Missouri could soon become the first US state to completely eliminate capital gains tax. This is a move that has a major impact on crypto holders, stock investors and real estate stakeholders.
Missouri House of Representatives Bill 594, which passed the final vote in the state legislature, is awaiting signing Gov. Mike Kehoe. If signed, we will provide a 100% income tax credit on all capital gains, including profits from digital assets such as Bitcoin and XRP.
At the time of writing, Bitcoin is trading above $104,000, with XRP holding $2.38.
The proposal arrives weeks after President Trump floats a massive federal tax reform plan to scrap income taxes and replace revenues from import duties. “If tariffs are cut, the income tax for many people will be significantly reduced and perhaps completely eliminated,” Trump said in the Truth Social Post on April 27th.
For now, all eyes belong to Governor Keho, who has not publicly committed to signing the bill. But if that were the case, Missouri could, likewise, become America’s most tax nation for crypto and stock investors.
Prior to the changes proposed in House Bill 594, Missouri taxed capital gains as normal income. This meant that profits from the sale of assets such as stocks, real estate, cryptocurrency and other assets would be subject to the state’s progressive income tax rates ranging from 0% to 4.7% based on income class.
For example, individuals with capital gains of $350,000 are classified into the highest tax range, resulting in a state tax liability of approximately $16,273.55 for those benefits.