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Capital Gains Tax in New York
By Priya Raman
New York City residents pay even more on top of this.
New York City residents pay even more on top of this.
New York's top state income tax rate, 10.90%, applies to capital gains the same as wages, putting the state-plus-federal combined figure at 34.7% (20% federal + 3.8% NIIT + 10.90% state). New York City residents pay an additional local income tax on top of that number.
The 34.7% combined rate covers federal, NIIT, and New York state tax; it doesn't include New York City's local income tax, which applies on top for city residents and pushes their effective rate higher still. Get a fuller estimate, depreciation recapture included, from the capital gains tax calculator.
A 1031 exchange defers the state and federal portions, plus city tax where it applies, by reinvesting all sale proceeds into a replacement property. Build the swap in the 1031 exchange calculator and confirm your identification and closing deadlines with the timeline calculator.
For the deadline and boot mechanics behind the New York numbers above, read the 1031 exchange guide, then see how New York compares to other states in the rate table.