In addition to the current federal tax on long-term capital gains, taxpayers have to pay state and local capital gains taxes on their income. Nine US states currently have no personal income tax, and as a result, they have the lowest capital gains tax. According to a policy brief released by the State of Minnesota, 16 states and the District of Columbia have preferential treatment of long-term gains on certain investments (e.g. in-state, new business, farmland, low-income housing).