Combined rate and how to defer it in Georgia.
Georgia's 5.39% capital gains rate adds to the federal bill, bringing the combined total for investment property sellers to 29.2% (20% federal + 3.8% NIIT + 5.39% state).
Georgia taxes capital gains as ordinary income at up to 5.39% at the state level. Combined with federal, you are looking at 29.2%. Run the full estimate with depreciation recapture in the capital gains tax calculator.
A 1031 exchange defers the full 29.2% combined rate by rolling all sale proceeds into a replacement property. See what defers in the 1031 exchange calculator and your deadlines in the timeline calculator.