California Highway Patrol Officer George Granada said about 30 members of the Traditionalist Worker Party were gathering for a rally around Sunday noon when they were met by about 400 counter-protesters and a fight broke out.
As people tried to leave the area, smaller fights broke out, Granada said.
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The Capitol was on lockdown until protesters cleared the area.
Videos from the melee posted on social media showed mounted police officers dispersing a group of mostly young people, some with their faces covered, while some throw stones towards a man holding a stick and being shielded by police officers in riot gear.
Sacramento Fire Department spokesman Chris Harvey said nine men and one woman, ranging from 19 to 58 years old, were treated for stab wounds, cuts, scrapes and bruises. Of the injured, two were taken to the hospital with life-threatening stab wounds, Harvey said.
"There was a large number of people carrying sticks and rushing to either get into the melee or see what was going on," he said.
The victims were all present while a protest took place, said Sacramento Police spokesman Matt McPhail but he said it was still unclear whether and how they were involved.
The Traditionalist Workers Party had scheduled and received a permit to protest on Sunday in front of the Capitol. McPhail said a group showed up to demonstrate against them.
The Southern Poverty Law Center has described TWP as a group formed in 2015 as the political wing of the Traditionalist Youth Network, which aims to "indoctrinate high school and college students into white nationalism."
Matthew Heimbach, chairman of the Traditionalist Worker Party, told the Los Angeles Times that his group and the Golden State Skinheads organised the Sunday rally.
Heimbach said that in the clash, one of their marchers had been stabbed in an artery and six of the counter-protesters had also been stabbed.
Vice chairman Matt Parrott, who was not present at the Sacramento rally, blamed "leftist radicals" for instigating the violence.
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