How to Calculate Missouri's Capital Gains Tax

by Matt McGew

A capital gain occurs when you sell a capital asset such as a stocks or real estate for more than you paid for it. Missouri tax law requires you to pay a state capital gains tax in the year you realized the capital gain. Unlike the Internal Revenue Service, however, the state of Missouri does not differentiate between long-term and short-term capital gains. Therefore, you will pay the same Missouri capital gains tax regardless of the length of time you held the asset prior to sale.

Step 1

Add all individual capital gains to determine your total capital gain for the tax year. For example, assume your total capital gain for the tax year is $20,000.

Step 2

Find out the Missouri capital gains tax rate for the tax year for which you are filing. For 2011, the Missouri capital gains tax rate is 6 percent.

Step 3

Multiply your total capital gain by the Missouri capital gain tax rate expressed as a percent. Continuing the same example, $20,000 x .06 = $1,200. This figure represents your Missouri capital gains tax liability for the current tax year.