Calculators · Sale tax
Rental Property Sale Tax Calculator With Your State's Rate
The federal layers on a rental sale plus your state's rate on one worksheet, with the states that withhold at closing flagged and a link to each state's own rules.
What this calculator does
The federal arithmetic is the same in every state: a depreciation layer at up to 25%, a capital gain layer at 0%, 15% or 20%, and the 3.8% surtax above fixed thresholds. The state layer is where sellers get surprised, because the state usually taxes the whole gain at ordinary rates and, in eighteen states, takes a slice at the closing table unless the exchange exemption is filed first.
Pick your state to open its rules page, enter the rate it gives you, and the worksheet adds the state layer to the federal layers. For the equity comparison, use the 1031 exchange calculator.
Federal plus state
How the numbers are calculated
Federal layers follow Rev. Proc. 2025-32 and sections 1(h) and 1411, stacked on other taxable income (other income less the 2026 standard deduction). The depreciation layer is taxed at ordinary rates capped at 25%; the remaining gain at 0/15/20%; the 3.8% surtax on the smaller of the gain and the excess of income plus gain over $250,000 joint or $200,000 single.
The state layer is the realized gain times the rate you enter. States that exclude part of long-term gain or use graduated brackets need an effective rate; the state page explains how to find it. Withholding at closing is a prepayment, not an extra tax, and is refunded or credited on the state return.
Questions about this calculator
Why do I enter the state rate myself?
Every state's treatment is different: some tax the gain at a flat rate, some use graduated brackets, some exclude part of long-term gain, and nine have no income tax. The state page for your state gives the rate and the exceptions; the calculator applies whatever you enter to the whole gain.
What does the withholding flag mean?
The states flagged withhold a percentage of the price or gain at closing from nonresident sellers (and in some cases all sellers) unless the exchange exemption is claimed on the right form, often weeks before closing. See which states withhold at closing.
Does my state follow the 1031 deferral?
Every state with an income tax now conforms to section 1031 for real property, though several track the deferred gain and tax it when you later sell out of state. See does a 1031 defer state capital gains tax.
Sources
Figures checked on September 30, 2026. Rates and thresholds change each year; this page is general information, not tax or legal advice.
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