How much is capital gains tax in Texas?

In Texas, there is no state capital gains tax, which means you will only be required to remit capital gains taxes to the federal government. The long-term capital gains tax rates are 0%, 15%, and 20%, depending on your income and the type of asset.

Can I avoid capital gains on a residential sale in Texas?

You may be able to avoid capital gains on a residential sale in Texas if you qualify for an exemption or use the money to reinvest into other property using a 1031 exchange. Since Texas has no state income tax, there is no state tax on capital gains, but the federal capital gains tax still applies.

What is the tax rate on capital gains?

The tax rate on these gains is lower than the rate you are liable for when selling a capital asset in less than one year. This rate can be between 0% and 20%, depending on asset type and taxable income. The purpose of this lower tax rate is to encourage long-term investments.