Understanding Missouri's Capital Gains Tax

By Lyle Daly – Updated Aug 18, 2025 at 12:48 PM | Fact-checked by Robin Hartill, CFP

Key Points

Missouri has eliminated state capital gains taxes starting in 2025.
Residents can deduct 100% of capital gains from Missouri tax returns.
This change can save substantial money for investors selling assets.

In the past, you had to pay Missouri capital gains taxes if you lived there and made a profit on an investment. That's no longer the case thanks to a change the state made regarding its treatment of capital gains. Federal tax law on capital gains still applies to all U.S. taxpayers, but Missouri residents won't see an additional impact on their state tax bill anymore.

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capital-gains-tax-rates — Image source: Getty Images.

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About the Author

Lyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.

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