Combined rate and how to defer it in Pennsylvania.
Pennsylvania's flat 3.07% income tax on capital gains produces a combined investment property rate of 26.9% (20% federal + 3.8% NIIT + 3.07% state), one of the lower combined rates in the Mid-Atlantic region.
Pennsylvania taxes capital gains as ordinary income at a flat 3.07% state rate, on top of federal. Estimate the full bill including depreciation recapture with the capital gains tax calculator.
A 1031 like-kind exchange can defer the combined 26.9% rate by reinvesting all proceeds into a replacement property. Model it in the 1031 exchange calculator and get your 45-day and 180-day deadlines from the timeline calculator.