TENNESSEE CAPITAL GAINS TAX · TAX YEAR 2026
Does Tennessee tax capital gains?
Tennessee has no personal income tax, so it does not tax capital gains, short-term or long-term. On a $50,000 long-term gain with $75,000 of wages, a single filer owes only $7,500 of federal income tax and keeps $42,500.
Tax on your gain
- Total tax on the gain
- $7,500.00
- Federal income tax
- $7,500.00
- Net investment income tax
- $0.00
- Tennessee tax
- $0.00
- After-tax gain
- $42,500.00
- Effective rate
- 15.00%
Tennessee tax by size of gain
What a single filer with $75,000 of wages owes on a long-term gain. Federal tax includes the net investment income tax.
| Gain | Federal tax | State tax |
|---|---|---|
| $10,000 | $1,500 | $0 |
| $50,000 | $7,500 | $0 |
| $100,000 | $15,000 | $0 |
| $250,000 | $42,250 | $0 |
| $1,000,000 | $208,920 | $0 |
Tennessee capital gains tax questions
Does Tennessee tax capital gains?
No. Tennessee has no personal income tax, so it does not tax capital gains, short-term or long-term.
How much tax is due on a capital gain in Tennessee?
Only federal tax. A single filer with $75,000 of wages owes $7,500 of federal income tax on a $50,000 long-term gain and keeps $42,500. On a $250,000 gain, federal tax is $42,250, including $4,750 of net investment income tax.
Does Tennessee tax investment income?
No. Its Hall income tax on interest and dividends was repealed for tax years beginning on or after January 1, 2021, and Tennessee does not tax wages.
What the calculator leaves out
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.