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1031 Tax Savings Calculator

Enter your property details. See your capital gains tax, depreciation recapture, and net proceeds, side by side: sell and pay vs. exchange and defer.

Calculator updated for 2026 federal and state tax rates.

Example numbers are loaded to show how this works. Replace them with your own.

Drag the sliders and watch your numbers update in real time.

Estimate for me
Based on 27.5-year straight-line depreciation: $81,455
%= $37,500

California taxes capital gains as ordinary income. Uses 13.3% top rate approximation.

If You Sell and Pay Tax

Adjusted Basis$293,545
Amount Realized$587,500
Estimated Realized Gain$293,955
Federal Capital Gains Tax (15.0%)$31,875
Depreciation Recapture Tax (25%)$20,364
NIIT (3.8%)$0Below $200,000 threshold
State Tax (13.3%)$39,096

Total estimated tax

$91,335

Effective rate: 31.1%

What you'd actually keep: $316,165

Have questions about these numbers? Talk to an advisor →

Now see what happens if you exchange instead

Calculator Disclaimer

This calculator provides estimates for educational purposes only and does not constitute tax, legal, or financial advice. The calculations are based on simplified assumptions and may not reflect your actual tax situation.

Tax laws are complex and subject to change. State tax rates shown are approximations and may vary based on your specific circumstances, local taxes, and deductions. Some states tax capital gains as ordinary income with progressive brackets; the rates shown are estimates.

A 1031 exchange has strict requirements including deadlines, like-kind property rules, and qualified intermediary requirements. Not all properties qualify. DSTs (Delaware Statutory Trusts) may qualify as replacement property but involve additional risks and considerations.

Before making any decisions about selling property or completing a 1031 exchange, consult with qualified tax and legal professionals who can evaluate your specific situation.