Combined rate and how to defer it in Maine.
Maine's top income tax rate of 7.15% on capital gains brings the combined investment property figure to 31.0% (20% federal + 3.8% NIIT + 7.15% state), one of the higher combined rates in New England.
Maine taxes capital gains as ordinary income at up to 7.15% at the state level. Combined with federal, the total is 31.0%. Estimate the full bill including depreciation recapture with the capital gains tax calculator.
A 1031 like-kind exchange can defer the full 31.0% combined rate by reinvesting into a replacement property. Model it in the 1031 exchange calculator and track your 45-day and 180-day deadlines with the timeline calculator.