How much is capital gains tax on a home sale in Texas?

It depends on your federal taxable gain after the Section 121 exclusion ($250,000 single / $500,000 married filing jointly if you qualify), plus any Texas tax. Example on this page (default inputs): federal tax about $0, TX planning tax about $0 (0% (no state income tax)).

Does the primary residence exclusion apply in this state?

Yes — the $250k/$500k exclusion is a federal rule (IRC Section 121). It reduces federal taxable gain first. Texas does not add a state income tax on the gain in this model.

Is depreciation recapture taxed differently at the state level?

Federally, depreciation recapture on rental property is taxed at up to 25%. With no state income tax in this model, only federal recapture applies.

Where can I calculate federal-only real estate capital gains?

Use the main real estate capital gains tax calculator for a federal-focused estimate, then return here for a Texas-specific planning view.

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Texas · Austin / Dallas / Houston

Texas Real Estate Capital Gains Tax Calculator

Estimate federal tax on a Texas home or rental sale — plus a TX state planning line (0% (no state income tax)). Includes Section 121 exclusion and depreciation recapture.

Example (default inputs): federal ~$0 · TX $0·Updated July 24, 2026

TX Property Sale Tax Estimator

Federal + Texas planning estimate

Texas state tax

Texas has no state income tax, so there is typically no Texas capital gains tax on a home or rental sale — federal rules still apply.

Sale Price ($)

Purchase Price ($)

Improvements ($)

Selling Expenses ($)

Depreciation Taken ($)

Rental/investment property only

Purchase Date

Sale Date

Primary Residence?

Years of Ownership

Years Lived In (Last 5 Years)

Must own 2+ years and live in 2+ of last 5 years for exclusion

Filing Status

Taxable Income ($)

Annual taxable income excluding this sale

Capital Gains Tax Results

Total Capital Gain

$120,000

$120,000 excluded (primary residence)

Holding Period

5.5 years

Long-Term

Federal LTCG Rate

N/A

Tax breakdown

Federal capital gains$0

TX state (est.)$0

Total tax$0

Net proceeds (after tax)

$470,000

Notes

•Primary residence exclusion removed $120,000 from taxable gain.
•No state capital gains / income tax applied in this scenario (or 0% planning rate). Federal tax may still apply.
•Improvements of $50,000 increased cost basis and reduced gain.
•Keep records of purchase price, improvements, and selling costs. This tool is an estimate, not a filed return.

Texas capital gains snapshot

Texas has no state income tax, so there is typically no Texas capital gains tax on a home or rental sale — federal rules still apply.

You still face federal LTCG rates (0/15/20%), Section 121 primary-residence exclusion, and depreciation recapture on rentals. State tax on this tool is $0.