Texas brokerage account growth calculator

What a taxable index-fund account is actually worth after expense-ratio drag and after Texas takes its share of the gain — which, in most states, is not at the federal preferential rate.

Texas does not tax capital gains

Your gain is untouched by Texas. Only federal tax applies. No Texas tax on capital gains, and as of November 4, 2025 a constitutional prohibition on ever imposing one. Article VIII, Section 24-b provides that the legislature may not impose a tax on the realized OR UNREALIZED capital gains of an individual, family, estate, or trust, including a tax on the sale or transfer of a capital asset payable by the seller or transferor. Subsection (b) preserves ad valorem property tax, sales tax, and use tax, so the prohibition is aimed squarely at a gains levy rather than at transaction taxes generally. THIS IS THE EXACT MIRROR OF WASHINGTON: both states have no general income tax, and where Washington enacted a standalone capital gains excise, Texas constitutionally foreclosed one -- including, unusually, the excise-tax framing Washington used to survive its own constitutional challenge.

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