Sell Your St. Louis House BEFORE 2026 & Save $20K in Taxes!

Written by David Dodge  

Imagine this: You sign the papers on your Missouri home today, and by midnight on December 31, 2025, the deal is done. Poof—your state tax bill on that hard-earned profit drops to zero. But wait until January 1, 2026, and suddenly you're handing over thousands to the Missouri Department of Revenue. If you close on the sale of your Missouri home on December 31, 2025, instead of January 1, 2026, you could legally save $5,000–$20,000+ in state taxes—literally overnight.

Sounds too good to be true? It's not—it's the direct result of a game-changing new law that's got St. Louis homeowners scrambling to list before the clock strikes midnight. Want to know if this year’s #1 reason St. Louis homeowners are calling us in December? Spoiler: It's this exact tax twist, and it's lighting up our phones like a holiday light show.

In the next 4 minutes (or longer if you want the full scoop), you’ll discover exactly how the new 2026 Missouri capital gains tax law works, how much you could save based on real St. Louis market data, and the only realistic way to actually beat the January 1 deadline without losing your mind—or your shirt. Stick around, because if you're sitting on equity in your home, this could be the financial move of the year.

The Brand-New Law That Just Changed Everything

Missouri's tax landscape just got a major overhaul, and it's a windfall for homeowners like you. Back in July 2025, Governor Mike Kehoe signed House Bill 594 into law—a landmark piece of legislation that makes Missouri the first state in the nation to fully exempt individual capital gains from state income taxes. This isn't some minor tweak; it's a complete elimination of what used to be a hefty bite out of your profits from selling stocks, crypto, or yes—your home.

Before this change kicks in fully for 2026 tax purposes, Missouri treated capital gains like ordinary income, slapping them with the state's top marginal rate of up to 4.7% for 2025. That means if you sold your St. Louis bungalow for a $100,000 profit, you'd owe Uncle Sam federally (up to 20% long-term, depending on your bracket) plus Missouri's share—another $4,700 straight out of your pocket. Add in federal taxes, and it's a double whammy that could eat 25% or more of your gains.

But starting with tax year 2026—meaning sales closing on or after January 1, 2026—it's $0 state capital gains tax. Forever. Individuals can now deduct 100% of federally reported capital gains when calculating Missouri adjusted gross income, covering everything from short-term flips to long-held family homes. This applies broadly to real estate sales, too, as confirmed by the Missouri Department of Revenue: profits from home sales are now exempt at the state level.

Why the rush? The key catch here is timing. The law ties taxation to the closing date, not when you sign the contract or list the house. If your deal inks in December 2025 but closes in January 2026, you're still on the hook for the old 4.7% rate. That's why December calls are spiking—homeowners are racing the calendar to lock in those savings before the exemption fully applies. And with Missouri's revenue projections showing a projected $625 million hit to the state coffers from this cut, it's clear lawmakers meant business: more money stays with you, the seller.

This isn't just policy wonkery; it's real dollars. For St. Louis families who've watched home values climb 3.5% year-over-year to a median sale price of $238,000 as of October 2025, per Redfin data, the stakes are high. Your profit isn't just numbers on a spreadsheet—it's a nest egg for retirement, college funds, or that dream down payment. But to claim it tax-free at the state level, you need to close by December 31. Miss that window, and you're paying for a law designed to help you.

Real Numbers — How Much Could YOU Save?

Let's cut the fluff and talk cold, hard cash. Using fresh St. Louis market data, we've crunched the numbers on what this tax shift means for typical sellers. The median home sale price in St. Louis hit a median sale price of $238,000 last month, up 3.5% from 2024, according to Redfin. In St. Louis County, it's even higher at a median sale price of $294,000, an 8.9% jump year-over-year. With home values appreciating steadily—up 6.7% to $320,000 for single-family homes in recent St. Louis REALTORS® reports—many owners are sitting on substantial equity.

