Where Americans earn the most from investments

Where Americans earn the most from investments

Net capital gains, the profits from selling assets like stocks, real estate, or businesses, are a key measure of investment success and regional wealth. These gains are realized only upon sale and are taxable at preferential rates when held for a year or longer: 0%, 15% or 20%. Other investment incomes, such as ordinary dividends and taxable interest, which are taxed at generally higher income tax rates, or tax-exempt interest (often from municipal bonds), may offer other advantages for a diversified portfolio or retirement account withdrawal strategies. Overall, high net capital gains can signal robust markets and affluent populations, with realized gains potentially boosting local economies through tax revenues and spending.

With this in mind, SmartAsset ranked U.S. counties and states by the average net capital gains reported on the latest tax return data per the IRS. Other types of investment gains were also considered.

Key findings

• Teton County, Wyoming investment gains lead all counties by wide margin. Teton County reported the highest average net capital gain per return at $515,267, far surpassing other counties. With a relatively small number of returns (6,010 reporting gains out of 15,180 total), this affluent area also showed significant ordinary dividends ($196,121 average 6,150 returns) and qualified dividends ($167,921 average on 5,940 returns), signaling a concentration of high-net-worth individuals and diversified investment activity.
• Florida ekes past Wyoming for highest state-level investment gains. Florida topped the state rankings with an average net capital gain per return of $84,911. The state’s 2,136,380 returns reporting gains amounted to $181.4 billion, bolstered by high activity in counties like Palm Beach ($40.4 billion in gains) and Miami-Dade ($37.4 billion). Wyoming comes in a close second place for average net capital gains of $84,246 across nearly 60,000 tax returns.
• These Georgia counties report the lowest capital gains. At the opposite end, Chattahoochee, Quitman and Taliaferro counties in Georgia have the lowest net capital gains in the contiguous states with an average of $2,400 or less each. Few returns reported net capital gains at all, as they were reported on less than 10% of tax returns across these counties.
• West Virginia lags in state-level investment returns. West Virginia reported the lowest average net capital gain per return at $14,612, with only 91,930 returns reporting $1.34 billion in gains. Wisconsin has the second lowest average net capital gains reported at $19,590.

Top 20 counties where Americans made the most in investments

Counties are ranked based on the average net capital gains for applicable tax returns according to the latest IRS data.

1. Teton County, Wyoming

• Avg. net capital gains: $515,267 (6,010 returns)
• Avg. taxable interest: $40,033 (7,100 returns)
• Avg. tax-exempt interest: $39,659 (2,020 returns)
• Avg. ordinary dividends: $196,121 (6,150 returns)
• Avg. qualified dividends: $167,921 (5,940 returns)
• Total returns: 15,180

2. Clinch County, Georgia

• Avg. net capital gains: $317,793 (150)
• Avg. taxable interest: $977 (430)
• Avg. tax-exempt interest: $1,600 (20)
• Avg. ordinary dividends: $6,336 (110)
• Avg. qualified dividends: $4,055 (110)
• Total returns: 2,390

3. Pitkin County, Colorado

• Avg. net capital gains: $312,592 (4,170)
• Avg. taxable interest: $30,111 (4,600)
• Avg. tax-exempt interest: $28,688 (1,280)
• Avg. ordinary dividends: $67,047 (4,280)
• Avg. qualified dividends: $53,044 (4,080)
• Total returns: 10,480

4. Shackelford County, Texas

• Avg. net capital gains: $233,680 (300)
• Avg. taxable interest: $6,082 (510)
• Avg. tax-exempt interest: $13,317 (120)
• Avg. ordinary dividends: $16,190 (300)
• Avg. qualified dividends: $11,627 (300)
• Total returns: 1,480

5. Summit County, Utah

• Avg. net capital gains: $219,262 (9,370)
• Avg. taxable interest: $9,425 (11,110)
• Avg. tax-exempt interest: $22,022 (2,870)
• Avg. ordinary dividends: $47,348 (9,530)
• Avg. qualified dividends: $36,713 (9,050)
• Total returns: 24,870

6. Monroe County, Florida

• Avg. net capital gains: $191,886 (12,220)
• Avg. taxable interest: $13,432 (15,760)
• Avg. tax-exempt interest: $29,645 (3,310)
• Avg. ordinary dividends: $75,201 (11,770)
• Avg. qualified dividends: $66,673 (10,980)
• Total returns: 45,760

