When investing, you should be thinking long term and not get caught up in calculating how much profit you can make off an investment right now, but ultimately, the value of an investment does come down to its profitability — which is realized in its net capital gains. This is the money you make when you sell an investment. You don’t see net capital gains until you sell an investment, and various factors come into play in the final amount, including taxes.
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Americans are selling assets and bringing in net capital gains everyday, but there are states where we see people making less money off their investments than in other states — in some cases, a lot less. SmartAsset recently ranked U.S. states by the average net capital gains reported on the latest tax return data (2022) from the IRS. Other types of investment gains were also considered. These are the 13 states where people made the least off their investments.
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13. Kentucky
Average net capital gains: $25,037
Average taxable interest: $1,418
Average tax-exempt interest: $6,131
Average ordinary dividends: $9,396
Average qualified dividends: $7,665
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12. Indiana
Average net capital gains: $24,600
Average taxable interest: $1,444
Average tax-exempt interest: $5,355
Average ordinary dividends: $7,255
Average qualified dividends: $5,835
11. Vermont
Average net capital gains: $23,723
Average taxable interest: $1,537
Average tax-exempt interest: $5,593
Average ordinary dividends: $11,397
Average qualified dividends: $9,449
10. Missouri
Average net capital gains: $23,669
Average taxable interest: $1,693
Average tax-exempt interest: $6,057
Average ordinary dividends: $11,736
Average qualified dividends: $10,216
9. North Dakota
Average net capital gains: $23,127
Average taxable interest: $2,065
Average tax-exempt interest: $6,209
Average ordinary dividends: $7,466
Average qualified dividends: $5,568
8. Delaware
Average net capital gains: $22,850
Average taxable interest: $1,726
Average tax-exempt interest: $5,545
Average ordinary dividends: $9,872
Average qualified dividends: $8,217
7. Alaska
Average net capital gains: $22,829
Average taxable interest: $1,744
Average tax-exempt interest: $5,624
Average ordinary dividends: $7,035
Average qualified dividends: $5,757
6. Ohio
Average net capital gains: $22,066
Average taxable interest: $1,640
Average tax-exempt interest: $4,912
Average ordinary dividends: $8,978
Average qualified dividends: $7,522
5. Michigan
Average net capital gains: $21,585
Average taxable interest: $1,865
Average tax-exempt interest: $5,613
Average ordinary dividends: $9,750
Average qualified dividends: $8,094
4. Minnesota
Average net capital gains: $20,552
Average taxable interest: $1,963
Average tax-exempt interest: $5,146
Average ordinary dividends: $8,549
Average qualified dividends: $6,983
3. Iowa
Average net capital gains: $20,220
Average taxable interest: $1,680
Average tax-exempt interest: $4,673
Average ordinary dividends: $6,649
Average qualified dividends: $5,308
2. Wisconsin
Average net capital gains: $19,590
Average taxable interest: $1,549
Average tax-exempt interest: $5,060
Average ordinary dividends: $7,855
Average qualified dividends: $6,358
1. West Virginia
Average net capital gains: $14,612
Average taxable interest: $1,168
Average tax-exempt interest: $4,262
Average ordinary dividends: $6,438
Average qualified dividends: $5,408
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Sources
SmartAsset, “Where Americans Earn the Most From Investments – 2025 Study“
This article originally appeared on GOBankingRates.com: 13 States Where People Earn the Least From Their Investments
