Texas QSBS Capital Gains Tax 2026: No state tax

Texas QSBS capital gains in this model: No state tax. Use this calculator to stack federal long-term or short-term tax, NIIT when it applies, and Texas's modeled treatment. Texas has no state income tax on this gain in the model, so the state line should be $0 while federal tax and NIIT can still apply.

Rates last verified: August 2026

Capital Gains Calculator

Federal · NIIT · All 50 states

2026 ratesIRS verified

Follow the three steps, save the sale, then calculate. Required fields are marked with *.

Your tax profile

These apply to every sale in this estimate.

Tax year

Filing status

State

Annual taxable income (before these gains)

Capital loss carried from prior years

What you sold

Prices and quantity for this lot. Give it a name if you will add more than one sale.

Asset type

Asset name

Buy price

Sell price

Quantity / units

Selling expenses

Qualified Small Business Stock (Section 1202)

When you bought and sold

The IRS uses these dates to decide short-term vs long-term rates.

Buy date

Sell date

Next: Save this sale to the order log, then click Calculate now. Tax results do not update until you calculate.

Order log

Sales included in this tax estimate.

Please fill in the details to see your results. Follow the three steps on the left, then save a sale here.

Texas tax on qualified small business stock

Texas does not levy a state income tax on qualified small business stock gains in this model, so the state line should be $0. Federal tax and NIIT can still apply.

Federal rules for qualified small business stock: IRC Section 1202 may exclude eligible qualified small business stock gain after a more-than-five-year hold, subject to per-issuer caps. State conformity is not guaranteed. Holding period still matters for LTCG vs STCG except where a longer QSBS or real-estate test applies.

Open the parent Texas calculator for a generic sale, or the national QSBS lander for asset-only copy. Nearby states below keep the same qsbs preset so you can compare residency. Estimates are not tax advice.

This model applies Section 1202 only after a more-than-five-year hold, capped at the greater of $10 million or 10 times basis. That is the pre-4 July 2025 rule as implemented here. Stock acquired after 4 July 2025 is not modeled for a $15 million cap, a 50% exclusion at three years, a 75% exclusion at four years, or a $75 million gross-asset limit. California adds the federal exclusion back into the state tax line. Other states are not given a separate QSBS adjustment in this model.

Texas has no state income tax on capital gains in this model, so the state line is $0 on a stock sale, a crypto disposal, or a home sale. That is not an exemption you claim on a Texas capital-gains form. There is no such state tax in the estimate.

Federal brackets and the 3.8% NIIT still apply. Moving to Texas does not erase tax another state can claim on real property located there, or on income while you were still a resident of that state.

Rates last verified: August 2026. Official source: https://comptroller.texas.gov/.

Texas calculator QSBS (all states)U.S. Capital Gains Tax Calculator How to calculate gain Schedule D and Form 8949

Illustrated tax on a long-term gain

QSBS held long enough for long-term treatment in Texas. Investment real estate does not use Section 121 in this table. QSBS uses a more-than-five-year hold.

Gain	Federal	NIIT	Texas	Texas state tax
$25,000.00	$0.00	$0.00	$0.00	$0.00
$100,000.00	$0.00	$0.00	$0.00	$0.00
$250,000.00	$0.00	$0.00	$0.00	$0.00

Single filer, tax year 2026, $80,000.00 of other taxable income. Texas is the no-tax comparison. Illustration only, not your return.

FAQ

Texas QSBS FAQs

How does Texas tax qualified small business stock capital gains?

Texas does not levy a state income tax on qualified small business stock gains in this model, so the state line should be $0. Federal tax and NIIT can still apply.

Does Texas honor the federal QSBS exclusion?

This tool applies a modeled federal Section 1202 exclusion when QSBS is checked, then estimates Texas tax on remaining gain (No state capital gains tax). Some states decouple from Section 1202 — verify before you sell.

Which IRS forms apply to a Texas qsbs sale?

Plan around acquisition records, Form 8949, Schedule D, and Section 1202 support. Texas may require its own income-tax return when the state line is not $0. NIIT, if any, is computed on Form 8960.

If I sell qsbs while living in Texas, is state CGT always $0?

In this model the Texas line is $0 for qualified small business stock. Another state can still tax the gain if you are a resident there or if the asset is sourced there (especially real estate). Federal tax still applies.

What does the Texas QSBS illustration assume?

The Texas QSBS rows use a single filer with $80,000 of other income and a long-term gain in 2026. This model applies Section 1202 only after a more-than-five-year hold, capped at the greater of $10 million or 10 times basis. That is the pre-4 July 2025 rule as implemented here. Stock acquired after 4 July 2025 is not modeled for a $15 million cap, a 50% exclusion at three years, a 75% exclusion at four years, or a $75 million gross-asset limit. California adds the federal exclusion back into the state tax line. Other states are not given a separate QSBS adjustment in this model. Texas is the no-tax comparison, not a second residency.