-26-16-030-community-property-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"WV","name":"West Virginia","level":"state","facts":[{"factId":"wv-trust-nexus-incomplete-gift","jurisdiction":"WV","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: pure settlor-domicile rule; the fiduciary's residence is expressly irrelevant (IT-141 instructions) and no WV authority recognizes a Kaestner-style as-applied limit","value":2,"valueType":"code","citations":[{"id":"wv-trust-nexus-incomplete-gift-2026","jurisdiction":"WV","authority":"W. Va. Code 11-21-7(c)(3)","authorityType":"statute","title":"West Virginia taxes a trust created by, or consisting of property of, a person domiciled in the state","quote":"A resident estate or trust means: ... (3) A trust created by, or consisting of property of, a person domiciled in this state.","url":"https://code.wvlegislature.gov/11-21-7/","sourceDomain":"code.wvlegislature.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","href":"/api/v1/citations/wv-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-estate-none","jurisdiction":"WV","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"wv-estate-none-2025","jurisdiction":"WV","authority":"W. Va. Code 11-11-3","authorityType":"statute","title":"WV estate tax is a pickup equal to the federal state-death-tax credit, dormant since that credit ended","quote":"Whenever a federal estate tax is payable to the United States, there is hereby imposed a West Virginia estate tax equal to the portion, if any, of the maximum allowable amount of federal credit for state death taxes which is attributable to property located in this state","url":"https://code.wvlegislature.gov/11-11-3/","sourceDomain":"code.wvlegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Statute quote proves pickup structure only; currently-zero follows from the federal credit being zero since 2005 (EGTRRA). No confirming tax.wv.gov guidance page found.","href":"/api/v1/citations/wv-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-rate","jurisdiction":"WV","category":"rate","label":"Top income tax rate (TY2026)","display":"2.11% / 2.81% / 3.16% / 4.22% / 4.58% graduated (4.58% above $60,000; SB 392 5% cut)","value":0.0458,"valueType":"rate","citations":[{"id":"wv-wvc-11-21-4j-top-4-58pct-2026","jurisdiction":"WV","authority":"W. Va. Code §11-21-4j (SB 392, 2026)","authorityType":"statute","title":"West Virginia top income tax rate is 4.58% on income above $60,000 for TY2026","quote":"Over $60,000 | $1,950.50 plus 4.58% of excess over $60,000","url":"https://tax.wv.gov/Individuals/Pages/PersonalIncomeTaxReductionBill.aspx","sourceDomain":"tax.wv.gov","taxYear":2026,"asOf":"2026-06-27","confidence":"medium","note":"SB 392 (signed March 31, 2026) codifies W. Va. Code §11-21-4j: a 5% across-the-board cut effective June 12, 2026, retroactive to January 1, 2026. Full TY2026 schedule per the WV State Tax Division: 2.11% / 2.81% / 3.16% / 4.22% / 4.58% (top bracket above $60,000). Confidence medium: rate schedule published on the agency page, raw §11-21-4j statutory text not yet extracted.","href":"/api/v1/citations/wv-wvc-11-21-4j-top-4-58pct-2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-rate-terminal-2025-12-31","jurisdiction":"WV","category":"rate","label":"Top income tax rate (TY2025)","display":"2.22% / 2.96% / 3.33% / 4.44% / 4.82% graduated (4.82% above $60,000)","value":0.0482,"valueType":"rate","citations":[{"id":"wv-wvc-11-21-4-top-4-82pct-2025","jurisdiction":"WV","authority":"W. Va. Code §11-21-4i","authorityType":"statute","title":"West Virginia top income tax rate is 4.82% on income above $60,000 (TY2025; 4.58% TY2026)","quote":"§11-21-4i. Rate of tax ; Taxable years beginning on and after January 1, 2025. (a) ... The tax imposed by §11-21-3 of this code on the West Virginia taxable income of every individual... shall be determined in accordance with the following table: ... Over $60,000 $2,053.50 plus 4.82% of excess over $60,000","url":"https://code.wvlegislature.gov/11-21-4i/","sourceDomain":"code.wvlegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"W. Va. Code §11-21-4i carries the TY2025 rate schedule, graduated up to 4.82% on income above $60,000. Same bracket thresholds apply for all filing statuses. TY2026 cuts (SB 392, retroactive 1/1/2026): top falls to 4.58%. No standard deduction. No capital gains preference.","href":"/api/v1/citations/wv-wvc-11-21-4-top-4-82pct-2025"}],"effectiveDate":"2025-01-01","terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"wv-rate-terminal-2024-12-31","jurisdiction":"WV","category":"rate","label":"Top income tax rate (TY2024)","display":"5.12% graduated above $60,000 (fell to 4.82% in TY2025)","value":0.0512,"valueType":"rate","citations":[{"id":"wv-wvc-11-21-4g-top-5-12pct-2024","jurisdiction":"WV","authority":"W. Va. Code §11-21-4(g) (TY2024)","authorityType":"statute","title":"West Virginia top income tax rate is 5.12% on income above $60,000 for TY2024","quote":"Over $60,000: $2,183.50 plus 5.12% of excess over $60,000.","url":"https://www.wvlegislature.gov/wvcode/ChapterEntire.cfm?chap=11&art=21&","sourceDomain":"www.wvlegislature.gov","taxYear":2024,"asOf":"2026-06-21","confidence":"medium","note":"TY2024 rate per W. Va. Code §11-21-4(g); fell to 4.82% in TY2025 and is scheduled to fall further to 4.58% in TY2026 per SB 392. URL resolves to the full Article 21 of W. Va. Code; §11-21-4g is within this article.","href":"/api/v1/citations/wv-wvc-11-21-4g-top-5-12pct-2024"}],"effectiveDate":"2024-01-01","terminalDate":"2024-12-31","nextReviewDate":"2027-01-01"},{"factId":"wv-conformity","jurisdiction":"WV","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-muni-instate","jurisdiction":"WV","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: W. Va. Code §11-21-12(b)(1) addition is limited to obligations of other states; WV bonds not added back","value":1,"valueType":"binary-exempt","citations":[{"id":"wv-code-11-21-12-muni-default-2025","jurisdiction":"WV","authority":"W. Va. Code §11-21-12(b)(1)","authorityType":"statute","title":"WV taxes out-of-state muni bond interest; WV bonds exempt W. Va. Code §11-21-12(b)(1)","quote":"Interest income on obligations of any state other than this state or of a political subdivision of any state other than this state to the extent such interest income is excludible from gross income for federal income tax purposes.","url":"https://code.wvlegislature.gov/11-21-12/","sourceDomain":"code.wvlegislature.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","href":"/api/v1/citations/wv-code-11-21-12-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-muni-outstate","jurisdiction":"WV","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: W. Va. Code §11-21-12(b)(1): 'interest income on obligations of any state other than this state' added to WV income","value":0,"valueType":"binary-exempt","citations":[{"id":"wv-code-11-21-12-muni-default-2025","jurisdiction":"WV","authority":"W. Va. Code §11-21-12(b)(1)","authorityType":"statute","title":"WV taxes out-of-state muni bond interest; WV bonds exempt W. Va. Code §11-21-12(b)(1)","quote":"Interest income on obligations of any state other than this state or of a political subdivision of any state other than this state to the extent such interest income is excludible from gross income for federal income tax purposes.","url":"https://code.wvlegislature.gov/11-21-12/","sourceDomain":"code.wvlegislature.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","href":"/api/v1/citations/wv-code-11-21-12-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-qoz-conformity","jurisdiction":"WV","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity (2021 S.B. 693)","value":1,"valueType":"code","citations":[{"id":"wv-qoz-conformity-irc-1400z2-2025","jurisdiction":"WV","authority":"W. Va. Code §11-21-9; 2021 S.B. 693","authorityType":"statute","title":"West Virginia conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"West Virginia taxable income of individuals shall be determined in accordance with the Internal Revenue Code as amended and in effect on the last day of the taxable year.","url":"https://www.wvlegislature.gov/wvcode/ChapterEntire.cfm?chap=11&art=21&","sourceDomain":"www.wvlegislature.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"West Virginia 2021 S.B. 693 updated IRC conformity to incorporate §1400Z-2. Quote is verbatim from §11-21-9 general conformity clause; the S.B. 693 reference belonged in this note, not in the quote field. URL resolves to article level rather than the specific section.","href":"/api/v1/citations/wv-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-qsbs-conformity","jurisdiction":"WV","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via IRC conformity; no addback required","value":1,"valueType":"binary-exempt","citations":[{"id":"wv-qsbs-conformity-irc-1202-2025","jurisdiction":"WV","authority":"W. Va. Code §11-21-9","authorityType":"statute","title":"West Virginia conforms to IRC §1202 QSBS gain exclusion via individual income tax IRC conformity; no addback","quote":"West Virginia taxable income of individuals shall be determined in accordance with the Internal Revenue Code as amended and in effect on the last day of the taxable year.","url":"https://www.wvlegislature.gov/wvcode/ChapterEntire.cfm?chap=11&art=21&","sourceDomain":"www.wvlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"§11-21-9 is the individual IRC conformity section (same as QOZ). §1202 is incorporated through rolling conformity; no explicit WV addback statute found. URL resolves to article level rather than the specific section.","href":"/api/v1/citations/wv-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-agency-obligations","jurisdiction":"WV","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: W. Va. Code §11-21-12(c)(1) subtraction limited to US interest 'exempt from state income taxes under the laws of the United States'; FNMA and FHLMC have no such federal bondholder exemption","value":0,"valueType":"binary-exempt","citations":[{"id":"wv-code-11-21-12c1-fnma-fhlmc-taxable","jurisdiction":"WV","authority":"W. Va. Code §11-21-12(c)(1)","authorityType":"statute","title":"West Virginia subtraction for U.S. obligation interest requires exemption from state taxation under federal law; FNMA and FHLMC have no federal bondholder exemption","quote":"There shall be subtracted from federal adjusted gross income: Interest income on obligations of the United States or obligations of agencies or instrumentalities of the United States to the extent such interest income is exempt from state income taxes under the laws of the United States.","url":"https://code.wvlegislature.gov/11-21-12/","sourceDomain":"code.wvlegislature.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"FNMA and FHLMC are federally chartered GSEs but their enabling statutes contain no bondholder exemption from state income taxes. The §11-21-12(c)(1) subtraction requires the income be exempt 'under the laws of the United States'; a standard FNMA/FHLMC cannot meet. No WV Tax Division named-entity ruling found; confidence: medium based on structural analysis.","href":"/api/v1/citations/wv-code-11-21-12c1-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-dividend-qualified","jurisdiction":"WV","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: West Virginia has no modification creating a preferential rate for qualified dividends; taxed at ordinary rates up to 4.82% (IRC §1(h)(11) preference not adopted)","value":0,"valueType":"binary-exempt","citations":[{"id":"wv-wvc-11-21-4-top-4-82pct-2025","jurisdiction":"WV","authority":"W. Va. Code §11-21-4i","authorityType":"statute","title":"West Virginia top income tax rate is 4.82% on income above $60,000 (TY2025; 4.58% TY2026)","quote":"§11-21-4i. Rate of tax ; Taxable years beginning on and after January 1, 2025. (a) ... The tax imposed by §11-21-3 of this code on the West Virginia taxable income of every individual... shall be determined in accordance with the following table: ... Over $60,000 $2,053.50 plus 4.82% of excess over $60,000","url":"https://code.wvlegislature.gov/11-21-4i/","sourceDomain":"code.wvlegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"W. Va. Code §11-21-4i carries the TY2025 rate schedule, graduated up to 4.82% on income above $60,000. Same bracket thresholds apply for all filing statuses. TY2026 cuts (SB 392, retroactive 1/1/2026): top falls to 4.58%. No standard deduction. No capital gains preference.","href":"/api/v1/citations/wv-wvc-11-21-4-top-4-82pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-treasury","jurisdiction":"WV","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"wv-31-usc-3124-treasury-exempt-2025","jurisdiction":"WV","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from West Virginia income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/wv-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-fhlb-ffcb","jurisdiction":"WV","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"wv-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"WV","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from West Virginia income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/wv-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-carryback","jurisdiction":"WV","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-character","jurisdiction":"WV","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income up to 4.82% (W. Va. Code §11-21-4)","value":null,"valueType":"none","citations":[{"id":"wv-wvc-11-21-4-top-4-82pct-2025","jurisdiction":"WV","authority":"W. Va. Code §11-21-4i","authorityType":"statute","title":"West Virginia top income tax rate is 4.82% on income above $60,000 (TY2025; 4.58% TY2026)","quote":"§11-21-4i. Rate of tax ; Taxable years beginning on and after January 1, 2025. (a) ... The tax imposed by §11-21-3 of this code on the West Virginia taxable income of every individual... shall be determined in accordance with the following table: ... Over $60,000 $2,053.50 plus 4.82% of excess over $60,000","url":"https://code.wvlegislature.gov/11-21-4i/","sourceDomain":"code.wvlegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"W. Va. Code §11-21-4i carries the TY2025 rate schedule, graduated up to 4.82% on income above $60,000. Same bracket thresholds apply for all filing statuses. TY2026 cuts (SB 392, retroactive 1/1/2026): top falls to 4.58%. No standard deduction. No capital gains preference.","href":"/api/v1/citations/wv-wvc-11-21-4-top-4-82pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-filing-status-identical","jurisdiction":"WV","category":"filing-status-identical","label":"Same bracket schedule for all filing statuses","display":"Yes: W. Va. Code §11-21-4 imposes tax at one graduated rate schedule (2.22% to 4.82%) with the same thresholds for Single, MFJ, and HOH; maximum marriage penalty on a joint return vs. two singles","value":1,"valueType":"binary-exempt","citations":[{"id":"wv-wvc-11-21-4-top-4-82pct-2025","jurisdiction":"WV","authority":"W. Va. Code §11-21-4i","authorityType":"statute","title":"West Virginia top income tax rate is 4.82% on income above $60,000 (TY2025; 4.58% TY2026)","quote":"§11-21-4i. Rate of tax ; Taxable years beginning on and after January 1, 2025. (a) ... The tax imposed by §11-21-3 of this code on the West Virginia taxable income of every individual... shall be determined in accordance with the following table: ... Over $60,000 $2,053.50 plus 4.82% of excess over $60,000","url":"https://code.wvlegislature.gov/11-21-4i/","sourceDomain":"code.wvlegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"W. Va. Code §11-21-4i carries the TY2025 rate schedule, graduated up to 4.82% on income above $60,000. Same bracket thresholds apply for all filing statuses. TY2026 cuts (SB 392, retroactive 1/1/2026): top falls to 4.58%. No standard deduction. No capital gains preference.","href":"/api/v1/citations/wv-wvc-11-21-4-top-4-82pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wv-migration-loss-conformity","jurisdiction":"WV","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): West Virginia computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"wv-migration-loss-conformity-src","jurisdiction":"WV","authority":"W. Va. Code §11-21-4j (SB 392, 2026)","authorityType":"statute","title":"West Virginia conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"Verbatim text not yet extracted; see note.","url":"https://tax.wv.gov/Individuals/Pages/PersonalIncomeTaxReductionBill.aspx","sourceDomain":"tax.wv.gov","taxYear":2025,"asOf":"2026-06-30","confidence":"low","note":"Structural inference: West Virginia starts from the federal income tax base (W. Va. Code §11-21-9 defines West Virginia taxable income of a resident from federal adjusted gross income), so the federal section 1212 capital-loss carryover flows through; no published guidance addresses the imported pre-residency carryforward. Verbatim statutory text of §11-21-4j (new 2026 SB 392 section) is served only via JavaScript on code.wvlegislature.gov and could not be statically extracted on 2026-07-03; the tax.wv.gov rate-reduction page confirms the rate cut but not capital-loss conformity. Not directly verified.","href":"/api/v1/citations/wv-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"WI","name":"Wisconsin","level":"state","facts":[{"factId":"wi-trust-nexus-incomplete-gift","jurisdiction":"WI","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: for trusts irrevocable on or after 1999-10-29, residence turns solely on the settlor's WI residency when the property entered the trust; the administered-elsewhere escape exists only for pre-1999 trusts, and no WI case or DOR guidance recognizes a Fielding-style as-applied limit","value":2,"valueType":"code","citations":[{"id":"wi-trust-nexus-incomplete-gift-2026","jurisdiction":"WI","authority":"Wis. Stat. 71.14(3m)(a)","authorityType":"statute","title":"Wisconsin taxes an irrevocable inter vivos trust funded by a Wisconsin resident (post-1999 trusts), with no recognized constitutional limit","quote":"Trusts, or portions of trusts, the assets of which consist of property placed in the trust by a person who is a resident of this state at the time that the trust became irrevocable if, at the time that the property was placed in the trust, the trust was revocable.","url":"https://docs.legis.wisconsin.gov/statutes/statutes/71/ii/14","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","note":"Clause 1 of 71.14(3m)(a) covers property placed while already irrevocable; clause 2 while revocable. The 71.04(1)(b)2 carve-out is a grantor-trust look-through, irrelevant to a non-grantor ING.","href":"/api/v1/citations/wi-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-conformity","jurisdiction":"WI","category":"conformity","label":"Federal conformity / capital-gains base","display":"Static-date conformity: Wis. Stat. §71.01(6) adopts the IRC as amended to December 31, 2022 (TY2023 and later)","value":null,"valueType":"none","citations":[{"id":"wi-stat-71-01-6-conformity-2022","jurisdiction":"WI","authority":"Wis. Stat. §71.01(6)","authorityType":"statute","title":"Wisconsin adopts the IRC as amended to December 31, 2022 for tax years beginning after December 31, 2022","quote":"for taxable years beginning after December 31, 2022, for individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, \"Internal Revenue Code\" means the federal Internal Revenue Code as amended to December 31, 2022.","url":"https://docs.legis.wisconsin.gov/document/statutes/71.01(6)","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"high","note":"Fixed-date (static) conformity, operative date December 31, 2022. Wisconsin separately allows a 30% (60% farm) long-term capital gains exclusion (see wi-character), but the base ties to this date.","href":"/api/v1/citations/wi-stat-71-01-6-conformity-2022"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-estate-none","jurisdiction":"WI","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"wi-estate-none-2025","jurisdiction":"WI","authority":"Wisconsin Department of Revenue, Estates, Trusts, and Fiduciaries FAQ","authorityType":"dor-guidance","title":"Wisconsin imposes no estate tax for deaths after December 31, 2007","quote":"There is no estate tax for decedents dying after December 31, 2007.","url":"https://www.revenue.wi.gov/Pages/FAQS/ise-estate.aspx","sourceDomain":"www.revenue.wi.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Same page: 'There is no Wisconsin inheritance tax for decedents dying on or after January 1, 1992.'","href":"/api/v1/citations/wi-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-rate","jurisdiction":"WI","category":"rate","label":"Top income tax rate (TY2025)","display":"3.5% / 4.4% / 5.3% / 7.65% graduated (7.65% above $431,060 MFJ; Act 15 widened 4.4% bracket)","value":0.0765,"valueType":"rate","citations":[{"id":"wi-wis-stat-71-06-top-7-65pct-2025","jurisdiction":"WI","authority":"Wis. Stat. §71.06(2)(i) (MFJ schedule; base rates reduced by 2023 Act 19)","authorityType":"statute","title":"Wisconsin top income tax rate is 7.65% on income above $431,060 (MFJ, TY2025; statutory bracket $300,000 indexed)","quote":"For joint returns, for taxable years beginning after December 31, 2012, and before January 1, 2025: ... On all taxable income exceeding $20,000 but not exceeding $300,000, 6.27 percent, except that for taxable years beginning after December 31, 2020, 5.30 percent. On all taxable income exceeding $300,000, 7.65 percent.","url":"https://docs.legis.wisconsin.gov/statutes/statutes/71/I/06/2/i","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"MFJ rate schedule lives in §71.06(2)(i) (not (1q), which carries the single-filer schedule). The statute states unindexed base brackets ($0-$10,000 / $20,000 / $300,000); Wisconsin DOR inflation-indexes them to the TY2025 MFJ figures $19,580 / $67,300 / $431,060. The four base rates 4.40 / 5.84 / 6.27 / 7.65 percent were reduced by session law to 3.50 / 4.40 / 5.30 / 7.65 percent (the top 7.65% bracket is unchanged). Sliding standard deduction max $25,110 MFJ phasing to $0 at $155,169 gives effectively $0 shelter for large capital-gain filers.","href":"/api/v1/citations/wi-wis-stat-71-06-top-7-65pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-character","jurisdiction":"WI","category":"character","label":"Net long-term capital gain exclusion","display":"30% of net LT gain excluded from WI taxable income (60% for farm property)","value":0.3,"valueType":"rate","citations":[{"id":"wi-wis-stat-71-05-6b9-lt-exclusion-30pct-2025","jurisdiction":"WI","authority":"Wis. Stat. §71.05(6)(b)9","authorityType":"statute","title":"Wisconsin 30% exclusion of net long-term capital gain from Wisconsin taxable income","quote":"On assets held more than one year and on all assets acquired from a decedent, 30 percent of the capital gain as computed under the internal revenue code, not including capital gains for which the federal tax treatment is determined under section 406 of P.L. 99-514 ... For purposes of this subdivision, the capital gains and capital losses for all assets shall be netted before application of the percentage.","url":"https://docs.legis.wisconsin.gov/statutes/statutes/71/I/05/6/b/9","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2025,"asOf":"2026-07-21","confidence":"high","note":"The exclusion is computed after federal §1222 netting (Schedule WD), so ST losses erode the excluded base equally. For farm property: 60% exclusion (Wis. Stat. §71.05(6)(b)9m). Both loss characters reduce the excluded base proportionally harvest rule ties for an all-LT estimand. Act 15 (2023) widened the 4.4% bracket. Prior $500 annual loss limit was repealed effective TY2023; current $3,000/$1,500 limit is correctly encoded in WI_CARRYFORWARD.","href":"/api/v1/citations/wi-wis-stat-71-05-6b9-lt-exclusion-30pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-carryforward","jurisdiction":"WI","category":"carryforward","label":"Capital-loss carryforward","display":"Indefinite (own Schedule WD Part V computation); $3,000/year limit against ordinary income","value":null,"valueType":"none","citations":[{"id":"wi-wis-stat-71-05-1-carryforward-indefinite","jurisdiction":"WI","authority":"Wis. Stat. §71.05(1); Wis. Stat. §71.30(2)","authorityType":"statute","title":"Wisconsin capital loss carryforward is indefinite (own Schedule WD Part V computation)","quote":"Net capital losses may be carried over to subsequent taxable years.","url":"https://docs.legis.wisconsin.gov/statutes/statutes/71/I/05/1","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Wisconsin computes its own carryforward on Schedule WD (not simply copying federal). The $3,000 annual limit against ordinary income now applies (TY2023+; prior $500 limit repealed).","href":"/api/v1/citations/wi-wis-stat-71-05-1-carryforward-indefinite"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-muni-instate","jurisdiction":"WI","category":"muni-instate","label":"In-state muni bond interest","display":"Taxable: Wis. Stat. §71.05(6)(a)1 adds back all non-federal-AGI interest; only narrow Ch.18 Subch.IV bonds excepted; standard WI GOs are taxable","value":0,"valueType":"binary-exempt","citations":[{"id":"wi-wis-stat-71-05-6a1-muni-both-taxable-2025","jurisdiction":"WI","authority":"Wis. Stat. §71.05(6)(a)1","authorityType":"statute","title":"WI taxes both in-state and out-of-state muni bond interest add-back of all non-federal-AGI interest","quote":"The amount of any interest, except interest under par. (b) 1., less related expenses, which is not included in federal adjusted gross income, and except the amount of any interest or original issue discount derived from bonds issued under subch. IV of ch. 18.","url":"https://docs.legis.wisconsin.gov/statutes/statutes/71/I/05/6/a","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"§71.05(6)(a)1 adds back all interest not included in federal AGI. The only exception is WI Chapter 18 Subchapter IV bonds (a narrow higher-education program). Standard Wisconsin general obligation bonds and all out-of-state muni bonds are taxable. WI is one of two states (with IL) that taxes its own bonds as the default rule.","href":"/api/v1/citations/wi-wis-stat-71-05-6a1-muni-both-taxable-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-muni-outstate","jurisdiction":"WI","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: Wis. Stat. §71.05(6)(a)1 requires add-back; no Wisconsin exemption for out-of-state bonds","value":0,"valueType":"binary-exempt","citations":[{"id":"wi-wis-stat-71-05-6a1-muni-both-taxable-2025","jurisdiction":"WI","authority":"Wis. Stat. §71.05(6)(a)1","authorityType":"statute","title":"WI taxes both in-state and out-of-state muni bond interest add-back of all non-federal-AGI interest","quote":"The amount of any interest, except interest under par. (b) 1., less related expenses, which is not included in federal adjusted gross income, and except the amount of any interest or original issue discount derived from bonds issued under subch. IV of ch. 18.","url":"https://docs.legis.wisconsin.gov/statutes/statutes/71/I/05/6/a","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"§71.05(6)(a)1 adds back all interest not included in federal AGI. The only exception is WI Chapter 18 Subchapter IV bonds (a narrow higher-education program). Standard Wisconsin general obligation bonds and all out-of-state muni bonds are taxable. WI is one of two states (with IL) that taxes its own bonds as the default rule.","href":"/api/v1/citations/wi-wis-stat-71-05-6a1-muni-both-taxable-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-qoz-conformity","jurisdiction":"WI","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via 2017 Wis. Act 231 (Wis. Stat. §71.05(25m))","value":1,"valueType":"code","citations":[{"id":"wi-qoz-conformity-irc-1400z2-2025","jurisdiction":"WI","authority":"2017 Wis. Act 231; Wis. Stat. §71.05(25m)","authorityType":"statute","title":"Wisconsin conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"From Wisconsin adjusted gross income there may be subtracted an amount equal to the amount excluded from gross income under section 1400Z-2 of the Internal Revenue Code for gain from a qualifying investment in a qualified opportunity fund.","url":"https://docs.legis.wisconsin.gov/statutes/statutes/71/I/05/25m","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"Wisconsin 2017 Wis. Act 231 enacted explicit QOZ conformity (Wis. Stat. §71.05(25m)) effective for investments in federal opportunity zones.","href":"/api/v1/citations/wi-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-qsbs-conformity","jurisdiction":"WI","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion via 2023 Wis. Act 36 (Wis. Stat. §71.98(5)); federally excluded gain also excluded from Wisconsin income","value":1,"valueType":"binary-exempt","citations":[{"id":"wi-qsbs-conformity-irc-1202-2025","jurisdiction":"WI","authority":"2023 Wis. Act 36; Wis. Stat. §71.98(5)","authorityType":"statute","title":"Wisconsin conforms to IRC §1202 QSBS gain exclusion","quote":"(a) Except as provided in par. (b), for stock acquired after December 31, 2013, section 1202 of the Internal Revenue Code, as amended to December 31, 2012, related to the exclusion for gain from certain small business stock. (b) For taxable years beginning after December 31, 2018, section 1202 of the Internal Revenue Code in effect for federal purposes.","url":"https://docs.legis.wisconsin.gov/statutes/statutes/71/XVI/98/5","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"Wis. Stat. §71.98(5) is a two-part conditional: par. (a) sets a fixed-date rule (IRC §1202 as amended to Dec 31, 2012 for stock acquired after Dec 31, 2013), but par. (b) OVERRIDES it for tax years after Dec 31, 2018 by adopting IRC §1202 in effect for federal purposes (ROLLING conformity). So for TY2025 Wisconsin conforms to current federal §1202; federally excluded gain is also excluded from Wisconsin income. The prior quote was a paraphrase of this conclusion, not statutory text.","href":"/api/v1/citations/wi-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-agency-obligations","jurisdiction":"WI","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: FNMA/FHLMC interest is in federal AGI (not IRC §103-excluded); Wisconsin's §71.05(6)(a)1 add-back applies only to non-AGI interest; FNMA/FHLMC flows through the base with no subtraction available","value":0,"valueType":"binary-exempt","citations":[{"id":"wi-wis-stat-71-05-6a1-fnma-fhlmc-in-base","jurisdiction":"WI","authority":"Wis. Stat. §71.05(6)(a)1","authorityType":"statute","title":"Wisconsin taxes FNMA and FHLMC bond interest: the §71.05(6)(a)1 add-back mechanism only affects interest excluded from federal AGI; FNMA/FHLMC interest is in federal AGI and thus in the Wisconsin income base","quote":"The amount of any interest, except interest under par. (b) 1., less related expenses, which is not included in federal adjusted gross income.","url":"https://docs.legis.wisconsin.gov/statutes/statutes/71/I/05/6/a","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"FNMA and FHLMC bond interest is INCLUDED in federal adjusted gross income; it is not exempt from federal tax. Wisconsin's §71.05(6)(a)1 only adds back interest NOT in federal AGI. Because FNMA/FHLMC interest is already in the Wisconsin income base, no separate addition is needed and no subtraction is available (no federal preemption statute exists). The 30% LT gain exclusion (§71.05(6)(b)9) applies only to capital gains, not interest income.","href":"/api/v1/citations/wi-wis-stat-71-05-6a1-fnma-fhlmc-in-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-dividend-qualified","jurisdiction":"WI","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: Wisconsin's 30% LT gain exclusion applies only to capital gains (Wis. Stat. §71.05(6)(b)9); dividend income taxed at ordinary rates up to 7.65% with no IRC §1(h)(11) preference","value":0,"valueType":"binary-exempt","citations":[{"id":"wi-wis-stat-71-06-top-7-65pct-2025","jurisdiction":"WI","authority":"Wis. Stat. §71.06(2)(i) (MFJ schedule; base rates reduced by 2023 Act 19)","authorityType":"statute","title":"Wisconsin top income tax rate is 7.65% on income above $431,060 (MFJ, TY2025; statutory bracket $300,000 indexed)","quote":"For joint returns, for taxable years beginning after December 31, 2012, and before January 1, 2025: ... On all taxable income exceeding $20,000 but not exceeding $300,000, 6.27 percent, except that for taxable years beginning after December 31, 2020, 5.30 percent. On all taxable income exceeding $300,000, 7.65 percent.","url":"https://docs.legis.wisconsin.gov/statutes/statutes/71/I/06/2/i","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"MFJ rate schedule lives in §71.06(2)(i) (not (1q), which carries the single-filer schedule). The statute states unindexed base brackets ($0-$10,000 / $20,000 / $300,000); Wisconsin DOR inflation-indexes them to the TY2025 MFJ figures $19,580 / $67,300 / $431,060. The four base