Combined rate and how to defer it in Illinois.
Illinois applies a flat 4.95% income tax to capital gains, pushing the combined rate for investment property sales to 28.8% (20% federal + 3.8% NIIT + 4.95% state), flat-tax simplicity notwithstanding.
Illinois taxes capital gains as ordinary income at a flat 4.95% state rate. See the full estimate including depreciation recapture in the capital gains tax calculator.
A 1031 like-kind exchange defers the combined 28.8% rate by directing all proceeds into a replacement property. Model it in the 1031 exchange calculator and get your deadlines from the timeline calculator.