Updated October 4, 2026. Quick answer: Mostly no, for individuals. Missouri law lets an individual subtract “one hundred percent of all income reported as a capital gain” for federal purposes, for tax years beginning on or after January 1, 2025, per the statute and the Department’s legislative-changes document. Capital losses do not qualify, and trusts, pass-through entities and corporations cannot claim it yet.
Selling your home? How the state taxes the profit, from its own tax documents: Does Missouri tax the profit from selling your home?.
The same question for dividends and interest: does Missouri tax dividends and interest.
How Missouri treats capital gains
| Item | What the documents say |
|---|---|
| Treatment | 100% of income reported as a capital gain for federal purposes is subtracted for an individual |
| Statute | RSMo 143.121.3(14)(a): tax years beginning on or after January 1, 2025 |
| Department FAQ | The FAQ is not consistent: its first answer says the subtraction is “effective for the 2025 tax year”, while its answer on when to claim says tax years beginning on or after January 1, 2026, with a first claim on the 2026 return filed in 2027; claimed with Form MO-A |
| Who cannot claim | Trusts, pass-through entities and corporations at this time; “Capital losses do not qualify for the Missouri capital gains subtraction” |
| Top rate, 2025 | 4.7% (Department of Revenue) |
A $50,000 long-term gain
A $50,000 long-term gain realized in 2026 by an individual who claims the subtraction adds $0 of Missouri income tax on the gain, because 100% of it comes out of Missouri adjusted gross income.
Without the subtraction, the same gain taxed at the 2025 top rate, 4.7%, would cost, computed as $50,000 x 4.7% = $2,350.
What changes in 2026
For tax years beginning on or after January 1, 2026, RSMo 143.121.3(15) adds a subtraction for the capital gain on the sale or exchange of specie. The statute and the Department’s legislative-changes document date the main subtraction from 2025; the Department’s FAQ says both 2025 and 2026 in different answers, so the statute’s 2025 date is the one to rely on for a 2025 sale.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal tax on gains in Topic no. 409, Capital Gains and Losses and Publication 550, Investment Income and Expenses.
Related: whether Missouri taxes pensions, how Missouri taxes retirement income, the capital gains tax by state table, and the federal capital gains tax calculator.
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Answer againSources
- RSMo Section 143.121 Missouri adjusted gross income: https://revisor.mo.gov/main/OneSection.aspx?section=143.121
- 2025 Tax Legislative Changes: https://dor.mo.gov/taxation/individual/tax-types/income/year-changes/documents/2025-Tax-Legislative-Changes.pdf
- Capital Gains Subtraction FAQs: https://dor.mo.gov/faq/taxation/individual/capital-gains-subtraction.html
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.