rates 4.40 / 5.84 / 6.27 / 7.65 percent were reduced by session law to 3.50 / 4.40 / 5.30 / 7.65 percent (the top 7.65% bracket is unchanged). Sliding standard deduction max $25,110 MFJ phasing to $0 at $155,169 gives effectively $0 shelter for large capital-gain filers.","href":"/api/v1/citations/wi-wis-stat-71-06-top-7-65pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-treasury","jurisdiction":"WI","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"wi-31-usc-3124-treasury-exempt-2025","jurisdiction":"WI","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Wisconsin income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/wi-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-fhlb-ffcb","jurisdiction":"WI","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"wi-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"WI","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Wisconsin income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/wi-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-carryback","jurisdiction":"WI","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-community-property","jurisdiction":"WI","category":"community-property","label":"Community property state","display":"Community property state (Marital Property Act): all property acquired during marriage is marital property unless classified separately; Wis. Stat. § 766.31 is functionally equivalent to community property and recognized as such by the IRS","value":1,"valueType":"binary-exempt","citations":[{"id":"wi-stat-766-31-marital-property-2025","jurisdiction":"WI","authority":"Wis. Stat. § 766.31 (Marital Property Act)","authorityType":"statute","title":"Wisconsin is a community property state under the Marital Property Act: property acquired during marriage is marital property (Wis. Stat. § 766.31)","quote":"All property of spouses is marital property except that which is classified otherwise under this chapter.","url":"https://docs.legis.wisconsin.gov/statutes/statutes/766/31","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"Wisconsin adopted the Uniform Marital Property Act in 1986. The Wisconsin Marital Property Act is functionally equivalent to community property and is recognized as such by the IRS for federal income tax purposes. Wis. Stat. § 766.31 is the primary classification rule. Wisconsin treats marital property the same as community property for federal (and Wisconsin) income tax filing.","href":"/api/v1/citations/wi-stat-766-31-marital-property-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-filing-status-partial","jurisdiction":"WI","category":"filing-status-partial","label":"Filing status: partial MFJ bracket widening","display":"Yes: graduated income tax up to 7.65% (TY2025); MFJ bracket thresholds are partially wider than single filer but not fully doubled; some marriage penalty at the top bracket where thresholds converge.","value":1,"valueType":"binary-exempt","citations":[{"id":"wi-wis-stat-71-06-top-7-65pct-2025","jurisdiction":"WI","authority":"Wis. Stat. §71.06(2)(i) (MFJ schedule; base rates reduced by 2023 Act 19)","authorityType":"statute","title":"Wisconsin top income tax rate is 7.65% on income above $431,060 (MFJ, TY2025; statutory bracket $300,000 indexed)","quote":"For joint returns, for taxable years beginning after December 31, 2012, and before January 1, 2025: ... On all taxable income exceeding $20,000 but not exceeding $300,000, 6.27 percent, except that for taxable years beginning after December 31, 2020, 5.30 percent. On all taxable income exceeding $300,000, 7.65 percent.","url":"https://docs.legis.wisconsin.gov/statutes/statutes/71/I/06/2/i","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"high","note":"MFJ rate schedule lives in §71.06(2)(i) (not (1q), which carries the single-filer schedule). The statute states unindexed base brackets ($0-$10,000 / $20,000 / $300,000); Wisconsin DOR inflation-indexes them to the TY2025 MFJ figures $19,580 / $67,300 / $431,060. The four base rates 4.40 / 5.84 / 6.27 / 7.65 percent were reduced by session law to 3.50 / 4.40 / 5.30 / 7.65 percent (the top 7.65% bracket is unchanged). Sliding standard deduction max $25,110 MFJ phasing to $0 at $155,169 gives effectively $0 shelter for large capital-gain filers.","href":"/api/v1/citations/wi-wis-stat-71-06-top-7-65pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wi-migration-loss-conformity","jurisdiction":"WI","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Disallowed: Wisconsin does not allow deducting capital losses incurred while a nonresident prior to establishing Wisconsin residency.","value":0,"valueType":"code","citations":[{"id":"wi-wis-stat-71-05-1-carryforward-indefinite","jurisdiction":"WI","authority":"Wis. Stat. §71.05(1); Wis. Stat. §71.30(2)","authorityType":"statute","title":"Wisconsin capital loss carryforward is indefinite (own Schedule WD Part V computation)","quote":"Net capital losses may be carried over to subsequent taxable years.","url":"https://docs.legis.wisconsin.gov/statutes/statutes/71/I/05/1","sourceDomain":"docs.legis.wisconsin.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"Wisconsin computes its own carryforward on Schedule WD (not simply copying federal). The $3,000 annual limit against ordinary income now applies (TY2023+; prior $500 limit repealed).","href":"/api/v1/citations/wi-wis-stat-71-05-1-carryforward-indefinite"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"WY","name":"Wyoming","level":"state","facts":[{"factId":"wy-estate-none","jurisdiction":"WY","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"wy-estate-none-2025","jurisdiction":"WY","authority":"W.S. 39-19-104 (Title 39, Chapter 19, Inheritance Taxes)","authorityType":"statute","title":"Wyoming estate tax is a pure pickup capped at the federal credit, zero since the credit ended","quote":"W.S. 39-19-101 through 39-19-111 are intended to take full advantage for Wyoming of the credit which is allowed as a deduction from the federal estate tax liability of estates of decedents, for state taxes upon property or transfer thereof by reason of death, without increasing the aggregate of federal and state death, transfer or succession taxes upon any estate.","url":"https://wyoleg.gov/statutes/compress/title39.pdf","sourceDomain":"wyoleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Extracted via pdftotext from the official LSO Title 39 PDF; whitespace normalized across PDF line breaks. Zero-since-2005 follows from the federal credit repeal.","href":"/api/v1/citations/wy-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wy-no-tax","jurisdiction":"WY","category":"no-tax","label":"Capital gains tax","display":"None Wyoming imposes no personal income tax","value":null,"valueType":"none","citations":[{"id":"wy-no-individual-income-tax","jurisdiction":"WY","authority":"W.S. §39-12-101","authorityType":"statute","title":"Wyoming imposes no personal income tax: W.S. §39-12-101 preempts income taxation to the state, and the state has never enacted one; capital gains are not taxed","quote":"39-12-101. Preemption by state. The state of Wyoming does hereby preempt for itself the field of imposing and levying income taxes, earning taxes, or any other form of tax based on wages or other income and no county, city, town or other political subdivision shall have the right to impose, levy or collect such taxes.","url":"https://wyoleg.gov/statutes/compress/title39.pdf#page=41","sourceDomain":"wyoleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"W.S. §39-12-101 preempts income taxation to the state; Title 39 contains no chapter imposing an individual income tax, so 'no income tax' rests on the preemption text plus structural absence: no statute affirmatively says Wyoming has no income tax, hence medium confidence. Correction: an earlier note cited 'Wyoming Stat. §39-22-103' for this rule; that section is the wind electricity production excise tax, not income tax, and the reference is removed.","href":"/api/v1/citations/wy-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wy-muni-instate","jurisdiction":"WY","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: no Wyoming state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"wy-no-individual-income-tax","jurisdiction":"WY","authority":"W.S. §39-12-101","authorityType":"statute","title":"Wyoming imposes no personal income tax: W.S. §39-12-101 preempts income taxation to the state, and the state has never enacted one; capital gains are not taxed","quote":"39-12-101. Preemption by state. The state of Wyoming does hereby preempt for itself the field of imposing and levying income taxes, earning taxes, or any other form of tax based on wages or other income and no county, city, town or other political subdivision shall have the right to impose, levy or collect such taxes.","url":"https://wyoleg.gov/statutes/compress/title39.pdf#page=41","sourceDomain":"wyoleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"W.S. §39-12-101 preempts income taxation to the state; Title 39 contains no chapter imposing an individual income tax, so 'no income tax' rests on the preemption text plus structural absence: no statute affirmatively says Wyoming has no income tax, hence medium confidence. Correction: an earlier note cited 'Wyoming Stat. §39-22-103' for this rule; that section is the wind electricity production excise tax, not income tax, and the reference is removed.","href":"/api/v1/citations/wy-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wy-muni-outstate","jurisdiction":"WY","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Exempt: no Wyoming state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"wy-no-individual-income-tax","jurisdiction":"WY","authority":"W.S. §39-12-101","authorityType":"statute","title":"Wyoming imposes no personal income tax: W.S. §39-12-101 preempts income taxation to the state, and the state has never enacted one; capital gains are not taxed","quote":"39-12-101. Preemption by state. The state of Wyoming does hereby preempt for itself the field of imposing and levying income taxes, earning taxes, or any other form of tax based on wages or other income and no county, city, town or other political subdivision shall have the right to impose, levy or collect such taxes.","url":"https://wyoleg.gov/statutes/compress/title39.pdf#page=41","sourceDomain":"wyoleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"W.S. §39-12-101 preempts income taxation to the state; Title 39 contains no chapter imposing an individual income tax, so 'no income tax' rests on the preemption text plus structural absence: no statute affirmatively says Wyoming has no income tax, hence medium confidence. Correction: an earlier note cited 'Wyoming Stat. §39-22-103' for this rule; that section is the wind electricity production excise tax, not income tax, and the reference is removed.","href":"/api/v1/citations/wy-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wy-agency-obligations","jurisdiction":"WY","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Exempt: no Wyoming state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"wy-no-individual-income-tax","jurisdiction":"WY","authority":"W.S. §39-12-101","authorityType":"statute","title":"Wyoming imposes no personal income tax: W.S. §39-12-101 preempts income taxation to the state, and the state has never enacted one; capital gains are not taxed","quote":"39-12-101. Preemption by state. The state of Wyoming does hereby preempt for itself the field of imposing and levying income taxes, earning taxes, or any other form of tax based on wages or other income and no county, city, town or other political subdivision shall have the right to impose, levy or collect such taxes.","url":"https://wyoleg.gov/statutes/compress/title39.pdf#page=41","sourceDomain":"wyoleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"W.S. §39-12-101 preempts income taxation to the state; Title 39 contains no chapter imposing an individual income tax, so 'no income tax' rests on the preemption text plus structural absence: no statute affirmatively says Wyoming has no income tax, hence medium confidence. Correction: an earlier note cited 'Wyoming Stat. §39-22-103' for this rule; that section is the wind electricity production excise tax, not income tax, and the reference is removed.","href":"/api/v1/citations/wy-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wy-dividend-qualified","jurisdiction":"WY","category":"dividend-qualified","label":"Qualified dividend income","display":"Moot: no Wyoming state income tax","value":null,"valueType":"none","citations":[{"id":"wy-no-individual-income-tax","jurisdiction":"WY","authority":"W.S. §39-12-101","authorityType":"statute","title":"Wyoming imposes no personal income tax: W.S. §39-12-101 preempts income taxation to the state, and the state has never enacted one; capital gains are not taxed","quote":"39-12-101. Preemption by state. The state of Wyoming does hereby preempt for itself the field of imposing and levying income taxes, earning taxes, or any other form of tax based on wages or other income and no county, city, town or other political subdivision shall have the right to impose, levy or collect such taxes.","url":"https://wyoleg.gov/statutes/compress/title39.pdf#page=41","sourceDomain":"wyoleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"W.S. §39-12-101 preempts income taxation to the state; Title 39 contains no chapter imposing an individual income tax, so 'no income tax' rests on the preemption text plus structural absence: no statute affirmatively says Wyoming has no income tax, hence medium confidence. Correction: an earlier note cited 'Wyoming Stat. §39-22-103' for this rule; that section is the wind electricity production excise tax, not income tax, and the reference is removed.","href":"/api/v1/citations/wy-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wy-treasury","jurisdiction":"WY","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: no Wyoming state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"wy-no-individual-income-tax","jurisdiction":"WY","authority":"W.S. §39-12-101","authorityType":"statute","title":"Wyoming imposes no personal income tax: W.S. §39-12-101 preempts income taxation to the state, and the state has never enacted one; capital gains are not taxed","quote":"39-12-101. Preemption by state. The state of Wyoming does hereby preempt for itself the field of imposing and levying income taxes, earning taxes, or any other form of tax based on wages or other income and no county, city, town or other political subdivision shall have the right to impose, levy or collect such taxes.","url":"https://wyoleg.gov/statutes/compress/title39.pdf#page=41","sourceDomain":"wyoleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"W.S. §39-12-101 preempts income taxation to the state; Title 39 contains no chapter imposing an individual income tax, so 'no income tax' rests on the preemption text plus structural absence: no statute affirmatively says Wyoming has no income tax, hence medium confidence. Correction: an earlier note cited 'Wyoming Stat. §39-22-103' for this rule; that section is the wind electricity production excise tax, not income tax, and the reference is removed.","href":"/api/v1/citations/wy-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wy-fhlb-ffcb","jurisdiction":"WY","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: no Wyoming state income tax","value":1,"valueType":"binary-exempt","citations":[{"id":"wy-no-individual-income-tax","jurisdiction":"WY","authority":"W.S. §39-12-101","authorityType":"statute","title":"Wyoming imposes no personal income tax: W.S. §39-12-101 preempts income taxation to the state, and the state has never enacted one; capital gains are not taxed","quote":"39-12-101. Preemption by state. The state of Wyoming does hereby preempt for itself the field of imposing and levying income taxes, earning taxes, or any other form of tax based on wages or other income and no county, city, town or other political subdivision shall have the right to impose, levy or collect such taxes.","url":"https://wyoleg.gov/statutes/compress/title39.pdf#page=41","sourceDomain":"wyoleg.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"W.S. §39-12-101 preempts income taxation to the state; Title 39 contains no chapter imposing an individual income tax, so 'no income tax' rests on the preemption text plus structural absence: no statute affirmatively says Wyoming has no income tax, hence medium confidence. Correction: an earlier note cited 'Wyoming Stat. §39-22-103' for this rule; that section is the wind electricity production excise tax, not income tax, and the reference is removed.","href":"/api/v1/citations/wy-no-individual-income-tax"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"wy-marital-udcprda","jurisdiction":"WY","category":"marital-udcprda","label":"Disposition of Community Property Rights at Death Act","display":"Yes: W.S. §§2-7-720 to 2-7-729 preserves community property character of assets acquired in CP states at death of a Wyoming resident; surviving spouse retains one-half CP interest","value":1,"valueType":"binary-exempt","citations":[{"id":"wy-ws-2-7-720-udcprda","jurisdiction":"WY","authority":"W.S. §§2-7-720 to 2-7-729, Title 2, Ch. 7, Art. 7","authorityType":"statute","title":"Wyoming adopted the Disposition of Community Property Rights at Death Act (UDCPRDA equivalent)","quote":"This act may be cited as the 'Disposition of Community Property Rights at Death Act.'","url":"https://wyoleg.gov/statutes/compress/title02.pdf","sourceDomain":"wyoleg.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"URL is the full Title 2 PDF; UDCPRDA is in §§2-7-720 to 2-7-729. Wyoming enacted the UDCPRDA equivalent (1971 original uniform act; older adoption). Short title omits 'Uniform' and 'Rights' but provides equivalent protections for community property character of assets acquired in CP states when a couple moves to Wyoming.","href":"/api/v1/citations/wy-ws-2-7-720-udcprda"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"DC","name":"District of Columbia","level":"state","facts":[{"factId":"dc-trust-nexus-incomplete-gift","jurisdiction":"DC","category":"trust-nexus","label":"Incomplete-gift nongrantor trust / ING (income tax reach)","display":"REACHED: residency fixes at creation and out-of-state administration does not remove it; Chase Manhattan (1997) upheld taxing a no-contact trust's undistributed income (testamentary facts; an inter vivos as-applied challenge is arguable but unconceded)","value":2,"valueType":"code","citations":[{"id":"dc-trust-nexus-incomplete-gift-2026","jurisdiction":"DC","authority":"D.C. Code 47-1809.01; 47-1809.03; District of Columbia v. Chase Manhattan Bank, 689 A.2d 539 (D.C. 1997)","authorityType":"statute","title":"The District taxes a trust whose creator was DC-domiciled at creation, upheld against a due-process attack","quote":"If the creator of a trust was at the time the trust was created domiciled within the District, or if the trust consists of property of a person domiciled within the District, the trust is a resident trust.","url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-1809.01","sourceDomain":"code.dccouncil.gov","taxYear":2026,"asOf":"2026-07-13","confidence":"high","href":"/api/v1/citations/dc-trust-nexus-incomplete-gift-2026"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-marital-udcprda","jurisdiction":"DC","category":"marital-udcprda","label":"Adopted Uniform Community Property Disposition at Death Act","display":"Yes: D.C. Law 25-270 (effective March 7, 2025), D.C. Code §§ 19-2301 to 19-2314; preserves community property character of assets from CP-jurisdiction marriages","value":1,"valueType":"binary-exempt","citations":[{"id":"dc-law-25-270-ucpdda-2025","jurisdiction":"DC","authority":"D.C. Law 25-270 (Uniform Community Property Disposition at Death Act of 2024); D.C. Code §§ 19-2301 to 19-2314","authorityType":"statute","title":"The District of Columbia enacted the Uniform Community Property Disposition at Death Act (effective March 7, 2025)","quote":"Uniform Community Property Disposition at Death Act of 2024","url":"https://code.dccouncil.gov/us/dc/council/laws/25-270","sourceDomain":"code.dccouncil.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"D.C. Law 25-270, effective March 7, 2025, codified at D.C. Code 19-2301 to 19-2314. Preserves the community-property character of assets a married couple brings from a community property jurisdiction. DC's first marital fact; DC is otherwise a common-law property jurisdiction.","href":"/api/v1/citations/dc-law-25-270-ucpdda-2025"}],"effectiveDate":"2025-03-07","terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-rate","jurisdiction":"DC","category":"rate","label":"Top income tax rate (TY2025)","display":"4% to 10.75% graduated; 10.75% above $1,000,000 (same schedule all filing statuses)","value":0.1075,"valueType":"rate","citations":[{"id":"dc-code-47-1806-03-top-10-75pct-2025","jurisdiction":"DC","authority":"DC Code §47-1806.03","authorityType":"statute","title":"DC income tax: up to 10.75% on income above $1,000,000 (same schedule for all filing statuses)","quote":"(11) In the case of taxable years beginning after December 31, 2021, there is imposed on the taxable income of every resident a tax determined in accordance with the following table: Not over $10,000 4% of the taxable income ... Over $1,000,000 $91,525, plus 10.75% of the excess over $1,000,000","url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.03","sourceDomain":"code.dccouncil.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"DC Code §47-1806.03(a)(11) imposes tax at seven brackets from 4% (not over $10,000) to 10.75% (over $1,000,000). DC Code §47-1806.03 provides one schedule for all statuses, creating the maximum marriage penalty on a joint return vs. two singles. The $1,000,000 threshold is per return (same for single and MFJ). The D-40 Calculation J (married filing separately on same return) splits income and largely neutralizes the bracket penalty. The $30,000 MFJ standard deduction (TY2025) is a separately verified figure; this citation covers the rate schedule only, not the deduction amount.","href":"/api/v1/citations/dc-code-47-1806-03-top-10-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-deduction","jurisdiction":"DC","category":"deduction","label":"Standard deduction (MFJ, TY2025)","display":"See source for current amount","value":30000,"valueType":"dollars","citations":[{"id":"dc-code-47-1806-02-standard-deduction-30k-2025","jurisdiction":"DC","authority":"D.C. Act 26-214 (D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 2025); amending DC Code §47-1801.04(3A)","authorityType":"statute","title":"DC standard deduction MFJ","quote":"In the case of a return filed by married individuals filing a joint return, separate on a combined return, or a surviving spouse, $30,000; and [for] [t]axable years beginning after December 31, 2025: In the case of a return filed by married individuals filing a joint return, separate on a combined return, or a surviving spouse, $30,000 increased annually pursuant to the cost-of-living adjustment","url":"https://code.dccouncil.gov/us/dc/council/acts/26-214","sourceDomain":"code.dccouncil.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"D.C. Act 26-214 (effective 2025; emergency amendment) establishes the standard deduction via new §47-1801.04(3A) (definitions section) at $30,000 for MFJ TY2025, adjusted annually for cost-of-living after 2025. The prior statutory reference to §47-1806.02 was repealed and replaced by this amendment to the definitions section.","href":"/api/v1/citations/dc-code-47-1806-02-standard-deduction-30k-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-conformity","jurisdiction":"DC","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212 indefinite federal carryforward applies","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-muni-instate","jurisdiction":"DC","category":"muni-instate","label":"In-state muni bond interest (DC-issued)","display":"Exempt: DC, DC Water, WMATA, and DC Housing Finance Agency bonds excluded from DC gross income (DC Code §47-1803.02(a)(1)(B)(ii)(I))","value":1,"valueType":"binary-exempt","citations":[{"id":"dc-code-47-1803-02-muni-instate-exempt-ty2025","jurisdiction":"DC","authority":"DC Code §47-1803.02(a)(1)(B)(ii)(I) and (II) (effective for tax years after 12/31/2024)","authorityType":"statute","title":"DC exempts DC-issued bonds; out-of-state muni interest is taxable effective TY2025","quote":"For tax years beginning after December 31, 2024: Shall not include interest on the obligations of the District of Columbia or bonds issued by DC Water, the Washington Metropolitan Area Transit Authority, and the District of Columbia Housing Finance Agency.","url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-1803.02","sourceDomain":"code.dccouncil.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"Law change effective TY2025. Pre-2025: DC exempted all muni interest (both DC and out-of-state) under §47-1803.02(a)(1)(B)(i). Effective for tax years beginning after December 31, 2024, only DC, DC Water, WMATA, and DC Housing Finance Agency bonds remain exempt; all other state and local muni interest is now included in DC gross income and taxable. DC now follows the standard instate-exempt/outstate-taxable rule. §47-1803.02(a)(1)(B)(ii)(II) provides: \"Shall include interest upon the obligations of a state or any political subdivision thereof, but not including obligations of the District of Columbia or bonds issued by DC Water, the Washington Metropolitan Area Transit Authority, and the District of Columbia Housing Finance Agency.\"","href":"/api/v1/citations/dc-code-47-1803-02-muni-instate-exempt-ty2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-muni-outstate","jurisdiction":"DC","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: effective TY2025, DC Code §47-1803.02(a)(1)(B)(ii)(II) requires inclusion of other states' muni interest in DC gross income","value":0,"valueType":"binary-exempt","citations":[{"id":"dc-code-47-1803-02-muni-instate-exempt-ty2025","jurisdiction":"DC","authority":"DC Code §47-1803.02(a)(1)(B)(ii)(I) and (II) (effective for tax years after 12/31/2024)","authorityType":"statute","title":"DC exempts DC-issued bonds; out-of-state muni interest is taxable effective TY2025","quote":"For tax years beginning after December 31, 2024: Shall not include interest on the obligations of the District of Columbia or bonds issued by DC Water, the Washington Metropolitan Area Transit Authority, and the District of Columbia Housing Finance Agency.","url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-1803.02","sourceDomain":"code.dccouncil.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"Law change effective TY2025. Pre-2025: DC exempted all muni interest (both DC and out-of-state) under §47-1803.02(a)(1)(B)(i). Effective for tax years beginning after December 31, 2024, only DC, DC Water, WMATA, and DC Housing Finance Agency bonds remain exempt; all other state and local muni interest is now included in DC gross income and taxable. DC now follows the standard instate-exempt/outstate-taxable rule. §47-1803.02(a)(1)(B)(ii)(II) provides: \"Shall include interest upon the obligations of a state or any political subdivision thereof, but not including obligations of the District of Columbia or bonds issued by DC Water, the Washington Metropolitan Area Transit Authority, and the District of Columbia Housing Finance Agency.\"","href":"/api/v1/citations/dc-code-47-1803-02-muni-instate-exempt-ty2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-qoz-conformity","jurisdiction":"DC","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Partial conformity: DC recognizes IRC §1400Z-2 QOZ gain deferral and exclusion only for Mayoral-certified DC opportunity zones; federal QOF investments in non-DC or non-certified zones receive no DC QOZ benefit","value":2,"valueType":"code","citations":[{"id":"dc-qoz-conformity-irc-1400z2-2025","jurisdiction":"DC","authority":"DC Code §47-1803.03(a)(20); §47-1803.04(e)(2)","authorityType":"statute","title":"District of Columbia partially conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"(20) Qualified Opportunity Fund Capital Gains. ; (A) Deferral of a capital gains tax payment for investing in a qualified opportunity fund (\"QOF\") shall be realized only if the taxpayer invests in a QOF that meets the criteria set forth in subparagraph (D) of this paragraph.","url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-1803.03","sourceDomain":"code.dccouncil.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Quote is DC Code §47-1803.03(a)(20). Companion §47-1803.02(b-5): 'The capital gains deduction for investing in a qualified opportunity fund shall apply to an individual, estate, or trust in the same manner as set forth in § 47-1803.03(a)(20).' DC QOZ conformity requires the QOF to meet DC-specific criteria (subparagraph (D), Mayoral-certified DC zones); federal QOF investments in non-DC or non-certified zones do not receive DC treatment.","href":"/api/v1/citations/dc-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-qsbs-conformity","jurisdiction":"DC","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Non-conforms: DC Law 26-89 (effective TY2025) added an explicit addback for IRC §1202 QSBS exclusions; federally excluded QSBS gain is included in DC taxable income. WATCH: Congress's H.J.Res. 142 (119th Congress, signed this February) purports to nullify DC Law 26-89 and DC disputes the timing; re-verify before relying on the addback","value":0,"valueType":"binary-exempt","citations":[{"id":"dc-qsbs-conformity-irc-1202-2025","jurisdiction":"DC","authority":"DC Code §47-1803.02(a)(1C); DC Law 26-89","authorityType":"session-law","title":"DC non-conforms to IRC §1202 QSBS exclusion: DC Law 26-89 adds back federally excluded QSBS gain effective TY2025","quote":"(1C) For taxable years beginning after December 31, 2024, individuals, estates and trusts shall include any income or gain excluded from their federal gross income pursuant to § 1202(a) of the Internal Revenue Code of 1986 for that taxable year.","url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-1803.02","sourceDomain":"code.dccouncil.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"DC Law 26-89 added §47-1803.02(a)(1C) making §1202-excluded gain an addition to DC gross income for taxable years beginning after December 31, 2024 (i.e. TY2025 onward, per the codified text).","href":"/api/v1/citations/dc-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2026-10-01"},{"factId":"dc-agency-obligations","jurisdiction":"DC","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: DC Code §47-1803.02(a)(1)(B)(i) excludes only items excluded from federal gross income; FNMA/FHLMC interest is in federal gross income and no DC subtraction covers non-federally-preempted GSE interest","value":0,"valueType":"binary-exempt","citations":[{"id":"dc-code-47-1803-02-fnma-fhlmc-in-base","jurisdiction":"DC","authority":"DC Code §47-1803.02(a)(1)(B)(i)","authorityType":"statute","title":"District of Columbia taxes FNMA and FHLMC bond interest: DC gross income includes all items in federal gross income; FNMA/FHLMC interest is in federal gross income and no DC subtraction exists for non-federally-preempted GSE interest","quote":"Items of income excluded from gross income by provisions of the Internal Revenue Code shall also be excluded from gross income for District tax purposes.","url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-1803.02","sourceDomain":"code.dccouncil.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"DC gross income includes federal gross income items; FNMA/FHLMC interest is in federal gross income (not IRC-excluded). The DC subtraction for federally-excluded items does not help because FNMA/FHLMC interest is NOT federally excluded. 31 U.S.C. §3124 preempts DC taxation only of direct US government obligations; FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute. Confidence: medium.","href":"/api/v1/citations/dc-code-47-1803-02-fnma-fhlmc-in-base"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-dividend-qualified","jurisdiction":"DC","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: District of Columbia has no IRC §1(h)(11) preferential rate; qualified dividends taxed at ordinary rates up to 10.75%","value":0,"valueType":"binary-exempt","citations":[{"id":"dc-code-47-1806-03-top-10-75pct-2025","jurisdiction":"DC","authority":"DC Code §47-1806.03","authorityType":"statute","title":"DC income tax: up to 10.75% on income above $1,000,000 (same schedule for all filing statuses)","quote":"(11) In the case of taxable years beginning after December 31, 2021, there is imposed on the taxable income of every resident a tax determined in accordance with the following table: Not over $10,000 4% of the taxable income ... Over $1,000,000 $91,525, plus 10.75% of the excess over $1,000,000","url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.03","sourceDomain":"code.dccouncil.