Capital Gains Tax for Texas (2026)
Texas (TX) Key Facts
State Capital Gains Rate
0%
Taxed As
Not taxed at state level
Federal Rate Applies
Yes (0%, 15%, or 20%)
Long Term vs Short Term
No state tax on either
How This Calculator Works in Texas
This calculator estimates your combined federal and Texas capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
Texas Overview
Texas has no state capital gains tax. However, Texas has relatively high property taxes (averaging 1.6%-1.8%) that partially offset the income tax advantage. Investors only owe federal capital gains tax, which ranges from 0% to 20% for long-term gains plus a potential 3.8% Net Investment Income Tax for high earners.
How Texas Compares
Texas's capital gains rate of 0% compares to Louisiana at 4.25% and Oklahoma at 4.75%. No state capital gains tax provides a clear advantage for investors.
| State | Top Rate | Notes |
|---|---|---|
| Louisiana | 4.25% | Louisiana has a capital gains rate of 4.25%. |
| Oklahoma | 4.75% | Oklahoma has a capital gains rate of 4.75%. |
| New Mexico | 5.9% | New Mexico has a capital gains rate of 5.9%. |
Texas's capital gains rate of 0% compares to a national average of approximately 5.04%. This is below the national average.
Tips for Texas Residents
- 1Texas has no state capital gains tax, so you only pay federal rates on investment gains.
- 2Federal long-term capital gains rates are 0%, 15%, or 20% depending on income, plus a potential 3.8% Net Investment Income Tax (NIIT).
- 3Hold investments for over one year to qualify for the lower federal long-term rates instead of ordinary income rates.
- 4Tax-loss harvesting—selling losing investments to offset gains—can reduce your federal capital gains tax bill.
- 5Texas's zero state rate makes it one of the most favorable states for investors and retirees with investment income.