We are residents of Colorado but sold property in Texas. I now that we have to pay capital gains but I don't know how or to whom, Texas or Colorado and at what percent?

[TomD8 · Accepted solution]

Texas has no capital gains tax.

Colorado bases it state income tax on your federal taxable income, which would include any taxable capital gain.  But Colorado allows you to deduct the gain on qualified transactions.  This web reference gives the details:  https://www.colorado.gov/pacific/sites/default/files/Income15.pdf