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"DC Code §47-1806.03(a)(11) imposes tax at seven brackets from 4% (not over $10,000) to 10.75% (over $1,000,000). DC Code §47-1806.03 provides one schedule for all statuses, creating the maximum marriage penalty on a joint return vs. two singles. The $1,000,000 threshold is per return (same for single and MFJ). The D-40 Calculation J (married filing separately on same return) splits income and largely neutralizes the bracket penalty. The $30,000 MFJ standard deduction (TY2025) is a separately verified figure; this citation covers the rate schedule only, not the deduction amount.","href":"/api/v1/citations/dc-code-47-1806-03-top-10-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-treasury","jurisdiction":"DC","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"dc-31-usc-3124-treasury-exempt-2025","jurisdiction":"DC","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from District of Columbia income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/dc-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-fhlb-ffcb","jurisdiction":"DC","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"dc-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"DC","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from the District of Columbia income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/dc-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-carryback","jurisdiction":"DC","category":"carryback","label":"Capital loss carryback","display":"None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-character","jurisdiction":"DC","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income up to 10.75% (D.C. Code §47-1806.03)","value":null,"valueType":"none","citations":[{"id":"dc-code-47-1806-03-top-10-75pct-2025","jurisdiction":"DC","authority":"DC Code §47-1806.03","authorityType":"statute","title":"DC income tax: up to 10.75% on income above $1,000,000 (same schedule for all filing statuses)","quote":"(11) In the case of taxable years beginning after December 31, 2021, there is imposed on the taxable income of every resident a tax determined in accordance with the following table: Not over $10,000 4% of the taxable income ... Over $1,000,000 $91,525, plus 10.75% of the excess over $1,000,000","url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.03","sourceDomain":"code.dccouncil.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"DC Code §47-1806.03(a)(11) imposes tax at seven brackets from 4% (not over $10,000) to 10.75% (over $1,000,000). DC Code §47-1806.03 provides one schedule for all statuses, creating the maximum marriage penalty on a joint return vs. two singles. The $1,000,000 threshold is per return (same for single and MFJ). The D-40 Calculation J (married filing separately on same return) splits income and largely neutralizes the bracket penalty. The $30,000 MFJ standard deduction (TY2025) is a separately verified figure; this citation covers the rate schedule only, not the deduction amount.","href":"/api/v1/citations/dc-code-47-1806-03-top-10-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-estate-rate","jurisdiction":"DC","category":"estate-rate","label":"Estate tax top marginal rate (TY2025)","display":"11.2% to 16% graduated; top 16% on DC taxable estate above approximately $10,000,000; $4,873,200 exclusion (D.C. Code § 47-3702)","value":0.16,"valueType":"rate","citations":[{"id":"dc-code-47-3702-estate-tax-2025","jurisdiction":"DC","authority":"DC Office of Tax and Revenue, Estate Tax page (otr.cfo.dc.gov)","authorityType":"dor-guidance","title":"District of Columbia estate tax: graduated 11.2% to 16%; $4,873,200 exclusion for TY2025","quote":"For estates of decedents who die on or after January 1, 2025, and on or before December 31, 2025, the exclusion (zero bracket) amount is increased to $4,873,200.00.","url":"https://otr.cfo.dc.gov/page/dc-estate-inheritance-and-fiduciary-tax-returns","sourceDomain":"otr.cfo.dc.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"DC estate tax uses the federal state death tax credit bracket table. Top rate is 16% on DC taxable estate over approximately $10M. Exclusion is inflation-adjusted annually. Rate schedule in Form D-76 instructions.","href":"/api/v1/citations/dc-code-47-3702-estate-tax-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-estate-exemption-terminal-2025-12-31","jurisdiction":"DC","category":"estate-exemption","label":"Estate tax exclusion (TY2025)","display":"$4,873,200 for TY2025; inflation-adjusted annually by D.C. Code § 47-3702","value":4873200,"valueType":"dollars","citations":[{"id":"dc-code-47-3702-estate-tax-2025","jurisdiction":"DC","authority":"DC Office of Tax and Revenue, Estate Tax page (otr.cfo.dc.gov)","authorityType":"dor-guidance","title":"District of Columbia estate tax: graduated 11.2% to 16%; $4,873,200 exclusion for TY2025","quote":"For estates of decedents who die on or after January 1, 2025, and on or before December 31, 2025, the exclusion (zero bracket) amount is increased to $4,873,200.00.","url":"https://otr.cfo.dc.gov/page/dc-estate-inheritance-and-fiduciary-tax-returns","sourceDomain":"otr.cfo.dc.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"medium","note":"DC estate tax uses the federal state death tax credit bracket table. Top rate is 16% on DC taxable estate over approximately $10M. Exclusion is inflation-adjusted annually. Rate schedule in Form D-76 instructions.","href":"/api/v1/citations/dc-code-47-3702-estate-tax-2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2026-11-01"},{"factId":"dc-estate-exemption-terminal-2026-12-31","jurisdiction":"DC","category":"estate-exemption","label":"Estate tax exclusion (TY2026)","display":"$4,988,400 for deaths in 2026 (zero bracket amount); inflation-adjusted annually per D.C. Code § 47-3702","value":4988400,"valueType":"dollars","citations":[{"id":"dc-otr-estate-exclusion-4988400-2026","jurisdiction":"DC","authority":"DC Office of Tax and Revenue, Notice of October 1, 2025 Tax Changes","authorityType":"dor-guidance","title":"District of Columbia estate tax zero bracket $4,988,400 for deaths in 2026","quote":"For estates of decedents who die on or after Jan. 1, 2026, and on or before Dec. 31, 2026, the exclusion (zero bracket) amount is increased to $4,988,400.","url":"https://otr.cfo.dc.gov/release/notice-oct-1-2025-tax-changes","sourceDomain":"otr.cfo.dc.gov","taxYear":2026,"asOf":"2026-07-03","confidence":"medium","note":"Matches the TY2026 window already encoded in the estate rate schedule (dcSchedule(4_988_400)).","href":"/api/v1/citations/dc-otr-estate-exclusion-4988400-2026"}],"effectiveDate":"2026-01-01","terminalDate":"2026-12-31","nextReviewDate":"2026-11-01"},{"factId":"dc-filing-status-identical","jurisdiction":"DC","category":"filing-status-identical","label":"Same bracket schedule for all filing statuses","display":"Yes: DC Code §47-1806.03 provides one rate schedule for all filing statuses; the $1,000,000 threshold is per return (same for Single and MFJ), creating the maximum marriage penalty on a joint return vs. two singles","value":1,"valueType":"binary-exempt","citations":[{"id":"dc-code-47-1806-03-top-10-75pct-2025","jurisdiction":"DC","authority":"DC Code §47-1806.03","authorityType":"statute","title":"DC income tax: up to 10.75% on income above $1,000,000 (same schedule for all filing statuses)","quote":"(11) In the case of taxable years beginning after December 31, 2021, there is imposed on the taxable income of every resident a tax determined in accordance with the following table: Not over $10,000 4% of the taxable income ... Over $1,000,000 $91,525, plus 10.75% of the excess over $1,000,000","url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.03","sourceDomain":"code.dccouncil.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"DC Code §47-1806.03(a)(11) imposes tax at seven brackets from 4% (not over $10,000) to 10.75% (over $1,000,000). DC Code §47-1806.03 provides one schedule for all statuses, creating the maximum marriage penalty on a joint return vs. two singles. The $1,000,000 threshold is per return (same for single and MFJ). The D-40 Calculation J (married filing separately on same return) splits income and largely neutralizes the bracket penalty. The $30,000 MFJ standard deduction (TY2025) is a separately verified figure; this citation covers the rate schedule only, not the deduction amount.","href":"/api/v1/citations/dc-code-47-1806-03-top-10-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"dc-migration-loss-conformity","jurisdiction":"DC","category":"migration-loss-conformity","label":"Migration loss carryforward conformity","display":"Full conform (structural inference): the District of Columbia computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward.","value":1,"valueType":"code","citations":[{"id":"dc-migration-loss-conformity-src","jurisdiction":"DC","authority":"DC Code §47-1806.03","authorityType":"statute","title":"the District of Columbia conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference","quote":"In the case of a taxable year beginning after December 31, 1986, there is imposed on the taxable income of every resident a tax determined in accordance with the following table:","url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.03","sourceDomain":"code.dccouncil.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"medium","note":"DC Code §47-1806.03 imposes the tax on the taxable income of every resident; DC taxable income derives from federal adjusted gross income (§47-1803.02), so the federal section 1212 capital-loss carryover flows through. Quote verbatim from the live DC Council code page. No published guidance addresses the imported pre-residency carryforward, so that application remains a structural inference.","href":"/api/v1/citations/dc-migration-loss-conformity-src"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"NYC","name":"New York City","level":"local","facts":[{"factId":"nyc-rate","jurisdiction":"NYC","category":"rate","label":"NYC income tax rate (TY2025)","display":"3.078% to 3.876% on NYC taxable income; effectively flat 3.876% above $90,000 MFJ (no LT preference)","value":0.03876,"valueType":"rate","citations":[{"id":"nyc-admin-code-11-1712-top-3-876pct-2025","jurisdiction":"NYC","authority":"N.Y.C. Admin. Code §11-1712; TY2025 IT-201 Instructions, page 66 (NYC Tax Rates)","authorityType":"statute","title":"New York City income tax: 3.078% to 3.876% on NYC taxable income (same base as NY state; no LT preference)","quote":"For taxable year 2025, the New York City resident tax is imposed on New York City taxable income at the following rates: 3.078% on income to $21,600; 3.762% from $21,601 to $45,000; 3.819% from $45,001 to $90,000; and 3.876% above $90,000, for married individuals filing a joint return.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"NYC brackets are extremely narrow the top rate of 3.876% applies to all income above $90,000 MFJ (essentially flat for any capital-gain-sized income). NYC does NOT provide any preferential LT capital gain rate. Capital gains taxed at same graduated-but-effectively-flat 3.876% rate. The NY state benefit-recapture trap (above $107,650 NYAGI) is separate and in addition to this NYC tax both apply simultaneously. Combined NYC+NYS top: ~14.776%.","href":"/api/v1/citations/nyc-admin-code-11-1712-top-3-876pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nyc-character","jurisdiction":"NYC","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; capital gains taxed at the ordinary NYC schedule (up to 3.876%) on the same base as NY state (N.Y.C. Admin. Code §11-1712)","value":null,"valueType":"none","citations":[{"id":"nyc-admin-code-11-1712-top-3-876pct-2025","jurisdiction":"NYC","authority":"N.Y.C. Admin. Code §11-1712; TY2025 IT-201 Instructions, page 66 (NYC Tax Rates)","authorityType":"statute","title":"New York City income tax: 3.078% to 3.876% on NYC taxable income (same base as NY state; no LT preference)","quote":"For taxable year 2025, the New York City resident tax is imposed on New York City taxable income at the following rates: 3.078% on income to $21,600; 3.762% from $21,601 to $45,000; 3.819% from $45,001 to $90,000; and 3.876% above $90,000, for married individuals filing a joint return.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"NYC brackets are extremely narrow the top rate of 3.876% applies to all income above $90,000 MFJ (essentially flat for any capital-gain-sized income). NYC does NOT provide any preferential LT capital gain rate. Capital gains taxed at same graduated-but-effectively-flat 3.876% rate. The NY state benefit-recapture trap (above $107,650 NYAGI) is separate and in addition to this NYC tax both apply simultaneously. Combined NYC+NYS top: ~14.776%.","href":"/api/v1/citations/nyc-admin-code-11-1712-top-3-876pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nyc-conformity","jurisdiction":"NYC","category":"conformity","label":"Loss carryforward","display":"Follows NY state mechanics conforms to IRC §1212 indefinite carryforward","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nyc-muni-instate","jurisdiction":"NYC","category":"muni-instate","label":"In-state muni bond interest (NYC/NY)","display":"Exempt: NYC taxable income base follows NY state; NYC and NY bonds exempt under N.Y. Tax Law §612(b)(1) by negative implication","value":1,"valueType":"binary-exempt","citations":[{"id":"nyc-admin-code-11-1712-muni-default-2025","jurisdiction":"NYC","authority":"N.Y. Tax Law §612(b)(1); N.Y.C. Admin. Code §11-1712 (NYC taxable income follows NY state)","authorityType":"statute","title":"NYC follows NY state muni treatment: NYC/NY bonds exempt; out-of-state muni interest taxable via §612(b)(1) add-back","quote":"Interest income on obligations of any state other than this state, or of a political subdivision of any such other state unless created by compact or agreement to which this state is a party, to the extent not properly includible in federal adjusted gross income.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"Verbatim N.Y. Tax Law §612(b)(1). NYC taxable income starts from NY state taxable income (N.Y.C. Admin. Code §11-1712); the §612(b)(1) add-back flows through to NYC income. NYC bonds and NY state bonds are both exempt (not listed in §612(b)(1)).","href":"/api/v1/citations/nyc-admin-code-11-1712-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nyc-muni-outstate","jurisdiction":"NYC","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: N.Y. Tax Law §612(b)(1) add-back flows through to NYC taxable income (N.Y.C. Admin. Code §11-1712)","value":0,"valueType":"binary-exempt","citations":[{"id":"nyc-admin-code-11-1712-muni-default-2025","jurisdiction":"NYC","authority":"N.Y. Tax Law §612(b)(1); N.Y.C. Admin. Code §11-1712 (NYC taxable income follows NY state)","authorityType":"statute","title":"NYC follows NY state muni treatment: NYC/NY bonds exempt; out-of-state muni interest taxable via §612(b)(1) add-back","quote":"Interest income on obligations of any state other than this state, or of a political subdivision of any such other state unless created by compact or agreement to which this state is a party, to the extent not properly includible in federal adjusted gross income.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"Verbatim N.Y. Tax Law §612(b)(1). NYC taxable income starts from NY state taxable income (N.Y.C. Admin. Code §11-1712); the §612(b)(1) add-back flows through to NYC income. NYC bonds and NY state bonds are both exempt (not listed in §612(b)(1)).","href":"/api/v1/citations/nyc-admin-code-11-1712-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nyc-qoz-conformity","jurisdiction":"NYC","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Non-conforms to IRC §1400Z-2; QOZ gain deferral not recognized, gain taxable at NYC level via NY state §612(b)(42) addback","value":0,"valueType":"code","citations":[{"id":"nyc-qoz-conformity-irc-1400z2-2025","jurisdiction":"NYC","authority":"N.Y. Tax Law §612(b)(42); N.Y.C. Admin. Code §11-1712 (NYC taxable income follows NY state)","authorityType":"statute","title":"New York City does not conform to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The amount of any gain excluded from federal gross income for the taxable year by subparagraph (A) of paragraph (1) of subsection (a) of section 1400Z-2 of the internal revenue code.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"Verbatim N.Y. Tax Law §612(b)(42). NYC taxable income is computed from NY state taxable income (N.Y.C. Admin. Code §11-1712); the §612(b)(42) QOZ addback flows through to NYC income.","href":"/api/v1/citations/nyc-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nyc-qsbs-conformity","jurisdiction":"NYC","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms to IRC §1202 QSBS gain exclusion by omission: §612(b) contains no §1202 addback; conformity-by-omission carries through to NYC taxable income via §11-1712","value":1,"valueType":"binary-exempt","citations":[{"id":"nyc-qsbs-conformity-irc-1202-2025","jurisdiction":"NYC","authority":"N.Y. Tax Law §612(a); §612(b) (no §1202 addition enumerated); N.Y.C. Admin. Code §11-1712","authorityType":"statute","title":"New York City conforms to IRC §1202 QSBS gain exclusion by omission: §612(b) contains no §1202 addback","quote":"New York adjusted gross income of a resident individual means his federal adjusted gross income as defined in the laws of the United States for the taxable year, with the modifications specified in this section.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"Conformity established by negative inference: N.Y. Tax Law §612(a) begins from federal AGI; §612(b) enumerates additions but contains no addition for IRC §1202 QSBS amounts. Federally excluded QSBS gain therefore never enters NYAGI, and carries through to NYC taxable income (N.Y.C. Admin. Code §11-1712). N.Y. Tax Law §612(c)(43) is the QOZ gain-recovery subtraction (mirror of §612(b)(42)), NOT a QSBS provision. Medium confidence: proof-by-omission is not verbatim statutory text.","href":"/api/v1/citations/nyc-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nyc-agency-obligations","jurisdiction":"NYC","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: NYC taxable income follows NY state taxable income (§11-1712); NY Tax Law §612(c)(1) requires interest be exempt from state taxation under federal law; FNMA/FHLMC have no federal bondholder exemption, so interest flows through as taxable at both NY state and NYC levels","value":0,"valueType":"binary-exempt","citations":[{"id":"nyc-admin-code-11-1712-fnma-fhlmc-taxable","jurisdiction":"NYC","authority":"N.Y.C. Admin. Code §11-1712; N.Y. Tax Law §612(b)","authorityType":"statute","title":"New York City taxes FNMA and FHLMC bond interest: NYC taxable income follows NY state taxable income (§11-1712); NY Tax Law §612(b) includes no subtraction for FNMA/FHLMC interest, which flows through the NY/NYC base as taxable","quote":"§11-1712: The New York City taxable income of a city resident individual shall be such individual's New York State taxable income, as defined in and computed pursuant to the tax law of the state of New York, subject to the modifications specified in this subchapter.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"NYC taxable income starts from NY state taxable income. NY Tax Law §612(b) has no subtraction for FNMA/FHLMC bond interest (confirmed per NY state analysis: §612(c)(1) allows only interest 'exempt by federal law from state income taxation'; FNMA/FHLMC have no such exemption). The NYC level carries through the same result. Confidence: medium (inherits from NY state confidence level).","href":"/api/v1/citations/nyc-admin-code-11-1712-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nyc-dividend-qualified","jurisdiction":"NYC","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: New York City has no IRC §1(h)(11) preferential rate; qualified dividends taxed at ordinary NYC rates (3.078% to 3.876%) plus NY state (up to 10.9%); combined top 14.776%","value":0,"valueType":"binary-exempt","citations":[{"id":"nyc-admin-code-11-1712-top-3-876pct-2025","jurisdiction":"NYC","authority":"N.Y.C. Admin. Code §11-1712; TY2025 IT-201 Instructions, page 66 (NYC Tax Rates)","authorityType":"statute","title":"New York City income tax: 3.078% to 3.876% on NYC taxable income (same base as NY state; no LT preference)","quote":"For taxable year 2025, the New York City resident tax is imposed on New York City taxable income at the following rates: 3.078% on income to $21,600; 3.762% from $21,601 to $45,000; 3.819% from $45,001 to $90,000; and 3.876% above $90,000, for married individuals filing a joint return.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"NYC brackets are extremely narrow the top rate of 3.876% applies to all income above $90,000 MFJ (essentially flat for any capital-gain-sized income). NYC does NOT provide any preferential LT capital gain rate. Capital gains taxed at same graduated-but-effectively-flat 3.876% rate. The NY state benefit-recapture trap (above $107,650 NYAGI) is separate and in addition to this NYC tax both apply simultaneously. Combined NYC+NYS top: ~14.776%.","href":"/api/v1/citations/nyc-admin-code-11-1712-top-3-876pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nyc-treasury","jurisdiction":"NYC","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds)","value":1,"valueType":"binary-exempt","citations":[{"id":"nyc-31-usc-3124-treasury-exempt-2025","jurisdiction":"NYC","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from New York City income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/nyc-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nyc-fhlb-ffcb","jurisdiction":"NYC","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"nyc-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"NYC","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from New York City income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/nyc-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nyc-marital-udcprda","jurisdiction":"NYC","category":"marital-udcprda","label":"Uniform Disposition of Community Property Rights at Death Act (UDCPRDA)","display":"Yes: New York State EPTL §§6-6.1 to 6-6.7 applies throughout New York City; community property character of assets acquired in CP states is preserved at death for NYC residents; IRC §1014(b)(6) double step-up may apply","value":1,"valueType":"binary-exempt","citations":[{"id":"nyc-eptl-6-6-1-udcprda-follows-ny-state","jurisdiction":"NYC","authority":"EPTL §§6-6.1 to 6-6.7 (applicable in New York City as part of New York State law)","authorityType":"statute","title":"New York City follows NY state UDCPRDA (EPTL §§6-6.1 to 6-6.7): community property character of assets acquired in CP states is preserved at death for NYC residents","quote":"This part may be cited as 'The New York uniform disposition of community property rights at death act.'","url":"https://www.tax.ny.gov/pit/estate/etidx.htm","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"New York State EPTL §§6-6.1 to 6-6.7 applies uniformly throughout New York State including New York City. NYC has no separate marital property law; all five boroughs follow the state UDCPRDA. For NYC residents who moved from a community property state, the CP character of property is preserved at death and IRC §1014(b)(6) double step-up may apply.","href":"/api/v1/citations/nyc-eptl-6-6-1-udcprda-follows-ny-state"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"nyc-filing-status-partial","jurisdiction":"NYC","category":"filing-status-partial","label":"Filing status: partial MFJ bracket widening","display":"Yes: graduated NYC income tax 3.078% to 3.876% (TY2025); MFJ bracket thresholds are approximately 1.8x single filer at lower income but converge at higher income; some marriage penalty at the top rate for high-income couples.","value":1,"valueType":"binary-exempt","citations":[{"id":"nyc-admin-code-11-1712-top-3-876pct-2025","jurisdiction":"NYC","authority":"N.Y.C. Admin. Code §11-1712; TY2025 IT-201 Instructions, page 66 (NYC Tax Rates)","authorityType":"statute","title":"New York City income tax: 3.078% to 3.876% on NYC taxable income (same base as NY state; no LT preference)","quote":"For taxable year 2025, the New York City resident tax is imposed on New York City taxable income at the following rates: 3.078% on income to $21,600; 3.762% from $21,601 to $45,000; 3.819% from $45,001 to $90,000; and 3.876% above $90,000, for married individuals filing a joint return.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"NYC brackets are extremely narrow the top rate of 3.876% applies to all income above $90,000 MFJ (essentially flat for any capital-gain-sized income). NYC does NOT provide any preferential LT capital gain rate. Capital gains taxed at same graduated-but-effectively-flat 3.876% rate. The NY state benefit-recapture trap (above $107,650 NYAGI) is separate and in addition to this NYC tax both apply simultaneously. Combined NYC+NYS top: ~14.776%.","href":"/api/v1/citations/nyc-admin-code-11-1712-top-3-876pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"PHL","name":"Philadelphia","level":"local","facts":[{"factId":"phl-no-tax","jurisdiction":"PHL","category":"no-tax","label":"Long-term portfolio capital gains (TY2025)","display":"ZERO Philadelphia tax on long-term portfolio CG (assets held > 6 months); PA state 3.07% flat only","value":0,"valueType":"rate","citations":[{"id":"phl-code-19-1500-1800-portfolio-cg-not-taxed","jurisdiction":"PHL","authority":"City of Philadelphia DOR: Net Profits Tax page (§19-1800) and Wage Tax page (§19-1500)","authorityType":"dor-guidance","title":"Philadelphia portfolio capital gains fall outside the Wage Tax and NPT scopes; only PA state 3.07% applies","quote":"The Net Profits Tax (NPT) is imposed on the net profits from the operation of a trade, business, profession, enterprise, or other activity. ... The Wage Tax is a tax on salaries, wages, commissions, and other compensation.","url":"https://www.phila.gov/services/payments-assistance-taxes/business-taxes/net-profits-tax/","sourceDomain":"www.phila.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"medium","note":"Proof by omission: portfolio capital gains are neither compensation (Wage Tax) nor net profits from a trade or business (NPT), so neither tax reaches them; no phila.gov page states an affirmative exemption, so this is medium confidence. The quote joins two phila.gov pages (NPT and Wage Tax) with an ellipsis. Portfolio CG (listed equities, mutual funds, ETFs) attracts zero Philadelphia tax. But: rental property gains ARE NPT-subject (used in a rental business), and business-asset gains (§1245/§1231 recapture when the business is in Philadelphia) are NPT-subject. NPT resident rate 3.74% (TY2025); Wage Tax resident 3.75%. For a pure-securities investor living in Philadelphia, the effective total rate on LT capital gains is PA state 3.07% only; no city add-on.","href":"/api/v1/citations/phl-code-19-1500-1800-portfolio-cg-not-taxed"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"phl-sit-rate","jurisdiction":"PHL","category":"character","label":"School Income Tax (SIT) on short-term gains (TY2025)","display":"3.74% on resident School Income including short-term capital gains (held <= 6 months), interest, and dividends","value":0.0374,"valueType":"rate","citations":[{"id":"phl-sit-resident-3-74pct-2025","jurisdiction":"PHL","authority":"Philadelphia Code §19-1800 et seq. (School Income Tax); Philadelphia DOR SIT Regulations","authorityType":"statute","title":"Philadelphia School Income Tax: 3.74% on taxable unearned income for residents (TY2025)","quote":"The tax is imposed on the School Income of residents of the school district... at the rate of 3.74 percent.","url":"https://www.phila.gov/services/payments-assistance-taxes/income-taxes/school-income-tax/","sourceDomain":"www.phila.gov","taxYear":2025,"asOf":"2026-06-24","confidence":"high","note":"Philadelphia School Income Tax (SIT) applies to residents on dividends, interest, S-corporation distributions, and short-term capital gains (defined as gains from assets held for six months or less). Long-term gains are exempt.","href":"/api/v1/citations/phl-sit-resident-3-74pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"phl-rate","jurisdiction":"PHL","category":"rate","label":"Net Profits Tax (business / rental gain, TY2025)","display":"3.74% resident rate on net profits from a Philadelphia trade, business, or rental; applies to real estate / business-asset gains","value":0.0374,"valueType":"rate","citations":[{"id":"phl-npt-resident-3-74pct-2025","jurisdiction":"PHL","authority":"Philadelphia Code §19-1806; Philadelphia DOR Net Profits Tax rate schedule","authorityType":"dor-guidance","title":"Philadelphia Net Profits Tax: 3.74% residents / 3.43% non-residents (TY2025); Wage Tax 3.75% residents","quote":"Tax Year Resident rate Non-resident rate 2025 3.74% of net profits 3.43% of net profits 2024 3.75% of net profits 3.44% of net profits","url":"https://www.phila.gov/services/payments-assistance-taxes/taxes/business-taxes/business-taxes-by-type/net-profits-tax/","sourceDomain":"www.phila.gov","taxYear":2025,"asOf":"2026-07-06","confidence":"high","note":"These rates are stated here for completeness and context on business-asset gains. For pure investment capital gains: zero PHL tax regardless of these rates.","href":"/api/v1/citations/phl-npt-resident-3-74pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"phl-conformity","jurisdiction":"PHL","category":"conformity","label":"Loss carryforward","display":"No standalone Philadelphia capital-loss carry rule; PA state year-lock applies (3-D: same-year, same-class, same-spouse)","value":null,"valueType":"none","citations":[{"id":"phl-code-19-1500-1800-portfolio-cg-not-taxed","jurisdiction":"PHL","authority":"City of Philadelphia DOR: Net Profits Tax page (§19-1800) and Wage Tax page (§19-1500)","authorityType":"dor-guidance","title":"Philadelphia portfolio capital gains fall outside the Wage Tax and NPT scopes; only PA state 3.07% applies","quote":"The Net Profits Tax (NPT) is imposed on the net profits from the operation of a trade, business, profession, enterprise, or other activity. ... The Wage Tax is a tax on salaries, wages, commissions, and other compensation.","url":"https://www.phila.gov/services/payments-assistance-taxes/business-taxes/net-profits-tax/","sourceDomain":"www.phila.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"medium","note":"Proof by omission: portfolio capital gains are neither compensation (Wage Tax) nor net profits from a trade or business (NPT), so neither tax reaches them; no phila.gov page states an affirmative exemption, so this is medium confidence. The quote joins two phila.gov pages (NPT and Wage Tax) with an ellipsis. Portfolio CG (listed equities, mutual funds, ETFs) attracts zero Philadelphia tax. But: rental property gains ARE NPT-subject (used in a rental business), and business-asset gains (§1245/§1231 recapture when the business is in Philadelphia) are NPT-subject. NPT resident rate 3.74% (TY2025); Wage Tax resident 3.75%. For a pure-securities investor living in Philadelphia, the effective total rate on LT capital gains is PA state 3.07% only; no city add-on.","href":"/api/v1/citations/phl-code-19-1500-1800-portfolio-cg-not-taxed"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"phl-muni-instate","jurisdiction":"PHL","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: Philadelphia Wage Tax and NPT do not reach investment interest income (Philadelphia Code §19-1500, §19-1800)","value":1,"valueType":"binary-exempt","citations":[{"id":"phl-code-19-1500-1800-portfolio-cg-not-taxed","jurisdiction":"PHL","authority":"City of Philadelphia DOR: Net Profits Tax page (§19-1800) and Wage Tax page (§19-1500)","authorityType":"dor-guidance","title":"Philadelphia portfolio capital gains fall outside the Wage Tax and NPT scopes; only PA state 3.07% applies","quote":"The Net Profits Tax (NPT) is imposed on the net profits from the operation of a trade, business, profession, enterprise, or other activity. ... The Wage Tax is a tax on salaries, wages, commissions, and other compensation.","url":"https://www.phila.gov/services/payments-assistance-taxes/business-taxes/net-profits-tax/","sourceDomain":"www.phila.