1031 Exchange Calculator
Estimate the federal capital-gains tax, the depreciation-recapture portion, your state tax, and the 3.8% net-investment income tax (NIIT) when it applies. Then see what a 1031 exchange could defer.
Recapture applies to depreciation you could have taken, even if you never claimed it. If you used cost segregation, bonus depreciation, or acquired this property through an earlier exchange, your actual figure is likely higher. Capital improvements depreciate separately and aren't counted here.
Federal capital gains
Long-term rates apply when the property was held more than a year. For 2026: 0% below $49,450 single / $98,900 joint, 15% through $545,500 / $613,700, 20% above. A 1031 exchange defers this tax by rolling the gain into the replacement property.
Depreciation recapture
Depreciation taken during ownership is recaptured under Section 1250 at up to 25%, regardless of your ordinary income bracket. A properly structured 1031 exchange defers this along with the capital gain.
State income tax
Most states tax capital gains as ordinary income. California taxes up to 13.3%. Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Washington’s separate capital gains excise tax does not apply to real estate. California, Oregon, Montana, and Massachusetts track deferred gains across state lines.
Net investment income tax
An additional 3.8% applies when modified AGI exceeds $200,000 (single) or $250,000 (joint). These thresholds have not been indexed for inflation since 2013. A 1031 exchange defers NIIT because the gain is not recognized in the year of the exchange.
Ready to run the real numbers?
A coordinator will review your specific property, confirm the tax figures with your CPA, and walk through replacement options that match your timeline.
Educational use only. This calculator is a hypothetical computational tool for general informational and educational purposes. It does not constitute tax, legal, investment, or financial advice. Individual circumstances vary. Tax rates and thresholds are based on 2026 published figures and are subject to change. Consult a qualified tax professional before making any tax-related decisions. LRC 1031 is a brand of APX 1031 Exchange Services, a qualified intermediary. No offer to sell securities is being made on this page.