Combined rate and how to defer it in South Carolina.
South Carolina's top income tax rate on capital gains reaches 6.40%, bringing the combined investment property rate to 30.2% (20% federal + 3.8% NIIT + 6.40% state), which sits in the upper third nationally.
South Carolina taxes capital gains as ordinary income at up to 6.40% at the state level. Combined with federal, the total is 30.2%. See the full estimate including depreciation recapture with the capital gains tax calculator.
A 1031 like-kind exchange defers the combined 30.2% 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.