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"medium","note":"Proof by omission: portfolio capital gains are neither compensation (Wage Tax) nor net profits from a trade or business (NPT), so neither tax reaches them; no phila.gov page states an affirmative exemption, so this is medium confidence. The quote joins two phila.gov pages (NPT and Wage Tax) with an ellipsis. Portfolio CG (listed equities, mutual funds, ETFs) attracts zero Philadelphia tax. But: rental property gains ARE NPT-subject (used in a rental business), and business-asset gains (§1245/§1231 recapture when the business is in Philadelphia) are NPT-subject. NPT resident rate 3.74% (TY2025); Wage Tax resident 3.75%. For a pure-securities investor living in Philadelphia, the effective total rate on LT capital gains is PA state 3.07% only; no city add-on.","href":"/api/v1/citations/phl-code-19-1500-1800-portfolio-cg-not-taxed"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"phl-muni-outstate","jurisdiction":"PHL","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Exempt: Philadelphia Wage Tax and NPT do not reach investment interest income; only PA state 3.07% applies to investment income","value":1,"valueType":"binary-exempt","citations":[{"id":"phl-code-19-1500-1800-portfolio-cg-not-taxed","jurisdiction":"PHL","authority":"City of Philadelphia DOR: Net Profits Tax page (§19-1800) and Wage Tax page (§19-1500)","authorityType":"dor-guidance","title":"Philadelphia portfolio capital gains fall outside the Wage Tax and NPT scopes; only PA state 3.07% applies","quote":"The Net Profits Tax (NPT) is imposed on the net profits from the operation of a trade, business, profession, enterprise, or other activity. ... The Wage Tax is a tax on salaries, wages, commissions, and other compensation.","url":"https://www.phila.gov/services/payments-assistance-taxes/business-taxes/net-profits-tax/","sourceDomain":"www.phila.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"medium","note":"Proof by omission: portfolio capital gains are neither compensation (Wage Tax) nor net profits from a trade or business (NPT), so neither tax reaches them; no phila.gov page states an affirmative exemption, so this is medium confidence. The quote joins two phila.gov pages (NPT and Wage Tax) with an ellipsis. Portfolio CG (listed equities, mutual funds, ETFs) attracts zero Philadelphia tax. But: rental property gains ARE NPT-subject (used in a rental business), and business-asset gains (§1245/§1231 recapture when the business is in Philadelphia) are NPT-subject. NPT resident rate 3.74% (TY2025); Wage Tax resident 3.75%. For a pure-securities investor living in Philadelphia, the effective total rate on LT capital gains is PA state 3.07% only; no city add-on.","href":"/api/v1/citations/phl-code-19-1500-1800-portfolio-cg-not-taxed"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"phl-qoz-conformity","jurisdiction":"PHL","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via Pennsylvania Act 13 of 2019 IRC conformity","value":1,"valueType":"code","citations":[{"id":"phl-qoz-conformity-irc-1400z2-2025","jurisdiction":"PHL","authority":"72 P.S. §7303 (PA Act 13 of 2019); Philadelphia Wage and Net Profits Tax (follows PA income base)","authorityType":"session-law","title":"Philadelphia conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The Pennsylvania personal income tax base is defined by reference to the Internal Revenue Code as amended. Act 13 of 2019 updated this reference to incorporate IRC §1400Z-2, recognizing qualified opportunity zone gain deferral and the 10-year exclusion for Pennsylvania personal income tax purposes. The Philadelphia Wage Tax and Net Profits Tax use the same income base as Pennsylvania personal income tax.","url":"https://www.phila.gov/services/payments-assistance-taxes/business-taxes/wage-tax-employers/","sourceDomain":"www.phila.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"Quote is a synthesis of the PA QOZ conformity chain (Act 13 of 2019 amending 72 P.S. §7303(a)(3)); not verbatim statutory text. Philadelphia Wage and Net Profits Tax follows the same income base as Pennsylvania. To promote to high, transcribe verbatim text from 72 P.S. §7303(a)(3)(viii) at https://www.legis.state.pa.us/cfdocs/legis/LI/uconsCheck.cfm?txtType=HTM&yr=1971&sessInd=0&act=2&chpt=3&sctn=3&subsctn=0.","href":"/api/v1/citations/phl-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"phl-qsbs-conformity","jurisdiction":"PHL","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Non-conforms to IRC §1202; QSBS gain exclusion not recognized, gain fully taxable at the Philadelphia city level","value":0,"valueType":"binary-exempt","citations":[{"id":"phl-qsbs-conformity-irc-1202-2025","jurisdiction":"PHL","authority":"72 P.S. §7303; Philadelphia Wage and Net Profits Tax","authorityType":"statute","title":"Philadelphia does not conform to IRC §1202 QSBS gain exclusion","quote":"Pennsylvania personal income tax does not adopt the IRC §1202 exclusion for gain from qualified small business stock. Pennsylvania taxes all net gain from the sale of property, including small business stock, under 72 P.S. §7303(a)(3). The Philadelphia Wage Tax and Net Profits Tax follow the same income base, so QSBS gain is fully taxable at the city level.","url":"https://www.phila.gov/services/payments-assistance-taxes/business-taxes/wage-tax-employers/","sourceDomain":"www.phila.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"Non-conformity by structural inference: 72 P.S. §7303 uses express enumeration; §1202 is absent from the list. Quote is a paraphrase, not verbatim statutory text. Philadelphia follows the PA income base. To promote to high, transcribe verbatim from 72 P.S. §7303 at https://www.legis.state.pa.us/cfdocs/legis/LI/uconsCheck.cfm?txtType=HTM&yr=1971&sessInd=0&act=2&chpt=3&sctn=3&subsctn=0.","href":"/api/v1/citations/phl-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"phl-agency-obligations","jurisdiction":"PHL","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Exempt: Philadelphia Wage Tax and NPT do not reach investment interest income; FNMA/FHLMC bond interest is investment income outside the Philadelphia tax base (only PA state 3.07% applies)","value":1,"valueType":"binary-exempt","citations":[{"id":"phl-code-19-1500-1800-portfolio-cg-not-taxed","jurisdiction":"PHL","authority":"City of Philadelphia DOR: Net Profits Tax page (§19-1800) and Wage Tax page (§19-1500)","authorityType":"dor-guidance","title":"Philadelphia portfolio capital gains fall outside the Wage Tax and NPT scopes; only PA state 3.07% applies","quote":"The Net Profits Tax (NPT) is imposed on the net profits from the operation of a trade, business, profession, enterprise, or other activity. ... The Wage Tax is a tax on salaries, wages, commissions, and other compensation.","url":"https://www.phila.gov/services/payments-assistance-taxes/business-taxes/net-profits-tax/","sourceDomain":"www.phila.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"medium","note":"Proof by omission: portfolio capital gains are neither compensation (Wage Tax) nor net profits from a trade or business (NPT), so neither tax reaches them; no phila.gov page states an affirmative exemption, so this is medium confidence. The quote joins two phila.gov pages (NPT and Wage Tax) with an ellipsis. Portfolio CG (listed equities, mutual funds, ETFs) attracts zero Philadelphia tax. But: rental property gains ARE NPT-subject (used in a rental business), and business-asset gains (§1245/§1231 recapture when the business is in Philadelphia) are NPT-subject. NPT resident rate 3.74% (TY2025); Wage Tax resident 3.75%. For a pure-securities investor living in Philadelphia, the effective total rate on LT capital gains is PA state 3.07% only; no city add-on.","href":"/api/v1/citations/phl-code-19-1500-1800-portfolio-cg-not-taxed"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"phl-dividend-qualified","jurisdiction":"PHL","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Exempt from Philadelphia tax: dividend income is investment income outside the Philadelphia Wage Tax and NPT base; only PA state 3.07% applies; IRC §1(h)(11) is irrelevant at the city level","value":1,"valueType":"binary-exempt","citations":[{"id":"phl-code-19-1500-1800-portfolio-cg-not-taxed","jurisdiction":"PHL","authority":"City of Philadelphia DOR: Net Profits Tax page (§19-1800) and Wage Tax page (§19-1500)","authorityType":"dor-guidance","title":"Philadelphia portfolio capital gains fall outside the Wage Tax and NPT scopes; only PA state 3.07% applies","quote":"The Net Profits Tax (NPT) is imposed on the net profits from the operation of a trade, business, profession, enterprise, or other activity. ... The Wage Tax is a tax on salaries, wages, commissions, and other compensation.","url":"https://www.phila.gov/services/payments-assistance-taxes/business-taxes/net-profits-tax/","sourceDomain":"www.phila.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"medium","note":"Proof by omission: portfolio capital gains are neither compensation (Wage Tax) nor net profits from a trade or business (NPT), so neither tax reaches them; no phila.gov page states an affirmative exemption, so this is medium confidence. The quote joins two phila.gov pages (NPT and Wage Tax) with an ellipsis. Portfolio CG (listed equities, mutual funds, ETFs) attracts zero Philadelphia tax. But: rental property gains ARE NPT-subject (used in a rental business), and business-asset gains (§1245/§1231 recapture when the business is in Philadelphia) are NPT-subject. NPT resident rate 3.74% (TY2025); Wage Tax resident 3.75%. For a pure-securities investor living in Philadelphia, the effective total rate on LT capital gains is PA state 3.07% only; no city add-on.","href":"/api/v1/citations/phl-code-19-1500-1800-portfolio-cg-not-taxed"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"phl-treasury","jurisdiction":"PHL","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: Philadelphia Wage Tax and NPT do not reach investment interest income; U.S. Treasury interest is outside the Philadelphia tax base","value":1,"valueType":"binary-exempt","citations":[{"id":"phl-code-19-1500-1800-portfolio-cg-not-taxed","jurisdiction":"PHL","authority":"City of Philadelphia DOR: Net Profits Tax page (§19-1800) and Wage Tax page (§19-1500)","authorityType":"dor-guidance","title":"Philadelphia portfolio capital gains fall outside the Wage Tax and NPT scopes; only PA state 3.07% applies","quote":"The Net Profits Tax (NPT) is imposed on the net profits from the operation of a trade, business, profession, enterprise, or other activity. ... The Wage Tax is a tax on salaries, wages, commissions, and other compensation.","url":"https://www.phila.gov/services/payments-assistance-taxes/business-taxes/net-profits-tax/","sourceDomain":"www.phila.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"medium","note":"Proof by omission: portfolio capital gains are neither compensation (Wage Tax) nor net profits from a trade or business (NPT), so neither tax reaches them; no phila.gov page states an affirmative exemption, so this is medium confidence. The quote joins two phila.gov pages (NPT and Wage Tax) with an ellipsis. Portfolio CG (listed equities, mutual funds, ETFs) attracts zero Philadelphia tax. But: rental property gains ARE NPT-subject (used in a rental business), and business-asset gains (§1245/§1231 recapture when the business is in Philadelphia) are NPT-subject. NPT resident rate 3.74% (TY2025); Wage Tax resident 3.75%. For a pure-securities investor living in Philadelphia, the effective total rate on LT capital gains is PA state 3.07% only; no city add-on.","href":"/api/v1/citations/phl-code-19-1500-1800-portfolio-cg-not-taxed"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"phl-fhlb-ffcb","jurisdiction":"PHL","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: Philadelphia Wage Tax and NPT do not reach investment interest income; FHLB and FFCB bond interest is outside the Philadelphia tax base","value":1,"valueType":"binary-exempt","citations":[{"id":"phl-code-19-1500-1800-portfolio-cg-not-taxed","jurisdiction":"PHL","authority":"City of Philadelphia DOR: Net Profits Tax page (§19-1800) and Wage Tax page (§19-1500)","authorityType":"dor-guidance","title":"Philadelphia portfolio capital gains fall outside the Wage Tax and NPT scopes; only PA state 3.07% applies","quote":"The Net Profits Tax (NPT) is imposed on the net profits from the operation of a trade, business, profession, enterprise, or other activity. ... The Wage Tax is a tax on salaries, wages, commissions, and other compensation.","url":"https://www.phila.gov/services/payments-assistance-taxes/business-taxes/net-profits-tax/","sourceDomain":"www.phila.gov","taxYear":2025,"asOf":"2026-07-22","confidence":"medium","note":"Proof by omission: portfolio capital gains are neither compensation (Wage Tax) nor net profits from a trade or business (NPT), so neither tax reaches them; no phila.gov page states an affirmative exemption, so this is medium confidence. The quote joins two phila.gov pages (NPT and Wage Tax) with an ellipsis. Portfolio CG (listed equities, mutual funds, ETFs) attracts zero Philadelphia tax. But: rental property gains ARE NPT-subject (used in a rental business), and business-asset gains (§1245/§1231 recapture when the business is in Philadelphia) are NPT-subject. NPT resident rate 3.74% (TY2025); Wage Tax resident 3.75%. For a pure-securities investor living in Philadelphia, the effective total rate on LT capital gains is PA state 3.07% only; no city add-on.","href":"/api/v1/citations/phl-code-19-1500-1800-portfolio-cg-not-taxed"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"phl-filing-status-flat","jurisdiction":"PHL","category":"filing-status-flat","label":"Filing status irrelevant: flat wage tax rate","display":"Yes: Philadelphia Wage Tax is a flat rate (3.75% residents, 3.44% non-residents for TY2025) on earned income with no filing-status distinction; investment income is outside the Phila. tax base (PHL levies no CG tax)","value":1,"valueType":"binary-exempt","citations":[{"id":"phl-npt-resident-3-74pct-2025","jurisdiction":"PHL","authority":"Philadelphia Code §19-1806; Philadelphia DOR Net Profits Tax rate schedule","authorityType":"dor-guidance","title":"Philadelphia Net Profits Tax: 3.74% residents / 3.43% non-residents (TY2025); Wage Tax 3.75% residents","quote":"Tax Year Resident rate Non-resident rate 2025 3.74% of net profits 3.43% of net profits 2024 3.75% of net profits 3.44% of net profits","url":"https://www.phila.gov/services/payments-assistance-taxes/taxes/business-taxes/business-taxes-by-type/net-profits-tax/","sourceDomain":"www.phila.gov","taxYear":2025,"asOf":"2026-07-06","confidence":"high","note":"These rates are stated here for completeness and context on business-asset gains. For pure investment capital gains: zero PHL tax regardless of these rates.","href":"/api/v1/citations/phl-npt-resident-3-74pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"MD-CO","name":"Maryland County","level":"local","facts":[{"factId":"md-co-rate","jurisdiction":"MD-CO","category":"rate","label":"Maryland local/county tax rate (TY2025)","display":"Up to 3.30% of Maryland taxable income (statutory range 2.25% to 3.30%; top TY2025 rate: Dorchester 3.30%); counties may apply brackets for rates effective on or after January 1, 2022 (Anne Arundel, Frederick, and Dorchester are progressive)","value":0.033,"valueType":"rate","citations":[{"id":"md-co-tg-10-106-county-rate-cap-2025","jurisdiction":"MD-CO","authority":"Md. Code, Tax-General §10-106(a)(1), (c)(1)","authorityType":"statute","title":"Maryland county income tax: each county sets a rate between 2.25% and 3.30% of Maryland taxable income; counties may apply the tax on a bracket basis for rates effective on or after January 1, 2022","quote":"(a)(1) Each county shall set, by ordinance or resolution, a county income tax equal to at least 2.25% but not more than 3.30% of an individual's Maryland taxable income for a taxable year beginning after December 31, 2001. ... (c)(1) For any county income tax rate that is effective on or after January 1, 2022, the county may apply the county income tax on a bracket basis.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-106&enactments=false","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","href":"/api/v1/citations/md-co-tg-10-106-county-rate-cap-2025"},{"id":"md-co-comptroller-alert-dorchester-3-30pct-2025","jurisdiction":"MD-CO","authority":"Comptroller of Maryland, Tax Alert: Changes to Standard and Itemized Deductions and to State and Local Income Tax Rates (2025 legislative session)","authorityType":"dor-guidance","title":"Dorchester County adopted the new 3.30% maximum county rate retroactively for TY2025 (the top county rate)","quote":"Dorchester County was the only county to do so, retroactively increasing its rate from 3.20 percent to 3.30 percent for tax year 2025.","url":"https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/alerts/tax-alert-changes-to-standard-and-itemized-deductions-and-to-state-and-local-income-tax-rates-from-the-2025-legislative-session.pdf","sourceDomain":"www.marylandcomptroller.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","href":"/api/v1/citations/md-co-comptroller-alert-dorchester-3-30pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-co-character","jurisdiction":"MD-CO","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; the MD county tax base follows MD taxable income, where capital gains are taxed as ordinary income (Md. Tax-Gen. §10-105); the county rate applies equally to long- and short-term gains","value":null,"valueType":"none","citations":[{"id":"md-tax-gen-10-104-top-6-5pct-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-105(a)(2) (as amended by BRFA 2025, Ch.604)","authorityType":"statute","title":"Maryland top income tax rate is 6.5% on income above $1,200,000 MFJ (TY2025; BRFA 2025)","quote":"6.25% of Maryland taxable income of $600,001 through $1,200,000; and (x) 6.50% of Maryland taxable income in excess of $1,200,000.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-105","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim from the top brackets of §10-105(a)(2) (joint filers), verified against the live statute page. BRFA 2025 (Ch.604, retroactive to TY2025) added the 6.25% and 6.5% brackets. The rate schedule lives in §10-105, not §10-104 (which lists exempt entities); a prior version of this fact quoted a reconstructed full schedule attributed to §10-104 and has been corrected. Single filers top at 6.5% over $1,000,000. Standard deduction $6,700 (TY2025).","href":"/api/v1/citations/md-tax-gen-10-104-top-6-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-co-conformity","jurisdiction":"MD-CO","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212: the MD county tax base follows MD taxable income, which applies the federal indefinite capital-loss carryforward","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-co-qoz-conformity","jurisdiction":"MD-CO","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms: MD county local tax base follows MD state taxable income, which conforms to IRC §1400Z-2","value":1,"valueType":"code","citations":[{"id":"md-qoz-conformity-irc-1400z2-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-101(e)(1) (federal AGI starting point)","authorityType":"statute","title":"Maryland conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"\"Federal adjusted gross income\" means: (1) for an individual other than a fiduciary, the individual's adjusted gross income as determined under the Internal Revenue Code.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-101","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-21","confidence":"high","note":"Md. Code Ann., Tax-Gen. §1-101 defines Maryland taxable income and federal taxable income by rolling reference to the Internal Revenue Code as amended. This rolling conformity incorporates IRC §1400Z-2 (QOZ gain deferral and 10-year exclusion) without modification.","href":"/api/v1/citations/md-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-co-qsbs-conformity","jurisdiction":"MD-CO","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms: MD county local tax base follows MD state taxable income, which conforms to IRC §1202","value":1,"valueType":"binary-exempt","citations":[{"id":"md-qsbs-conformity-irc-1202-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-101(e)(1) (federal AGI starting point)","authorityType":"statute","title":"Maryland conforms to IRC §1202 QSBS gain exclusion; no addback","quote":"\"Federal adjusted gross income\" means: (1) for an individual other than a fiduciary, the individual's adjusted gross income as determined under the Internal Revenue Code.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-101","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-21","confidence":"high","note":"Md. Code Ann., Tax-Gen. §10-304 defines Maryland taxable income by rolling reference to federal adjusted gross income and the Internal Revenue Code as amended. This conformity incorporates IRC §1202 (QSBS gain exclusion) without modification; no state-level addback.","href":"/api/v1/citations/md-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-co-agency-obligations","jurisdiction":"MD-CO","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: MD county local tax base follows MD state taxable income, where GSE interest is taxable","value":0,"valueType":"binary-exempt","citations":[{"id":"md-tax-gen-10-208-fnma-fhlmc-taxable","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-208(a)(2)","authorityType":"statute","title":"Maryland subtraction for U.S. government interest requires income be exempt from state taxes under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"An individual may subtract from Maryland adjusted gross income amounts that are required to be subtracted by the laws of the United States.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-208","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"The §10-208(a)(2) subtraction requires exemption under federal law. FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute; only the corporation itself is exempt from Maryland taxation, not bondholders. No MD Comptroller named-entity publication found; confidence: medium based on structural statutory analysis.","href":"/api/v1/citations/md-tax-gen-10-208-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-co-dividend-qualified","jurisdiction":"MD-CO","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: MD county has no preferential rate for qualified dividends; taxed at ordinary county rate","value":0,"valueType":"binary-exempt","citations":[{"id":"md-tax-gen-10-104-top-6-5pct-2025","jurisdiction":"MD","authority":"Md. Code Ann., Tax-Gen. §10-105(a)(2) (as amended by BRFA 2025, Ch.604)","authorityType":"statute","title":"Maryland top income tax rate is 6.5% on income above $1,200,000 MFJ (TY2025; BRFA 2025)","quote":"6.25% of Maryland taxable income of $600,001 through $1,200,000; and (x) 6.50% of Maryland taxable income in excess of $1,200,000.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-105","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"Verbatim from the top brackets of §10-105(a)(2) (joint filers), verified against the live statute page. BRFA 2025 (Ch.604, retroactive to TY2025) added the 6.25% and 6.5% brackets. The rate schedule lives in §10-105, not §10-104 (which lists exempt entities); a prior version of this fact quoted a reconstructed full schedule attributed to §10-104 and has been corrected. Single filers top at 6.5% over $1,000,000. Standard deduction $6,700 (TY2025).","href":"/api/v1/citations/md-tax-gen-10-104-top-6-5pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-co-muni-instate","jurisdiction":"MD-CO","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: MD county local tax base follows MD taxable income, where Md. Tax-Gen. §10-204(b) adds back only other-state obligations; MD bonds not added back","value":1,"valueType":"binary-exempt","citations":[{"id":"md-tax-gen-10-204-muni-default-2025","jurisdiction":"MD","authority":"Md. Tax-Gen. §10-204(b)","authorityType":"statute","title":"MD exempts MD-issued bonds; out-of-state muni bond interest added to MD income per §10-204(b)","quote":"The addition under subsection (a) of this section includes interest or dividends, less related expenses, attributable to an obligation or security of: (1) another state; or (2) a political subdivision or authority of another state.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-204&enactments=False","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"§10-204(b) requires addition of out-of-state muni interest; MD-issued bonds exempt by negative implication (not covered by the addition provision).","href":"/api/v1/citations/md-tax-gen-10-204-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-co-muni-outstate","jurisdiction":"MD-CO","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: MD county local tax base follows MD taxable income, where Md. Tax-Gen. §10-204(b) adds back out-of-state muni interest","value":0,"valueType":"binary-exempt","citations":[{"id":"md-tax-gen-10-204-muni-default-2025","jurisdiction":"MD","authority":"Md. Tax-Gen. §10-204(b)","authorityType":"statute","title":"MD exempts MD-issued bonds; out-of-state muni bond interest added to MD income per §10-204(b)","quote":"The addition under subsection (a) of this section includes interest or dividends, less related expenses, attributable to an obligation or security of: (1) another state; or (2) a political subdivision or authority of another state.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-204&enactments=False","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"high","note":"§10-204(b) requires addition of out-of-state muni interest; MD-issued bonds exempt by negative implication (not covered by the addition provision).","href":"/api/v1/citations/md-tax-gen-10-204-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-co-treasury","jurisdiction":"MD-CO","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state/local taxation of U.S. government obligations","value":1,"valueType":"binary-exempt","citations":[{"id":"md-31-usc-3124-treasury-exempt-2025","jurisdiction":"MD","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Maryland income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/md-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-co-fhlb-ffcb","jurisdiction":"MD-CO","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: federal enabling statutes mandate state/local tax exemption for FHLB and FFCB securities","value":1,"valueType":"binary-exempt","citations":[{"id":"md-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"MD","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Maryland income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/md-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"md-co-filing-status-identical","jurisdiction":"MD-CO","category":"filing-status-identical","label":"Filing status: one county schedule in the enabling statute","display":"Yes: Tax-General §10-106(a)(1) sets each county's income tax on an individual's Maryland taxable income with no separate MFJ schedule in the enabling statute; counties may apply the tax on a bracket basis for rates effective on or after January 1, 2022 (§10-106(c)(1)), and bracket ordinances are county-specific","value":1,"valueType":"binary-exempt","citations":[{"id":"md-co-tg-10-106-county-rate-cap-2025","jurisdiction":"MD-CO","authority":"Md. Code, Tax-General §10-106(a)(1), (c)(1)","authorityType":"statute","title":"Maryland county income tax: each county sets a rate between 2.25% and 3.30% of Maryland taxable income; counties may apply the tax on a bracket basis for rates effective on or after January 1, 2022","quote":"(a)(1) Each county shall set, by ordinance or resolution, a county income tax equal to at least 2.25% but not more than 3.30% of an individual's Maryland taxable income for a taxable year beginning after December 31, 2001. ... (c)(1) For any county income tax rate that is effective on or after January 1, 2022, the county may apply the county income tax on a bracket basis.","url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-106&enactments=false","sourceDomain":"mgaleg.maryland.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","href":"/api/v1/citations/md-co-tg-10-106-county-rate-cap-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"OR-PDX","name":"Portland, Oregon (Metro SHS + Multnomah PFA)","level":"local","facts":[{"factId":"or-pdx-metro-shs-rate","jurisdiction":"OR-PDX","category":"rate","label":"Metro SHS surcharge rate","display":"1% of Metro taxable income (Oregon taxable income, capital gains included) above the entry threshold","value":0.01,"valueType":"rate","citations":[{"id":"or-metro-shs-1pct-above-125k-200k-2025","jurisdiction":"OR","authority":"Metro (OR) Code ch. 7.99 (Metro SHS); OR Metro Resolution 21-5244","authorityType":"regulation","title":"Metro SHS: 1% surcharge on income above $125,000 single / $200,000 MFJ (Multnomah/Clackamas/Washington counties)","quote":"A tax is hereby imposed on the Metro taxable income of every individual subject to this title. The tax shall be imposed at the rate of 1% of Metro taxable income in excess of $125,000 for an individual, or $200,000 for a couple filing a joint return.","url":"https://www.oregonmetro.gov/public-projects/supportive-housing-services/shs-employer-tax","sourceDomain":"www.oregonmetro.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Primary URL (oregonmetro.gov informational page) currently returns HTTP 403 Forbidden. The Metro Code chapter (Metro Code ch. 7.99) and Metro Resolution 21-5244 are the authoritative sources; quote extracted from ordinance text. Metro taxable income conforms to Oregon taxable income; capital gains included. Three-county jurisdiction: Multnomah, Clackamas, Washington. Threshold is per return. Metro SHS adds 1% to the state 9.9% = 10.9% subtotal for these county residents.","href":"/api/v1/citations/or-metro-shs-1pct-above-125k-200k-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-pdx-metro-shs-threshold","jurisdiction":"OR-PDX","category":"threshold","label":"Metro SHS entry threshold","display":"$125,000 single / $200,000 MFJ; income above is subject to the 1% Metro SHS tax","value":125000,"valueType":"dollars","citations":[{"id":"or-metro-shs-1pct-above-125k-200k-2025","jurisdiction":"OR","authority":"Metro (OR) Code ch. 7.99 (Metro SHS); OR Metro Resolution 21-5244","authorityType":"regulation","title":"Metro SHS: 1% surcharge on income above $125,000 single / $200,000 MFJ (Multnomah/Clackamas/Washington counties)","quote":"A tax is hereby imposed on the Metro taxable income of every individual subject to this title. The tax shall be imposed at the rate of 1% of Metro taxable income in excess of $125,000 for an individual, or $200,000 for a couple filing a joint return.","url":"https://www.oregonmetro.gov/public-projects/supportive-housing-services/shs-employer-tax","sourceDomain":"www.oregonmetro.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Primary URL (oregonmetro.gov informational page) currently returns HTTP 403 Forbidden. The Metro Code chapter (Metro Code ch. 7.99) and Metro Resolution 21-5244 are the authoritative sources; quote extracted from ordinance text. Metro taxable income conforms to Oregon taxable income; capital gains included. Three-county jurisdiction: Multnomah, Clackamas, Washington. Threshold is per return. Metro SHS adds 1% to the state 9.9% = 10.9% subtotal for these county residents.","href":"/api/v1/citations/or-metro-shs-1pct-above-125k-200k-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-pdx-pfa-rate","jurisdiction":"OR-PDX","category":"surcharge","label":"Multnomah PFA per-tier rate","display":"1.5% per tier: 1.5% above the entry threshold and an additional 1.5% (3% total) above twice the threshold","value":0.015,"valueType":"rate","citations":[{"id":"or-multnomah-pfa-3pct-above-250k-single-2025","jurisdiction":"OR","authority":"Multnomah County Ord. No. 1284 (Preschool for All Tax); Multnomah County Code ch. 12.600","authorityType":"regulation","title":"Multnomah County PFA: 1.5% on income $125K to $250K single (/$200K to $400K MFJ); 3% above those thresholds","quote":"The Preschool for All Personal Income Tax is imposed on Multnomah County taxable income at the rate of 1.5% on income between $125,000 and $250,000 for individuals filing single returns, and 3% on income in excess of $250,000 for individuals filing single returns. For married individuals filing a joint return, the 1.5% rate applies to income between $200,000 and $400,000, and 3% applies to income in excess of $400,000.","url":"https://www.portland.gov/revenue/pfa","sourceDomain":"www.portland.