Your 1031 DST Authority
Capital Gains Tax Calculator
Estimate what a property sale really costs in tax for 2026 — the long-term capital-gains rate, depreciation recapture, the 3.8% surtax, and state tax, layer by layer.
Your numbers
Sale price, then commissions/closing costs you paid to sell.
What you paid, then capital improvements added over the years.
Cumulative depreciation claimed. This is recaptured at up to 25%.
Taxable income excluding this gain — sets your bracket and the 3.8% NIIT.
Most states tax the full gain as ordinary income. Use 0 for no-tax states.
Your estimate
| Component | Amount taxed | Tax |
|---|---|---|
| Depreciation recapture (up to 25%) | — | — |
| Long-term capital gain (0/15/20%) | — | — |
| Net investment income tax (3.8%) | — | — |
| State tax | — | — |
| Total | — |
A 1031 exchange — or a passive DST — can defer this entire bill, recapture and NIIT included. Talk to an advisor →
A property sale is taxed in four layers
The headline capital-gains rate is only one piece. This estimator builds the bill the way the IRS does — starting from your gain (amount realized minus your adjusted basis), then applying each layer that can sit on top of it.
- Depreciation recapture. The depreciation you claimed lowered your basis and is recaptured at sale — "unrecaptured Section 1250 gain," taxed at a federal rate of up to 25%.
- Long-term capital gain. The remaining appreciation is taxed at 0%, 15%, or 20% for 2026, stacked on top of your other income to find the rate.
- The 3.8% NIIT. Higher earners owe an extra 3.8% on the gain above the $200k single / $250k joint thresholds (frozen since 2013).
- State tax. Most states tax the full gain as ordinary income with no preferential rate.
About the 25% recapture rate
We apply the 25% maximum to the recapture layer. The true rate is your ordinary marginal rate capped at 25%, so at lower incomes your recapture tax may be less than shown — making this a conservative, worst-case estimate of that piece.
This tool is for general educational purposes only. It produces a simplified estimate, not tax advice, and omits many situational rules (stacking with other income, AMT, state-specific treatment, partial-year and like-kind nuances). Your actual tax depends on your full return. Always confirm with your CPA before acting.