7. Palm Beach County, Florida

• Avg. net capital gains: $186,281 (216,920)
• Avg. taxable interest: $16,155 (249,310)
• Avg. tax-exempt interest: $29,882 (63,780)
• Avg. ordinary dividends: $50,783 (220,150)
• Avg. qualified dividends: $42,043 (205,200)
• Total returns: 784,220

8. Miami-Dade County

• Avg. net capital gains: $184,899 (202,220)
• Avg. taxable interest: $13,127 (261,490)
• Avg. tax-exempt interest: $23,350 (33,130)
• Avg. ordinary dividends: $38,036 (177,420)
• Avg. qualified dividends: $29,924 (160,110)
• Total returns: 1,436,490

9. Collier County, Florida

• Avg. net capital gains: $184,017 (73,450)
• Avg. taxable interest: $12,151 (88,560)
• Avg. tax-exempt interest: $29,690 (26,040)
• Avg. ordinary dividends: $57,951 (74,510)
• Avg. qualified dividends: $47,507 (70,210)
• Total returns: 213,630

10. San Miguel County, Colorado

• Avg. net capital gains: $183,621 (1,560)
• Avg. taxable interest: $9,440 (1,850)
• Avg. tax-exempt interest: $17,268 (470)
• Avg. ordinary dividends: $37,121 (1,560)
• Avg. qualified dividends: $25,636 (1,490)
• Total returns: 4,500

11. Blaine County, Idaho

• Avg. net capital gains: $176,812 (4,910 returns)
• Avg. taxable interest: $10,555 (5,970 returns)
• Avg. tax-exempt interest: $19,372 (1,610 returns)
• Avg. ordinary dividends: $48,990 (5,020 returns)
• Avg. qualified dividends: $38,999 (4,790 returns)
• Total returns: 13,540

12. Randolph County, Missouri

• Avg. net capital gains: $150,127 (1,720)
• Avg. taxable interest: $1,262 (2,930)
• Avg. tax-exempt interest: $4,845 (310)
• Avg. ordinary dividends: $5,540 (1,720)
• Avg. qualified dividends: $3,916 (1,620)
• Total returns: 10,580

13. New York County, New York

• Avg. net capital gains: $149,273 (302,610)
• Avg. taxable interest: $19,397 (349,610)
• Avg. tax-exempt interest: $18,965 (99,390)
• Avg. ordinary dividends: $42,540 (334,330)
• Avg. qualified dividends: $32,211 (320,550)
• Total returns: 846,440

14. Walton County, Florida

• Avg. net capital gains: $140,537 (10,470)
• Avg. taxable interest: $8,426 (14,280)
• Avg. tax-exempt interest: $17,430 (2,510)
• Avg. ordinary dividends: $27,814 (9,870)
• Avg. qualified dividends: $21,624 (9,210)
• Total returns: 40,310

15. Martin County, Florida

• Avg. net capital gains: $130,146 (28,290)
• Avg. taxable interest: $10,613 (33,350)
• Avg. tax-exempt interest: $19,398 (8,070)
• Avg. ordinary dividends: $39,381 (29,640)
• Avg. qualified dividends: $32,712 (27,770)
• Total returns: 84,420

16. Indian River County, Florida

• Avg. net capital gains: $126,594 (25,510)
• Avg. taxable interest: $9,009 (32,130)
• Avg. tax-exempt interest: $23,468 (7,530)
• Avg. ordinary dividends: $42,487 (27,010)
• Avg. qualified dividends: $35,483 (25,230)
• Total returns: 85,800

17. Wasatch County, Utah

• Avg. net capital gains: $113,429 (4,520)
• Avg. taxable interest: $5,083 (6,350)
• Avg. tax-exempt interest: $10,513 (1,030)
• Avg. ordinary dividends: $17,528 (4,290)
• Avg. qualified dividends: $13,262 (3,950)
• Total returns: 16,800

18. Nemaha County, Kansas

• Avg. net capital gains: $111,880 (1,480)
• Avg. taxable interest: $1,936 (2,700)
• Avg. tax-exempt interest: $10,200 (290)
• Avg. ordinary dividends: $18,627 (1,260)
• Avg. qualified dividends: $17,662 (1,180)
• Total returns: 4,920

19. Dallas County, Texas

• Avg. net capital gains: $110,534 (188,570)
• Avg. taxable interest: $7,393 (243,770)
• Avg. tax-exempt interest: $14,890 (43,870)
• Avg. ordinary dividends: $24,441 (192,290)
• Avg. qualified dividends: $20,200 (179,610)
• Total returns: 1,213,090

20. Travis County, Texas

• Avg. net capital gains: $109,439 (172,730)
• Avg. taxable interest: $5,131 (206,890)
• Avg. tax-exempt interest: $9,958 (40,820)
• Avg. ordinary dividends: $16,792 (178,910)
• Avg. qualified dividends: $12,869 (169,300)
• Total returns: 636,070

Top 10 states where Americans made the most in investments

States and the District of Columbia are ranked based on the average net capital gains for applicable tax returns according to the latest IRS data.

