What's the tax on a $75,000 long-term capital gain in Texas?

Approximately $14,100 total. Federal LTCG: $11,250. NIIT at 3.8%: $2,850. Texas imposes no state tax on capital gains.

Short-term vs long-term?

If the same $75,000 gain were short-term (held under 12 months), it would be taxed as ordinary income at up to 37% federal plus state, coming to approximately $29,084. That's $14,984 more than the long-term number. Holding past the 12-month mark usually saves meaningful money.

Does Texas tax capital gains the same as ordinary income?

Texas has no state income tax, so long-term and short-term capital gains alike are federal-only at the state level.

If the gain is on Qualified Small Business Stock held more than five years, up to the greater of $10M or 10× basis may be excluded from federal tax under IRC §1202. Texas has no state tax regardless, so QSBS treatment only affects the federal side.

How much tax on a $75,000 capital gain in Texas?

Long-term vs short-term

A long-term capital gain (held 12+ months past the basis-setting event) gets preferential federal rates: 0%, 15%, or 20% depending on total taxable income, plus 3.8% NIIT for MAGI above $200k single. Short-term gains are taxed at ordinary rates up to 37% federally, plus state. For this $75,000 gain, the short-term total would run approximately $29,084, compared with $14,100 long-term. The difference is roughly $14,984.

Texas's treatment

Texas imposes no state tax on capital gains. Your only layers are federal LTCG (0/15/20%) and NIIT (3.8%).

Cost basis considerations

For RSU shares, basis equals the vest-date closing price. For ISO shares (qualifying disposition), basis equals strike plus any ordinary-income component at exercise. For ESPP shares, basis depends on whether the sale is a qualifying or disqualifying disposition. These basis rules materially affect whether a reported gross sale amount is mostly gain or mostly return of basis.

Frequently asked

What's the tax on a $75,000 long-term capital gain in Texas?: Approximately $14,100 total. Federal LTCG: $11,250. NIIT at 3.8%: $2,850. Texas imposes no state tax on capital gains.
Short-term vs long-term?: If the same $75,000 gain were short-term (held under 12 months), it would be taxed as ordinary income at up to 37% federal plus state, coming to approximately $29,084. That's $14,984 more than the long-term number. Holding past the 12-month mark usually saves meaningful money.
Does Texas tax capital gains the same as ordinary income?: Texas has no state income tax, so long-term and short-term capital gains alike are federal-only at the state level.
What about QSBS?: If the gain is on Qualified Small Business Stock held more than five years, up to the greater of $10M or 10× basis may be excluded from federal tax under IRC §1202. Texas has no state tax regardless, so QSBS treatment only affects the federal side.

Educational estimate · 2025 brackets · Single filer · Long-term hold · $250k other ordinary income · Not tax advice

Long-term vs short-term

Texas's treatment

Cost basis considerations

Frequently asked

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