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Primary URL (oregon.gov DOR page) currently returns HTTP 404. The Multnomah County ordinance (Ord. No. 1284) and Multnomah County Code ch. 12.600 are the authoritative sources; quote extracted from ordinance text. Multnomah County only (not all three Metro counties). Capital gains are Multnomah County taxable income. Combined top for a Multnomah County high-income filer: 9.9% (OR state) + 1% (Metro SHS) + 3% (PFA) = 13.9%. This is the highest effective LT capital gain rate among major U.S. locales (exceeds California's 13.3% combined).","href":"/api/v1/citations/or-multnomah-pfa-3pct-above-250k-single-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-pdx-pfa-threshold","jurisdiction":"OR-PDX","category":"threshold","label":"Multnomah PFA entry threshold","display":"$125,000 single / $200,000 MFJ (1.5%); a further 1.5% applies above $250,000 single / $400,000 MFJ","value":125000,"valueType":"dollars","citations":[{"id":"or-multnomah-pfa-3pct-above-250k-single-2025","jurisdiction":"OR","authority":"Multnomah County Ord. No. 1284 (Preschool for All Tax); Multnomah County Code ch. 12.600","authorityType":"regulation","title":"Multnomah County PFA: 1.5% on income $125K to $250K single (/$200K to $400K MFJ); 3% above those thresholds","quote":"The Preschool for All Personal Income Tax is imposed on Multnomah County taxable income at the rate of 1.5% on income between $125,000 and $250,000 for individuals filing single returns, and 3% on income in excess of $250,000 for individuals filing single returns. For married individuals filing a joint return, the 1.5% rate applies to income between $200,000 and $400,000, and 3% applies to income in excess of $400,000.","url":"https://www.portland.gov/revenue/pfa","sourceDomain":"www.portland.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Primary URL (oregon.gov DOR page) currently returns HTTP 404. The Multnomah County ordinance (Ord. No. 1284) and Multnomah County Code ch. 12.600 are the authoritative sources; quote extracted from ordinance text. Multnomah County only (not all three Metro counties). Capital gains are Multnomah County taxable income. Combined top for a Multnomah County high-income filer: 9.9% (OR state) + 1% (Metro SHS) + 3% (PFA) = 13.9%. This is the highest effective LT capital gain rate among major U.S. locales (exceeds California's 13.3% combined).","href":"/api/v1/citations/or-multnomah-pfa-3pct-above-250k-single-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-pdx-character","jurisdiction":"OR-PDX","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; SHS and PFA reach Oregon taxable income, which includes capital gains in full","value":null,"valueType":"none","citations":[{"id":"or-metro-shs-1pct-above-125k-200k-2025","jurisdiction":"OR","authority":"Metro (OR) Code ch. 7.99 (Metro SHS); OR Metro Resolution 21-5244","authorityType":"regulation","title":"Metro SHS: 1% surcharge on income above $125,000 single / $200,000 MFJ (Multnomah/Clackamas/Washington counties)","quote":"A tax is hereby imposed on the Metro taxable income of every individual subject to this title. The tax shall be imposed at the rate of 1% of Metro taxable income in excess of $125,000 for an individual, or $200,000 for a couple filing a joint return.","url":"https://www.oregonmetro.gov/public-projects/supportive-housing-services/shs-employer-tax","sourceDomain":"www.oregonmetro.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Primary URL (oregonmetro.gov informational page) currently returns HTTP 403 Forbidden. The Metro Code chapter (Metro Code ch. 7.99) and Metro Resolution 21-5244 are the authoritative sources; quote extracted from ordinance text. Metro taxable income conforms to Oregon taxable income; capital gains included. Three-county jurisdiction: Multnomah, Clackamas, Washington. Threshold is per return. Metro SHS adds 1% to the state 9.9% = 10.9% subtotal for these county residents.","href":"/api/v1/citations/or-metro-shs-1pct-above-125k-200k-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-pdx-conformity","jurisdiction":"OR-PDX","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212: Metro/Multnomah taxable income conforms to Oregon taxable income, which applies the federal indefinite capital-loss carryforward","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-pdx-qoz-conformity","jurisdiction":"OR-PDX","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms: the Portland local base follows Oregon taxable income, which conforms to IRC §1400Z-2 gain deferral and 10-year exclusion","value":1,"valueType":"code","citations":[{"id":"or-qoz-conformity-irc-1400z2-2025","jurisdiction":"OR","authority":"ORS 316.048","authorityType":"statute","title":"Oregon conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The entire taxable income of a resident of this state is the federal taxable income of the resident as defined in the laws of the United States, with the modifications, additions and subtractions provided in this chapter and other laws of this state applicable to personal income taxation.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"ORS 316.048 establishes rolling IRC conformity. Oregon taxable income begins with federal taxable income; no modification excludes §1400Z-2 gain. §1400Z-2 QOZ provisions apply automatically via conformity. Verbatim quote verified against oregonlegislature.gov ORS 316 (2025 Edition).","href":"/api/v1/citations/or-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-pdx-qsbs-conformity","jurisdiction":"OR-PDX","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202) through TY2025","display":"Conforms for TY2025: the Portland base follows Oregon taxable income, which conformed to IRC §1202 through 2025 (SB 1507 decouples for TY2026 forward)","value":1,"valueType":"binary-exempt","citations":[{"id":"or-qsbs-conformity-ors-316048-ty2025","jurisdiction":"OR","authority":"ORS 316.048","authorityType":"statute","title":"Oregon conforms to IRC §1202 QSBS gain exclusion through TY2025 via rolling IRC conformity (ORS 316.048)","quote":"The entire taxable income of a resident of this state is the federal taxable income of the resident as defined in the laws of the United States, with the modifications, additions and subtractions provided in this chapter and other laws of this state applicable to personal income taxation.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"ORS 316.048 rolling conformity incorporated IRC §1202 QSBS through TY2025. SB 1507 (2026 Or. Laws Ch. 142) decoupled Oregon from §1202 for tax years beginning on or after January 1, 2026; see or-qsbs-nonconformity (value 0, effectiveDate 2026-01-01). Verbatim quote verified against oregonlegislature.gov ORS 316 (2025 Edition).","href":"/api/v1/citations/or-qsbs-conformity-ors-316048-ty2025"}],"effectiveDate":null,"terminalDate":"2025-12-31","nextReviewDate":"2027-01-01"},{"factId":"or-pdx-qsbs-nonconformity","jurisdiction":"OR-PDX","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202) effective TY2026","display":"Non-conforms effective TY2026: the Portland base follows Oregon taxable income, which adds back federally excluded QSBS gain under SB 1507 (2026 Or. Laws Ch. 142)","value":0,"valueType":"binary-exempt","citations":[{"id":"or-qsbs-sb1507-nonconformity-ty2026","jurisdiction":"OR","authority":"2026 Or. Laws Ch. 142 (SB 1507); ORS 316.048","authorityType":"session-law","title":"Oregon decoupled from IRC §1202 QSBS exclusion effective TY2026 (SB 1507)","quote":"There shall be added to federal taxable income an amount equal to any gain from the exchange or sale of qualified small business stock that is received by the taxpayer and excluded from income on the taxpayer's federal income tax return in the tax year, as provided in section 1202 of the Internal Revenue Code.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2026,"asOf":"2026-07-20","confidence":"medium","note":"Verbatim from SB 1507 (2026 Or. Laws Ch. 142), §5 (the §1202 addback), which decouples Oregon from the QSBS exclusion for tax years beginning on or after January 1, 2026. A prior version paraphrased the provision ('Notwithstanding ORS 316.048...'); corrected to the enacted text. The URL points to the codified ORS 316 chapter pending the enrolled bill's codification.","href":"/api/v1/citations/or-qsbs-sb1507-nonconformity-ty2026"}],"effectiveDate":"2026-01-01","terminalDate":null,"nextReviewDate":"2028-01-01"},{"factId":"or-pdx-muni-instate","jurisdiction":"OR-PDX","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: the Portland local base follows Oregon taxable income, where Oregon municipal bond interest is not taxed","value":1,"valueType":"binary-exempt","citations":[{"id":"or-ors-316-680-286a-140-muni-default-2025","jurisdiction":"OR","authority":"ORS §316.680(2)(a) (out-of-state muni addition); ORS 286A.140 (Oregon bond subtraction)","authorityType":"statute","title":"OR exempts OR-issued bonds; out-of-state muni bond interest is a taxable Oregon addition per ORS §316.680(2)(a)","quote":"There shall be added to Oregon taxable income the amount of any interest or dividend income on obligations or securities of any state or political subdivision thereof other than Oregon or its political subdivisions, to the extent excluded from federal taxable income.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"ORS §316.680(2)(a) requires addition of out-of-state muni interest to Oregon taxable income. ORS 286A.140 provides: interest on Oregon state and local obligations is exempt. Standard Oregon rule: instate exempt, outstate taxable. Verbatim quote verified against oregonlegislature.gov ORS 316 (2025 Edition).","href":"/api/v1/citations/or-ors-316-680-286a-140-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-pdx-muni-outstate","jurisdiction":"OR-PDX","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: the Portland local base follows Oregon taxable income, where out-of-state municipal bond interest is added back","value":0,"valueType":"binary-exempt","citations":[{"id":"or-ors-316-680-286a-140-muni-default-2025","jurisdiction":"OR","authority":"ORS §316.680(2)(a) (out-of-state muni addition); ORS 286A.140 (Oregon bond subtraction)","authorityType":"statute","title":"OR exempts OR-issued bonds; out-of-state muni bond interest is a taxable Oregon addition per ORS §316.680(2)(a)","quote":"There shall be added to Oregon taxable income the amount of any interest or dividend income on obligations or securities of any state or political subdivision thereof other than Oregon or its political subdivisions, to the extent excluded from federal taxable income.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"ORS §316.680(2)(a) requires addition of out-of-state muni interest to Oregon taxable income. ORS 286A.140 provides: interest on Oregon state and local obligations is exempt. Standard Oregon rule: instate exempt, outstate taxable. Verbatim quote verified against oregonlegislature.gov ORS 316 (2025 Edition).","href":"/api/v1/citations/or-ors-316-680-286a-140-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-pdx-agency-obligations","jurisdiction":"OR-PDX","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: the Portland local base follows Oregon taxable income, where GSE interest is taxable","value":0,"valueType":"binary-exempt","citations":[{"id":"or-ors-316-654-fnma-fhlmc-taxable","jurisdiction":"OR","authority":"ORS §316.654","authorityType":"statute","title":"Oregon subtraction for U.S. obligation interest requires exemption from state income taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"There shall be subtracted from federal taxable income of a resident individual interest or dividends on obligations of the United States, or of any authority, commission, or instrumentality of the United States, to the extent the interest or dividends are exempt from state income taxes under the laws of the United States.","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"ORS §316.654 subtraction requires interest be 'exempt from state income taxes under the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute, so their interest is not subtractable and is taxable in Oregon.","href":"/api/v1/citations/or-ors-316-654-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-pdx-dividend-qualified","jurisdiction":"OR-PDX","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: no preferential rate for qualified dividends; taxed on the same Oregon taxable income base","value":0,"valueType":"binary-exempt","citations":[{"id":"or-ors-316-037-top-9-9pct-2025","jurisdiction":"OR","authority":"ORS §316.037(1)(a); ORS §316.042 (MFJ doubling rule)","authorityType":"statute","title":"Oregon income tax rates: 4.75%/6.75%/8.75%/9.9% graduated; MFJ thresholds double single per ORS §316.042","quote":"316.037 Imposition and rate of tax. (1)(a) A tax is imposed for each taxable year on the entire taxable income of every resident of this state. The amount of the tax shall be determined in accordance with the following table: ... Over $125,000 $10,798 plus 9.9% of the excess over $125,000 ... (b) For tax years beginning in each calendar year, the Department of Revenue shall adopt a table that shall apply in lieu of the table contained in paragraph (a) of this subsection","url":"https://www.oregonlegislature.gov/bills_laws/ors/ors316.html","sourceDomain":"www.oregonlegislature.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"The quoted §316.037(1)(a) table carries the statutory base amounts; §316.037(1)(b) directs the Department of Revenue to adopt an annual COLA-adjusted table in its place, and the TY2025 figures are published in the OR-40 instructions (Oregon DOR). Rates are 4.75%, 6.75%, 8.75%, and 9.9%. Capital gains taxed as ordinary income, no LT preference. Federal tax deduction: Sch. OR-A line 5a, capped at $8,500 (MFJ/Single/HOH) or $4,250 (MFS) per TY2025 OR-40 page 4. MFJ doubling rule: ORS §316.042 provides that the tax imposed on a joint return shall be twice the tax which would be imposed if the taxable income were cut in half.","href":"/api/v1/citations/or-ors-316-037-top-9-9pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-pdx-treasury","jurisdiction":"OR-PDX","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state and local taxation of U.S. government obligations","value":1,"valueType":"binary-exempt","citations":[{"id":"or-31-usc-3124-treasury-exempt-2025","jurisdiction":"OR","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Oregon income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/or-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-pdx-fhlb-ffcb","jurisdiction":"OR-PDX","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB) mandate state and local tax exemption","value":1,"valueType":"binary-exempt","citations":[{"id":"or-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"OR","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Oregon income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/or-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"or-pdx-filing-status-partial","jurisdiction":"OR-PDX","category":"filing-status-partial","label":"Filing status: partial threshold widening (1.6x)","display":"Partial: the SHS and PFA entry thresholds widen from $125,000 single to $200,000 MFJ (a 1.6x ratio, not doubled), so joint filers cross into the tax at a lower multiple than a doubled bracket","value":1,"valueType":"binary-exempt","citations":[{"id":"or-metro-shs-1pct-above-125k-200k-2025","jurisdiction":"OR","authority":"Metro (OR) Code ch. 7.99 (Metro SHS); OR Metro Resolution 21-5244","authorityType":"regulation","title":"Metro SHS: 1% surcharge on income above $125,000 single / $200,000 MFJ (Multnomah/Clackamas/Washington counties)","quote":"A tax is hereby imposed on the Metro taxable income of every individual subject to this title. The tax shall be imposed at the rate of 1% of Metro taxable income in excess of $125,000 for an individual, or $200,000 for a couple filing a joint return.","url":"https://www.oregonmetro.gov/public-projects/supportive-housing-services/shs-employer-tax","sourceDomain":"www.oregonmetro.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"medium","note":"Primary URL (oregonmetro.gov informational page) currently returns HTTP 403 Forbidden. The Metro Code chapter (Metro Code ch. 7.99) and Metro Resolution 21-5244 are the authoritative sources; quote extracted from ordinance text. Metro taxable income conforms to Oregon taxable income; capital gains included. Three-county jurisdiction: Multnomah, Clackamas, Washington. Threshold is per return. Metro SHS adds 1% to the state 9.9% = 10.9% subtotal for these county residents.","href":"/api/v1/citations/or-metro-shs-1pct-above-125k-200k-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"IN-MARION","name":"Marion County, Indiana (Indianapolis LIT)","level":"local","facts":[{"factId":"in-marion-lit-rate","jurisdiction":"IN-MARION","category":"rate","label":"Marion County Local Income Tax (LIT) rate","display":"2.02% of Indiana adjusted gross income (Marion County); Indiana's county LIT ranges 0.5% to ~3% and applies to the same AGI base as the state tax, capital gains included","value":0.0202,"valueType":"rate","citations":[{"id":"in-marion-dn1-county-lit-2-02pct","jurisdiction":"IN-MARION","authority":"Indiana Department of Revenue, Departmental Notice #1 (R46 / 01-26), County Tax Rates table","authorityType":"dor-guidance","title":"Marion County (county code 49) local income tax rate is 2.02%","quote":"Marion            49              0.0202","url":"https://www.in.gov/dor/files/dn01.pdf","sourceDomain":"www.in.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"medium","note":"Verbatim from the county-rate table in DOR Departmental Notice #1 (the authoritative published list of Indiana county LIT rates). The row reads county name, county code (49), then the rate 0.0202. The current DN#1 revision is effective Jan. 1, 2026; Marion County has carried 2.02% since 2022. IC 6-3.6 (IN_COUNTY_LIT) establishes that the LIT sits on Indiana AGI.","href":"/api/v1/citations/in-marion-dn1-county-lit-2-02pct"},{"id":"in-ic-6-3-5-county-lit-2025","jurisdiction":"IN","authority":"IC 6-3.6 (Local Income Tax)","authorityType":"statute","title":"Indiana mandatory county LIT of 0.5% to 3.0% applies to the same AGI base as the state tax","quote":"A county income tax is imposed on the adjusted gross income of each county taxpayer who resides in the county on the date specified under IC 6-3.6-2-2.","url":"https://iga.in.gov/laws/2024/ic/titles/06#6-3.6","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"County rates vary from 0.5% to 3.0%. Marion County (Indianapolis) is 2.02% (2025).","href":"/api/v1/citations/in-ic-6-3-5-county-lit-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-marion-character","jurisdiction":"IN-MARION","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; the LIT applies to Indiana AGI, which taxes capital gains as ordinary income","value":null,"valueType":"none","citations":[{"id":"in-ic-6-3-2-1-flat-3-0pct-2025","jurisdiction":"IN","authority":"IC 6-3-2-1(b)(6)","authorityType":"statute","title":"Indiana adjusted gross income tax rate is 3.0% for taxable years beginning after December 31, 2024 and before January 1, 2026","quote":"Each taxable year, a tax at the following rate of adjusted gross income is imposed upon the adjusted gross income of every resident person, and on that part of the adjusted gross income derived from sources within Indiana of every nonresident person: ... (6) For taxable years beginning after December 31, 2024, and before January 1, 2026, three percent (3%).","url":"https://iga.in.gov/laws/2026/ic/titles/6#6-3-2-1","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate falls to 2.95% (TY2026, (b)(7)) and 2.90% (TY2027-2029, (b)(8)) under the enacted schedule, with 0.05-point revenue-trigger steps possible from 2030 ((b)(9)). Indiana also imposes a mandatory county LIT (Local Income Tax) of 0.5% to 3.0% on the same adjusted gross income base, reaching capital gains. Marion County (Indianapolis) rate is 2.02%; statewide representative rate ~1.5% to 2.5%.","href":"/api/v1/citations/in-ic-6-3-2-1-flat-3-0pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-marion-conformity","jurisdiction":"IN-MARION","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212: the LIT base follows Indiana AGI, which applies the federal indefinite capital-loss carryforward","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-marion-qoz-conformity","jurisdiction":"IN-MARION","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Conforms: the LIT base follows Indiana AGI, which conforms to IRC §1400Z-2","value":1,"valueType":"code","citations":[{"id":"in-qoz-conformity-irc-1400z2-2025","jurisdiction":"IN","authority":"Ind. Code §6-3-1-11 (updated Jan 1, 2026 by 2026 S.B. 243)","authorityType":"statute","title":"Indiana conforms to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"'Internal Revenue Code' means the Internal Revenue Code of 1986 of the United States, as amended and in effect on January 1, 2026.","url":"https://iga.in.gov/laws/2026/ic/titles/6#6-3-1-11","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"Indiana IRC conformity date updated to January 1, 2026 (2026 S.B. 243); §1400Z-2 incorporated.","href":"/api/v1/citations/in-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-marion-qsbs-conformity","jurisdiction":"IN-MARION","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms: the LIT base follows Indiana AGI, which conforms to IRC §1202","value":1,"valueType":"binary-exempt","citations":[{"id":"in-qsbs-conformity-irc-1202-2025","jurisdiction":"IN","authority":"Ind. Code §6-3-1-11","authorityType":"statute","title":"Indiana conforms to IRC §1202 QSBS gain exclusion","quote":"'Internal Revenue Code' means the Internal Revenue Code of 1986 of the United States, as amended and in effect on January 1, 2026.","url":"https://iga.in.gov/laws/2026/ic/titles/6#6-3-1-11","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"Indiana IRC conformity incorporates §1202; no addback.","href":"/api/v1/citations/in-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-marion-muni-instate","jurisdiction":"IN-MARION","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: the LIT base follows Indiana AGI, where Indiana municipal bond interest is not taxed","value":1,"valueType":"binary-exempt","citations":[{"id":"in-ic-6-8-5-1-muni-default-2025","jurisdiction":"IN","authority":"Indiana IT-40 2025, Schedule 1 Line 3 (OOS add-back); Schedule 2 Code 636 (IN bonds exempt)","authorityType":"form-instructions","title":"IN exempts IN-issued bonds; out-of-state muni bonds acquired after Dec. 31, 2011 are taxable","quote":"Interest earned from a direct obligation of a state or political subdivision other than Indiana is taxable by Indiana if the obligation is acquired after Dec. 31, 2011. If you had interest from a bond issued by or in the name of certain Indiana government subdivisions or entities, deduct any interest or other income included in federal gross income.","url":"https://www.in.gov/dor/tax-forms/individual/current/","sourceDomain":"www.in.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Indiana IT-40 Schedule 1 Line 3 adds back out-of-state muni interest for bonds acquired after Dec. 31, 2011. Pre-2012 acquisitions are grandfathered as exempt. Indiana bonds are exempt via Schedule 2 Code 636 deduction. IC 6-8-5-1 is the primary statutory authority. URL points to the Indiana DOR individual forms page; the specific IT-40 booklet instructions were the intended source. Confidence medium pending section-specific URL.","href":"/api/v1/citations/in-ic-6-8-5-1-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-marion-muni-outstate","jurisdiction":"IN-MARION","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: the LIT base follows Indiana AGI, where out-of-state municipal bond interest is added back","value":0,"valueType":"binary-exempt","citations":[{"id":"in-ic-6-8-5-1-muni-default-2025","jurisdiction":"IN","authority":"Indiana IT-40 2025, Schedule 1 Line 3 (OOS add-back); Schedule 2 Code 636 (IN bonds exempt)","authorityType":"form-instructions","title":"IN exempts IN-issued bonds; out-of-state muni bonds acquired after Dec. 31, 2011 are taxable","quote":"Interest earned from a direct obligation of a state or political subdivision other than Indiana is taxable by Indiana if the obligation is acquired after Dec. 31, 2011. If you had interest from a bond issued by or in the name of certain Indiana government subdivisions or entities, deduct any interest or other income included in federal gross income.","url":"https://www.in.gov/dor/tax-forms/individual/current/","sourceDomain":"www.in.gov","taxYear":2025,"asOf":"2026-06-18","confidence":"medium","note":"Indiana IT-40 Schedule 1 Line 3 adds back out-of-state muni interest for bonds acquired after Dec. 31, 2011. Pre-2012 acquisitions are grandfathered as exempt. Indiana bonds are exempt via Schedule 2 Code 636 deduction. IC 6-8-5-1 is the primary statutory authority. URL points to the Indiana DOR individual forms page; the specific IT-40 booklet instructions were the intended source. Confidence medium pending section-specific URL.","href":"/api/v1/citations/in-ic-6-8-5-1-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-marion-agency-obligations","jurisdiction":"IN-MARION","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: the LIT base follows Indiana AGI, where GSE interest is taxable","value":0,"valueType":"binary-exempt","citations":[{"id":"in-ic-6-3-2-4-fnma-fhlmc-taxable","jurisdiction":"IN","authority":"IC 6-3-2-4(b)(1)","authorityType":"statute","title":"Indiana deduction for U.S. obligation interest requires exemption from state income taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption","quote":"If any item of income is excluded from gross income for federal income tax purposes but is required to be added under IC 6-3-1-3.5, there shall be allowed as a deduction from adjusted gross income... interest income received from United States obligations if and to the extent that the obligations are exempt from state income taxation.","url":"https://iga.in.gov/laws/2024/ic/titles/06#6-3-2-4","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"IC 6-3-2-4(b)(1) deduction applies only to interest on US obligations exempt from state taxation. FNMA and FHLMC have no bondholder exemption statute. No Indiana DOR named-entity publication found; confidence: medium based on structural statutory analysis.","href":"/api/v1/citations/in-ic-6-3-2-4-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-marion-dividend-qualified","jurisdiction":"IN-MARION","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: no preferential rate for qualified dividends; taxed on the same Indiana AGI base","value":0,"valueType":"binary-exempt","citations":[{"id":"in-ic-6-3-2-1-flat-3-0pct-2025","jurisdiction":"IN","authority":"IC 6-3-2-1(b)(6)","authorityType":"statute","title":"Indiana adjusted gross income tax rate is 3.0% for taxable years beginning after December 31, 2024 and before January 1, 2026","quote":"Each taxable year, a tax at the following rate of adjusted gross income is imposed upon the adjusted gross income of every resident person, and on that part of the adjusted gross income derived from sources within Indiana of every nonresident person: ... (6) For taxable years beginning after December 31, 2024, and before January 1, 2026, three percent (3%).","url":"https://iga.in.gov/laws/2026/ic/titles/6#6-3-2-1","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-07-12","confidence":"high","note":"Rate falls to 2.95% (TY2026, (b)(7)) and 2.90% (TY2027-2029, (b)(8)) under the enacted schedule, with 0.05-point revenue-trigger steps possible from 2030 ((b)(9)). Indiana also imposes a mandatory county LIT (Local Income Tax) of 0.5% to 3.0% on the same adjusted gross income base, reaching capital gains. Marion County (Indianapolis) rate is 2.02%; statewide representative rate ~1.5% to 2.5%.","href":"/api/v1/citations/in-ic-6-3-2-1-flat-3-0pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-marion-treasury","jurisdiction":"IN-MARION","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state and local taxation of U.S. government obligations","value":1,"valueType":"binary-exempt","citations":[{"id":"in-31-usc-3124-treasury-exempt-2025","jurisdiction":"IN","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from Indiana income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/in-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-marion-fhlb-ffcb","jurisdiction":"IN-MARION","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB) mandate state and local tax exemption","value":1,"valueType":"binary-exempt","citations":[{"id":"in-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"IN","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Indiana income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/in-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"in-marion-filing-status-flat","jurisdiction":"IN-MARION","category":"filing-status-flat","label":"Filing status: flat, status-independent","display":"Yes: the county LIT is a single flat rate on Indiana AGI with no separate MFJ schedule, so filing status does not change the rate","value":1,"valueType":"binary-exempt","citations":[{"id":"in-ic-6-3-5-county-lit-2025","jurisdiction":"IN","authority":"IC 6-3.6 (Local Income Tax)","authorityType":"statute","title":"Indiana mandatory county LIT of 0.5% to 3.0% applies to the same AGI base as the state tax","quote":"A county income tax is imposed on the adjusted gross income of each county taxpayer who resides in the county on the date specified under IC 6-3.6-2-2.","url":"https://iga.in.gov/laws/2024/ic/titles/06#6-3.6","sourceDomain":"iga.in.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"high","note":"County rates vary from 0.5% to 3.0%. Marion County (Indianapolis) is 2.02% (2025).","href":"/api/v1/citations/in-ic-6-3-5-county-lit-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"YONK","name":"Yonkers, New York (resident surcharge)","level":"local","facts":[{"factId":"yonkers-resident-surcharge-rate","jurisdiction":"YONK","category":"rate","label":"Yonkers resident income tax surcharge rate","display":"16.75% of net New York State tax (a surcharge on NY liability, not a separate income base); reaches capital gains through the NY tax it rides on","value":0.1675,"valueType":"rate","citations":[{"id":"yonkers-it201-resident-surcharge-16-75pct-2025","jurisdiction":"YONK","authority":"N.Y. Tax Law §1321 (Yonkers resident income tax surcharge); TY2025 IT-201 Instructions (Yonkers worksheet, line n)","authorityType":"form-instructions","title":"Yonkers resident income tax surcharge: 16.75% of the resident's net New York State tax","quote":"Yonkers resident tax rate (16.75%) ... Multiply line m by line n. This is your Yonkers resident income tax surcharge.","url":"https://www.tax.ny.gov/forms/current-forms/it/it201i.htm","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-07-19","confidence":"medium","note":"The surcharge is a flat 16.75% (line n = 0.1675) applied to net New York State tax (line m), not to a base of income, so it inherits the NY base and character in full (capital gains included). Yonkers nonresidents instead owe a 0.5% earnings tax that does NOT reach capital gains (Form Y-203); this fact models the RESIDENT surcharge only.","href":"/api/v1/citations/yonkers-it201-resident-surcharge-16-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"yonkers-character","jurisdiction":"YONK","category":"character","label":"Long-term capital gains treatment","display":"Ordinary rate: no preferential long-term rate; the surcharge is a percentage of NY State tax, which taxes capital gains as ordinary income","value":null,"valueType":"none","citations":[{"id":"yonkers-it201-resident-surcharge-16-75pct-2025","jurisdiction":"YONK","authority":"N.Y. Tax Law §1321 (Yonkers resident income tax surcharge); TY2025 IT-201 Instructions (Yonkers worksheet, line n)","authorityType":"form-instructions","title":"Yonkers resident income tax surcharge: 16.75% of the resident's net New York State tax","quote":"Yonkers resident tax rate (16.75%) ... Multiply line m by line n. This is your Yonkers resident income tax surcharge.","url":"https://www.tax.ny.gov/forms/current-forms/it/it201i.htm","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-07-19","confidence":"medium","note":"The surcharge is a flat 16.75% (line n = 0.1675) applied to net New York State tax (line m), not to a base of income, so it inherits the NY base and character in full (capital gains included). Yonkers nonresidents instead owe a 0.5% earnings tax that does NOT reach capital gains (Form Y-203); this fact models the RESIDENT surcharge only.","href":"/api/v1/citations/yonkers-it201-resident-surcharge-16-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"yonkers-conformity","jurisdiction":"YONK","category":"conformity","label":"Loss carryforward","display":"Conforms to IRC §1212: the surcharge rides on NY State tax, which applies the federal indefinite capital-loss carryforward","value":null,"valueType":"none","citations":[{"id":"irc-1212b-carryforward-only-individuals","jurisdiction":"US","authority":"IRC §1212(b)","authorityType":"statute","title":"IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback","quote":"In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-21","confidence":"high","note":"IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.","href":"/api/v1/citations/irc-1212b-carryforward-only-individuals"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"yonkers-qoz-conformity","jurisdiction":"YONK","category":"qoz-conformity","label":"QOZ conformity (IRC §1400Z-2)","display":"Non-conforms: the surcharge rides on NY State tax, which decouples from IRC §1400Z-2 (the NY addback flows through)","value":0,"valueType":"code","citations":[{"id":"ny-qoz-conformity-irc-1400z2-2025","jurisdiction":"NY","authority":"N.Y. Tax Law §612(b)(42)","authorityType":"statute","title":"New York does not conform to IRC §1400Z-2 QOZ gain deferral and exclusion","quote":"The amount of any gain excluded from federal gross income for the taxable year by subparagraph (A) of paragraph (1) of subsection (a) of section 1400Z-2 of the internal revenue code.","url":"https://www.nysenate.gov/legislation/laws/TAX/612","sourceDomain":"www.nysenate.gov","taxYear":2025,"asOf":"2026-07-20","confidence":"high","note":"N.Y. Tax Law §612(b)(42) requires an addback of any gain excluded from federal income under IRC §1400Z-2. Deferred or permanently excluded QOZ gain is fully taxable in New York in the year of reinvestment into a QOF.","href":"/api/v1/citations/ny-qoz-conformity-irc-1400z2-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"yonkers-qsbs-conformity","jurisdiction":"YONK","category":"qsbs-conformity","label":"QSBS conformity (IRC §1202)","display":"Conforms: the surcharge rides on NY State tax, which conforms to IRC §1202 by omission","value":1,"valueType":"binary-exempt","citations":[{"id":"ny-qsbs-conformity-irc-1202-2025","jurisdiction":"NY","authority":"N.Y. Tax Law §612(a); §612(b) (no §1202 addition enumerated)","authorityType":"statute","title":"New York conforms to IRC §1202 QSBS gain exclusion by omission: no §1202 addback in §612(b)","quote":"New York adjusted gross income of a resident individual means his federal adjusted gross income as defined in the laws of the United States for the taxable year, with the modifications specified in this section.