1. Florida

• Avg. net capital gains: $84,911 (2,136,380 returns)
• Avg. taxable interest: $5,552 (2,956,740 returns)
• Avg. tax-exempt interest: $15,226 (472,050 returns)
• Avg. ordinary dividends: $21,724 (2,201,800 returns)
• Avg. qualified dividends: $17,828 (36,100,028 returns)
• Total returns: 11,050,580

2. Wyoming

• Avg. net capital gains: $84,246 (59,890)
• Avg. taxable interest: $4,804 (100,040)
• Avg. tax-exempt interest: $12,016 (14,120)
• Avg. ordinary dividends: $30,728 (60,010)
• Avg. qualified dividends: $26,119 (1,466,868)
• Total returns: 279,330

3. Nevada

• Avg. net capital gains: $77,491 (251,070)
• Avg. taxable interest: $4,395 (375,360)
• Avg. tax-exempt interest: $12,978 (47,730)
• Avg. ordinary dividends: $17,308 (239,070)
• Avg. qualified dividends: $13,756 (3,032,876)
• Total returns: 1,541,730

4. District of Columbia

• Avg. net capital gains: $58,733 (86,250)
• Avg. taxable interest: $3,284 (114,880)
• Avg. tax-exempt interest: $7,804 (23,820)
• Avg. ordinary dividends: $15,743 (99,870)
• Avg. qualified dividends: $12,546 (1,196,872)
• Total returns: 346,460

5. Texas

• Avg. net capital gains: $52,926 (2,151,560)
• Avg. taxable interest: $3,231 (3,239,600)
• Avg. tax-exempt interest: $9,046 (462,640)
• Avg. ordinary dividends: $13,420 (2,195,330)
• Avg. qualified dividends: $10,928 (22,353,519)
• Total returns: 13,542,000

6. Utah

• Avg. net capital gains: $51,745 (262,790)
• Avg. taxable interest: $2,725 (439,680)
• Avg. tax-exempt interest: $7,213 (45,330)
• Avg. ordinary dividends: $10,015 (258,460)
• Avg. qualified dividends: $7,776 (1,852,455)
• Total returns: 1,506,540

7. Connecticut

• Avg. net capital gains: $49,914 (425,050)
• Avg. taxable interest: $4,568 (616,860)
• Avg. tax-exempt interest: $9,708 (104,560)
• Avg. ordinary dividends: $18,385 (484,440)
• Avg. qualified dividends: $15,312 (7,025,689)
• Total returns: 1,812,680

8. New York

• Avg. net capital gains: $48,271 (2,015,350)
• Avg. taxable interest: $4,110 (3,530,740)
• Avg. tax-exempt interest: $10,084 (507,120)
• Avg. ordinary dividends: $14,987 (2,224,750)
• Avg. qualified dividends: $11,626 (24,429,547)
• Total returns: 9,690,950

9. Massachusetts

• Avg. net capital gains: $47,346 (834,390)
• Avg. taxable interest: $2,485 (1,403,790)
• Avg. tax-exempt interest: $7,575 (215,670)
• Avg. ordinary dividends: $13,507 (946,230)
• Avg. qualified dividends: $10,726 (9,551,537)
• Total returns: 3,550,000

10. California

• Avg. net capital gains: $45,490 (3,852,310)
• Avg. taxable interest: $2,537 (6,852,810)
• Avg. tax-exempt interest: $9,879 (866,810)
• Avg. ordinary dividends: $13,724 (3,899,070)
• Avg. qualified dividends: $10,751 (39,305,988)
• Total returns: 18,355,830

Data and methodology

Data in this SmartAsset study is from the latest tax return release (2022 tax year) from the Internal Revenue Service (IRS). The rankings include 3,022 U.S. counties, as well as a separate ranking for the 50 states and the District of Columbia, based on the average net capital gains reported for applicable returns. Line-items for other investment gains, such as taxable interest, ordinary dividends and qualified dividends are also reported.

This story was produced by SmartAsset and reviewed and distributed by Stacker.