Section 1031 is federal law, but the tax bill on a sale is set by the state where the property sits. These pages cover what each state adds: its tax on real estate gains, withholding at closing, deferred-gain tracking, transfer taxes, and how a DST replacement property fits.
Why the state matters
Every state with an income tax now follows the federal deferral, so a properly completed exchange defers state tax as well as federal tax. The differences are in the mechanics: some states withhold part of the price at closing unless the seller files an exchange exemption, a few keep tracking the deferred gain after the replacement property leaves the state, and transfer or documentary taxes are usually owed on the sale whether or not it is part of an exchange.
Each page lists the official sources it was checked against and the date of the last review. The federal rules that apply everywhere are explained on What is a 1031 exchange, eligibility and requirements and the 45- and 180-day deadlines.
CT
Conveyance Tax Tiers, 6.99% Top Rate and DSTs
Read the Connecticut rulesME
REW Withholding, Transfer Tax Tiers and DSTs
Read the Maine rulesMA
Form NRW, the 4% Surtax and Claw-Back
Read the Massachusetts rulesNH
Transfer Tax, Business Profits Tax, DSTs
Read the New Hampshire rulesNJ
Exit Tax, GIT/REP-3, Mansion Tax and DSTs
Read the New Jersey rulesNY
IT-2663, Transfer Taxes and NYC Rules
Read the New York rulesPA
Act 53, Transfer Tax and DST Options
Read the Pennsylvania rulesRI
6% Withholding, Conveyance Tax and DSTs
Read the Rhode Island rulesVT
2.5% Withholding, Transfer Tax and Land Gains Tax
Read the Vermont rulesAL
Nonresident Withholding, Deed Tax and 5% Rate
Read the Alabama rulesAR
50% Gain Exclusion, 3.7% Rate and Transfer Tax
Read the Arkansas rulesDE
4% Transfer Tax, REW-EST Withholding and DSTs
Read the Delaware rulesFL
Doc Stamps, Reset Caps and Out-of-State DST Tax
Read the Florida rulesGA
G-2RP Withholding, the 4.99% Flat Tax and DSTs
Read the Georgia rulesKY
3.5% Flat Tax, Deed Tax, Basis Rules and DSTs
Read the Kentucky rulesLA
Flat 3% Tax, Community Property and DSTs
Read the Louisiana rulesMD
8.75% Withholding, County Tax and DSTs
Read the Maryland rulesMS
4% Rate, 5% Withholding and No Transfer Tax
Read the Mississippi rulesNC
3.99% Flat Tax, Excise Stamps, NC-1099NRS
Read the North Carolina rulesSC
I-290 Withholding, 44% Deduction and DSTs
Read the South Carolina rulesTN
No Income Tax, Franchise and Excise Tax, FONCE
Read the Tennessee rulesVA
Grantor Tax, Northern Virginia Fees and DSTs
Read the Virginia rulesWV
NRAE Withholding Exemption and 2026 Rates
Read the West Virginia rulesIL
Transfer Stamps, Chicago Rates and the 4.95% Tax
Read the Illinois rulesIN
2.95% Flat Tax, County LIT and Property Tax Caps
Read the Indiana rulesIA
Farmland Gain Deduction, Transfer Tax and DSTs
Read the Iowa rulesKS
No Deed Tax, Use-Value Farmland and DSTs
Read the Kansas rulesMI
Uncapping, the Flat 4.25% and Transfer Tax
Read the Michigan rulesMN
9.85% Top Rate, the 1% NIIT and Deed Tax
Read the Minnesota rulesMO
No State Capital Gains Tax, No Transfer Tax
Read the Missouri rulesNE
Documentary Stamp Tax, Falling Rates and DSTs
Read the Nebraska rulesND
Low Rates, Mineral Rights, No Deed Tax
Read the North Dakota rulesOH
2.75% Flat Tax, Conveyance Fees and Municipal Tax
Read the Ohio rulesSD
No Income Tax, Transfer Fee, Trust Law
Read the South Dakota rulesWI
the 30% Gain Exclusion, Transfer Fee and DSTs
Read the Wisconsin rulesAZ
2.5% Flat Tax, LPV Cap and No Transfer Tax
Read the Arizona rulesNM
5.9% Rate, Capped Gain Deduction, No Deed Tax
Read the New Mexico rulesOK
Five-Year Gain Deduction, Minerals and DSTs
Read the Oklahoma rulesTX
No Income Tax, Franchise Tax and Appraisal Caps
Read the Texas rulesAK
No Income Tax, Transfer-Tax Ban and Property Tax
Read the Alaska rulesCA
FTB 3840, Form 593 Withholding and 13.3% Tax
Read the California rulesCO
DR 1083 Withholding, the 4.4% Flat Tax and DSTs
Read the Colorado rulesHI
HARPTA, Conveyance Tax and DST Options
Read the Hawaii rulesID
The 60% Capital Gains Deduction, Farmland and DSTs
Read the Idaho rulesMT
Deferred-Gain Tracking, Capital Gains Rates, DSTs
Read the Montana rulesNV
No Income Tax, County Transfer Tax Rates and DSTs
Read the Nevada rulesOR
Deferred-Gain Tracking, Withholding and DSTs
Read the Oregon rulesUT
Flat 4.5% Tax, No Transfer Tax, Property Assessment
Read the Utah rulesWA
REET, the Capital Gains Tax Exclusion and DSTs
Read the Washington rulesWY
No State Tax on the Gain, Trust Law and DSTs
Read the Wyoming rulesBreakwater Exchange is licensed in all 50 states. Tell us where the property is and when it closes, and an advisor will send a free proposal with replacement options that fit your deadlines.
DST marketplace · Preview
Three of twelve sample structures: asset class, leverage, minimum and hold. The sponsor, the distributions paid and the offering size are what marketplace access adds, after a short suitability call. Request access and the current list follows.
Pacific Northwest · West
A newer mid-rise community in a supply-constrained coastal market, carrying more leverage for sellers with large loans to replace.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Carolinas · Southeast
A neighbourhood center anchored by a regional grocer, with a mix of national and local in-line tenants.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Flagship state university · Southeast
Purpose-built student housing within walking distance of a large public university, leased by the bed.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Sample offerings: hypothetical illustrations of structure types, not actual or current offerings. Photos are representative of each asset class. Current offerings are private placements for accredited investors, described by private placement memorandum.
Free 1031 proposal
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