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"Conformity established by negative inference: N.Y. Tax Law §612(a) begins from federal AGI; §612(b) enumerates additions to NY income but contains no addition for amounts excluded under IRC §1202. Federally excluded QSBS gain therefore never enters NYAGI. N.Y. Tax Law §612(c)(43) is NOT a QSBS provision; it is the QOZ gain-recovery subtraction (mirror of §612(b)(42)). No affirmative statutory text confirms §1202 conformity; medium confidence per schema rules because proof-by-omission is not verbatim statutory text.","href":"/api/v1/citations/ny-qsbs-conformity-irc-1202-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"yonkers-muni-instate","jurisdiction":"YONK","category":"muni-instate","label":"In-state muni bond interest","display":"Exempt: the surcharge rides on NY State tax, where NY and NYC bonds are not added back","value":1,"valueType":"binary-exempt","citations":[{"id":"ny-tax-law-612b1-muni-default-2025","jurisdiction":"NY","authority":"N.Y. Tax Law §612(b)(1)","authorityType":"statute","title":"NY taxes out-of-state muni bond interest add-back per Tax Law §612(b)(1); NY bonds exempt","quote":"Interest income on obligations of any state other than this state, or of a political subdivision of any such other state unless created by compact or agreement to which this state is a party, to the extent not properly includible in federal adjusted gross income","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"N.Y. Tax Law §612(b)(1) requires addition of out-of-state muni interest to NY AGI. Verbatim text extracted from nysenate.gov. NY-issued bonds (state and subdivisions) are exempt by negative implication: the statute only requires addition of obligations of 'any state other than this state.'","href":"/api/v1/citations/ny-tax-law-612b1-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"yonkers-muni-outstate","jurisdiction":"YONK","category":"muni-outstate","label":"Out-of-state muni bond interest","display":"Taxable: the surcharge rides on NY State tax, where out-of-state muni interest is added back","value":0,"valueType":"binary-exempt","citations":[{"id":"ny-tax-law-612b1-muni-default-2025","jurisdiction":"NY","authority":"N.Y. Tax Law §612(b)(1)","authorityType":"statute","title":"NY taxes out-of-state muni bond interest add-back per Tax Law §612(b)(1); NY bonds exempt","quote":"Interest income on obligations of any state other than this state, or of a political subdivision of any such other state unless created by compact or agreement to which this state is a party, to the extent not properly includible in federal adjusted gross income","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"N.Y. Tax Law §612(b)(1) requires addition of out-of-state muni interest to NY AGI. Verbatim text extracted from nysenate.gov. NY-issued bonds (state and subdivisions) are exempt by negative implication: the statute only requires addition of obligations of 'any state other than this state.'","href":"/api/v1/citations/ny-tax-law-612b1-muni-default-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"yonkers-agency-obligations","jurisdiction":"YONK","category":"agency-obligations","label":"GSE bond interest (FNMA/FHLMC)","display":"Taxable: the surcharge rides on NY State tax, where GSE interest is taxable","value":0,"valueType":"binary-exempt","citations":[{"id":"ny-tsb-m-95-4i-fnma-fhlmc-taxable","jurisdiction":"NY","authority":"NY Department of Taxation and Finance, TSB-M-95(4)I (January 29, 1996); supersedes TSB-M-86-(8)I","authorityType":"dor-guidance","title":"NY TSB-M-95(4)I: FNMA bonds/debentures and FHLMC listed as 'Yes' (subject to NY income tax)","quote":"Federal Home Loan Mortgage Corporation (Freddie Macs): Subject to New York State Income Tax; Yes. Federal National Mortgage Association (Fannie Mae): (a) Interest on Bonds and Debentures (all tax years): Subject to New York State Income Tax; Yes.","url":"https://www.tax.ny.gov/pdf/memos/income/m95_4i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"TSB-M-95(4)I is the controlling NY DTF guidance on federal agency bond taxability. Verbatim text extracted from PDF. It explicitly distinguishes exempt GSEs (FHLB: 'No'; FFCB: 'No') from taxable ones (FNMA/FHLMC/GNMA: 'Yes'). The mechanism is N.Y. Tax Law §612(c)(2): a subtraction applies only when a federal statute specifically bars state taxation of the bondholder interest. No such statute exists for FNMA or FHLMC.","href":"/api/v1/citations/ny-tsb-m-95-4i-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"yonkers-dividend-qualified","jurisdiction":"YONK","category":"dividend-qualified","label":"Qualified dividend income","display":"Ordinary rate: no preferential rate for qualified dividends; taxed through the NY State tax the surcharge rides on","value":0,"valueType":"binary-exempt","citations":[{"id":"ny-tax-law-601a-top-10-9pct-bracket-2025","jurisdiction":"NY","authority":"TY2025 IT-201 Instructions (rate schedule for married filing jointly)","authorityType":"form-instructions","title":"New York top stated rate: 10.9% on New York taxable income above $25,000,000 (MFJ, TY2025)","quote":"For taxable years beginning on or after January 1, 2023, the rates of tax imposed under this section are: 4% on income to $17,150; 4.5% from $17,151 to $23,600; 5.25% from $23,601 to $27,900; 5.85% from $27,901 to $161,550; 6.25% from $161,551 to $323,200; 6.85% from $323,201 to $2,155,350; 9.65% from $2,155,351 to $5,000,000; 10.3% from $5,000,001 to $25,000,000; and 10.9% above $25,000,000, for married individuals filing a joint return; provided, this subparagraph shall apply only to taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand twenty-eight.","url":"https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-06-10","confidence":"medium","note":"The elevated brackets (9.65%, 10.3%, 10.9%) were extended through TY2032 by the FY2026 budget (A3009-C, signed 2025-05-09): N.Y. Tax Law §601 now applies them to taxable years beginning after 2025 and before 2033 ('FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FIVE AND BEFORE TWO THOUSAND THIRTY-THREE'). The 10.9% bracket applies above $25M (joint); for most high-capital-gain filers the operative range is 9.65% to 10.3%. The recapture trap (see NY_RATE_RECAPTURE) can produce higher effective rates between $107,650 and ~$161,500. No preferential LT rate: NY taxes capital gains as ordinary income at these rates. Standard deduction $16,050 MFJ (TY2025).","href":"/api/v1/citations/ny-tax-law-601a-top-10-9pct-bracket-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"yonkers-treasury","jurisdiction":"YONK","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. §3124(a) prohibits state and local taxation of U.S. government obligations","value":1,"valueType":"binary-exempt","citations":[{"id":"ny-31-usc-3124-treasury-exempt-2025","jurisdiction":"NY","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from New York income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.","href":"/api/v1/citations/ny-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"yonkers-fhlb-ffcb","jurisdiction":"YONK","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB) mandate state and local tax exemption","value":1,"valueType":"binary-exempt","citations":[{"id":"ny-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"NY","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from New York income tax: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.","href":"/api/v1/citations/ny-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"yonkers-filing-status-flat","jurisdiction":"YONK","category":"filing-status-flat","label":"Filing status: flat surcharge rate","display":"Yes: the surcharge is a single 16.75% of NY State tax regardless of filing status; any marriage penalty is inherited from the underlying NY tax, not added by Yonkers","value":1,"valueType":"binary-exempt","citations":[{"id":"yonkers-it201-resident-surcharge-16-75pct-2025","jurisdiction":"YONK","authority":"N.Y. Tax Law §1321 (Yonkers resident income tax surcharge); TY2025 IT-201 Instructions (Yonkers worksheet, line n)","authorityType":"form-instructions","title":"Yonkers resident income tax surcharge: 16.75% of the resident's net New York State tax","quote":"Yonkers resident tax rate (16.75%) ... Multiply line m by line n. This is your Yonkers resident income tax surcharge.","url":"https://www.tax.ny.gov/forms/current-forms/it/it201i.htm","sourceDomain":"www.tax.ny.gov","taxYear":2025,"asOf":"2026-07-19","confidence":"medium","note":"The surcharge is a flat 16.75% (line n = 0.1675) applied to net New York State tax (line m), not to a base of income, so it inherits the NY base and character in full (capital gains included). Yonkers nonresidents instead owe a 0.5% earnings tax that does NOT reach capital gains (Form Y-203); this fact models the RESIDENT surcharge only.","href":"/api/v1/citations/yonkers-it201-resident-surcharge-16-75pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"AS","name":"American Samoa","level":"territory","facts":[{"factId":"as-conformity","jurisdiction":"AS","category":"conformity","label":"IRC conformity (TY2025)","display":"Not Mirror Code: AS adopted the federal IRC frozen at December 31, 2000; not subject to automatic federal updates (IRS Pub 570)","value":null,"valueType":"none","citations":[{"id":"as-irs-pub570-own-tax-system-2025","jurisdiction":"AS","authority":"IRS Publication 570 (Feb 26, 2026 ed.), Chapter 3: Tax on Income from U.S. Territories","authorityType":"dor-guidance","title":"American Samoa has its own separate and independent tax system (not Mirror Code)","quote":"American Samoa has its own separate and independent tax system. Although its tax laws are modeled on the U.S. Internal Revenue Code, there are certain differences.","url":"https://www.irs.gov/pub/irs-pdf/p570.pdf","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"IRS Pub 570 explicitly distinguishes AS from the Mirror Code territories (Guam, CNMI, USVI). AS tax is paid to the AS government. Bona fide residents of AS are generally not subject to federal income tax on AS-source income. AS is NOT subject to automatic federal IRC updates the way Mirror Code territories are.","href":"/api/v1/citations/as-irs-pub570-own-tax-system-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"as-rate","jurisdiction":"AS","category":"rate","label":"Long-term capital gains rate (TY2025)","display":"20% max under IRC-2000 (Taxpayer Relief Act 1997 rates; JGTRRA 2003 cuts not adopted); 10% for taxpayers in the 15% bracket","value":0.2,"valueType":"rate","citations":[{"id":"as-form390-irc-2000-adoption-2025","jurisdiction":"AS","authority":"American Samoa Form 390 Instructions (2024-2025); ASCA PL 27-13 (referenced)","authorityType":"form-instructions","title":"AS adopted IRC as of December 31, 2000 as its own code; LTCG max rate 20% under IRC-2000","quote":"The ASG has adopted legislation providing that the U.S. Internal Revenue Code in effect on December 31, 2000, shall be applicable in American Samoa for all years thereafter, except as amended or incompatible with other American Samoa laws. Please use the 2000 tax table for computation of your tax.","url":"https://americansamoa.gov/tax-office","sourceDomain":"americansamoa.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"ASCA PL 27-13 is referenced on Form 390 for tax-exempt income provisions; the IRC-2000 adoption legislation is cited generically. The ASCA statutory text was inaccessible (asca.ws and asgtax.gov both timed out). IRC-2000 LTCG rates (Taxpayer Relief Act 1997): 20% max for taxpayers above the 15% bracket; 10% for taxpayers in the 15% bracket. These pre-date the JGTRRA 2003 cuts (0%/15%/20% structure). Post-2000 Fono amendments to capital gains rates are not confirmed; encoded at the IRC-2000 20% max rate.","href":"/api/v1/citations/as-form390-irc-2000-adoption-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"as-character","jurisdiction":"AS","category":"character","label":"Long-term holding period","display":"12 months (IRC-2000 § 1222; same as current federal, unchanged by post-2000 amendments)","value":null,"valueType":"none","citations":[{"id":"as-form390-irc-2000-adoption-2025","jurisdiction":"AS","authority":"American Samoa Form 390 Instructions (2024-2025); ASCA PL 27-13 (referenced)","authorityType":"form-instructions","title":"AS adopted IRC as of December 31, 2000 as its own code; LTCG max rate 20% under IRC-2000","quote":"The ASG has adopted legislation providing that the U.S. Internal Revenue Code in effect on December 31, 2000, shall be applicable in American Samoa for all years thereafter, except as amended or incompatible with other American Samoa laws. Please use the 2000 tax table for computation of your tax.","url":"https://americansamoa.gov/tax-office","sourceDomain":"americansamoa.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"ASCA PL 27-13 is referenced on Form 390 for tax-exempt income provisions; the IRC-2000 adoption legislation is cited generically. The ASCA statutory text was inaccessible (asca.ws and asgtax.gov both timed out). IRC-2000 LTCG rates (Taxpayer Relief Act 1997): 20% max for taxpayers above the 15% bracket; 10% for taxpayers in the 15% bracket. These pre-date the JGTRRA 2003 cuts (0%/15%/20% structure). Post-2000 Fono amendments to capital gains rates are not confirmed; encoded at the IRC-2000 20% max rate.","href":"/api/v1/citations/as-form390-irc-2000-adoption-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"as-qoz-conformity","jurisdiction":"AS","category":"qoz-conformity","label":"QOZ conformity (IRC § 1400Z-2)","display":"Non-conforms: § 1400Z-2 was enacted in 2017 (Tax Cuts and Jobs Act), after the AS IRC-2000 freeze","value":0,"valueType":"code","citations":[{"id":"as-form390-irc-2000-adoption-2025","jurisdiction":"AS","authority":"American Samoa Form 390 Instructions (2024-2025); ASCA PL 27-13 (referenced)","authorityType":"form-instructions","title":"AS adopted IRC as of December 31, 2000 as its own code; LTCG max rate 20% under IRC-2000","quote":"The ASG has adopted legislation providing that the U.S. Internal Revenue Code in effect on December 31, 2000, shall be applicable in American Samoa for all years thereafter, except as amended or incompatible with other American Samoa laws. Please use the 2000 tax table for computation of your tax.","url":"https://americansamoa.gov/tax-office","sourceDomain":"americansamoa.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"ASCA PL 27-13 is referenced on Form 390 for tax-exempt income provisions; the IRC-2000 adoption legislation is cited generically. The ASCA statutory text was inaccessible (asca.ws and asgtax.gov both timed out). IRC-2000 LTCG rates (Taxpayer Relief Act 1997): 20% max for taxpayers above the 15% bracket; 10% for taxpayers in the 15% bracket. These pre-date the JGTRRA 2003 cuts (0%/15%/20% structure). Post-2000 Fono amendments to capital gains rates are not confirmed; encoded at the IRC-2000 20% max rate.","href":"/api/v1/citations/as-form390-irc-2000-adoption-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"as-qsbs-conformity","jurisdiction":"AS","category":"qsbs-conformity","label":"QSBS conformity (IRC § 1202)","display":"Partial: IRC § 1202 existed in IRC-2000 (enacted 1993) but the 100% exclusion (post-2010) is not adopted; AS applies the IRC-2000 version (50% exclusion)","value":null,"valueType":"partial","citations":[{"id":"as-form390-irc-2000-adoption-2025","jurisdiction":"AS","authority":"American Samoa Form 390 Instructions (2024-2025); ASCA PL 27-13 (referenced)","authorityType":"form-instructions","title":"AS adopted IRC as of December 31, 2000 as its own code; LTCG max rate 20% under IRC-2000","quote":"The ASG has adopted legislation providing that the U.S. Internal Revenue Code in effect on December 31, 2000, shall be applicable in American Samoa for all years thereafter, except as amended or incompatible with other American Samoa laws. Please use the 2000 tax table for computation of your tax.","url":"https://americansamoa.gov/tax-office","sourceDomain":"americansamoa.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"ASCA PL 27-13 is referenced on Form 390 for tax-exempt income provisions; the IRC-2000 adoption legislation is cited generically. The ASCA statutory text was inaccessible (asca.ws and asgtax.gov both timed out). IRC-2000 LTCG rates (Taxpayer Relief Act 1997): 20% max for taxpayers above the 15% bracket; 10% for taxpayers in the 15% bracket. These pre-date the JGTRRA 2003 cuts (0%/15%/20% structure). Post-2000 Fono amendments to capital gains rates are not confirmed; encoded at the IRC-2000 20% max rate.","href":"/api/v1/citations/as-form390-irc-2000-adoption-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"as-agency-obligations","jurisdiction":"AS","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: FNMA/FHLMC bond interest is ordinary income under AS IRC-2000 framework; 31 U.S.C. §3124 preempts only direct U.S. government obligation taxation; FNMA/FHLMC are GSEs without a bondholder exemption","value":0,"valueType":"binary-exempt","citations":[{"id":"as-irc-2000-pub570-fnma-fhlmc-taxable","jurisdiction":"AS","authority":"American Samoa IRC (adopted as of 12/31/2000); IRS Publication 570 (Feb 26, 2026), Chapter 3","authorityType":"dor-guidance","title":"American Samoa taxes FNMA and FHLMC bond interest: AS adopted the IRC as of 12/31/2000; FNMA/FHLMC interest is ordinary income under IRC-2000 and no AS bondholder exemption exists","quote":"American Samoa has its own income tax laws (modeled on the U.S. Internal Revenue Code as it stood on December 31, 2000) administered by the American Samoa Tax Office.","url":"https://www.irs.gov/pub/irs-pdf/p570.pdf","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"FNMA/FHLMC bond interest is ordinary income under the IRC-2000 base (not IRC-excluded). 31 U.S.C. §3124 preempts AS taxation only of direct US government obligations; FNMA and FHLMC have no bondholder exemption statute.","href":"/api/v1/citations/as-irc-2000-pub570-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"as-dividend-qualified","jurisdiction":"AS","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate: American Samoa IRC is frozen at 12/31/2000; before JGTRRA 2003 (Pub. L. 108-27) enacted IRC §1(h)(11); qualified dividends taxed at ordinary AS rates under the IRC-2000 framework","value":0,"valueType":"binary-exempt","citations":[{"id":"as-irc-2000-pre-jgtrra-dividends-ordinary","jurisdiction":"AS","authority":"American Samoa IRC (adopted as of 12/31/2000); IRS Publication 570 (Feb 26, 2026), Chapter 3","authorityType":"dor-guidance","title":"American Samoa does not recognize IRC §1(h)(11) qualified dividend preference: AS IRC is frozen at 12/31/2000 (before JGTRRA 2003 enacted §1(h)(11)); qualified dividends taxed at ordinary AS rates","quote":"American Samoa has its own income tax laws (modeled on the U.S. Internal Revenue Code as it stood on December 31, 2000) administered by the American Samoa Tax Office.","url":"https://www.irs.gov/pub/irs-pdf/p570.pdf","sourceDomain":"www.irs.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"IRC §1(h)(11) (preferential rates for qualified dividends) was enacted by JGTRRA 2003 (Pub. L. 108-27), effective for tax years after 2002. American Samoa's IRC is frozen as of 12/31/2000 and does not include JGTRRA amendments. Qualified dividends from US corporations are taxed at AS ordinary income rates under the IRC-2000 framework.","href":"/api/v1/citations/as-irc-2000-pre-jgtrra-dividends-ordinary"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"as-treasury","jurisdiction":"AS","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: U.S. Treasury obligations are direct U.S. government obligations; constitutional intergovernmental tax immunity protects them from territorial taxation (analogous to 31 U.S.C. §3124 preemption for states)","value":1,"valueType":"binary-exempt","citations":[{"id":"as-31-usc-3124-treasury-exempt-2025","jurisdiction":"AS","authority":"31 U.S.C. §3124(a)","authorityType":"statute","title":"U.S. Treasury interest exempt from American Samoa income tax: 31 U.S.C. §3124 protects direct U.S. government obligations; AS recognizes this preemption for its own FNMA/FHLMC analysis","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"31 U.S.C. §3124 by its terms applies to 'a State or political subdivision of a State'; AS is a U.S. territory, not a state. However, the underlying constitutional intergovernmental tax immunity doctrine (McCulloch v. Maryland, 17 U.S. 316 (1819)) protects U.S. government obligations from territorial taxation under the Supremacy Clause. The AS agency-obligations encoding already acknowledges §3124's preemptive scope for direct U.S. obligations; U.S. Treasury bonds are the paradigm case. Confidence: medium; no AS Tax Office ruling found.","href":"/api/v1/citations/as-31-usc-3124-treasury-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"as-fhlb-ffcb","jurisdiction":"AS","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: FHLB and FFCB securities are federal instrumentalities under 12 U.S.C. §1433 and §2023; their income is exempt from American Samoa taxation under the Supremacy Clause (U.S. Const. art. VI, cl. 2); medium confidence, no AS Tax Office ruling found","value":1,"valueType":"binary-exempt","citations":[{"id":"as-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"AS","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act); 12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from American Samoa taxation: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"12 U.S.C. §1433 says 'any State, county, municipality, or local taxing authority'; that clause refers to sub-state political subdivisions, not U.S. territories. American Samoa is bound by §1433 and §2023 under the Supremacy Clause (U.S. Const. art. VI, cl. 2): federal enabling statutes bind territorial governments. See also constitutional intergovernmental tax immunity doctrine (McCulloch v. Maryland, 17 U.S. 316 (1819)). Confidence: medium; no AS Tax Office ruling found.","href":"/api/v1/citations/as-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"as-filing-status-partial","jurisdiction":"AS","category":"filing-status-partial","label":"Filing status: partial MFJ bracket widening (frozen IRC-2000 tables)","display":"Yes: Form 390 directs taxpayers to the year-2000 federal tax tables, whose Single/MFJ/MFS/HoH schedules (IRC-2000 §1(a)-(d), pre-EGTRRA) widen MFJ brackets only partially, never doubling them; medium confidence, form instructions rather than ASCA text","value":1,"valueType":"binary-exempt","citations":[{"id":"as-form390-irc-2000-adoption-2025","jurisdiction":"AS","authority":"American Samoa Form 390 Instructions (2024-2025); ASCA PL 27-13 (referenced)","authorityType":"form-instructions","title":"AS adopted IRC as of December 31, 2000 as its own code; LTCG max rate 20% under IRC-2000","quote":"The ASG has adopted legislation providing that the U.S. Internal Revenue Code in effect on December 31, 2000, shall be applicable in American Samoa for all years thereafter, except as amended or incompatible with other American Samoa laws. Please use the 2000 tax table for computation of your tax.","url":"https://americansamoa.gov/tax-office","sourceDomain":"americansamoa.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"ASCA PL 27-13 is referenced on Form 390 for tax-exempt income provisions; the IRC-2000 adoption legislation is cited generically. The ASCA statutory text was inaccessible (asca.ws and asgtax.gov both timed out). IRC-2000 LTCG rates (Taxpayer Relief Act 1997): 20% max for taxpayers above the 15% bracket; 10% for taxpayers in the 15% bracket. These pre-date the JGTRRA 2003 cuts (0%/15%/20% structure). Post-2000 Fono amendments to capital gains rates are not confirmed; encoded at the IRC-2000 20% max rate.","href":"/api/v1/citations/as-form390-irc-2000-adoption-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"GU","name":"Guam","level":"territory","facts":[{"factId":"gu-marital-community-property","jurisdiction":"GU","category":"community-property","label":"Community property jurisdiction","display":"Community property jurisdiction: property acquired by either spouse during marriage which is not separate property is community property (19 GCA 6101, former Civil Code)","value":1,"valueType":"binary-exempt","citations":[{"id":"gu-19-gca-6101-community-property","jurisdiction":"GU","authority":"19 GCA sec. 6101(b)","authorityType":"statute","title":"Guam statute defines community property as property acquired by either spouse during marriage","quote":"Community property means property acquired by either spouse during marriage which is not separate property.","url":"https://col.guamcourts.gov/sites/default/files/19gc006.pdf","sourceDomain":"col.guamcourts.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"col.guamcourts.gov is the Judiciary of Guam Compiler of Laws (.gov). Chapter 6 (secs. 6101-6114) derives from former Civil Code secs. 155-168, renumbered by the Compiler. Verbatim from the fetched PDF.","href":"/api/v1/citations/gu-19-gca-6101-community-property"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"gu-conformity","jurisdiction":"GU","category":"conformity","label":"Capital gains rate (TY2025)","display":"Mirrors federal IRC § 1(h): 0% / 15% / 20% LTCG (12-month hold); ordinary rates on STCG; 48 U.S.C. § 1421i Mirror Code","value":null,"valueType":"none","citations":[{"id":"gu-mirror-code-48-usc-1421i-2025","jurisdiction":"GU","authority":"48 U.S.C. § 1421i (Organic Act of Guam, Pub. L. 81-630, 64 Stat. 384 (1950))","authorityType":"statute","title":"Guam Mirror Code: federal income tax laws apply in Guam as territorial income tax","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in Guam.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1421i&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"48 U.S.C. § 1421i(b) designates the resulting tax the 'Guam Territorial income tax,' payable to the Guam government. § 1421i(d)(1) specifies that the incorporated provisions include Subtitle A of the IRC (which contains IRC § 1(h), the 0%/15%/20% long-term capital gains rate schedule), chapters 24 and 25 of subtitle C, and all applicable subtitle F provisions. No Guam-specific modification to the federal capital gains rate structure exists in the statute.","href":"/api/v1/citations/gu-mirror-code-48-usc-1421i-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"gu-character","jurisdiction":"GU","category":"character","label":"Long-term holding period","display":"12 months (same as federal IRC § 1222); Guam applies the full federal IRC via Mirror Code","value":null,"valueType":"none","citations":[{"id":"gu-mirror-code-48-usc-1421i-2025","jurisdiction":"GU","authority":"48 U.S.C. § 1421i (Organic Act of Guam, Pub. L. 81-630, 64 Stat. 384 (1950))","authorityType":"statute","title":"Guam Mirror Code: federal income tax laws apply in Guam as territorial income tax","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in Guam.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1421i&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"48 U.S.C. § 1421i(b) designates the resulting tax the 'Guam Territorial income tax,' payable to the Guam government. § 1421i(d)(1) specifies that the incorporated provisions include Subtitle A of the IRC (which contains IRC § 1(h), the 0%/15%/20% long-term capital gains rate schedule), chapters 24 and 25 of subtitle C, and all applicable subtitle F provisions. No Guam-specific modification to the federal capital gains rate structure exists in the statute.","href":"/api/v1/citations/gu-mirror-code-48-usc-1421i-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"gu-treasury","jurisdiction":"GU","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. § 3124 prohibits state/territory taxation of U.S. obligations; Mirror Code does not override federal preemption","value":1,"valueType":"binary-exempt","citations":[{"id":"gu-31usc-3124-treasury-exempt","jurisdiction":"GU","authority":"31 U.S.C. § 3124(a)","authorityType":"statute","title":"U.S. Treasury obligations exempt from taxation","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-22","confidence":"high","note":"31 U.S.C. § 3124(a) exempts interest on U.S. government obligations from state and territorial taxation. Guam honors this federal preemption under the Supremacy Clause (U.S. Const. art. VI, cl. 2). The exemption is exclusive to U.S. Treasury obligations and related instruments; it does not cover GSEs (FNMA, FHLMC) or agency obligations without their own statutory exemption.","href":"/api/v1/citations/gu-31usc-3124-treasury-exempt"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"gu-qoz-conformity","jurisdiction":"GU","category":"qoz-conformity","label":"QOZ conformity (IRC § 1400Z-2)","display":"Conforms: IRC § 1400Z-2 is part of Subtitle A, incorporated by 48 U.S.C. § 1421i Mirror Code","value":1,"valueType":"code","citations":[{"id":"gu-mirror-code-48-usc-1421i-2025","jurisdiction":"GU","authority":"48 U.S.C. § 1421i (Organic Act of Guam, Pub. L. 81-630, 64 Stat. 384 (1950))","authorityType":"statute","title":"Guam Mirror Code: federal income tax laws apply in Guam as territorial income tax","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in Guam.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1421i&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"48 U.S.C. § 1421i(b) designates the resulting tax the 'Guam Territorial income tax,' payable to the Guam government. § 1421i(d)(1) specifies that the incorporated provisions include Subtitle A of the IRC (which contains IRC § 1(h), the 0%/15%/20% long-term capital gains rate schedule), chapters 24 and 25 of subtitle C, and all applicable subtitle F provisions. No Guam-specific modification to the federal capital gains rate structure exists in the statute.","href":"/api/v1/citations/gu-mirror-code-48-usc-1421i-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"gu-qsbs-conformity","jurisdiction":"GU","category":"qsbs-conformity","label":"QSBS conformity (IRC § 1202)","display":"Conforms: IRC § 1202 is part of Subtitle A, incorporated by 48 U.S.C. § 1421i Mirror Code","value":1,"valueType":"binary-exempt","citations":[{"id":"gu-mirror-code-48-usc-1421i-2025","jurisdiction":"GU","authority":"48 U.S.C. § 1421i (Organic Act of Guam, Pub. L. 81-630, 64 Stat. 384 (1950))","authorityType":"statute","title":"Guam Mirror Code: federal income tax laws apply in Guam as territorial income tax","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in Guam.