Tennessee Capital Gains Calculator

Calculate your federal and Tennessee capital gains tax liability

2025

Calculate Your
Tennessee Capital Gains Tax

Tennessee has no state income tax, therefore no capital gains tax.

No State Capital Gains Tax in Tennessee!

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Tennessee Capital Gains Tax Highlights

No state income tax
No capital gains tax
Only federal taxes apply
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Enter Your Investment Details

Calculate your capital gains tax for Tennessee

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📊 Enter your annual taxable income before including this capital gain. This determines your capital gains tax bracket.

📊 Choose your investment holding period

Calculator optimized for Tennessee tax rates

Tax Calculation Results

Your capital gain is: $0.00
Estimated capital gains tax: $0.00
Federal Tax: $0.00
Tennessee Tax: $0.00
Net Proceeds After Tax: $0.00
Effective Tax Rate: 0.00%
Disclaimer: Estimate excludes NII taxes, deductions, credits, and losses. Consult a tax advisor.

How Tennessee Taxes Capital Gains

Tennessee has no state income tax, therefore no capital gains tax.

2025 Tax Brackets

0% Rate (Single): Up to $48,350
15% Rate (Single): $48,351 - $533,400
20% Rate (Single): Over $533,400

Tennessee Tax Details

Tax Rate Structure

Capital Gains Rate: 0%

Tennessee has no state income tax, so capital gains are only subject to federal taxes.

Key Requirements

Filing Required: If gain exceeds threshold
State Due Date: N/A - No state income tax

Tennessee Tax Strategies

  • • Consider establishing residency before realizing large gains
  • • No state quarterly estimated tax payments required
  • • Focus on federal tax planning strategies

• Consult with Tennessee tax professional for complex situations

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Real Estate in Tennessee

Real estate capital gains in Tennessee are subject to both federal and state tax considerations:

No State Real Estate Capital Gains Tax

Tennessee does not tax capital gains, making it highly attractive for real estate investors. Only federal taxes apply to your real estate transactions. Compare with high-tax states like California or New York.

Primary Residence

Federal Rules

Federal Exclusion: $250K/$500K
Holding Period: 2 of 5 years

Tennessee State Rules

✓ No state tax on any gain

Full federal exclusion benefit preserved

Additional Requirements:
  • • Only federal exemption applies as there is no state capital gains tax.

Investment Property

Tax Deferral Strategies

1031 Like-Kind Exchanges

Defer federal taxes on investment property exchanges

1031 Conformity: ✓ Yes
Bonus Depreciation: ✓ Allowed

Transfer Costs

Transfer Tax

State Rate: $0.37 per $100 of value (Realty Transfer Tax)
Paid By: buyer
Available Exemptions:
  • • Transfers between spouses
  • • Transfers to secure a debt.

Recording Fees

Deed Recording: Varies by county, typically $10-$20 for the first two pages.
Mortgage Recording: Varies by county. A mortgage tax of $0.115 per $100 of debt (over $2,000) also applies.
Additional Fees:
  • • Fees are set at the county level.
Special Deductions & Notes:
  • • Only federal depreciation rules apply.

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Property Tax Exemptions

Homestead

$5K

Maximum exemption

Senior (65+)

$0K

Additional exemption

Veteran

$100K

Disabled veteran exemption

Tennessee Real Estate Specifics

Mortgage Tax: $0.115 per $100 of indebtedness

• Tennessee levies a significant Realty Transfer Tax of 0.37%, paid by the buyer.

• An additional Mortgage Tax is due when financing is involved.

• Property tax relief for seniors and veterans is provided through reimbursement programs, not upfront exemptions.

Real Estate & Investment Services

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Tennessee Filing Requirements

Due Dates
Annual Return: N/A - No state income tax
Extension: N/A
Required Forms
  • • No state forms required
  • • Federal Form 8949 & Schedule D
Payment Options
  • • Federal taxes only
  • • IRS Direct Pay

Tax Professional Services

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Compare Tennessee to Other States

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© 2025 CapitalGainsTaxCalculator.us - For informational purposes only. Consult a tax professional for advice.