Combined rate and how to defer it in North Carolina.
North Carolina has been reducing its income tax rate in recent years; at 4.50%, the combined capital gains rate for investment property reaches 28.3% (20% federal + 3.8% NIIT + 4.50% state), and further reductions may be scheduled.
North Carolina taxes capital gains as ordinary income at 4.50% at the state level, with the rate scheduled to continue declining. Combined with federal, the current total is 28.3%. Estimate the full bill with depreciation recapture in the capital gains tax calculator.
A 1031 like-kind exchange defers the combined 28.3% rate by reinvesting all proceeds into a qualifying replacement property. Model it in the 1031 exchange calculator and track your deadlines with the timeline calculator.