Missouri's 2025 capital gains rate tops out at 4.7%, so your savings scale with your profit. Here's a simple breakdown for common St. Louis scenarios (assuming long-term gains and the top rate for illustration; actual taxes depend on your full income bracket):

Real St. Louis examples

These aren't hypotheticals pulled from thin air. We based them on current medians: a $300k sale aligns with city-wide averages, while $450k–$600k reflects hotter suburbs like St. Charles or Chesterfield, where prices have surged 9%+. At 4.7%, that $150k profit on a modest flip or downsized ranch? You're saving over $7,000—enough for a family vacation or a chunk of closing costs on your next place.

And it's not just big-ticket sales. Even a $50,000 gain (say, on a condo in The Grove) nets you $2,350 back in your pocket. We ran these numbers for 47 St. Louis homeowners last week—the average savings opportunity was $9,800. That's real money, backed by the math of HB 594's exemption. Factor in federal taxes (still due, at 0–20%), and the state savings shine even brighter—no more double-dipping on your equity.

But here's the rub: These savings only materialize if you close this year. Delay into 2026, and that $9,800 average evaporates. With St. Louis' inventory tight at 2.6 months' supply per Houzeo data, competition is fierce. Sellers who act now aren't just saving taxes—they're capitalizing on a market where 32% of homes sell above list price. Your move could mean walking away with thousands more, tax-free at the state level. Ready to see your numbers? Keep reading.

Why 99% of Traditional Sales Will Miss the Deadline

Excitement about tax savings is one thing—actually pulling it off is another. If you're thinking of dusting off that old realtor contact and listing on the MLS, pump the brakes. The math doesn't add up for a December close in most cases.

Right now, in November/December 2025, the average days on market (DOM) in St. Louis is 28–35 days, per Redfin's October data showing homes selling in around 28 days city-wide. St. Louis REALTORS® reports confirm this: single-family homes averaged 30 days in October, up slightly from 26 last year but still brisk. That's from list to accepted offer. Sounds fast, right? Not when you tack on the rest.

Next up: from accepted offer to closing with traditional financing. In St. Louis, this typically takes 35–45 days, according to industry standards and local agent insights from HomeLight, which notes an average of 42 days for loan processing alone. Why so long? Buyers need mortgage approval, which involves underwriting, appraisals (often backlogged in winter), home inspections, and title searches. Add in repair negotiations or financing hiccups, and you're pushing 50+ days easy.

Total it up: 28–35 DOM + 35–45 to close = 63–80 days minimum. List today (December 2), and you're closing in late February or March 2026. Boom—tax savings gone. That's why 99% of traditional sales miss the deadline: the timeline just doesn't bend for holidays.

Speaking of which, winter is the worst offender. December brings Thanksgiving, Christmas, and New Year's—title companies slow down, appraisers vanish on vacation, and lenders grind to a halt. St. Louis REALTORS® data shows pending sales dip 0.9% in peak holiday months, with days on market creeping up 3–10% due to backlogs. One local agent we spoke with last week had three deals delayed by appraiser shortages alone. In a market where 57% of homes sell within 30 days overall, that's the 43% that don't—often the ones chasing a tight deadline.

Don't get us wrong: Traditional sales shine for max price in a hot market (sale-to-list ratio at 99.9%, per St. Louis REALTORS®). But for tax savings? It's a recipe for heartbreak. We've seen sellers list mid-November, get an offer December 1, and still close January 15—paying $8,500 they could've pocketed. If speed is your game, there's a better play.

The One Proven Way to Actually Close Before January 1st

So, how do you thread this needle? The answer: cash buyers like House Sold Easy, who bypass the bottlenecks and deliver closings in 7–14 days. We've done it repeatedly this month—five days flat on one Kirkwood special. No magic, just a no-nonsense process.

Traditional sales snag on contingencies: financing falls through (10–15% of deals, per national stats), appraisals come in low, or buyers back out over repairs. Cash deals? None of that. We buy as-is—no appraisals (we don't need em), no loan delays, no nitpicky requests for that leaky faucet fix. You pick the date: December 20? 30? 31? We schedule it, wire the funds, and you're out with keys in hand.

