Where Americans Are Making the Most Money from Investments by U.S States and Counties
Net capital gains—profits earned from the sale of assets such as stocks, real estate, or businesses—serve as a key indicator of investment performance and regional economic wealth.
Capital gains are only realized when an asset is sold and, if held for over a year, are taxed at favorable long-term rates of 0%, 15%, or 20%. In contrast, other forms of investment income—such as ordinary dividends and taxable interest—are typically taxed at higher income tax rates, while tax-exempt interest (commonly from municipal bonds) may offer unique advantages, especially for portfolio diversification or retirement withdrawal strategies.
High levels of net capital gains can indicate strong market performance and wealthy populations, with realized gains contributing to local economies through increased tax revenues and consumer spending.
With this in mind, Researchers (SmartAsset study) analyzed IRS tax return data to rank U.S. counties and states by average net capital gains. The analysis also considered other types of investment income.
Teton County, Wyoming, reported the highest average net capital gain per tax return in the nation at an impressive $515,267—far exceeding all other counties. Despite its relatively small population, the county saw 6,010 returns reporting capital gains out of 15,180 total returns filed. The area also recorded substantial average ordinary dividends at $196,121 (across 6,150 returns) and qualified dividends averaging $167,921 (on 5,940 returns). These figures highlight a strong concentration of high-net-worth individuals and reflect a broad, active investment landscape.
Florida has claimed the top spot for average net capital gains per tax return, edging out Wyoming with an average of $84,911. The state reported a total of $181.4 billion in gains across 2,136,380 returns, driven largely by significant activity in Palm Beach County ($40.4 billion) and Miami-Dade County ($37.4 billion). Wyoming followed closely behind, with an average net capital gain of $84,246 reported across nearly 60,000 returns.
Chattahoochee, Quitman, and Taliaferro Counties in Georgia report the lowest net capital gains in the contiguous United States, averaging $2,400 or less. In each of these counties, fewer than 10% of tax returns reported any net capital gains at all.
West Virginia trails other states in investment returns, reporting the lowest average net capital gain per tax return at just $14,612. The state had 91,930 returns that together accounted for $1.34 billion in capital gains. Wisconsin followed with the second-lowest average, reporting $19,590 per return.
