STATE CAPITAL GAINS TAX · TAX YEAR 2026
States with no capital gains tax in 2026
Eight states have no income tax, so they don't tax capital gains: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. Since 2025, Missouri subtracts 100% of capital gains, so it taxes none. Washington has no income tax but taxes long-term capital gains above its standard deduction at 7%.
States that don't tax capital gains
State tax on a long-term gain for a single filer with $75,000 of wages. Washington has no income tax but taxes long-term capital gains above its standard deduction at 7%.
| State and rule | $50,000 gain | $1,000,000 gain |
|---|---|---|
| AlaskaNo income tax | $0 | $0 |
| FloridaNo income tax | $0 | $0 |
| NevadaNo income tax | $0 | $0 |
| New HampshireNo income tax | $0 | $0 |
| South DakotaNo income tax | $0 | $0 |
| TennesseeNo income tax | $0 | $0 |
| TexasNo income tax | $0 | $0 |
| WyomingNo income tax | $0 | $0 |
| Missouri100% of gains subtracted | $0 | $0 |
| Washington7% on long-term gains over $278,000 (latest published, 2025) | $0 | $50,540 |
No capital gains tax questions
Which states have no capital gains tax?
The eight states with no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. Since 2025, Missouri subtracts 100% of capital gains, so it taxes none.
Does Missouri tax capital gains?
No. Missouri does not tax capital gains: from tax year 2025, individuals subtract 100% of the capital gains on their federal return, short-term and long-term.
Does Washington have a capital gains tax?
Yes. Washington has no income tax, but it taxes long-term capital gains on stocks, bonds and other investments at 7% above a standard deduction of $278,000 (latest published, 2025), and 2.9% more on taxable gains over $1,000,000. With $75,000 of wages, a single filer owes $50,540 on a $1,000,000 long-term gain.
Do you pay federal tax on capital gains in a state with no income tax?
Yes. A single filer with $75,000 of wages owes $7,500 of federal income tax on a $50,000 long-term gain in any state, and $208,920 on a $1,000,000 gain, net investment income tax included.
What these figures leave out
Each state's page lists the gain rules its calculator does not apply, such as exclusions for in-state property or businesses.
Federal tax stacks the gain on wages after the 2026 standard deduction, taxes a long-term gain at the long-term capital gains rates and a short-term gain at the ordinary brackets, and adds the net investment income tax. The gain is the only investment income. Capital losses and carryovers, qualified dividends, the collectibles and section 1250 rates, the alternative minimum tax and credits are left out; enter a home sale's gain after any federal exclusion.
Sources
- IRS Topic 409, Capital gains and losses
- IRS Revenue Procedure 2025-32: 2026 capital gains thresholds
- IRS: net investment income tax
- Alaska Court System: federal tax matters
- Alaska Administrative Manual: repeal of the individual income tax (AS 43.20.011)
- Florida Department of Revenue: documentary stamp tax
- Florida Department of Revenue: estate tax
- Florida Constitution, Article VII, section 5
- Nevada Constitution
- Nevada Department of Taxation: income tax in Nevada
- New Hampshire 2023 HB 2 chapter law: Interest and Dividends Tax repeal
- New Hampshire RSA chapter 77: Interest and Dividends Tax (repealed)
- South Dakota Department of Revenue: individual taxes
- Tennessee Department of Revenue: Hall income tax rates and repeal
- Texas Legislative Reference Library: November 4, 2025 amendment results
- HJR 38 (2019): Texas constitutional ban on a personal income tax
- Wyoming LSO: review of state revenue distributions (2021)
- Wyoming Legislative Service Office: Wyoming tax structure, rates and collections (2025)
- Missouri DOR: capital gains subtraction FAQ
- Missouri DOR: 2025 year changes
- RSMo 143.121: modifications to federal AGI
- Missouri DOR 2026 withholding formula: brackets and standard deduction
- Washington DOR: capital gains tax
- Washington DOR: do you owe capital gains tax (standard deduction by year)
- RCW 82.87.040: capital gains tax rates
- RCW 82.87.050: capital gains tax exemptions
- Washington DOR: income tax under Senate Bill 6346, starting 2028