Tennessee Capital Gains Tax
Tennessee levies no state income tax, so capital gains are not taxed at the state level in Tennessee. Whether you sell shares, a second property or other investments, there is no Tennessee state capital gains tax to pay. Federal capital gains tax still applies: the IRS taxes long-term gains (assets held over a year) at preferential rates and short-term gains at ordinary income rates. This page confirms, from the Tennessee Department of Revenue, that Tennessee has no state income tax and therefore no state capital gains tax, and links the federal capital gains calculator and the Tennessee sales and property tax pages so you can see your full tax position.
Tennessee has no state income tax, so there is no Tennessee capital gains tax. Federal capital gains tax still applies.
How Tennessee taxes capital gains
Tennessee has no state income tax, so capital gains are not taxed at the state level.
Tennessee capital gains tax: frequently asked questions
Does Tennessee tax capital gains?
No. Tennessee levies no state income tax, so capital gains are not taxed at the state level. Federal capital gains tax still applies; see the IRS for federal long-term and short-term rates.
Official sources
- Tennessee no income tax confirmation: Tennessee Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Tennessee Department of Revenue.