Combined rate and how to defer it in Connecticut.
Connecticut's top capital gains rate of 6.99% brings the combined investment property figure to 30.8% (20% federal + 3.8% NIIT + 6.99% state), placing it among the higher-rate states in New England.
Connecticut taxes capital gains at rates up to 6.99% at the state level. Combined with federal, the total exposure is 30.8%. See the full picture including depreciation recapture in the capital gains tax calculator.
A 1031 like-kind exchange defers the combined 30.8% rate by directing all sale proceeds into a replacement property. Model your numbers in the 1031 exchange calculator and track your deadlines with the timeline calculator.