Rental Sale Tax Calculator

Selling a rental triggers two taxes at once: depreciation recapture (taxed at up to 25%) and capital gains on the rest of your profit. Estimate the full federal bill — plus NIIT and state tax — before you list, so the net proceeds don't surprise you. This is an estimate for planning purposes only — not tax advice. Consult a CPA before you sell.

The purchase

Original purchase price ($)

Land value at purchase ($)

Land can't be depreciated. Roughly 15–25% of the price is typical.

Years held

Decimals allowed (e.g., 0.5 = 6 months). Held >1 year = long-term gain.

Depreciation method

The sale

Selling price ($)

Selling costs (% of price)

Agent commissions + closing costs. Enter 0 if the buyer pays.

Your tax picture

Long-term capital gains rate

Which federal bracket your gain falls in. Short-term gains use your ordinary rate instead.

Ordinary income tax rate (%)

Your marginal rate. Only matters if you held the property under 1 year.

State tax rate on the gain (%)

Enter 0 if your state has no income tax.

Filing status

Only affects the Section 121 exclusion, below.

Add 3.8% Net Investment Income Tax (NIIT)

Applies to the gain if your income is above ~$200k single / $250k married.

Section 121 exclusion: it was my primary residence 2 of the last 5 years

Excludes up to $250k (single) / $500k (married) of gain — but not depreciation recapture. Rare for rentals.

How the math works

Adjusted basis = purchase price minus depreciation claimed (land is never depreciated). Depreciation is recaptured even if you forgot to deduct it.
Depreciation recapture = depreciation claimed, capped at your total gain, taxed at a flat 25% (unrecaptured §1250).
Capital gain = sale proceeds minus adjusted basis, minus the recapture slice. Held >1 year? Taxed at your long-term rate (0/15/20%). Held under a year? Taxed at your ordinary rate.
NIIT = 3.8% on the gain for high earners (>~$200k single / $250k married). State tax = your state's rate applied to the taxable gain.
Section 121 can exclude up to $250k/$500k of gain for a former primary residence — but recapture is still taxed.
The verdict weighs your effective federal tax rate. If the bill is heavy, a 1031 exchange can defer both recapture and capital gains — but the clock is strict.

Estimates only — not tax advice. Tax law is full of phaseouts and exceptions (AMT, passive loss carryforwards, installment sales). Run these numbers by a CPA before you list.