Texas Capital Gains Tax Calculator

Texas does not levy a state personal income tax, so capital gains owe no Texas state tax. Federal capital gains tax still applies (0% / 15% / 20% long-term, ordinary rates for short-term).

Texas state capital gains

No state tax

Texas levies no state personal income tax, so capital gains are taxed only at the federal level — 0% / 15% / 20% for long-term gains, ordinary IRS rates for short-term.

How Texas taxes capital gains

Texas has no state personal income tax at all, which means capital gains — long- or short-term — are not taxed at the state level. The only capital gains tax a Texas resident owes is federal: ordinary brackets for short-term gains, the preferential 0% / 15% / 20% long-term schedule, plus the 3.8% Net Investment Income Tax for high earners. This makes Texas one of the most favorable US states for realizing investment gains, alongside Florida, Nevada, Wyoming, and a handful of others.

Federal capital gains calculator

The calculator below estimates federal tax on your gain. That figure is the full capital gains tax bill for a Texas resident.

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Does not include the 3.8% NIIT, AMT, or state capital gains tax.

Estimated federal income tax

$18,024

On ordinary income

$14,274

On long-term gains

$3,750

Total taxable income

$113,000

Effective rate (all income)

14.1%

Ordinary income bracket slices

RateTaxable in sliceTax
10%$11,925$1,193
12%$36,550$4,386
22%$39,525$8,696

Long-term gain is stacked after ordinary taxable income for 0% / 15% / 20% rates (2025 IRS thresholds).

Frequently Asked Questions

Does Texas tax capital gains?+
No. Texas has no state personal income tax, so capital gains are not taxed at the state level. You owe only federal capital gains tax.
What federal rates apply?+
Long-term gains (assets held more than 1 year) are taxed at 0%, 15%, or 20% depending on your taxable income and filing status. Short-term gains (held 1 year or less) are taxed at ordinary federal rates (10% to 37%). High earners may owe an additional 3.8% Net Investment Income Tax.
Do I need to file a Texas state return?+
Texas does not collect personal income tax, so most residents have no state-level filing obligation related to capital gains. You still file a federal Form 1040 (with Schedule D and Form 8949 for the gain itself).
Is it worth moving to a no-tax state to realize a gain?+
For large gains the savings can be significant — but state residency rules are strict and state tax agencies actively challenge "convenience moves." Most states require you to have genuinely established domicile (driver's license, voter registration, primary home, dependents, time spent) before realizing the gain. Talk to a CPA before relocating purely for a single transaction.
Does this include the 3.8% NIIT?+
Yes, the federal calculator notes do not include the 3.8% Net Investment Income Tax. For high earners ($200k single / $250k MFJ modified AGI), add 3.8% to the calculator's long-term tax figure for a complete federal estimate.

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Disclaimer: Educational estimates only, not tax advice. The Net Investment Income Tax (3.8%), AMT, and itemized deductions can change the result. Consult a CPA before relying on these figures.

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