Combined rate and how to defer it in Oregon.
Oregon has no sales tax, but its 9.90% top income tax rate on capital gains makes the combined investment property figure a notable 33.7% (20% federal + 3.8% NIIT + 9.90% state). The sales-tax absence does little to offset a gain of any size.
Oregon taxes capital gains as ordinary income at up to 9.90% at the state level, one of the higher rates in the country. Combined with federal, the total reaches 33.7%. See the full estimate with depreciation recapture in the capital gains tax calculator.
A 1031 like-kind exchange defers the combined 33.7% rate by reinvesting all proceeds into a qualifying replacement property. Model the exchange in the 1031 exchange calculator and track your deadlines with the timeline calculator.