13 States Where People Earn the Least From Their Investments

©Shutterstock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

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.

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. 

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 

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 

Sources

• SmartAsset, “Where Americans Earn the Most From Investments – 2025 Study“

Share This Article: