{"id":413156,"date":"2024-11-28T16:10:57","date_gmt":"2024-11-28T16:10:57","guid":{"rendered":"https:\/\/seedlegals.com\/?p=413156"},"modified":"2024-11-28T16:10:57","modified_gmt":"2024-11-28T17:10:57","slug":"a-state-by-state-analysis-of-how-qualified-small-business-stock-qsbs-is-treated","status":"publish","type":"post","link":"https:\/\/seedlegals.com\/us\/resources\/a-state-by-state-analysis-of-how-qualified-small-business-stock-qsbs-is-treated\/","title":{"rendered":"A state-by-state analysis of how Qualified Small Business Stock (QSBS) is treated"},"content":{"rendered":"","protected":false},"excerpt":{"rendered":"<p>Qualified Small Business Stock (QSBS) can offer amazing tax benefits for founders and investors \u2013 potentially giving you a 100% exemption on federal capital gains taxes, up to $10 million or 10 times your original investment amount, whichever is greater. The rules for QSBS are in Section 1202 of t<\/p>\n","protected":false},"author":169,"featured_media":413214,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[141],"tags":[],"event_tags":[],"class_list":["post-413156","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized-us"],"acf":{"blog_layout":"v2","v2":{"hero":{"image_background_color":"#E7F1FF","image_fit":"img--cover"},"adverts":[{"type":"selector","selected_advert":{"ID":412063,"post_author":"77","post_date":"2024-11-11 09:44:14","post_date_gmt":"2024-11-11 09:44:14","post_content":"","post_title":"US - Start free","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-start-free","to_ping":"","pinged":"","post_modified":"2024-11-13 16:18:26","post_modified_gmt":"2024-11-13 16:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/seedlegals.com\/?post_type=blog_advert&#038;p=412063","menu_order":0,"post_type":"blog_advert","post_mime_type":"","comment_count":"0","filter":"raw"},"custom_advert":{"advert_tracking_id":"","layout":"default","image":{"image":false,"link":""},"text":{"heading":"","content":"","button":null,"background_color":"#EEF4FF","text_color":"#000646"},"form":{"form":{"type":"none","hubspot_form":{"layout":"newsletter","hide_founderinvestor_toggle":false,"default_community":"founder","custom_form_id":"","gdpr_disclaimer":"By subscribing, you agree to receive information from SeedLegals. You can unsubscribe anytime. View our <a href=\"\/privacy-policy\/\" target=\"_blank\" rel=\"noopener noreferrer\">privacy policy<\/a>"},"custom":{"embed":""},"gtm_form_type":false,"gtm_form_location":false}},"cta_and_testimonials":{"heading":"","button":null,"bullet_points":false,"testimonials":false}}}],"related_sidebar_posts":false},"show_author_card":false,"revision_date":"","hero_image":413214,"has_custom_post_authors":true,"is_expert_reviewed":true,"post_content_width":"default","post_content":[{"acf_fc_layout":"text","text":"<p>Qualified Small Business Stock (QSBS) can offer amazing tax benefits for founders and investors \u2013 potentially giving you a 100% exemption on federal capital gains taxes, up to $15 million or 10 times your original investment amount, whichever is greater.<\/p>\n<p>But to fully benefit from QSBS tax relief, you\u2019ll need to have set your company up as a C corporation and held the stock for at least five years before it\u2019s sold.<\/p>\n<p>Only C corporations can issue QSBS, but a company can convert from another structure (such as an LLC or an S corporation) to a C corporation and issue QSBS (as long as the other criteria are met).<\/p>\n<p>That said, if you were issued stock before conversion to a C corporation, you could still benefit from QSBS on that. The gains on that stock before the conversion won\u2019t qualify for QSBS. But gains on the stock after the conversion can qualify for QSBS (provided the company meets the other requirements).<\/p>\n<p>The rules for QSBS are in <a href=\"https:\/\/uscode.house.gov\/view.xhtml?path=\/prelim@title26\/subtitleA\/chapter1\/subchapterP\/part1&amp;edition=prelim\" target=\"_blank\" rel=\"noopener\">Section 1202 of the Internal Revenue Code<\/a>. But at state level QSBS can be treated differently. So, it\u2019s important to know your state\u2019s rules to plan your QSBS tax benefits. In this article, we\u2019ll cover how QSBS is treated in each state.<\/p>\n"},{"acf_fc_layout":"content_highlight","highlight_type":"tip","background_colour":"blue","show_icon":true,"content":"If you\u2019re a founder and want to understand how QSBS can help save you and your investor money, check out our <a href=\"https:\/\/seedlegals.com\/us\/resources\/qsbs-for-founders\/\" target=\u201d_blank\u201d>QSBS guide for founders<\/a>.<br \/>\r\n<br \/>\r\nInvestors, if you want to know how to qualify for QSBS and potentially save millions in capital gains taxes, we\u2019ve written an article on <a href=\"https:\/\/seedlegals.com\/us\/resources\/qsbs-for-investors\/\" target=\u201d_blank\u201d>QSBS for investors<\/a>.","link":""},{"acf_fc_layout":"text","text":"<h2><strong>How does each state treat QSBS?<\/strong><\/h2>\n<p>The map and table below show how each state treats QSBS.<\/p>\n<p><strong>Full QSBS benefit:<\/strong> These states follow the federal QSBS rules. This means you\u2019ll get the same QSBS federal tax benefits at state level too.