Combined rate and how to defer it in Mississippi.
Mississippi taxes capital gains as ordinary income at up to 4.70%, putting the combined rate for investment property at 28.5% (20% federal + 3.8% NIIT + 4.70% state).
Mississippi taxes capital gains as ordinary income at up to 4.70% at the state level. Combined with federal, the figure is 28.5%. Estimate the full bill with depreciation recapture in the capital gains tax calculator.
A 1031 like-kind exchange defers the 28.5% combined rate by reinvesting all proceeds into a replacement property. Model your exchange in the 1031 exchange calculator and check your deadlines with the timeline calculator.