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Sellers

Capital Gains Tax by State Calculator

Taxes can take a huge bite out of your real estate profits. Calculate your combined federal and state capital gains tax liability when selling a US property.

How to use this calculator

  1. Enter your purchase price, sale price, and associated closing costs.
  2. Add any major capital improvements you made while owning it.
  3. Select how long you owned it and your tax filing status.
  4. Choose your state and enter your annual income to determine the correct tax brackets.

What your results mean

Your total tax bill is a combination of Federal Capital Gains (0%, 15%, or 20%), potentially the Net Investment Income Tax (3.8%), and your State Capital Gains tax. Nine states have no state income tax, while states like California can tax gains at 13%+.

5 ways to minimize state and federal capital gains

  • Hold the property for at least 366 days to qualify for much lower Long-Term Capital Gains rates.
  • Use the Section 121 Primary Residence exclusion if you lived in it for 2 of the last 5 years.
  • Keep meticulous receipts of all improvements (new roof, addition) — these increase your basis and lower your taxable gain.
  • Execute a 1031 Exchange to roll your profits into a new investment property tax-deferred.
  • If selling an investment property at a loss, you can use that loss to offset other capital gains.

Frequently asked questions