<br \/>\n<strong>No state income tax:<\/strong> This means QSBS gains are not subject to any state income tax. If you receive capital gains from QSBS, you won&#8217;t pay state taxes on these gains.<br \/>\n<strong>No state capital gains tax:<\/strong> This means there\u2019s no state tax on capital gains for individuals. If you receive capital gains from QSBS in these states, you won&#8217;t pay any state taxes on the gains.<br \/>\n<strong>Partial state QSBS benefit:<\/strong> This means you may receive some state tax benefits, but they won\u2019t be as favorable as states that fully conform to federal QSBS.<br \/>\n<strong>No state QSBS benefit:<\/strong> This means you won&#8217;t receive any tax benefits for QSBS at state level.<\/p>\n"},{"acf_fc_layout":"image","image":{"ID":413391,"id":413391,"title":"Us How Each State Treats Qsbs","filename":"US-how-each-state-treats-QSBS.png","filesize":133176,"url":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS.png","link":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS.png","alt":"Us How Each State Treats Qsbs","author":"138","description":"Us How Each State Treats Qsbs","caption":"Us How Each State Treats Qsbs","name":"us-how-each-state-treats-qsbs","status":"inherit","uploaded_to":413156,"date":"2024-11-26 16:42:11","modified":"2024-11-26 16:42:12","menu_order":0,"mime_type":"image\/png","type":"image","subtype":"png","icon":"https:\/\/seedlegals.com\/wp-includes\/images\/media\/default.png","width":2400,"height":2299,"sizes":{"thumbnail":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS-150x150.png","thumbnail-width":150,"thumbnail-height":150,"medium":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS-300x287.png","medium-width":300,"medium-height":287,"medium_large":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS.png","medium_large-width":768,"medium_large-height":736,"large":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS-1024x981.png","large-width":1024,"large-height":981,"_themosis_media":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS-100x100.png","_themosis_media-width":100,"_themosis_media-height":100,"1536x1536":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS-1536x1471.png","1536x1536-width":1536,"1536x1536-height":1471,"2048x2048":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS-2048x1962.png","2048x2048-width":2048,"2048x2048-height":1962,"themosis":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS-200x150.png","themosis-width":200,"themosis-height":150,"tog-small":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS-300x287.png","tog-small-width":300,"tog-small-height":287,"tog-medium":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS-600x575.png","tog-medium-width":600,"tog-medium-height":575,"tog-large":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS-1000x958.png","tog-large-width":1000,"tog-large-height":958,"tog-huge":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/11\/US-how-each-state-treats-QSBS-1400x1341.png","tog-huge-width":1400,"tog-huge-height":1341}},"caption":"","width":"100","alignment":"left"},{"acf_fc_layout":"text","text":"<table style=\"border-collapse: collapse; width: 97.7539%; height: 1223px;\">\n<tbody>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\"><strong>State<\/strong><\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\"><strong>How QSBS is treated<\/strong><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">1. Alabama<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">No state QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">2. Alaska<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">No state income tax<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">3. Arizona<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">4. Arkansas<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">5. California<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">No state QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">6. Colorado<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">7. Connecticut<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">8. Delaware<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">9. Florida<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">No state income tax<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">10. Georgia<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\"><span style=\"font-weight: 400;\">11. Hawaii<\/span><\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Partial state QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">12. Idaho<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">13. Illinois<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">14. Indiana<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">15. Iowa<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">16. Kansas<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">17. Kentucky<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">18. Louisiana<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\"><span style=\"font-weight: 400;\">Full QSBS benefit<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">19. Maine<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">20. Maryland<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\"><span