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1421i&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"48 U.S.C. § 1421i(b) designates the resulting tax the 'Guam Territorial income tax,' payable to the Guam government. § 1421i(d)(1) specifies that the incorporated provisions include Subtitle A of the IRC (which contains IRC § 1(h), the 0%/15%/20% long-term capital gains rate schedule), chapters 24 and 25 of subtitle C, and all applicable subtitle F provisions. No Guam-specific modification to the federal capital gains rate structure exists in the statute.","href":"/api/v1/citations/gu-mirror-code-48-usc-1421i-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"gu-agency-obligations","jurisdiction":"GU","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: Guam Mirror Code incorporates IRC gross income rules; FNMA/FHLMC interest is in federal gross income; 31 U.S.C. §3124 preempts only direct U.S. government obligation taxation; FNMA/FHLMC are GSEs without a bondholder exemption","value":0,"valueType":"binary-exempt","citations":[{"id":"gu-mirror-code-fnma-fhlmc-taxable","jurisdiction":"GU","authority":"31 U.S.C. § 3124","authorityType":"statute","title":"Guam taxes FNMA and FHLMC bond interest: Guam Mirror Code incorporates federal IRC including gross income rules; 31 U.S.C. §3124 preempts only direct U.S. obligation taxation; FNMA/FHLMC are not U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"48 U.S.C. § 1421i (Guam Mirror Code) is co-authority: it incorporates IRC Subtitle A, placing FNMA/FHLMC interest in Guam gross income. Quote covers §3124 only (the preemption boundary). 31 U.S.C. §3124 exempts only 'obligations of the United States Government'; FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) are GSEs with no such exemption. No GITCA ruling found.","href":"/api/v1/citations/gu-mirror-code-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"gu-dividend-qualified","jurisdiction":"GU","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Preferential: Guam Mirror Code (48 U.S.C. §1421i) incorporates IRC §1(h)(11) as part of Subtitle A; qualified dividends taxed at 0%/15%/20% territorial rates (subject to domestic-corporation substitution nuance; no authoritative GITCA ruling)","value":1,"valueType":"binary-exempt","citations":[{"id":"gu-mirror-code-1h11-dividend-preferential","jurisdiction":"GU","authority":"48 U.S.C. § 1421i(a)","authorityType":"statute","title":"Guam Mirror Code incorporates IRC §1(h)(11): qualified dividends receive preferential 0%/15%/20% rates under Guam territorial income tax (subject to domestic-corporation substitution nuance)","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in Guam.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1421i","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"48 U.S.C. §1421i(a) is the general mirror-code provision; subsection (d)(1) addresses specific tax administration matters. IRC §1(h)(11) (qualified dividend preference) is part of IRC Subtitle A, incorporated by 48 U.S.C. §1421i. Under mirror-code substitution, 'domestic corporation' in §1(h)(11) may be read as a Guam-incorporated corporation; no authoritative IRS or GITCA ruling has definitively resolved whether dividends from US mainland corporations qualify. Encoded as preferential (prior session research judgment); confidence: medium.","href":"/api/v1/citations/gu-mirror-code-1h11-dividend-preferential"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"gu-fhlb-ffcb","jurisdiction":"GU","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: FHLB and FFCB securities are federal instrumentalities under 12 U.S.C. §1433 and §2023; their income is exempt from Guam territorial taxation under the Supremacy Clause (U.S. Const. art. VI, cl. 2); medium confidence, no GovGuam DRT ruling found","value":1,"valueType":"binary-exempt","citations":[{"id":"gu-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"GU","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act); 12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Guam taxation: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"12 U.S.C. §1433 says 'any State, county, municipality, or local taxing authority'; that clause refers to sub-state political subdivisions, not U.S. territories. Guam is bound by §1433 and §2023 under the Supremacy Clause (U.S. Const. art. VI, cl. 2): federal enabling statutes bind territorial governments the same as states. See also constitutional intergovernmental tax immunity (McCulloch v. Maryland, 17 U.S. 316 (1819)). Confidence: medium; no GovGuam DRT ruling found.","href":"/api/v1/citations/gu-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"gu-filing-status-partial","jurisdiction":"GU","category":"filing-status-partial","label":"Filing status: partial MFJ bracket widening (mirrors federal)","display":"Yes: Guam Mirror Code (48 U.S.C. §1421i) incorporates the federal income tax bracket structure, including the filing-status schedules; MFJ bracket thresholds are partially wider than single filer (not fully doubled at higher income), mirroring the federal structure.","value":1,"valueType":"binary-exempt","citations":[{"id":"gu-mirror-code-48-usc-1421i-2025","jurisdiction":"GU","authority":"48 U.S.C. § 1421i (Organic Act of Guam, Pub. L. 81-630, 64 Stat. 384 (1950))","authorityType":"statute","title":"Guam Mirror Code: federal income tax laws apply in Guam as territorial income tax","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in Guam.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1421i&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"48 U.S.C. § 1421i(b) designates the resulting tax the 'Guam Territorial income tax,' payable to the Guam government. § 1421i(d)(1) specifies that the incorporated provisions include Subtitle A of the IRC (which contains IRC § 1(h), the 0%/15%/20% long-term capital gains rate schedule), chapters 24 and 25 of subtitle C, and all applicable subtitle F provisions. No Guam-specific modification to the federal capital gains rate structure exists in the statute.","href":"/api/v1/citations/gu-mirror-code-48-usc-1421i-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"MP","name":"Commonwealth of the Northern Mariana Islands","level":"territory","facts":[{"factId":"mp-conformity","jurisdiction":"MP","category":"conformity","label":"Capital gains rate (TY2025)","display":"Mirrors federal IRC § 1(h): 0% / 15% / 20% LTCG (12-month hold); ordinary rates on STCG; 48 U.S.C. § 1801 Covenant § 601 Mirror Code","value":null,"valueType":"none","citations":[{"id":"mp-mirror-code-48-usc-1801-covenant-601-2025","jurisdiction":"MP","authority":"48 U.S.C. § 1801, Covenant to Establish a Commonwealth of the CNMI, § 601 (Pub. L. 94-241, 90 Stat. 263 (1976))","authorityType":"statute","title":"CNMI Mirror Code: federal income tax laws apply in CNMI as territorial income tax, in the same manner as Guam","quote":"Section 601. (a) The income tax laws in force in the United States will come into force in the Northern Mariana Islands as a local territorial income tax on the first day of January following the effective date of this Section, in the same manner as those laws are in force in Guam.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1801&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"The CNMI Mirror Code operates via the Guam Mirror Code (48 U.S.C. § 1421i) as the template. IRC references to 'Guam' automatically extend to CNMI per § 601(c): 'References in the Internal Revenue Code to Guam will be deemed also to refer to the Northern Mariana Islands, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof or of this Covenant.' This incorporates the full Subtitle A of the IRC, including IRC § 1(h) (the 0%/15%/20% LTCG rate schedule) and the 12-month holding period under IRC § 1222. Tax is paid to the CNMI government, not the federal treasury. No CNMI-specific modification to capital gains rates found in federal statute.","href":"/api/v1/citations/mp-mirror-code-48-usc-1801-covenant-601-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mp-character","jurisdiction":"MP","category":"character","label":"Long-term holding period","display":"12 months (same as federal IRC § 1222); CNMI applies the full federal IRC via Mirror Code (Covenant § 601, 48 U.S.C. § 1801)","value":null,"valueType":"none","citations":[{"id":"mp-mirror-code-48-usc-1801-covenant-601-2025","jurisdiction":"MP","authority":"48 U.S.C. § 1801, Covenant to Establish a Commonwealth of the CNMI, § 601 (Pub. L. 94-241, 90 Stat. 263 (1976))","authorityType":"statute","title":"CNMI Mirror Code: federal income tax laws apply in CNMI as territorial income tax, in the same manner as Guam","quote":"Section 601. (a) The income tax laws in force in the United States will come into force in the Northern Mariana Islands as a local territorial income tax on the first day of January following the effective date of this Section, in the same manner as those laws are in force in Guam.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1801&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"The CNMI Mirror Code operates via the Guam Mirror Code (48 U.S.C. § 1421i) as the template. IRC references to 'Guam' automatically extend to CNMI per § 601(c): 'References in the Internal Revenue Code to Guam will be deemed also to refer to the Northern Mariana Islands, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof or of this Covenant.' This incorporates the full Subtitle A of the IRC, including IRC § 1(h) (the 0%/15%/20% LTCG rate schedule) and the 12-month holding period under IRC § 1222. Tax is paid to the CNMI government, not the federal treasury. No CNMI-specific modification to capital gains rates found in federal statute.","href":"/api/v1/citations/mp-mirror-code-48-usc-1801-covenant-601-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mp-treasury","jurisdiction":"MP","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. § 3124 prohibits state/territory taxation of U.S. obligations; Mirror Code does not override federal preemption","value":1,"valueType":"binary-exempt","citations":[{"id":"mp-mirror-code-48-usc-1801-covenant-601-2025","jurisdiction":"MP","authority":"48 U.S.C. § 1801, Covenant to Establish a Commonwealth of the CNMI, § 601 (Pub. L. 94-241, 90 Stat. 263 (1976))","authorityType":"statute","title":"CNMI Mirror Code: federal income tax laws apply in CNMI as territorial income tax, in the same manner as Guam","quote":"Section 601. (a) The income tax laws in force in the United States will come into force in the Northern Mariana Islands as a local territorial income tax on the first day of January following the effective date of this Section, in the same manner as those laws are in force in Guam.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1801&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"The CNMI Mirror Code operates via the Guam Mirror Code (48 U.S.C. § 1421i) as the template. IRC references to 'Guam' automatically extend to CNMI per § 601(c): 'References in the Internal Revenue Code to Guam will be deemed also to refer to the Northern Mariana Islands, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof or of this Covenant.' This incorporates the full Subtitle A of the IRC, including IRC § 1(h) (the 0%/15%/20% LTCG rate schedule) and the 12-month holding period under IRC § 1222. Tax is paid to the CNMI government, not the federal treasury. No CNMI-specific modification to capital gains rates found in federal statute.","href":"/api/v1/citations/mp-mirror-code-48-usc-1801-covenant-601-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mp-qoz-conformity","jurisdiction":"MP","category":"qoz-conformity","label":"QOZ conformity (IRC § 1400Z-2)","display":"Conforms: IRC § 1400Z-2 is part of Subtitle A, incorporated by 48 U.S.C. § 1801 Mirror Code via Guam template","value":1,"valueType":"code","citations":[{"id":"mp-mirror-code-48-usc-1801-covenant-601-2025","jurisdiction":"MP","authority":"48 U.S.C. § 1801, Covenant to Establish a Commonwealth of the CNMI, § 601 (Pub. L. 94-241, 90 Stat. 263 (1976))","authorityType":"statute","title":"CNMI Mirror Code: federal income tax laws apply in CNMI as territorial income tax, in the same manner as Guam","quote":"Section 601. (a) The income tax laws in force in the United States will come into force in the Northern Mariana Islands as a local territorial income tax on the first day of January following the effective date of this Section, in the same manner as those laws are in force in Guam.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1801&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"The CNMI Mirror Code operates via the Guam Mirror Code (48 U.S.C. § 1421i) as the template. IRC references to 'Guam' automatically extend to CNMI per § 601(c): 'References in the Internal Revenue Code to Guam will be deemed also to refer to the Northern Mariana Islands, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof or of this Covenant.' This incorporates the full Subtitle A of the IRC, including IRC § 1(h) (the 0%/15%/20% LTCG rate schedule) and the 12-month holding period under IRC § 1222. Tax is paid to the CNMI government, not the federal treasury. No CNMI-specific modification to capital gains rates found in federal statute.","href":"/api/v1/citations/mp-mirror-code-48-usc-1801-covenant-601-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mp-qsbs-conformity","jurisdiction":"MP","category":"qsbs-conformity","label":"QSBS conformity (IRC § 1202)","display":"Conforms: IRC § 1202 is part of Subtitle A, incorporated by 48 U.S.C. § 1801 Mirror Code via Guam template","value":1,"valueType":"binary-exempt","citations":[{"id":"mp-mirror-code-48-usc-1801-covenant-601-2025","jurisdiction":"MP","authority":"48 U.S.C. § 1801, Covenant to Establish a Commonwealth of the CNMI, § 601 (Pub. L. 94-241, 90 Stat. 263 (1976))","authorityType":"statute","title":"CNMI Mirror Code: federal income tax laws apply in CNMI as territorial income tax, in the same manner as Guam","quote":"Section 601. (a) The income tax laws in force in the United States will come into force in the Northern Mariana Islands as a local territorial income tax on the first day of January following the effective date of this Section, in the same manner as those laws are in force in Guam.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1801&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"The CNMI Mirror Code operates via the Guam Mirror Code (48 U.S.C. § 1421i) as the template. IRC references to 'Guam' automatically extend to CNMI per § 601(c): 'References in the Internal Revenue Code to Guam will be deemed also to refer to the Northern Mariana Islands, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof or of this Covenant.' This incorporates the full Subtitle A of the IRC, including IRC § 1(h) (the 0%/15%/20% LTCG rate schedule) and the 12-month holding period under IRC § 1222. Tax is paid to the CNMI government, not the federal treasury. No CNMI-specific modification to capital gains rates found in federal statute.","href":"/api/v1/citations/mp-mirror-code-48-usc-1801-covenant-601-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mp-agency-obligations","jurisdiction":"MP","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: CNMI Mirror Code incorporates IRC gross income rules; FNMA/FHLMC interest is in federal gross income; 31 U.S.C. §3124 preempts only direct U.S. government obligation taxation; FNMA/FHLMC are GSEs without a bondholder exemption","value":0,"valueType":"binary-exempt","citations":[{"id":"mp-mirror-code-fnma-fhlmc-taxable","jurisdiction":"MP","authority":"31 U.S.C. § 3124","authorityType":"statute","title":"CNMI taxes FNMA and FHLMC bond interest: CNMI Mirror Code incorporates federal IRC including gross income rules; 31 U.S.C. §3124 preempts only direct U.S. obligation taxation; FNMA/FHLMC are not U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"CNMI Mirror Code (48 U.S.C. § 1801, Covenant § 601) incorporates IRC Subtitle A via the Guam template: FNMA/FHLMC interest is in federal gross income (not IRC-excluded). 31 U.S.C. §3124 exempts only 'obligations of the United States Government'; FNMA and FHLMC are GSEs with no bondholder exemption statute. No CNMI DRT ruling found.","href":"/api/v1/citations/mp-mirror-code-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mp-dividend-qualified","jurisdiction":"MP","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Preferential: CNMI Form 1040CM carries the federal qualified-dividends line (3a) feeding the 0%/15%/20% worksheet, administering IRC §1(h)(11) under the Mirror Code; whether US mainland corporation dividends qualify under the domestic-corporation substitution remains without an authoritative DRT ruling","value":1,"valueType":"binary-exempt","citations":[{"id":"mp-1040cm-qualified-dividends-line-2024","jurisdiction":"MP","authority":"CNMI Department of Finance, Division of Revenue and Taxation, Form 1040CM (2024), Northern Marianas Territorial Income Tax Return","authorityType":"form-instructions","title":"CNMI Form 1040CM mirrors the federal 1040 qualified-dividends line (3a), administering the IRC §1(h)(11) preferential rate under the NMTIT","quote":"Northern Marianas Territorial Income Tax Return ... 3a Qualified dividends","url":"https://finance.gov.mp/division-forms/revenue-taxation/2024/2024-1040-cm.pdf","sourceDomain":"finance.gov.mp","taxYear":2024,"asOf":"2026-07-12","confidence":"medium","note":"Line 3a exists solely to feed the federal Qualified Dividends and Capital Gain Tax Worksheet (the 0%/15%/20% preferential computation), so the DRT form administers the §1(h)(11) preference in practice. TY2024 is the latest edition posted on finance.gov.mp as of the read date. Whether dividends from US MAINLAND corporations qualify under mirror-code substitution (the 'domestic corporation' reading) remains without an authoritative DRT or IRS ruling; see the companion unresolved-substitution citation.","href":"/api/v1/citations/mp-1040cm-qualified-dividends-line-2024"},{"id":"mp-mirror-code-1h11-domestic-corp-unresolved","jurisdiction":"MP","authority":"48 U.S.C. § 1801 (Covenant § 601); 48 U.S.C. § 1421i(d)","authorityType":"statute","title":"CNMI Mirror Code incorporates IRC §1(h)(11) but domestic-corporation substitution may exclude US mainland corporation dividends from the preferential rate; treatment unresolved","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in Guam.","url":"https://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title48-section1421i&num=0","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-07-03","confidence":"low","note":"CNMI uses a mirror-code tax system under the Covenant with the US; preferential rates from IRC §1(h)(11) apply as if the CNMI were a state. The uscode.house.gov page for 48 U.S.C. §1801 now returns docnotfound, so the URL was swapped to the working 48 U.S.C. §1421i(d)(1) page; the quote is the Guam mirror-code template that the CNMI Covenant §601 mirrors. Under mirror-code substitution, 'domestic corporation' in §1(h)(11) may be read as a CNMI-incorporated corporation; whether dividends from US mainland corporations qualify for preferential rates is unresolved; no authoritative IRS or CNMI DRT ruling exists. This differs from GU and VI where prior research found a clearer basis for preferential treatment.","href":"/api/v1/citations/mp-mirror-code-1h11-domestic-corp-unresolved"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mp-fhlb-ffcb","jurisdiction":"MP","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: FHLB and FFCB securities are federal instrumentalities under 12 U.S.C. §1433 and §2023; their income is exempt from CNMI territorial taxation under the Supremacy Clause (U.S. Const. art. VI, cl. 2); medium confidence, no CNMI DRT ruling found","value":1,"valueType":"binary-exempt","citations":[{"id":"mp-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"MP","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act); 12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from CNMI taxation: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"12 U.S.C. §1433 says 'any State, county, municipality, or local taxing authority'; that clause refers to sub-state political subdivisions, not U.S. territories. CNMI is bound by §1433 and §2023 under the Supremacy Clause (U.S. Const. art. VI, cl. 2): federal enabling statutes bind territorial governments. See also constitutional intergovernmental tax immunity (McCulloch v. Maryland, 17 U.S. 316 (1819)). No CNMI DRT ruling found.","href":"/api/v1/citations/mp-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"mp-filing-status-partial","jurisdiction":"MP","category":"filing-status-partial","label":"Filing status: partial MFJ bracket widening (mirrors federal via Guam)","display":"Yes: CNMI Mirror Code (Covenant §601(a), 48 U.S.C. §1801) adopts the federal income tax bracket structure in the same manner as Guam; MFJ bracket thresholds are partially wider than single filer (not fully doubled at higher income), mirroring the federal structure.","value":1,"valueType":"binary-exempt","citations":[{"id":"mp-mirror-code-48-usc-1801-covenant-601-2025","jurisdiction":"MP","authority":"48 U.S.C. § 1801, Covenant to Establish a Commonwealth of the CNMI, § 601 (Pub. L. 94-241, 90 Stat. 263 (1976))","authorityType":"statute","title":"CNMI Mirror Code: federal income tax laws apply in CNMI as territorial income tax, in the same manner as Guam","quote":"Section 601. (a) The income tax laws in force in the United States will come into force in the Northern Mariana Islands as a local territorial income tax on the first day of January following the effective date of this Section, in the same manner as those laws are in force in Guam.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1801&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"The CNMI Mirror Code operates via the Guam Mirror Code (48 U.S.C. § 1421i) as the template. IRC references to 'Guam' automatically extend to CNMI per § 601(c): 'References in the Internal Revenue Code to Guam will be deemed also to refer to the Northern Mariana Islands, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof or of this Covenant.' This incorporates the full Subtitle A of the IRC, including IRC § 1(h) (the 0%/15%/20% LTCG rate schedule) and the 12-month holding period under IRC § 1222. Tax is paid to the CNMI government, not the federal treasury. No CNMI-specific modification to capital gains rates found in federal statute.","href":"/api/v1/citations/mp-mirror-code-48-usc-1801-covenant-601-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"PR","name":"Puerto Rico","level":"territory","facts":[{"factId":"pr-marital-community-property","jurisdiction":"PR","category":"community-property","label":"Community property jurisdiction","display":"Community property jurisdiction: the sociedad legal de gananciales is the default marital regime absent a marital agreement (Codigo Civil de 2020, Art. 489)","value":1,"valueType":"binary-exempt","citations":[{"id":"pr-codigo-civil-2020-art-489-gananciales","jurisdiction":"PR","authority":"Codigo Civil de Puerto Rico de 2020 (Ley 55-2020), Art. 489 (31 L.P.R.A. sec. 6912)","authorityType":"statute","title":"Sociedad legal de gananciales is the default marital property regime absent a marital agreement","quote":"Los futuros conyuges pueden optar por no seleccionar un regimen determinado al contraer matrimonio, en cuyo caso quedan sujetos al regimen de la sociedad de gananciales.","url":"https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/55-2020.pdf","sourceDomain":"bvirtualogp.pr.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Official OGP Biblioteca Virtual consolidated PDF of Ley 55-2020 (bvirtualogp.pr.gov, a *.pr.gov host); verbatim from the fetched PDF. Art. 489 'Regimen supletorio'.","href":"/api/v1/citations/pr-codigo-civil-2020-art-489-gananciales"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pr-estate-none","jurisdiction":"PR","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"pr-estate-none-2025","jurisdiction":"PR","authority":"PR Departamento de Hacienda, Determinacion Administrativa Num. 18-09 (May 14, 2018)","authorityType":"dor-guidance","title":"Act 76-2017 eliminated the Puerto Rico estate tax for decedents dying on or after January 1, 2018","quote":"La Ley Num. 76 de 6 de agosto de 2017 (“Ley 76-2017”), enmendo varias disposiciones del Codigo de Rentas Internas de Puerto Rico de 2011, segun enmendado, (“Codigo”) entre las que se incluye la eliminacion de la contribucion sobre el caudal relicto de causantes fallecidos a partir del 1 de enero de 2018","url":"https://hacienda.pr.gov/sites/default/files/publicaciones/2018/05/da_18-09_caudal_relicto_de_causantes_fallecidos_a_partir_del_1_de_enero_de_2018.pdf","sourceDomain":"hacienda.pr.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Spanish, extracted via pdftotext from the fetched Hacienda PDF; whitespace normalized. An informational return still applies for post-2017 deaths; elimination is of the tax, not the filing.","href":"/api/v1/citations/pr-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pr-rate","jurisdiction":"PR","category":"rate","label":"Long-term capital gains rate (TY2025)","display":"15% flat special contribution on net LTCG (after June 30, 2014); or taxpayer may elect ordinary income rates if more favorable","value":0.15,"valueType":"rate","citations":[{"id":"pr-cri-sec-1023-02a-ltcg-15pct-2025","jurisdiction":"PR","authority":"Código de Rentas Internas de Puerto Rico, § 1023.02(a), 13 L.P.R.A. § 30082 (Ley Núm. 1 de 31 de enero de 2011, as amended)","authorityType":"statute","title":"Puerto Rico 15% special contribution on net long-term capital gain (transactions after June 30, 2014)","quote":"Sección 1023.02.; Contribución Especial a Individuos, Sucesiones y Fideicomisos sobre Ganancia Neta de Capital a Largo Plazo. (13 L.P.R.A § 30082) (a) Tasa Contributiva.; Cualquier individuo, sucesión o fideicomiso pagará, en lugar de cualesquiera otras contribuciones impuestas por este Subtítulo, una contribución de diez (10) por ciento sobre el monto del exceso de cualquier ganancia neta de capital a largo plazo sobre cualquier pérdida neta de capital a corto plazo, según dichos términos se definen en la Sección 1034.01, que genere en cualquier venta o permuta que se realice antes del 1 de julio de 2014, disponiéndose que será el quince (15) por ciento sobre el monto del exceso de cualquier ganancia neta de capital a largo plazo sobre cualquier pérdida neta de capital a corto plazo que genere en cualquier venta o permuta que se realice luego del 30 de junio de 2014, o podrá optar por pagar una contribución de conformidad con las tasas contributivas normales, lo que sea más beneficioso para el contribuyente.","url":"https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf#page=64","sourceDomain":"bvirtualogp.pr.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"OGP consolidated text revised 2026-05-28 (bvirtualogp.pr.gov). Confirmed against Hacienda version (hacienda.pr.gov, 2014-11-19). The 10% rate applied only to transactions before July 1, 2014; the 15% rate applies to all transactions after June 30, 2014. Taxpayer election: may pay at ordinary income rates instead if more favorable ('lo que sea más beneficioso para el contribuyente'). Puerto Rico is NOT a Mirror Code territory; this is PR's own Internal Revenue Code distinct from the federal IRC.","href":"/api/v1/citations/pr-cri-sec-1023-02a-ltcg-15pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pr-character","jurisdiction":"PR","category":"character","label":"Long-term holding period","display":"More than 1 year (12 months) for transactions after June 30, 2014; § 1034.01(a)(4) of Código de Rentas Internas","value":null,"valueType":"none","citations":[{"id":"pr-cri-sec-1034-01a4-holding-period-1yr-2025","jurisdiction":"PR","authority":"Código de Rentas Internas de Puerto Rico, § 1034.01(a)(4), 13 L.P.R.A. (Ley Núm. 1 de 31 de enero de 2011, as amended)","authorityType":"statute","title":"Puerto Rico long-term capital gain holding period: more than 1 year (for transactions after June 30, 2014)","quote":"(4) Ganancia de capital a largo plazo.; El término 'ganancia de capital a largo plazo' significa la ganancia en la venta o permuta de un activo de capital poseído por más de seis (6) meses si la venta o permuta ocurrió antes del 1 de julio de 2014 y un (1) año, si la venta o permuta ocurrió después del 30 de junio de 2014, y hasta el monto en que, dicha ganancia se toma en cuenta al computarse el ingreso bruto;","url":"https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf#page=203","sourceDomain":"bvirtualogp.pr.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"OGP consolidated text revised 2026-05-28. Holding period for LTCG preferential rate: more than 1 year (12 months) for transactions after June 30, 2014. This aligns with the federal 12-month standard but was not always the case: the pre-2014 PR holding period was 6 months. The current 1-year standard has been in effect since July 1, 2014.","href":"/api/v1/citations/pr-cri-sec-1034-01a4-holding-period-1yr-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pr-carryforward","jurisdiction":"PR","category":"carryforward","label":"Capital-loss carryforward limit","display":"7 years, carried as a short-term capital loss (losses from tax years begun after 2012); usable against at most 90% of the carry year's net capital gain (tax years begun after 2018)","value":7,"valueType":"years","citations":[{"id":"pr-cri-sec-1034-01d3-carryforward-7yr-2025","jurisdiction":"PR","authority":"Código de Rentas Internas de Puerto Rico, § 1034.01(d)(3), 13 L.P.R.A. § 30141 (Ley Núm. 1 de 31 de enero de 2011, as amended)","authorityType":"statute","title":"Puerto Rico capital-loss carryforward: seven years, as a short-term capital loss (losses from tax years begun after December 31, 2012)","quote":"(3) Años contributivos comenzados después del 31 de diciembre de 2012.; Si para cualquier año contributivo comenzado después del 31 de diciembre de 2012, el contribuyente tuviere una pérdida neta de capital, su monto será una pérdida de capital a corto plazo en cada uno de los siete (7) años contributivos siguientes, hasta el límite en que dicho monto exceda el total de cualesquiera ganancias netas de capital de cualesquiera años contributivos que medien entre el año contributivo en el cual surgió la pérdida neta de capital y dicho año contributivo siguiente.","url":"https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf#page=205","sourceDomain":"bvirtualogp.pr.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Subsection (d) 'Arrastre de Pérdida de Capital' of § 1034.01. Earlier windows differ: 5 years for losses from years begun 1995-07-01 to 2005-12-31 ((d)(1)), 10 years for 2006-2012 ((d)(2)). The carried amount is treated as a short-term capital loss in each carry year.","href":"/api/v1/citations/pr-cri-sec-1034-01d3-carryforward-7yr-2025"},{"id":"pr-cri-sec-1034-01d5-carryforward-90pct-cap-2025","jurisdiction":"PR","authority":"Código de Rentas Internas de Puerto Rico, § 1034.01(d)(5), 13 L.P.R.A. § 30141 (Ley Núm. 1 de 31 de enero de 2011, as amended)","authorityType":"statute","title":"Puerto Rico carried capital losses offset at most 90% of the carry year's net capital gain (tax years begun after December 31, 2018)","quote":"(5) Para años contributivos comenzados después del 31 de diciembre de 2018, las pérdidas de capital descritas en este apartado sólo podrán ser llevadas a años contributivos subsiguientes como una pérdida de capital hasta el noventa (90) por ciento de la ganancia neta de capital generada para el año contributivo en el cual se arrastran dichas pérdidas.","url":"https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf#page=206","sourceDomain":"bvirtualogp.pr.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"OGP consolidated text (bvirtualogp.pr.gov, Rev. 2026-05-28), page 206. The (d)(4) cap was 80% for tax years begun 2015-2018; (d)(5) raised it to 90% from 2019. The admissible carried amount is again treated as a short-term capital loss in the carry year.","href":"/api/v1/citations/pr-cri-sec-1034-01d5-carryforward-90pct-cap-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pr-conformity","jurisdiction":"PR","category":"conformity","label":"Federal IRC conformity","display":"Non-conforming: Puerto Rico has its own Código de Rentas Internas (Ley Núm. 1 de 31 de enero de 2011); NOT a Mirror Code territory","value":null,"valueType":"none","citations":[{"id":"pr-cri-sec-1023-02a-ltcg-15pct-2025","jurisdiction":"PR","authority":"Código de Rentas Internas de Puerto Rico, § 1023.02(a), 13 L.P.R.A. § 30082 (Ley Núm. 1 de 31 de enero de 2011, as amended)","authorityType":"statute","title":"Puerto Rico 15% special contribution on net long-term capital gain (transactions after June 30, 2014)","quote":"Sección 1023.02.; Contribución Especial a Individuos, Sucesiones y Fideicomisos sobre Ganancia Neta de Capital a Largo Plazo. (13 L.P.R.A § 30082) (a) Tasa Contributiva.; Cualquier individuo, sucesión o fideicomiso pagará, en lugar de cualesquiera otras contribuciones impuestas por este Subtítulo, una contribución de diez (10) por ciento sobre el monto del exceso de cualquier ganancia neta de capital a largo plazo sobre cualquier pérdida neta de capital a corto plazo, según dichos términos se definen en la Sección 1034.01, que genere en cualquier venta o permuta que se realice antes del 1 de julio de 2014, disponiéndose que será el quince (15) por ciento sobre el monto del exceso de cualquier ganancia neta de capital a largo plazo sobre cualquier pérdida neta de capital a corto plazo que genere en cualquier venta o permuta que se realice luego del 30 de junio de 2014, o podrá optar por pagar una contribución de conformidad con las tasas contributivas normales, lo que sea más beneficioso para el contribuyente.","url":"https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf#page=64","sourceDomain":"bvirtualogp.pr.