Capital Gains Tax in Florida

Florida has no state income tax, so a property sale here is taxed only at the federal level. The ceiling on that federal bill, once the net investment income tax is included, is 23.8%.

Florida's capital gains rate, broken down

Strip out the state layer entirely and this is what's left, with your own recapture figures available in the capital gains tax calculator.

• Federal rate: 20% on the long-term gain
• NIIT: 3.8%, triggered above the federal income threshold
• Florida: nothing, the state doesn't tax income at all

Where the 1031 exchange fits

Even without a state rate to worry about, deferring the federal 23.8% matters on a large sale. Run your numbers through the 1031 exchange calculator and get your exact deadlines from the timeline calculator.

Things to know before you exchange

• A Florida sale still needs a signed exchange agreement in place before closing, not after.
• Depreciation recapture on a Florida property is deferred right along with the rest of the gain in a 1031.