CALCMONEY // CAPITAL GAINS // TX
Texas has no state capital gains tax. You owe only the federal rate: 20% + 3.8% NIIT = 23.8% on large long-term gains.
Calculate Your GainNone
23.8%
$119,000
$238,000
| Tax Component | Rate | On $500K Gain | On $1M Gain |
|---|---|---|---|
| Federal Long-Term Rate | 20.0% | $100,000 | $200,000 |
| Net Investment Income Tax (NIIT) | 3.8% | $19,000 | $38,000 |
| Texas State TaxNo tax | 0.0% | $0 | $0 |
| Total Tax Owed | 23.8% | $119,000 | $238,000 |
| Net Proceeds (after tax) | $381,000 | $762,000 |
Federal rate assumes income in the 20% long-term bracket. NIIT applies to investors with MAGI above $200K (single) or $250K (married). State rate shown is the top applicable rate.
Texas imposes no state tax on capital gains. Texas has no state income tax or capital gains tax. Selling appreciated assets in Texas saves up to $133,000 per $1M gain vs California.
Texas has no state income tax or capital gains tax. Selling appreciated assets in Texas saves up to $133,000 per $1M gain vs California.
On a $1M long-term gain, a TX investor owes $238,000 total versus $371,000 in California or $326,200 in New York. The TX advantage scales significantly on larger exits.
The NIIT (3.8%) still applies regardless of state for investors with MAGI above $200K single or $250K married filing jointly.
| Alaska | None |
| Florida | None |
| Nevada | None |
| New Hampshire | None |
| South Dakota | None |
| California | 13.3% |
| New Jersey | 10.8% |
| District of Columbia | 10.8% |
| Oregon | 9.9% |
| Minnesota | 9.8% |
Pennsylvania
3.1% state rate
FLFlorida
No state tax
NDNorth Dakota
2.5% state rate
WIWisconsin
7.6% state rate