style=\"font-weight: 400;\">Full QSBS benefit<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 23px; border-style: solid; border-color: #000000; background-color: #ffffff;\">21. Massachusetts<\/td>\n<td style=\"width: 50%; height: 23px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">22. Michigan<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">23. Minnesota<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\"><span style=\"font-weight: 400;\">Full QSBS benefit<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">24. Mississippi<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">No state QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">25. Missouri<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">26. Montana<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">27. Nebraska<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">28. Nevada<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">No state income tax<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">29. New Hampshire<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">No state capital gains tax<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">30. New Jersey<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">No state QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">31. New Mexico<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\"><span style=\"font-weight: 400;\">32. New York<\/span><\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">33. North Carolina<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">34. North Dakota<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">35. Ohio<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">36. Oklahoma<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">37. Oregon<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">38. Pennsylvania<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">No state QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">39. Rhode Island<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">40. South Carolina<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">41. South Dakota<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">No state income tax<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">42. Tennessee<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">No state capital gains tax<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">43. Texas<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">No state income tax<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">44. Utah<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\"><span style=\"font-weight: 400;\">45. Vermont<\/span><\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">46. Virginia<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">47. Washington<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\"><span style=\"font-weight: 400;\">No state income tax<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\"><span style=\"font-weight: 400;\">48. West Virginia<\/span><\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">49. Wisconsin<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">Full QSBS benefit<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\">50. Wyoming<\/td>\n<td style=\"width: 50%; height: 24px; border-style: solid; border-color: #000000; background-color: #ffffff;\"><span style=\"font-weight: 400;\">No state income tax<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n"},{"acf_fc_layout":"text","text":"<h2><strong>I don\u2019t live in a QSBS-friendly state. How can I maximize my tax saving on my QSBS?<\/strong><\/h2>\n<p>Some states don\u2019t offer the same QSBS exclusions that are available at federal level, (specifically California, Pennsylvania, New Jersey, Mississippi, Alabama, and Hawaii). If you live in one of these states the only way you can benefit from the full exclusion is to move to a tax-friendly state before selling your shares \u2013 it\u2019s the state you live in at the time of sale that matters. You could also transfer your shares to a trust based in a QSBS-friendly state, but there are additional complexities in doing this.<\/p>\n<h2 style=\"text-align: center;\"><strong>Got any questions? We\u2019ll get them answered<\/strong><\/h2>\n<p style=\"text-align: left;\"><a href=\"https:\/\/seedlegals.com\/us\/talk-to-us\/\" target=\"_blank\" rel=\"noopener\">Book a free call with our team<\/a> to find out how we can help with your fundraise.<\/p>\n<p>Want to try SeedLegals for free first? <a href=\"https:\/\/app.seedlegals.com\/signup\" target=\"_blank\" rel=\"noopener\">Start your 7-day free trial<\/a>.<\/p>\n"},{"acf_fc_layout":"form","layout":"custom","heading":"Get answers fast, for free","content":"Bring all your questions - we\u2019ve got the answers!\r\nWe\u2019ll match you with the right specialist.","custom":{"image":false,"button_text":"Get Started","form":{"type":"hubspot","hubspot_form":{"layout":"default","hide_founderinvestor_toggle":false,"default_community":"founder","custom_form_id":"21723609-6f1b-45c0-9691-77d462dc3bed","gdpr_disclaimer":"By subscribing, you agree to receive information from SeedLegals. You can unsubscribe anytime. 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