How Texas capital gains tax works
Texas has no general state income tax, so most capital gains are not taxed at the state level.
Texas has no state income tax, so capital gains are not taxed at the state level.
You will still owe federal capital gains tax — this calculator estimates the state portion only.
Federal tax still applies
The IRS taxes long-term gains (assets held over a year) at 0%, 15% or 20% depending on income, and short-term gains as ordinary income.
So even in a no-income-tax state, selling an investment at a profit usually creates a federal tax bill.
Frequently asked questions
Does Texas tax capital gains?
Texas has no general state income tax, so most capital gains are not taxed by the state. Texas has no state income tax, so capital gains are not taxed at the state level.
What is the capital gains tax rate in Texas?
There is no state capital gains rate in Texas for ordinary investors. Federal rates of 0%, 15% or 20% still apply.
Are long-term gains taxed lower in Texas?
Texas has no state income tax, so capital gains are not taxed at the state level.
Does this include federal capital gains tax?
No. This estimates the TX state tax only. Federal capital gains tax is separate and applies on top.