Combined rate and how to defer it in Virginia.
Virginia's top income tax rate of 5.75% on capital gains brings the combined investment property figure to 29.6% (20% federal + 3.8% NIIT + 5.75% state).
Virginia taxes capital gains as ordinary income at up to 5.75% at the state level. Combined with federal, the total is 29.6%. See the full estimate with depreciation recapture in the capital gains tax calculator.
A 1031 like-kind exchange defers the combined 29.6% 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.