Quick answer: up to 13.3% state tax, taxed exactly like ordinary income — California is the only major state with no discount at all for long-term gains. See the full cost picture in the California probate real estate sale calculator.
No preferential rate, ever
Up to 13.3%, the highest in the nation
California's income tax runs from 1% to 12.3% across nine brackets, plus a 1% Mental Health Services Tax surcharge (Proposition 63, R&TC §17043) on taxable income over $1 million — applying to the entire amount above that threshold, including capital gain income. The $1 million threshold is not doubled for joint filers.
The federal stepped-up basis still helps
Regardless of California's rate structure, the house's basis resets to its fair market value on the date of death for both federal and state purposes — so only appreciation after that date is taxable at either level, keeping the taxable gain small on a prompt sale.
No estate or inheritance tax layered on top
California has no state estate tax and no inheritance tax — the capital gains tax on the sale itself is the only state-level tax question, alongside the federal estate tax, which applies only to very large estates.
A local probate attorney can review your estate — many offer a free consultation.
The 13.3% top rate and the surcharge threshold apply identically whether the sale closes in Los Angeles, San Francisco, San Diego, or any other California county — there's no local income tax layered on top anywhere in the state.