Do I Pay Taxes When I Sell My House in Missouri?
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We are home buyers, not tax preparers, so this page sticks to what the IRS and the Missouri Department of Revenue publish. Bring your closing statement to your CPA.
The Federal Home Sale Exclusion
IRS Publication 523 explains the exclusion: if you owned the home and used it as your main home for at least two of the five years before the sale, you can exclude up to $250,000 of gain, or up to $500,000 for most married couples filing jointly. Gain is the sale price minus selling costs and your basis, which is what you paid plus improvements.
Missouri Capital Gains After HB 594
Governor Kehoe signed HB 594 on July 10, 2025. The Missouri Department of Revenue says individuals can deduct 100% of capital gains reported for federal purposes when figuring Missouri adjusted gross income, starting January 1, 2025. That covers real estate. The corporate version waits until Missouri’s top individual rate drops to 4.5%.
Inherited Houses
For an inherited house, the starting basis is generally the value on the date of death, as described in IRS Publication 551. When heirs sell within a few months, the gain is often small. Get a date-of-death value in writing if you can.
Rentals Are Different
A rental does not qualify for the main home exclusion, and depreciation you took may be taxed federally when you sell. Ask your CPA how the Missouri capital gains deduction applies to your return.
What You Will See at Closing
Missouri has no statewide real estate transfer tax, so your statement shows recording and title charges instead. St. Louis City and County property taxes are billed for the calendar year and due by December 31, so the title company prorates the current year between buyer and seller. Back taxes are paid from proceeds; see selling with unpaid property taxes. The title company may also report the sale to the IRS on Form 1099-S.
Common Questions
Does Missouri tax the gain on a 2026 home sale?
For individuals, Missouri lets you subtract capital gains reported on your federal return, starting with tax year 2025 under HB 594. Confirm with your tax preparer.
Is there a transfer tax when I sell in St. Louis?
Missouri has no statewide real estate transfer tax. Your closing statement will still show recording fees and title charges.