Texas Capital Gains Tax Calculator
For the 2026 tax year, 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).
Updated for the 2026 tax year (IRS Rev. Proc. 2025-32; Texas Constitution Art. VIII; Texas Comptroller of Public Accounts (comptroller.texas.gov)) Last reviewed
Reviewed by Hassan Ahmed, Founder and Software Developer. Not a licensed tax advisor.
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.
Estimated federal income tax
$17,580
On ordinary income
$13,830
On long-term gains
$3,750
Total taxable income
$111,900
Effective rate (all income)
13.7%
Ordinary income bracket slices
| Rate | Taxable in slice | Tax |
|---|---|---|
| 10% | $12,400 | $1,240 |
| 12% | $38,000 | $4,560 |
| 22% | $36,500 | $8,030 |
Long-term gain is stacked after ordinary taxable income for 0% / 15% / 20% rates (2026 IRS thresholds).
2025 vs 2026: what changed
Compared with the 2025 tax year, the main 2026 changes for capital gains in Texas are higher 0% and 15% federal rate ceilings and a higher standard deduction (IRS Rev. Proc. 2025-32 sec. 4.03; IRS Rev. Proc. 2025-32).
| Item | 2025 | 2026 | Change | Source |
|---|---|---|---|---|
| Long-term 0% rate ends at, single | $48,350 | $49,450 | +$1,100 (+2.3%) | IRS Rev. Proc. 2025-32 sec. 4.03 |
| Long-term 0% rate ends at, married filing jointly | $96,700 | $98,900 | +$2,200 (+2.3%) | IRS Rev. Proc. 2025-32 sec. 4.03 |
| Long-term 15% rate ends at, single | $533,400 | $545,500 | +$12,100 (+2.3%) | IRS Rev. Proc. 2025-32 sec. 4.03 |
| Long-term 15% rate ends at, married filing jointly | $600,050 | $613,700 | +$13,650 (+2.3%) | IRS Rev. Proc. 2025-32 sec. 4.03 |
| Standard deduction, single | $15,750 | $16,100 | +$350 (+2.2%) | IRS Rev. Proc. 2025-32 |
| Standard deduction, married filing jointly | $31,500 | $32,200 | +$700 (+2.2%) | IRS Rev. Proc. 2025-32 |