Combined rate and how to defer it in Maryland.
Maryland's 5.75% top income tax rate brings the combined capital gains figure for investment property to 29.6% (20% federal + 3.8% NIIT + 5.75% state). Note that Maryland also allows local income taxes that can increase your effective rate further.
Maryland taxes capital gains as ordinary income at up to 5.75% at the state level, and local income taxes may add more on top. Estimate the base combined bill including depreciation recapture with the capital gains tax calculator.
A 1031 like-kind exchange defers the 29.6% combined state-plus-federal rate, and local taxes on top, by reinvesting into a replacement property. Model the exchange in the 1031 exchange calculator and get your deadlines from the timeline calculator.