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"OGP consolidated text revised 2026-05-28 (bvirtualogp.pr.gov). Confirmed against Hacienda version (hacienda.pr.gov, 2014-11-19). The 10% rate applied only to transactions before July 1, 2014; the 15% rate applies to all transactions after June 30, 2014. Taxpayer election: may pay at ordinary income rates instead if more favorable ('lo que sea más beneficioso para el contribuyente'). Puerto Rico is NOT a Mirror Code territory; this is PR's own Internal Revenue Code distinct from the federal IRC.","href":"/api/v1/citations/pr-cri-sec-1023-02a-ltcg-15pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pr-qoz-conformity","jurisdiction":"PR","category":"qoz-conformity","label":"QOZ conformity (IRC § 1400Z-2)","display":"Non-conforms: Puerto Rico's own Code does not adopt the federal IRC § 1400Z-2 Qualified Opportunity Zone provisions","value":0,"valueType":"code","citations":[{"id":"pr-cri-sec-1023-02a-ltcg-15pct-2025","jurisdiction":"PR","authority":"Código de Rentas Internas de Puerto Rico, § 1023.02(a), 13 L.P.R.A. § 30082 (Ley Núm. 1 de 31 de enero de 2011, as amended)","authorityType":"statute","title":"Puerto Rico 15% special contribution on net long-term capital gain (transactions after June 30, 2014)","quote":"Sección 1023.02.; Contribución Especial a Individuos, Sucesiones y Fideicomisos sobre Ganancia Neta de Capital a Largo Plazo. (13 L.P.R.A § 30082) (a) Tasa Contributiva.; Cualquier individuo, sucesión o fideicomiso pagará, en lugar de cualesquiera otras contribuciones impuestas por este Subtítulo, una contribución de diez (10) por ciento sobre el monto del exceso de cualquier ganancia neta de capital a largo plazo sobre cualquier pérdida neta de capital a corto plazo, según dichos términos se definen en la Sección 1034.01, que genere en cualquier venta o permuta que se realice antes del 1 de julio de 2014, disponiéndose que será el quince (15) por ciento sobre el monto del exceso de cualquier ganancia neta de capital a largo plazo sobre cualquier pérdida neta de capital a corto plazo que genere en cualquier venta o permuta que se realice luego del 30 de junio de 2014, o podrá optar por pagar una contribución de conformidad con las tasas contributivas normales, lo que sea más beneficioso para el contribuyente.","url":"https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf#page=64","sourceDomain":"bvirtualogp.pr.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"OGP consolidated text revised 2026-05-28 (bvirtualogp.pr.gov). Confirmed against Hacienda version (hacienda.pr.gov, 2014-11-19). The 10% rate applied only to transactions before July 1, 2014; the 15% rate applies to all transactions after June 30, 2014. Taxpayer election: may pay at ordinary income rates instead if more favorable ('lo que sea más beneficioso para el contribuyente'). Puerto Rico is NOT a Mirror Code territory; this is PR's own Internal Revenue Code distinct from the federal IRC.","href":"/api/v1/citations/pr-cri-sec-1023-02a-ltcg-15pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pr-qsbs-conformity","jurisdiction":"PR","category":"qsbs-conformity","label":"QSBS conformity (IRC § 1202)","display":"Non-conforms: Puerto Rico's own Code does not adopt the federal IRC § 1202 QSBS exclusion","value":0,"valueType":"binary-exempt","citations":[{"id":"pr-cri-sec-1023-02a-ltcg-15pct-2025","jurisdiction":"PR","authority":"Código de Rentas Internas de Puerto Rico, § 1023.02(a), 13 L.P.R.A. § 30082 (Ley Núm. 1 de 31 de enero de 2011, as amended)","authorityType":"statute","title":"Puerto Rico 15% special contribution on net long-term capital gain (transactions after June 30, 2014)","quote":"Sección 1023.02.; Contribución Especial a Individuos, Sucesiones y Fideicomisos sobre Ganancia Neta de Capital a Largo Plazo. (13 L.P.R.A § 30082) (a) Tasa Contributiva.; Cualquier individuo, sucesión o fideicomiso pagará, en lugar de cualesquiera otras contribuciones impuestas por este Subtítulo, una contribución de diez (10) por ciento sobre el monto del exceso de cualquier ganancia neta de capital a largo plazo sobre cualquier pérdida neta de capital a corto plazo, según dichos términos se definen en la Sección 1034.01, que genere en cualquier venta o permuta que se realice antes del 1 de julio de 2014, disponiéndose que será el quince (15) por ciento sobre el monto del exceso de cualquier ganancia neta de capital a largo plazo sobre cualquier pérdida neta de capital a corto plazo que genere en cualquier venta o permuta que se realice luego del 30 de junio de 2014, o podrá optar por pagar una contribución de conformidad con las tasas contributivas normales, lo que sea más beneficioso para el contribuyente.","url":"https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf#page=64","sourceDomain":"bvirtualogp.pr.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"OGP consolidated text revised 2026-05-28 (bvirtualogp.pr.gov). Confirmed against Hacienda version (hacienda.pr.gov, 2014-11-19). The 10% rate applied only to transactions before July 1, 2014; the 15% rate applies to all transactions after June 30, 2014. Taxpayer election: may pay at ordinary income rates instead if more favorable ('lo que sea más beneficioso para el contribuyente'). Puerto Rico is NOT a Mirror Code territory; this is PR's own Internal Revenue Code distinct from the federal IRC.","href":"/api/v1/citations/pr-cri-sec-1023-02a-ltcg-15pct-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pr-agency-obligations","jurisdiction":"PR","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: Puerto Rico PRIRC (Ley Núm. 1-2011) §1031.01 includes all interest in PR gross income; no PRIRC provision exempts FNMA/FHLMC bondholder interest; 31 U.S.C. §3124 covers only direct U.S. government obligations","value":0,"valueType":"binary-exempt","citations":[{"id":"pr-prirc-fnma-fhlmc-taxable","jurisdiction":"PR","authority":"Puerto Rico Código de Rentas Internas (Ley Núm. 1-2011), §1031.01; §1022.02","authorityType":"statute","title":"Puerto Rico taxes FNMA and FHLMC bond interest as ordinary income: PR has its own PRIRC; FNMA/FHLMC bond interest is gross income under §1031.01 with no PRIRC bondholder exemption","quote":"(a) Definición General.; Salvo que se disponga de otro modo en este Código, el término 'Ingreso bruto' significa todo ingreso, ganancia, o beneficio recibido o derivado de cualquier procedencia. ... (8) Ganancias, beneficios e ingresos derivados de intereses, rentas, regalías, dividendos, beneficios de sociedades, beneficios de corporaciones de individuos, beneficios de corporaciones de responsabilidad limitada, valores o la operación de cualquier negocio explotado con fines de lucro o utilidad.","url":"https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf#page=101","sourceDomain":"bvirtualogp.pr.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Verbatim Spanish from the OGP consolidated text (bvirtualogp.pr.gov, Rev. 2026-05-28). Puerto Rico has its own PRIRC (Ley Núm. 1-2011), not a Mirror Code territory. PRIRC §1031.01 sweeps all interest into PR gross income; no PRIRC provision exempts FNMA/FHLMC bondholder interest (negative inference, hence medium). 31 U.S.C. §3124 preempts only direct US government obligation taxation; FNMA/FHLMC are GSEs without bondholder exemption.","href":"/api/v1/citations/pr-prirc-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pr-dividend-qualified","jurisdiction":"PR","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Ordinary rate for US-source dividends: the PRIRC §1023.06 15% preferential rate covers dividends from PR domestic corporations and from foreign corporations with at least 80% PR-effectively-connected gross income over the prior 3 years; a typical US mainland corporation fails the 80% test, so its dividends are ordinary income under the PRIRC graduated schedule; IRC §1(h)(11) does not apply in Puerto Rico","value":0,"valueType":"binary-exempt","citations":[{"id":"pr-prirc-1023-06-us-dividends-ordinary","jurisdiction":"PR","authority":"Puerto Rico Código de Rentas Internas (Ley Núm. 1-2011), §1023.06; §1022.02","authorityType":"statute","title":"Puerto Rico taxes dividends from US mainland corporations at ordinary income rates: the PRIRC §1023.06 15% preferential rate covers PR domestic corporations and foreign corporations with at least 80% PR-effectively-connected gross income; IRC §1(h)(11) does not apply in Puerto Rico","quote":"(a) Imposición de la Contribución.; Se impondrá, cobrará y pagará ... procedente de cualquier distribución elegible ... de dividendos: (1) de una corporación doméstica; o (2) de una corporación extranjera, cuando no menos del ochenta (80) por ciento de su ingreso bruto derivado durante el período de tres (3) años contributivos terminados con el cierre del año contributivo anterior a la fecha de la declaración del dividendo constituya ingreso realmente relacionado con la explotación de una industria o negocio en Puerto Rico","url":"https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf#page=69","sourceDomain":"bvirtualogp.pr.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"medium","note":"Verbatim Spanish from the OGP consolidated text (bvirtualogp.pr.gov, Rev. 2026-05-28). The §1023.06 15% preferential rate covers eligible dividend distributions from (1) PR domestic corporations AND (2) foreign corporations with at least 80% PR-effectively-connected gross income over the prior 3 tax years. A typical US mainland corporation fails the 80% test, so its dividends remain ordinary income under the PRIRC graduated schedule (negative implication, hence medium). Puerto Rico does not adopt IRC §1(h)(11); it has its own PRIRC, not a Mirror Code.","href":"/api/v1/citations/pr-prirc-1023-06-us-dividends-ordinary"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pr-treasury","jurisdiction":"PR","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: constitutional intergovernmental tax immunity doctrine (McCulloch v. Maryland) protects direct U.S. government obligations from Puerto Rico taxation; 31 U.S.C. §3124 does not formally apply (PR is not a state) but the underlying constitutional principle does","value":1,"valueType":"binary-exempt","citations":[{"id":"pr-treasury-exempt-intergovernmental-immunity-2025","jurisdiction":"PR","authority":"Constitutional intergovernmental tax immunity doctrine; PRIRC (Ley Núm. 1-2011), §1031.02","authorityType":"statute","title":"U.S. Treasury interest exempt from Puerto Rico income tax: constitutional intergovernmental tax immunity doctrine protects direct U.S. government obligations from Puerto Rico taxation; 31 U.S.C. §3124 does not formally apply to PR (not a state) but the underlying constitutional principle does","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"31 U.S.C. §3124 by its terms applies to 'a State or political subdivision of a State'; Puerto Rico is a U.S. territory, not a state. However, the constitutional intergovernmental tax immunity doctrine (McCulloch v. Maryland, 17 U.S. 316 (1819)) prohibits PR from taxing U.S. government obligations under the Supremacy Clause. PRIRC §1031.02 may also contain an exclusion for U.S. obligation interest (bvirtualogp.pr.gov PDF accessed; specific exclusion provision not individually confirmed). Confidence: medium; no Hacienda ruling found.","href":"/api/v1/citations/pr-treasury-exempt-intergovernmental-immunity-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pr-fhlb-ffcb","jurisdiction":"PR","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: FHLB and FFCB securities are federal instrumentalities under 12 U.S.C. §1433 and §2023; their income is exempt from Puerto Rico taxation under the Supremacy Clause (U.S. Const. art. VI, cl. 2); medium confidence, no Hacienda ruling found","value":1,"valueType":"binary-exempt","citations":[{"id":"pr-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"PR","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act); 12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from Puerto Rico taxation: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"12 U.S.C. §1433 says 'any State, county, municipality, or local taxing authority'; that clause refers to sub-state political subdivisions, not U.S. territories. Puerto Rico is bound by §1433 and §2023 under the Supremacy Clause (U.S. Const. art. VI, cl. 2): federal enabling statutes bind territorial governments. See also constitutional intergovernmental tax immunity (McCulloch v. Maryland, 17 U.S. 316 (1819)). Confidence: medium; no Hacienda ruling found.","href":"/api/v1/citations/pr-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"pr-filing-status-identical","jurisdiction":"PR","category":"filing-status-identical","label":"Filing status: one schedule for every individual","display":"Yes: Sec. 1021.01 (13 L.P.R.A. § 30061) imposes one bracket table on every individual with no separate MFJ schedule; married joint filers may elect the Sec. 1021.03 optional computation, each spouse taxed as an individual","value":1,"valueType":"binary-exempt","citations":[{"id":"pr-cri-sec-1021-01-single-schedule-2025","jurisdiction":"PR","authority":"PR Codigo de Rentas Internas de 2011 (Ley 1-2011), Sec. 1021.01 (13 L.P.R.A. § 30061); Sec. 1021.03 (13 L.P.R.A. § 30063)","authorityType":"statute","title":"Puerto Rico individual income tax uses one rate schedule for every individual regardless of filing status; married joint filers may elect the Sec. 1021.03 optional computation as if each spouse were an individual taxpayer","quote":"Se impondra, cobrara y pagara sobre el ingreso neto de todo individuo en exceso de las exenciones dispuestas en la Seccion 1033.18 y sobre el ingreso neto de una sucesion o de un fideicomiso en exceso del credito establecido en la Seccion 1083.03, una contribucion determinada de acuerdo con las siguientes tablas","url":"https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf#page=33","sourceDomain":"bvirtualogp.pr.gov","taxYear":2025,"asOf":"2026-07-11","confidence":"high","note":"Spanish, extracted via pdftotext from the fetched OGP consolidated PDF (Rev. 28 de mayo de 2026); accents stripped, whitespace normalized. Sec. 1021.01 sets a single bracket table for every individual with no separate married-filing-jointly schedule. Sec. 1021.03 (PDF page 43) lets married couples living together who file jointly elect an optional computation: each spouse determines the Sec. 1021.01 tax individually (earned income to the earning spouse, other income and most deductions split 50/50), which mitigates the marriage penalty of the shared schedule without widening the brackets.","href":"/api/v1/citations/pr-cri-sec-1021-01-single-schedule-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]},{"code":"VI","name":"U.S. Virgin Islands","level":"territory","facts":[{"factId":"vi-estate-none","jurisdiction":"VI","category":"estate-none","label":"Estate and inheritance tax","display":"None","value":null,"valueType":"none","citations":[{"id":"vi-estate-none-2025","jurisdiction":"VI","authority":"V.I. Bureau of Internal Revenue, Tax Structure Booklet of the U.S. Virgin Islands (2021)","authorityType":"dor-guidance","title":"USVI inheritance tax remains in the code but all inheritances after 1984 are exempt","quote":"Although a Virgin Islands inheritance tax is set out in Chapter 1, Title 33 of the V.I. Code, all inheritances after 1984 are exempt from taxation.","url":"https://bir.vi.gov/content/booklets/tax_Structure_2021-01-31.pdf","sourceDomain":"bir.vi.gov","taxYear":2025,"asOf":"2026-07-02","confidence":"high","note":"Extracted via pdftotext from the fetched BIR booklet, section 'VIRGIN ISLANDS INHERITANCE TAXES'. Parallel VI gift tax also on the books, gifts after Sept 18, 1984 exempt.","href":"/api/v1/citations/vi-estate-none-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vi-conformity","jurisdiction":"VI","category":"conformity","label":"Capital gains rate (TY2025)","display":"Mirrors federal IRC § 1(h): 0% / 15% / 20% LTCG (12-month hold); ordinary rates on STCG; 48 U.S.C. § 1397 Mirror Code","value":null,"valueType":"none","citations":[{"id":"vi-mirror-code-48-usc-1397-2025","jurisdiction":"VI","authority":"48 U.S.C. § 1397 (Revised Organic Act of the Virgin Islands, Pub. L. 83-517, 68 Stat. 497 (1954))","authorityType":"statute","title":"USVI Mirror Code: federal income tax laws apply in the Virgin Islands as territorial income tax","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in the Virgin Islands of the United States, except that the proceeds of such taxes shall be paid into the treasuries of said islands: Provided further, That, notwithstanding any other provision of law, the Legislature of the Virgin Islands is authorized to levy a surtax on all taxpayers in an amount not to exceed 10 per centum of their annual income tax obligation to the government of the Virgin Islands.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1397&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"The surtax proviso authorizes up to 10% of annual income tax obligation as a tax-on-tax add-on (not 10 percentage points on the base rate). Whether the USVI Legislature has enacted this surtax was unconfirmable: bir.gov.vi was unreachable at research time. The Mirror Code baseline (federal 0%/15%/20% LTCG rates) is confirmed at high confidence. The surtax fact below is encoded at medium confidence pending USVI BIR verification.","href":"/api/v1/citations/vi-mirror-code-48-usc-1397-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vi-character","jurisdiction":"VI","category":"character","label":"Long-term holding period","display":"12 months (same as federal IRC § 1222); USVI applies the full federal IRC via Mirror Code","value":null,"valueType":"none","citations":[{"id":"vi-mirror-code-48-usc-1397-2025","jurisdiction":"VI","authority":"48 U.S.C. § 1397 (Revised Organic Act of the Virgin Islands, Pub. L. 83-517, 68 Stat. 497 (1954))","authorityType":"statute","title":"USVI Mirror Code: federal income tax laws apply in the Virgin Islands as territorial income tax","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in the Virgin Islands of the United States, except that the proceeds of such taxes shall be paid into the treasuries of said islands: Provided further, That, notwithstanding any other provision of law, the Legislature of the Virgin Islands is authorized to levy a surtax on all taxpayers in an amount not to exceed 10 per centum of their annual income tax obligation to the government of the Virgin Islands.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1397&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"The surtax proviso authorizes up to 10% of annual income tax obligation as a tax-on-tax add-on (not 10 percentage points on the base rate). Whether the USVI Legislature has enacted this surtax was unconfirmable: bir.gov.vi was unreachable at research time. The Mirror Code baseline (federal 0%/15%/20% LTCG rates) is confirmed at high confidence. The surtax fact below is encoded at medium confidence pending USVI BIR verification.","href":"/api/v1/citations/vi-mirror-code-48-usc-1397-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vi-surcharge","jurisdiction":"VI","category":"surcharge","label":"Legislative surtax (authorized; current status unconfirmed)","display":"Up to 10% of annual income tax obligation (not percentage points on rate); authorized by 48 U.S.C. § 1397; whether enacted requires USVI BIR verification","value":null,"valueType":"none","citations":[{"id":"vi-surtax-authorized-10pct-of-tax-48-usc-1397-2025","jurisdiction":"VI","authority":"48 U.S.C. § 1397 (surtax proviso); current USVI enactment status unconfirmed","authorityType":"statute","title":"USVI Legislature authorized to levy surtax up to 10% of annual income tax obligation; current enactment status unconfirmed","quote":"The Legislature of the Virgin Islands is authorized to levy a surtax on all taxpayers in an amount not to exceed 10 per centum of their annual income tax obligation to the government of the Virgin Islands.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1397&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"medium","note":"The federal statute authorizes a surtax but does not require it. Whether the USVI Legislature has enacted this surtax and at what rate (0-10% of tax liability) is a USVI-level question that requires verification from USVI Bureau of Internal Revenue (bir.gov.vi). Until confirmed, this fact is encoded at medium confidence as an authorized-but-unconfirmed provision.","href":"/api/v1/citations/vi-surtax-authorized-10pct-of-tax-48-usc-1397-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vi-treasury","jurisdiction":"VI","category":"treasury","label":"U.S. Treasury interest","display":"Exempt: 31 U.S.C. § 3124 prohibits state/territory taxation of U.S. obligations; Mirror Code does not override federal preemption","value":1,"valueType":"binary-exempt","citations":[{"id":"vi-mirror-code-48-usc-1397-2025","jurisdiction":"VI","authority":"48 U.S.C. § 1397 (Revised Organic Act of the Virgin Islands, Pub. L. 83-517, 68 Stat. 497 (1954))","authorityType":"statute","title":"USVI Mirror Code: federal income tax laws apply in the Virgin Islands as territorial income tax","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in the Virgin Islands of the United States, except that the proceeds of such taxes shall be paid into the treasuries of said islands: Provided further, That, notwithstanding any other provision of law, the Legislature of the Virgin Islands is authorized to levy a surtax on all taxpayers in an amount not to exceed 10 per centum of their annual income tax obligation to the government of the Virgin Islands.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1397&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"The surtax proviso authorizes up to 10% of annual income tax obligation as a tax-on-tax add-on (not 10 percentage points on the base rate). Whether the USVI Legislature has enacted this surtax was unconfirmable: bir.gov.vi was unreachable at research time. The Mirror Code baseline (federal 0%/15%/20% LTCG rates) is confirmed at high confidence. The surtax fact below is encoded at medium confidence pending USVI BIR verification.","href":"/api/v1/citations/vi-mirror-code-48-usc-1397-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vi-qoz-conformity","jurisdiction":"VI","category":"qoz-conformity","label":"QOZ conformity (IRC § 1400Z-2)","display":"Conforms: IRC § 1400Z-2 is part of Subtitle A, incorporated by 48 U.S.C. § 1397 Mirror Code","value":1,"valueType":"code","citations":[{"id":"vi-mirror-code-48-usc-1397-2025","jurisdiction":"VI","authority":"48 U.S.C. § 1397 (Revised Organic Act of the Virgin Islands, Pub. L. 83-517, 68 Stat. 497 (1954))","authorityType":"statute","title":"USVI Mirror Code: federal income tax laws apply in the Virgin Islands as territorial income tax","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in the Virgin Islands of the United States, except that the proceeds of such taxes shall be paid into the treasuries of said islands: Provided further, That, notwithstanding any other provision of law, the Legislature of the Virgin Islands is authorized to levy a surtax on all taxpayers in an amount not to exceed 10 per centum of their annual income tax obligation to the government of the Virgin Islands.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1397&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"The surtax proviso authorizes up to 10% of annual income tax obligation as a tax-on-tax add-on (not 10 percentage points on the base rate). Whether the USVI Legislature has enacted this surtax was unconfirmable: bir.gov.vi was unreachable at research time. The Mirror Code baseline (federal 0%/15%/20% LTCG rates) is confirmed at high confidence. The surtax fact below is encoded at medium confidence pending USVI BIR verification.","href":"/api/v1/citations/vi-mirror-code-48-usc-1397-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vi-qsbs-conformity","jurisdiction":"VI","category":"qsbs-conformity","label":"QSBS conformity (IRC § 1202)","display":"Conforms: IRC § 1202 is part of Subtitle A, incorporated by 48 U.S.C. § 1397 Mirror Code","value":1,"valueType":"binary-exempt","citations":[{"id":"vi-mirror-code-48-usc-1397-2025","jurisdiction":"VI","authority":"48 U.S.C. § 1397 (Revised Organic Act of the Virgin Islands, Pub. L. 83-517, 68 Stat. 497 (1954))","authorityType":"statute","title":"USVI Mirror Code: federal income tax laws apply in the Virgin Islands as territorial income tax","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in the Virgin Islands of the United States, except that the proceeds of such taxes shall be paid into the treasuries of said islands: Provided further, That, notwithstanding any other provision of law, the Legislature of the Virgin Islands is authorized to levy a surtax on all taxpayers in an amount not to exceed 10 per centum of their annual income tax obligation to the government of the Virgin Islands.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1397&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"The surtax proviso authorizes up to 10% of annual income tax obligation as a tax-on-tax add-on (not 10 percentage points on the base rate). Whether the USVI Legislature has enacted this surtax was unconfirmable: bir.gov.vi was unreachable at research time. The Mirror Code baseline (federal 0%/15%/20% LTCG rates) is confirmed at high confidence. The surtax fact below is encoded at medium confidence pending USVI BIR verification.","href":"/api/v1/citations/vi-mirror-code-48-usc-1397-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vi-agency-obligations","jurisdiction":"VI","category":"agency-obligations","label":"FNMA/FHLMC bond interest","display":"Taxable: USVI Mirror Code incorporates IRC gross income rules; FNMA/FHLMC interest is in federal gross income; 31 U.S.C. §3124 preempts only direct U.S. government obligation taxation; FNMA/FHLMC are GSEs without a bondholder exemption","value":0,"valueType":"binary-exempt","citations":[{"id":"vi-mirror-code-fnma-fhlmc-taxable","jurisdiction":"VI","authority":"48 U.S.C. § 1397; 31 U.S.C. § 3124","authorityType":"statute","title":"U.S. Virgin Islands taxes FNMA and FHLMC bond interest: USVI Mirror Code incorporates federal IRC including gross income rules; 31 U.S.C. §3124 preempts only direct U.S. obligation taxation; FNMA/FHLMC are not U.S. government obligations","quote":"Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"USVI Mirror Code (48 U.S.C. § 1397) incorporates IRC Subtitle A: FNMA/FHLMC interest is in federal gross income (not IRC-excluded). 31 U.S.C. §3124 exempts only 'obligations of the United States Government'; FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) are GSEs with no bondholder exemption. No VIBIR ruling found. Confidence: medium.","href":"/api/v1/citations/vi-mirror-code-fnma-fhlmc-taxable"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vi-dividend-qualified","jurisdiction":"VI","category":"dividend-qualified","label":"Qualified dividend rate (IRC §1(h)(11))","display":"Preferential: USVI Mirror Code (48 U.S.C. §1397) incorporates IRC §1(h)(11) as part of Subtitle A; qualified dividends taxed at 0%/15%/20% territorial rates (subject to domestic-corporation substitution nuance; no authoritative VIBIR ruling)","value":1,"valueType":"binary-exempt","citations":[{"id":"vi-mirror-code-1h11-dividend-preferential","jurisdiction":"VI","authority":"48 U.S.C. § 1397","authorityType":"statute","title":"USVI Mirror Code incorporates IRC §1(h)(11): qualified dividends receive preferential 0%/15%/20% rates under USVI territorial income tax (subject to domestic-corporation substitution nuance)","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in the Virgin Islands of the United States.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1397","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"IRC §1(h)(11) (qualified dividend preference) is part of IRC Subtitle A, incorporated by 48 U.S.C. §1397. Under mirror-code substitution, 'domestic corporation' in §1(h)(11) may be read as a USVI-incorporated corporation; no authoritative IRS or VIBIR ruling has definitively resolved whether dividends from US mainland corporations qualify. Encoded as preferential (prior session research judgment); confidence: medium.","href":"/api/v1/citations/vi-mirror-code-1h11-dividend-preferential"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vi-fhlb-ffcb","jurisdiction":"VI","category":"fhlb-ffcb","label":"FHLB and FFCB bond interest","display":"Exempt: FHLB and FFCB securities are federal instrumentalities under 12 U.S.C. §1433 and §2023; their income is exempt from USVI territorial taxation under the Supremacy Clause (U.S. Const. art. VI, cl. 2); medium confidence, no VIBIR ruling found","value":1,"valueType":"binary-exempt","citations":[{"id":"vi-12-usc-1433-2023-fhlb-ffcb-exempt-2025","jurisdiction":"VI","authority":"12 U.S.C. §1433 (Federal Home Loan Bank Act); 12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"FHLB and FFCB bond interest exempt from U.S. Virgin Islands taxation: federal enabling statutes mandate state tax exemption","quote":"Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"medium","note":"12 U.S.C. §1433 says 'any State, county, municipality, or local taxing authority'; that clause refers to sub-state political subdivisions, not U.S. territories. USVI is bound by §1433 and §2023 under the Supremacy Clause (U.S. Const. art. VI, cl. 2): federal enabling statutes bind territorial governments. See also constitutional intergovernmental tax immunity (McCulloch v. Maryland, 17 U.S. 316 (1819)). Confidence: medium; no VIBIR ruling found.","href":"/api/v1/citations/vi-12-usc-1433-2023-fhlb-ffcb-exempt-2025"},{"id":"us-12-usc-2023-ffcb-federal-exempt-2025","jurisdiction":"US","authority":"12 U.S.C. §2023 (Farm Credit Act)","authorityType":"statute","title":"Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation","quote":"The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-20","confidence":"high","note":"12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.","href":"/api/v1/citations/us-12-usc-2023-ffcb-federal-exempt-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"},{"factId":"vi-filing-status-partial","jurisdiction":"VI","category":"filing-status-partial","label":"Filing status: partial MFJ bracket widening (mirrors federal)","display":"Yes: USVI Mirror Code (48 U.S.C. §1397) incorporates the federal income tax bracket structure, including the filing-status schedules; MFJ bracket thresholds are partially wider than single filer (not fully doubled at higher income), mirroring the federal structure.","value":1,"valueType":"binary-exempt","citations":[{"id":"vi-mirror-code-48-usc-1397-2025","jurisdiction":"VI","authority":"48 U.S.C. § 1397 (Revised Organic Act of the Virgin Islands, Pub. L. 83-517, 68 Stat. 497 (1954))","authorityType":"statute","title":"USVI Mirror Code: federal income tax laws apply in the Virgin Islands as territorial income tax","quote":"The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in the Virgin Islands of the United States, except that the proceeds of such taxes shall be paid into the treasuries of said islands: Provided further, That, notwithstanding any other provision of law, the Legislature of the Virgin Islands is authorized to levy a surtax on all taxpayers in an amount not to exceed 10 per centum of their annual income tax obligation to the government of the Virgin Islands.","url":"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section1397&num=0&edition=prelim","sourceDomain":"uscode.house.gov","taxYear":2025,"asOf":"2026-06-19","confidence":"high","note":"The surtax proviso authorizes up to 10% of annual income tax obligation as a tax-on-tax add-on (not 10 percentage points on the base rate). Whether the USVI Legislature has enacted this surtax was unconfirmable: bir.gov.vi was unreachable at research time. The Mirror Code baseline (federal 0%/15%/20% LTCG rates) is confirmed at high confidence. The surtax fact below is encoded at medium confidence pending USVI BIR verification.","href":"/api/v1/citations/vi-mirror-code-48-usc-1397-2025"}],"effectiveDate":null,"terminalDate":null,"nextReviewDate":"2027-01-01"}]}]},"meta":{"apiVersion":"v1","schemaVersion":"1.96.0","taxYear":2025,"catalogAsOf":"2026-07-22","source":"Albatross tax catalog (primary .gov sources, verbatim-cited)"}}