Combined rate and how to defer it in Texas.
Texas has no state income tax, so investment property sellers face only the federal rate on capital gains: up to 23.8% (20% federal + 3.8% NIIT, 0% state). Texas has neither a capital gains tax nor a personal income tax at the state level.
Texas does not tax personal income or capital gains at the state level. Capital gains on investment property in Texas are taxed federally only. Estimate the federal bill with depreciation recapture in the capital gains tax calculator.
A 1031 like-kind exchange defers the full 23.8% federal rate by reinvesting all proceeds into a replacement property. Model the exchange in the 1031 exchange calculator and track your deadlines with the timeline calculator.