Combined rate and how to defer it in Rhode Island.
Rhode Island's top income tax rate on capital gains of 5.99% brings the combined investment property figure to 29.8% (20% federal + 3.8% NIIT + 5.99% state).
Rhode Island taxes capital gains as ordinary income at up to 5.99% at the state level. Combined with federal, the total is 29.8%. Estimate the full bill with depreciation recapture using the capital gains tax calculator.
A 1031 like-kind exchange defers the combined 29.8% rate by reinvesting all proceeds into a qualifying replacement property. Model it in the 1031 exchange calculator and check your deadlines with the timeline calculator.