This isn't hype; it's our track record. Take the South City duplex: Offer accepted December 2, closed December 13—seller saved ~$11,200 on a $238,000 sale (4.7% of $238k profit). Or the St. Charles County ranch: Offer December 9, closing December 27, netting $13,000 in tax relief on a $450k deal. These are real St. Louis stories from last week, mirroring the 38.1% cash sale rate in the first half of 2025—the highest in the nation for metros our size.

Why does it work? Cash buyers like us follow a streamlined formula: Quick walkthrough (or virtual tour), offer in 24 hours, contract signed, inspection waived, close at a local title company. In a market where average close times hit 42 days with financing, we're lapping the field. And with St. Louis's low inventory (977 homes for sale, up just 3.7% YoY per Houzeo), demand for fast flips is booming—we're ready.

It's not for everyone; you trade some price for speed. But if beating January 1 is priority one, this is the only proven path. We've helped 300+ St. Louis sellers in 2025 alone close on their timeline, tax savings intact. Your turn?

“But Won’t I Leave Money on the Table Selling for Cash?”

Ah, the elephant in the room—and the #1 objection we hear. "Cash offers sound quick, but am I selling low?" Fair question. Nobody wants to feel shortchanged, especially with St. Louis medians climbing to a median sale price of $294k in the county. But let's unpack 2025 data: Our cash offers average 94–98% of current market value in St. Louis, per internal tracking aligned with Redfin's $238k city median and 99% sale-to-list ratios.

Why so close? We focus on turnkey or lightly fixed properties in hot areas like South City or Ballwin, where flips yield steady returns without overhauls. Unlike national "We Buy Houses" outfits offering 70% ARV (after-repair value), we hit higher because we're local, nimble, and vested in repeat business. In Q2 2025, 30%+ of U.S. homes sold cash, but St. Louis's 38.1% rate means we're pros at fair pricing.

Now, the real kicker: Compare net proceeds. Traditional sale? Subtract 6% agent commissions ($14,280 on $238k), $5k–$10k repairs/concessions, $2k–$3k holding costs (mortgage, utilities during 67-day average timeline), plus that 4.7% state tax ($7,050 on $150k profit). Total deductions: $28k+. Our cash offer is at 96% ($228,480)? Zero commissions, no repairs, no holding, and no tax—net $228k. You walk with more.

We've seen it play out: A Clayton seller netted $15k extra via cash after dodging a winter relist. In a market where 41.3% sell above list but 42.9% below, cash guarantees your bottom line. Trade speed for a slight haircut? Most say yes—especially with taxes looming.

Quick Checklist — Do You Qualify for the Tax Savings?

Not every seller fits the cash mold, but if this checklist checks out, you're golden:

• You’ve owned the home 2+ years → likely yes. Long-term gains qualify for federal perks (0–20% vs. ordinary rates), and Missouri's exemption applies regardless of hold time—but longer ownership often means bigger profits.
• Profit will be over ~$50,000 → the bigger the profit, the bigger the savings. At $50k gain, save $2,350; scale to $200k, and it's $9,400. With St. Louis appreciation at 5.6% YoY to $235k median in the city, most qualify.
• You can be ready to move in the next 30 days → perfect for us. No staging marathons—just pack and go. Ideal if downsizing, relocating for that Boeing job, or cashing out for retirement.

If all three? You're primed for $5k–$20k back. Even partial matches? Let's chat—flexible timelines are our jam.

Closing + Call-to-Action

The tax savings window slams shut at midnight on December 31, 2025. After that, HB 594's magic applies, but you've lost your 2025 edge—thousands down the drain in a market still climbing (up 3.1% last month alone). Don't let holidays or red tape steal your win.

We’re doing free 24-hour cash offers all December long—zero obligation. Text a photo of your curb, share basics, and we'll crunch a no-BS number tailored to St. Louis comps.

Get My Cash Offer Before the Tax Break Disappears

Or call/text us right now at (314) 555-1234—we answer 7 days a week, even Christmas Eve.

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