Combined rate and how to defer it in Colorado.
Colorado's 4.40% flat income tax rate pushes the combined capital gains figure to 28.2% (20% federal + 3.8% NIIT + 4.40% state) for investment property sellers, which lands in the middle of the national range.
Colorado taxes capital gains as ordinary income at a flat 4.40% state rate. Add that to federal and you are at 28.2% combined. See the full estimate with depreciation recapture in the capital gains tax calculator.
A 1031 exchange defers the full 28.2% combined rate when you reinvest all proceeds into a replacement property. Model your exchange in the 1031 exchange calculator and map your 45-day and 180-day deadlines with the timeline calculator.