Combined rate and how to defer it in District of Columbia.
The District of Columbia's 10.75% top rate on capital gains puts the combined investment property figure at 34.5% (20% federal + 3.8% NIIT + 10.75% DC rate), among the highest in the country.
The District of Columbia taxes capital gains as ordinary income at up to 10.75%, added to the federal rate. Use the capital gains tax calculator to see the total tax including depreciation recapture.
A 1031 like-kind exchange defers the 34.5% combined rate when you reinvest all proceeds into a qualifying replacement property. Model your exchange in the 1031 exchange calculator and map your deadlines with the timeline calculator.