Updated October 4, 2026. Quick answer: No. The Texas Comptroller states “Texas has no state income tax”, so a sale of stocks, funds or real estate adds no Texas income tax for an individual.
Selling your home? How the state taxes the profit, from its own tax documents: Does Texas tax the profit from selling your home?.
The same question for dividends and interest: does Texas tax dividends and interest.
How Texas treats capital gains
| Item | What the documents say |
|---|---|
| Treatment | Not taxed by the state |
| Where it is written | Texas Comptroller of Public Accounts, Fiscal Notes (2025) |
| Short-term and long-term gains | No distinction: the state has no individual income tax |
A $50,000 long-term gain
A $50,000 long-term gain adds $0 of Texas income tax. Federal tax on the gain still applies.
What changes in 2026
The latest document read prints no 2026 change to the way gains are taxed.
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 Texas taxes pensions, how Texas taxes retirement income, the capital gains tax by state table, and the federal capital gains tax calculator.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
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WiserAdvisor states the service is built for portfolios of $250,000 and above. By submitting, you consent to emails, phone calls and text messages from WiserAdvisor and up to three advisors, so expect to be contacted. Clear Money Guide may earn a referral payment for a qualifying completed form, whether or not you ever hire anyone.
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It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
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Answer againSources
- Texas is open for small business (Fiscal Notes): https://comptroller.texas.gov/economy/fiscal-notes/industry/2025/small-biz-info/
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.